DoD's $27.4M AWACS Communications Integration Program awarded to Booz Allen Hamilton Inc. faces scrutiny for lack of competition

Contract Overview

Contract Amount: $27,454,388 ($27.5M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2025-04-30

End Date: 2028-04-29

Contract Duration: 1,095 days

Daily Burn Rate: $25.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: AIRBORNE WARNING AND CONTROL SYSTEM (AWACS) COMMUNICATIONS INTEGRATION PROGRAM (ACIP) RAPID FIELDING

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $27.5 million to BOOZ ALLEN HAMILTON INC for work described as: AIRBORNE WARNING AND CONTROL SYSTEM (AWACS) COMMUNICATIONS INTEGRATION PROGRAM (ACIP) RAPID FIELDING Key points: 1. Contract awarded on a sole-source basis, raising concerns about price discovery and potential overpayment. 2. The 'Other Aircraft Parts and Auxiliary Equipment Manufacturing' sector sees significant investment, but this contract's specific value proposition needs deeper analysis. 3. Performance risk indicators are 'OK', suggesting current management is adequate, but the lack of competition limits external validation. 4. The contract duration of 1095 days (3 years) is substantial, requiring ongoing monitoring of performance and cost. 5. Focus on integrating communications for the Airborne Warning and Control System (AWACS) highlights critical defense infrastructure needs. 6. The absence of small business participation is noted, with no set-aside or subcontracting plans evident.

Value Assessment

Rating: questionable

The contract's value of $27.4 million for communications integration on AWACS aircraft requires careful benchmarking. Without competitive bids, it's difficult to ascertain if the pricing reflects fair market value. The 'COST PLUS FIXED FEE' (CPFF) contract type can sometimes lead to higher costs if not meticulously managed, as the contractor is incentivized to incur costs to achieve a fixed fee. Comparing this to similar integration programs within the DoD or other agencies would be crucial to assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Booz Allen Hamilton Inc., was solicited. This significantly limits the opportunity for price discovery and competition, which are typically drivers of cost savings for the government. The rationale for a sole-source award needs to be robustly justified to ensure that the government is not foregoing potential benefits from a competitive process.

Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible price for these critical communications integration services. Without competing offers, there's a higher risk of the contract being awarded at a price that exceeds what could have been achieved through a more open bidding process.

Public Impact

The primary beneficiaries are the U.S. Air Force units operating the AWACS fleet, which will receive upgraded communication capabilities. The services delivered involve the integration of new communication systems into existing AWACS platforms, enhancing operational effectiveness. The geographic impact is primarily within the operational theaters where AWACS aircraft are deployed, supporting global surveillance and command and control. Workforce implications may include specialized technical roles for Booz Allen Hamilton's personnel involved in the integration and testing phases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially inflating costs.
CPFF contract type requires stringent oversight to prevent cost overruns.
Lack of transparency in the sole-source justification process.
Absence of small business participation or subcontracting goals.
Limited public data on the specific technical requirements and expected outcomes.

Positive Signals

Booz Allen Hamilton Inc. is a well-established contractor with significant experience in defense and technology.
The contract addresses a critical need for modernizing AWACS communication systems.
The 'OK' status for performance and stability suggests a manageable risk profile.
The contract is for a defined period, allowing for reassessment upon expiration.

Sector Analysis

The defense sector, particularly within aerospace and communications, is characterized by complex, high-value contracts. The market for specialized integration services for legacy platforms like AWACS is often concentrated among a few key players. Spending in this area is driven by the need to maintain technological superiority and operational readiness. Comparable spending benchmarks would typically involve other large-scale avionics and communication system upgrade programs within the DoD.

Small Business Impact

This contract does not appear to include any small business set-aside provisions, nor is there explicit mention of subcontracting goals for small businesses. This suggests that the primary awardee, Booz Allen Hamilton Inc., will likely perform the majority of the work internally. The absence of small business involvement could mean missed opportunities for smaller, specialized firms to contribute to this defense program and potentially limit the broader impact on the small business defense ecosystem.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of the Air Force, with specific program management offices responsible for monitoring performance, costs, and adherence to contract terms. The 'OK' status for stability and performance suggests existing oversight mechanisms are deemed adequate for the current risk level. Transparency is limited due to the sole-source nature, but contract modifications and performance reports would typically be subject to internal review and potentially Inspector General audits if performance or cost issues arise.

Related Government Programs

Airborne Warning and Control System (AWACS) Modernization Programs
DoD Command and Control Systems Integration
Air Force Avionics and Communications Upgrades
Defense Contractor Support Services

Risk Flags

Sole-source award raises concerns about fair pricing and competition.
Contract type (CPFF) requires diligent government oversight to manage costs.
Lack of small business participation noted.
Limited public information on the specific technical scope and justification for sole-sourcing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.5 million to BOOZ ALLEN HAMILTON INC. AIRBORNE WARNING AND CONTROL SYSTEM (AWACS) COMMUNICATIONS INTEGRATION PROGRAM (ACIP) RAPID FIELDING

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $27.5 million.

What is the period of performance?

Start: 2025-04-30. End: 2028-04-29.

What is the specific justification for awarding this contract on a sole-source basis to Booz Allen Hamilton Inc.?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source is available, or when there is a compelling urgency, or when specific capabilities are uniquely held by a single contractor. For a contract valued at $27.4 million, the justification would likely be detailed in a Justification and Approval (J&A) document, which would need to be reviewed to understand the rationale. Without this document, it's difficult to assess if the government adequately explored competitive options or if the sole-source determination was appropriate.

How does the 'COST PLUS FIXED FEE' (CPFF) contract type compare to other potential contract types for this type of service, and what are the implications for cost control?

The CPFF contract type is often used for research and development or complex integration projects where the scope of work may evolve or is not fully defined at the outset. Under CPFF, the contractor is reimbursed for allowable costs plus a predetermined fixed fee, representing profit. This contrasts with fixed-price contracts, where the contractor bears more risk for cost overruns. While CPFF can facilitate flexibility, it places a greater burden on the government to meticulously monitor costs and ensure they are reasonable and allocable to the contract. Without robust oversight, there's a risk that costs could escalate beyond what might be incurred under a fixed-price arrangement, potentially leading to less value for taxpayers.

What is the historical spending pattern for AWACS communications integration programs, and how does this contract fit within that trend?

Historical spending on AWACS communications integration would likely show a pattern of continuous upgrades to keep pace with evolving threats and technological advancements. Early spending would have focused on initial capabilities, followed by periodic modernization efforts. This $27.4 million contract represents a specific investment in 'Rapid Fielding' for communications integration, suggesting a need for timely upgrades. Without access to historical contract databases or specific program budget documents, it's challenging to provide precise figures. However, it's reasonable to assume that such integration programs are recurring investments necessary to maintain the operational effectiveness of a critical asset like the AWACS fleet.

What are the key performance indicators (KPIs) that will be used to measure the success of this communications integration program?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for a communications integration program on a platform like AWACS, typical KPIs would likely include metrics related to system uptime, data transfer rates, signal clarity and reliability, interoperability with other systems, successful completion of integration milestones, and adherence to cybersecurity protocols. The 'OK' status for performance suggests that initial assessments or historical performance of the contractor in similar roles are satisfactory, but specific contractual KPIs would be detailed in the contract's Statement of Work (SOW) and performance clauses.

What is the potential impact of this contract on the broader aerospace and defense communications market, particularly for competitors?

The sole-source award to Booz Allen Hamilton Inc. for this specific AWACS communications integration program has a limited direct impact on the broader market in terms of fostering competition for this particular contract. However, it reinforces Booz Allen Hamilton's position as a key provider of such specialized services within the defense sector. For competitors, this contract represents a missed opportunity. The broader market for defense communications integration is competitive, with several large and specialized firms vying for similar contracts. The success of Booz Allen Hamilton on this contract could influence future sole-source considerations or, conversely, highlight the need for more competitive solicitations to ensure market access for other capable firms.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $52,700,661

Exercised Options: $27,454,388

Current Obligation: $27,454,388

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline