Booz Allen Hamilton awarded $496M contract for modernization analysis, readiness, capability, threat, and training services

Contract Overview

Contract Amount: $496,291,486 ($496.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2024-09-10

End Date: 2026-09-09

Contract Duration: 729 days

Daily Burn Rate: $680.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: SERVICE SOLUTIONS FOR MODERNIZATION ANALYSIS READINESS CAPABILITY THREAT AND TRAINING SSMARTT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20310

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $496.3 million to BOOZ ALLEN HAMILTON INC for work described as: SERVICE SOLUTIONS FOR MODERNIZATION ANALYSIS READINESS CAPABILITY THREAT AND TRAINING SSMARTT Key points: 1. Contract value of $496.3 million over two years indicates significant investment in strategic advisory services. 2. The 'All Other Professional, Scientific, and Technical Services' category suggests a broad scope of support. 3. A Cost Plus Award Fee (CPA) pricing structure incentivizes performance but requires careful oversight to manage costs. 4. The contract's duration of 729 days aligns with typical project lifecycles for complex analytical tasks. 5. Awarded by the General Services Administration (GSA), this contract likely supports multiple federal agencies. 6. The absence of small business set-aside flags suggests a focus on large, established prime contractors.

Value Assessment

Rating: good

The contract value of $496.3 million for a two-year period represents a substantial investment in specialized professional services. Benchmarking this against similar large-scale advisory contracts is challenging without more specific service details. However, the CPA pricing structure, while common for complex services, necessitates diligent monitoring to ensure costs remain reasonable and aligned with performance objectives. The General Services Administration's involvement suggests a standardized procurement process, which can contribute to fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment, which can lead to better pricing and service innovation. This approach allows the government to select the best value from a wide pool of qualified contractors.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and higher quality services due to robust market engagement. It ensures that public funds are used efficiently by leveraging the broadest possible range of contractor capabilities.

Public Impact

Federal agencies requiring strategic analysis, modernization planning, and threat assessment services are the primary beneficiaries. The contract will deliver critical insights and support for enhancing government capabilities and readiness. Services are likely to be delivered primarily in the Washington D.C. metropolitan area, given the awardee's location. The contract may indirectly impact the federal workforce by providing tools and analysis to improve operational efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Award Fee (CPA) structure can lead to cost overruns if not rigorously managed and monitored.
The broad nature of 'All Other Professional, Scientific, and Technical Services' could lead to scope creep if not clearly defined.
Reliance on a single large contractor for critical analysis may pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded fair pricing.
Booz Allen Hamilton is a well-established contractor with a significant track record in government services.
The contract's two-year duration allows for focused execution and delivery of defined objectives.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, a significant segment of federal spending. This sector encompasses a wide range of activities, including management consulting, scientific research, and technical support. Federal spending in this area often supports agency modernization efforts, policy development, and complex program management. Comparable spending benchmarks would depend on the specific sub-services rendered, but large contracts like this are common for strategic advisory roles supporting major government initiatives.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. This suggests that the primary focus is on the capabilities of the large prime contractor, Booz Allen Hamilton. While this may limit direct opportunities for small businesses as prime contractors on this specific award, it does not preclude them from potential subcontracting roles if the prime contractor chooses to engage them.

Oversight & Accountability

The General Services Administration (GSA) typically employs robust oversight mechanisms for its contracts, including performance monitoring and financial reviews. As a Cost Plus Award Fee contract, performance metrics and award fee criteria will be crucial for accountability. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Management and Consulting Services
Strategic Planning Support
Threat Analysis Services
IT Modernization Support
Federal Advisory Services

Risk Flags

Cost Plus Award Fee (CPA) pricing requires diligent oversight to manage potential cost escalations.
Broad service category ('All Other Professional, Scientific, and Technical Services') may present challenges in defining scope and preventing creep.
Contractor performance must be rigorously monitored to ensure achievement of award fee criteria.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $496.3 million to BOOZ ALLEN HAMILTON INC. SERVICE SOLUTIONS FOR MODERNIZATION ANALYSIS READINESS CAPABILITY THREAT AND TRAINING SSMARTT

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 $496.3 million.

What is the period of performance?

Start: 2024-09-10. End: 2026-09-09.

What is Booz Allen Hamilton's track record with similar large federal contracts, particularly those involving strategic analysis and modernization?

Booz Allen Hamilton has an extensive history of performing large, complex federal contracts across various agencies, including significant work in strategic analysis, IT modernization, threat assessment, and readiness capabilities. They are a major incumbent contractor for many government entities, often securing multi-year awards valued in the hundreds of millions of dollars. Their track record generally indicates a capacity to manage large programs and deliver on complex requirements, though like any large contractor, specific contract performance can vary. Reviews of past performance and contract awards would provide more granular detail on their success rates and areas of expertise within these broad service categories.

How does the $496.3 million contract value compare to typical spending for similar 'All Other Professional, Scientific, and Technical Services' contracts?

The $496.3 million contract value over two years is substantial, placing it among the larger awards within the 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) category. While this NAICS code is broad, encompassing diverse services, contracts of this magnitude typically involve extensive, high-level advisory, analytical, or research support for major government initiatives. Many federal agencies procure significant consulting and technical services, and awards in the hundreds of millions are not uncommon for strategic programs. However, without knowing the specific sub-services and the agencies involved, a precise comparison is difficult. It suggests a critical need for the services being procured.

What are the primary risks associated with a Cost Plus Award Fee (CPA) contract of this size and scope?

The primary risks associated with a CPA contract of this magnitude revolve around cost control and performance definition. For the government, the risk is that costs could escalate beyond initial projections if the award fee criteria are not tightly defined or if contractor performance is inefficiently managed. There's also a risk of 'gold-plating' or scope creep as the contractor seeks to maximize award fees. For the contractor, the risk lies in not meeting the performance targets required to earn the full award fee, impacting their profit margin. Effective oversight, clear performance metrics, and diligent financial management by the contracting agency are crucial to mitigate these risks and ensure value for taxpayer money.

What does the 'SSMARTT' acronym likely represent in the context of this contract, and how does it inform the service delivery?

The acronym 'SSMARTT' likely stands for 'Service Solutions for Modernization Analysis Readiness Capability Threat and Training'. This suggests the contract encompasses a comprehensive suite of services aimed at improving federal agencies' operational effectiveness. 'Modernization Analysis' points to evaluating and planning upgrades for systems or processes. 'Readiness Capability' implies ensuring agencies are prepared for various scenarios. 'Threat' indicates an assessment of potential risks and vulnerabilities, while 'Training' focuses on developing personnel skills. The acronym signals that the contractor will provide integrated solutions addressing these critical, interconnected areas to enhance overall government performance and security.

How might the General Services Administration (GSA) manage oversight for a contract awarded through its Federal Acquisition Service (FAS)?

The GSA's Federal Acquisition Service (FAS) manages a vast portfolio of government-wide acquisition solutions. For a contract like this, GSA's oversight would likely involve establishing clear performance work statements (PWS), defining specific metrics for the award fee structure, and conducting regular performance reviews. FAS contracting officers and specialists would monitor contractor progress, expenditures, and compliance with contract terms. They may also utilize program management support staff. Given the contract's value, robust financial tracking and reporting would be expected, ensuring that funds are used appropriately and that the contractor is meeting its obligations effectively to deliver the required modernization, readiness, threat, and training services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical 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: 47QFCA24R0016

Offers Received: 1

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: $2,572,026,895

Exercised Options: $749,387,526

Current Obligation: $496,291,486

Subaward Activity

Number of Subawards: 66

Total Subaward Amount: $108,331,423

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QFCA22D0406

IDV Type: IDC

Timeline