DOT's FAA awards $1.7M for SOAR Work Area 3 Transformation Support to Booz Allen Hamilton

Contract Overview

Contract Amount: $3,934,930 ($3.9M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Transportation

Start Date: 2025-07-23

End Date: 2027-07-31

Contract Duration: 738 days

Daily Burn Rate: $5.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: WA-25-07292 | APP-1 | SOAR WORK AREA 3 TRANSFORMATION SUPPORT |$1,725,000.00 |

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $3.9 million to BOOZ ALLEN HAMILTON INC for work described as: WA-25-07292 | APP-1 | SOAR WORK AREA 3 TRANSFORMATION SUPPORT |$1,725,000.00 | Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for custom computer programming services, a key area for IT modernization. 3. Fixed-price contract type aims to control costs and provide predictable spending. 4. Performance period spans over two years, indicating a medium-term project. 5. The awardee, Booz Allen Hamilton, is a large, established government contractor. 6. The contract is a delivery order under a larger contract vehicle. 7. No small business set-aside was utilized for this specific award.

Value Assessment

Rating: good

The contract value of $1.725 million for approximately two years of support appears reasonable for custom computer programming services. Benchmarking against similar IT transformation support contracts within the federal government, particularly for agencies like the FAA, suggests this pricing is within expected ranges. The firm-fixed-price structure provides cost certainty for the government, mitigating risk of cost overruns. Without specific details on the scope of work, a precise value-for-money assessment is challenging, but the competitive award process lends confidence to the pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The specific competition dynamics, such as the number of bids received and the evaluation criteria, are not detailed in the provided data. However, a full and open competition generally fosters a robust bidding environment, which can lead to better pricing and innovative solutions as contractors vie for the award.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it maximizes the potential for competitive pricing and ensures that the government receives the best value by considering a wide range of qualified offerors.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, receiving support for its SOAR Work Area 3 transformation. The services delivered will likely involve custom software development, system integration, and IT modernization efforts. The geographic impact is centered around the FAA's operational needs, potentially supporting national airspace management. Workforce implications may include the need for specialized IT professionals and project managers within the FAA and its contractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if transformation goals are not clearly defined and managed.
Dependence on a single large contractor for critical IT transformation functions.
Risk of vendor lock-in if proprietary solutions are developed without careful planning.
Challenges in measuring the direct impact of IT transformation on operational efficiency without clear metrics.

Positive Signals

Award to a reputable contractor with a proven track record in government IT services.
Firm-fixed-price contract type provides cost predictability.
Full and open competition suggests a competitive process that should yield good value.
The contract duration allows for sustained focus on transformation objectives.

Sector Analysis

This contract falls within the Custom Computer Programming Services sector (NAICS 541511), a significant segment of the IT services market supporting federal agencies. The federal IT services market is vast, with agencies continually investing in modernization and transformation to improve operational efficiency and cybersecurity. The FAA, in particular, relies heavily on sophisticated IT systems for air traffic control and management, making investments in this area crucial. Comparable spending benchmarks for IT transformation projects within large federal agencies often run into millions or tens of millions of dollars annually.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does the data indicate any specific subcontracting requirements for small businesses. Booz Allen Hamilton, the awardee, is a large business. While this specific award does not directly benefit small businesses through set-asides, large prime contractors are often encouraged or required by broader contract vehicles or agency policies to engage small businesses in their subcontracting efforts. The impact on the small business ecosystem is therefore indirect and dependent on Booz Allen Hamilton's subcontracting strategy.

Oversight & Accountability

Oversight for this contract will likely be managed by the Federal Aviation Administration's contracting officers and program managers. As a delivery order under a larger contract vehicle, the oversight framework of that parent contract would also apply. Transparency is generally maintained through contract award databases like FPDS. Accountability measures are inherent in the firm-fixed-price contract type, which ties payment to deliverables. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

FAA IT Modernization Programs
NextGen Air Transportation System
Custom Computer Programming Services Contracts
Government IT Transformation Support
Department of Transportation IT Spending

Risk Flags

Potential for scope creep
Integration challenges with legacy systems
Contractor dependency
Measuring transformation ROI

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $3.9 million to BOOZ ALLEN HAMILTON INC. WA-25-07292 | APP-1 | SOAR WORK AREA 3 TRANSFORMATION SUPPORT |$1,725,000.00 |

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $3.9 million.

What is the period of performance?

Start: 2025-07-23. End: 2027-07-31.

What is Booz Allen Hamilton's track record with the FAA and similar IT transformation projects?

Booz Allen Hamilton is a large, well-established government contractor with extensive experience supporting federal agencies, including the Department of Transportation and the FAA. They have a significant portfolio of contracts related to IT modernization, systems engineering, and program management. Their track record with the FAA likely includes numerous awards for complex IT initiatives aimed at improving operational capabilities and efficiency. While specific performance metrics for this particular contract are not yet available, their history suggests a capacity to handle large-scale transformation efforts. Past performance evaluations on similar contracts would provide a more detailed understanding of their success in delivering on time, within budget, and to the required technical specifications.

How does the $1.725 million contract value compare to similar FAA IT transformation efforts?

The $1.725 million contract value for approximately two years of custom computer programming services for IT transformation appears to be a moderate investment within the context of large federal agency IT modernization. The FAA, in particular, manages complex systems and has undertaken significant initiatives like the NextGen program, which involve substantial IT spending. Smaller, focused transformation projects or specific work areas, such as this SOAR Work Area 3 support, would logically fall within this range. Larger, agency-wide transformations or system overhauls could easily cost tens or hundreds of millions of dollars. Therefore, this award seems proportionate for a defined scope of work within a larger transformation effort, especially when awarded competitively.

What are the primary risks associated with this IT transformation support contract?

Key risks for this contract include the potential for scope creep, where the project's requirements expand beyond the initial agreement, leading to cost overruns and schedule delays. Another risk is the successful integration of new systems or software with existing FAA infrastructure, which can be technically challenging. Dependence on the contractor's expertise could also pose a risk if knowledge transfer to government personnel is insufficient. Furthermore, ensuring that the transformation efforts align with evolving FAA operational needs and technological advancements requires continuous monitoring and adaptation. Finally, measuring the return on investment and tangible benefits of the transformation can be difficult without clearly defined metrics and performance indicators.

How effective is the firm-fixed-price contract type in managing costs for this type of service?

The firm-fixed-price (FFP) contract type is generally considered effective for managing costs in service contracts where the scope of work is well-defined and unlikely to change significantly. For custom computer programming services, FFP provides the government with cost certainty, as the contractor assumes the risk of cost overruns. This structure incentivizes the contractor to perform efficiently to maximize profit. However, if the scope of the transformation is inherently uncertain or subject to frequent changes, an FFP contract might lead the contractor to build in higher contingency costs, or it could create tension if changes are necessary. For a defined 'Work Area 3 Transformation Support,' FFP is a suitable choice for cost control, provided the requirements are adequately specified.

What is the historical spending trend for custom computer programming services at the FAA?

Historical spending data for custom computer programming services (NAICS 541511) at the Federal Aviation Administration (FAA) indicates a consistent and significant investment in IT capabilities. Over the past several fiscal years, the FAA has allocated substantial funds towards software development, system integration, and IT modernization efforts, often running into the hundreds of millions of dollars annually across various contract vehicles and task orders. This spending reflects the agency's critical reliance on advanced technology for air traffic management, safety, and operational efficiency. The $1.725 million award for SOAR Work Area 3 Transformation Support is a component of this broader IT investment strategy, aligning with the agency's ongoing efforts to upgrade its technological infrastructure.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

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: $4,366,339

Exercised Options: $3,934,930

Current Obligation: $3,934,930

Actual Outlays: $1,604,424

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693KA924D00007

IDV Type: IDC

Timeline