GSA Awards Booz Allen Hamilton $1.07B for Real-Time Threat Analysis and Readiness Support

Contract Overview

Contract Amount: $1,070,585,832 ($1.1B)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2020-06-26

End Date: 2025-06-25

Contract Duration: 1,825 days

Daily Burn Rate: $586.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: THE PURPOSE OF THIS EFFORT IS TO ACQUIRE CONTRACTOR SERVICES TO PROVIDE REAL-TIME, COMPREHENSIVE THREAT ANALYSIS AND ASSESSMENT, TRAINING DEVELOPMENT AND DELIVERY, READINESS AND MODERNIZATION SUPPORT, AND LOGISTICS AND EQUIPMENT SERVICES.

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310

State: North Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $1.07 billion to BOOZ ALLEN HAMILTON INC for work described as: THE PURPOSE OF THIS EFFORT IS TO ACQUIRE CONTRACTOR SERVICES TO PROVIDE REAL-TIME, COMPREHENSIVE THREAT ANALYSIS AND ASSESSMENT, TRAINING DEVELOPMENT AND DELIVERY, READINESS AND MODERNIZATION SUPPORT, AND LOGISTICS AND EQUIPMENT SERVICES. Key points: 1. Contract focuses on critical areas: threat analysis, training, modernization, and logistics. 2. Booz Allen Hamilton, a major defense contractor, secured this significant award. 3. The contract spans five years, indicating a long-term need for these services. 4. Competition method is 'Full and Open', suggesting a broad search for qualified bidders.

Value Assessment

Rating: good

The contract type is Cost Plus Award Fee, which incentivizes performance but can lead to higher costs if not managed carefully. The total award value is substantial, requiring close monitoring of expenditures against deliverables.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The 'Full and Open Competition' method was used, indicating that multiple vendors had the opportunity to bid. This process generally promotes competitive pricing and allows the government to select the best value offering.

Taxpayer Impact: Taxpayer funds are being used for critical national security and readiness support services, with the aim of achieving best value through a competitive procurement process.

Public Impact

Enhances national security through real-time threat intelligence. Supports military readiness and modernization efforts. Provides essential training and logistics services. Leverages advanced contractor expertise in complex defense operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes exceed initial estimates.
Long-term contracts require ongoing performance evaluation.
Reliance on a single contractor for critical services.

Positive Signals

Full and open competition promotes best value.
Contract addresses critical defense needs.
Awardee has extensive experience in the sector.

Sector Analysis

This contract falls within Engineering Services, a broad category often supporting defense and national security initiatives. Spending in this sector is typically high due to the complexity and critical nature of the services required by government agencies.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as 'sb' is false. Larger prime contractors like Booz Allen Hamilton often subcontract to small businesses, but their direct role here is not specified.

Oversight & Accountability

The 'Full and Open Competition' suggests a structured procurement process. Oversight will be crucial to ensure Booz Allen Hamilton meets performance objectives and manages costs effectively throughout the contract's five-year duration.

Related Government Programs

Engineering Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Cost Plus Award Fee structure carries inherent cost escalation risk.
Long contract duration (5 years) requires sustained oversight.
Potential for vendor lock-in if alternatives are not explored.
Dependence on contractor for critical, real-time intelligence.
Lack of small business prime awardee may limit direct small business participation.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $1.07 billion to BOOZ ALLEN HAMILTON INC. THE PURPOSE OF THIS EFFORT IS TO ACQUIRE CONTRACTOR SERVICES TO PROVIDE REAL-TIME, COMPREHENSIVE THREAT ANALYSIS AND ASSESSMENT, TRAINING DEVELOPMENT AND DELIVERY, READINESS AND MODERNIZATION SUPPORT, AND LOGISTICS AND EQUIPMENT SERVICES.

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $1.07 billion.

What is the period of performance?

Start: 2020-06-26. End: 2025-06-25.

What specific metrics will be used to evaluate Booz Allen Hamilton's performance in threat analysis and readiness support?

Performance evaluation will likely involve metrics tied to the timeliness and accuracy of threat assessments, the effectiveness of training programs delivered, the successful implementation of modernization initiatives, and the efficiency of logistics and equipment support. Specific Key Performance Indicators (KPIs) would be detailed in the contract's Statement of Work (SOW) and performance work statement (PWS).

How will the government ensure cost control under the Cost Plus Award Fee structure for this large contract?

Cost control will be managed through rigorous oversight of incurred costs, regular audits, and performance-based award fees tied to achieving specific cost-efficiency targets. The government contracting officer will monitor expenditures closely, ensuring they align with the contract's objectives and preventing unnecessary cost growth. Benchmarking against similar services may also inform negotiations.

What is the potential impact of this contract on the broader defense technology and services sector?

This significant award to Booz Allen Hamilton underscores the continued demand for advanced threat analysis, modernization, and readiness support within the defense sector. It signals a substantial investment in these capabilities, potentially driving innovation and competition among other firms seeking to provide similar services or secure subcontracting opportunities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFCA20R0002

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MC LEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,171,440,742

Exercised Options: $1,171,440,742

Current Obligation: $1,070,585,832

Actual Outlays: $-685,930

Subaward Activity

Number of Subawards: 236

Total Subaward Amount: $97,562,157

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU108

IDV Type: IDC

Timeline