JAIC Awards $557.6M for AI Tech Services to Booz Allen Hamilton, Supporting JWNMI

Contract Overview

Contract Amount: $557,551,247 ($557.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2020-05-08

End Date: 2025-11-07

Contract Duration: 2,009 days

Daily Burn Rate: $277.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: THE JAIC REQUIRES OPEN ARCHITECTURE TECHNICAL SERVICES AND PRODUCTS (SOFTWARE AND/OR HARDWARE) ACROSS THE FULL SPECTRUM OF AI-ENABLED CAPABILITIES TO SUPPORT THE JWNMI.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $557.6 million to BOOZ ALLEN HAMILTON INC for work described as: THE JAIC REQUIRES OPEN ARCHITECTURE TECHNICAL SERVICES AND PRODUCTS (SOFTWARE AND/OR HARDWARE) ACROSS THE FULL SPECTRUM OF AI-ENABLED CAPABILITIES TO SUPPORT THE JWNMI. Key points: 1. Significant investment in AI capabilities for national security. 2. Booz Allen Hamilton, a major defense contractor, secures a large award. 3. Focus on open architecture suggests interoperability and future adaptability. 4. Potential for broad application of AI across military intelligence.

Value Assessment

Rating: good

The contract type is Cost Plus Award Fee, which allows for flexibility but requires careful monitoring of costs and performance to ensure value. The award amount is substantial, indicating a significant need for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process that should drive favorable pricing. The specific award mechanism is a delivery order against a larger contract.

Taxpayer Impact: The competitive nature of the award is intended to ensure taxpayer funds are used efficiently for critical AI development.

Public Impact

Enhances U.S. military's artificial intelligence capabilities. Supports the Joint Warfighting National Mission Intelligence (JWNMI) initiative. Promotes development of advanced AI software and hardware. Could lead to more integrated and effective intelligence operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can lead to cost overruns if not managed tightly.
Reliance on a single large contractor for critical AI services.
Potential for scope creep in a rapidly evolving AI field.

Positive Signals

Awarded through full and open competition.
Focus on open architecture promotes interoperability.
Supports a critical national security initiative.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, which is experiencing significant growth driven by defense and intelligence needs for advanced technologies like AI. Benchmarks for similar large-scale IT service contracts are typically in the hundreds of millions.

Small Business Impact

While the prime contractor is a large business, the contract's nature may offer opportunities for small businesses to participate as subcontractors, particularly in specialized AI development areas.

Oversight & Accountability

The General Services Administration (GSA) is overseeing this award, which is standard for IT services. Oversight will be crucial to manage costs, performance, and ensure adherence to open architecture principles.

Related Government Programs

Computer Systems Design Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Contract type (CPFF) requires diligent cost oversight.
Potential for vendor lock-in despite 'open architecture' clause.
Rapidly evolving AI technology may outpace contract scope.
Dependence on a single large prime for critical capabilities.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $557.6 million to BOOZ ALLEN HAMILTON INC. THE JAIC REQUIRES OPEN ARCHITECTURE TECHNICAL SERVICES AND PRODUCTS (SOFTWARE AND/OR HARDWARE) ACROSS THE FULL SPECTRUM OF AI-ENABLED CAPABILITIES TO SUPPORT THE JWNMI.

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 $557.6 million.

What is the period of performance?

Start: 2020-05-08. End: 2025-11-07.

What specific AI-enabled capabilities are being prioritized under this contract, and how do they align with current JWNMI objectives?

The contract broadly covers the full spectrum of AI-enabled capabilities. Specific priorities likely include areas such as machine learning for data analysis, natural language processing for intelligence gathering, computer vision for surveillance, and AI-driven decision support systems. Alignment with JWNMI objectives would focus on enhancing situational awareness, improving targeting accuracy, and accelerating intelligence processing cycles to support joint military operations.

What are the key performance indicators (KPIs) and award fee criteria used to evaluate Booz Allen Hamilton's performance and ensure cost-effectiveness?

While specific KPIs are not detailed, they would likely revolve around successful delivery of AI products and services, adherence to open architecture standards, system performance metrics, and timely completion of milestones. Award fee criteria would be tied to exceeding these KPIs, demonstrating innovation, and achieving specific mission objectives for JWNMI, thereby incentivizing high performance and cost control.

How will the 'open architecture' requirement be enforced to ensure interoperability and prevent vendor lock-in over the contract's duration?

Enforcement of the open architecture requirement will likely involve strict adherence to defined technical standards, APIs, and data formats throughout the development and integration process. Regular technical reviews, independent verification and validation, and potentially the use of modular design principles will be employed. This approach aims to ensure that components can be easily integrated, replaced, or upgraded, mitigating vendor lock-in and promoting long-term flexibility.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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

Offers Received: 6

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MCLEAN, 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: $841,692,627

Exercised Options: $684,738,670

Current Obligation: $557,551,247

Actual Outlays: $-490,182

Subaward Activity

Number of Subawards: 96

Total Subaward Amount: $61,729,335

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCK18D0004

IDV Type: GWAC

Timeline