Booz Allen Hamilton awarded $18M+ for Air Force A&AS support, raising value-for-money questions

Contract Overview

Contract Amount: $17,992,143 ($18.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2017-09-26

End Date: 2022-09-26

Contract Duration: 1,826 days

Daily Burn Rate: $9.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF A&AS SUPPORT FOR SCSS

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.0 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF A&AS SUPPORT FOR SCSS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1826 days (5 years) indicates a long-term need for these services. 3. The firm-fixed-price contract type shifts risk to the contractor, potentially impacting cost certainty. 4. Analysis needed to determine if the awarded price represents good value compared to similar A&AS contracts. 5. The significant dollar value warrants scrutiny of performance metrics and contractor delivery. 6. No small business set-aside was utilized, indicating potential missed opportunities for smaller firms.

Value Assessment

Rating: fair

The contract's value of over $17.9 million over five years requires careful benchmarking against similar Acquisition and Analysis Support (A&AS) contracts. Without specific performance data or detailed cost breakdowns, it is difficult to definitively assess value for money. However, the duration and scope suggest a substantial investment. Further analysis of the specific services rendered and their impact on the SCSS program would be necessary to provide a more precise valuation.

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 number of bidders is not specified, but this procurement method generally fosters price discovery and encourages competitive pricing. The Air Force's decision to use full and open competition suggests confidence in the market's ability to provide qualified contractors for these specialized engineering services.

Taxpayer Impact: Taxpayers benefit from the competitive process, which is intended to drive down costs and ensure the government receives the best possible value for its investment in A&AS support.

Public Impact

The primary beneficiaries are the Department of the Air Force and the SCSS program, which receive essential analytical and advisory support. Services delivered likely include strategic planning, program management support, technical analysis, and acquisition assistance. The geographic impact is primarily within the Department of Defense's operational and administrative footprint. Workforce implications include the potential for highly skilled engineers and analysts to be employed by Booz Allen Hamilton on this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm-fixed-price contract does not adequately account for all project complexities.
Risk of contractor performance not meeting expectations given the long duration and specialized nature of the services.
Limited visibility into the specific performance metrics and quality of services provided without further data.
Dependence on a single contractor for critical support functions could pose a risk if capabilities are not maintained.
The absence of small business participation may limit innovation and broader economic impact.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm-fixed-price contract structure transfers cost risk to the contractor.
Long contract duration indicates a sustained and recognized need for the services.
Booz Allen Hamilton is a well-established contractor with significant experience in government services.
The contract supports a critical Air Force program (SCSS).

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense acquisition and analysis. The market for such services is substantial, with numerous large and small businesses competing for government contracts. Booz Allen Hamilton is a major player in this space, often securing large, complex contracts. Benchmarking would involve comparing this contract's pricing and scope to other A&AS contracts awarded by the DoD and other federal agencies for similar engineering and management support.

Small Business Impact

This contract was not awarded as a small business set-aside, nor is there an indication of significant subcontracting to small businesses based on the provided data. This means that opportunities for small businesses to directly participate in this specific contract were limited. While Booz Allen Hamilton may engage small businesses in its broader operations, this particular award does not directly contribute to the small business contracting goals for the Air Force.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Air Force. Performance reviews, milestone tracking, and invoice approvals are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office may conduct audits or investigations if specific concerns regarding waste, fraud, or abuse arise.

Related Government Programs

Defense Acquisition Support Services
Engineering and Technical Services
Management and Consulting Services
Air Force Program Support
Systems Engineering Support Contracts

Risk Flags

Long contract duration may increase risk of scope creep or performance degradation.
Firm-fixed-price contract requires careful management to ensure value for money.
Lack of specified small business participation may limit broader economic benefits.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.0 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF A&AS SUPPORT FOR SCSS

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 $18.0 million.

What is the period of performance?

Start: 2017-09-26. End: 2022-09-26.

What specific services does Booz Allen Hamilton provide under this contract for the SCSS program?

While the contract is broadly categorized as A&AS (Acquisition and Analysis Support), the specific services provided by Booz Allen Hamilton under this $17.9 million contract for the SCSS program likely encompass a range of critical functions. These typically include strategic planning and analysis, program management support, technical expertise in areas relevant to SCSS, acquisition strategy development, risk assessment, and potentially support for testing and evaluation phases. The 'Engineering Services' NAICS code (541330) suggests a strong technical and engineering component to the support. Detailed service delivery would be outlined in the Performance Work Statement (PWS) attached to the contract, which specifies deliverables, timelines, and performance standards.

How does the $17.9 million contract value compare to similar A&AS contracts awarded by the Department of Defense?

The $17.9 million contract value for five years of A&AS support is substantial but falls within the typical range for large, complex defense programs requiring specialized expertise. Similar contracts for program management, engineering, and acquisition support awarded by the Department of Defense can range from a few million to hundreds of millions of dollars, depending on the scope, duration, and criticality of the program. For instance, contracts supporting major weapon system development or large-scale IT modernization efforts often exceed this value significantly. However, when compared to other A&AS contracts for similar-sized programs or specific functional areas, this award appears to be a significant investment, warranting a detailed review of the scope of work and the value delivered relative to its cost.

What are the key performance indicators (KPIs) used to measure the success of Booz Allen Hamilton's support for the SCSS program?

Key Performance Indicators (KPIs) for this contract would be defined in the Performance Work Statement (PWS) and are crucial for assessing the success of Booz Allen Hamilton's support. While specific KPIs are not detailed in the provided data, they commonly include metrics related to timeliness of deliverables, quality of analysis and recommendations, adherence to budget (if applicable to their scope), effectiveness in supporting program milestones, and responsiveness to Air Force requests. For A&AS contracts, KPIs might also focus on the accuracy of cost estimates, the clarity of strategic guidance provided, and the successful integration of their support into the SCSS program's overall objectives. Regular performance reviews between the government and the contractor would track these KPIs.

What is Booz Allen Hamilton's track record with the Department of the Air Force and similar defense contracts?

Booz Allen Hamilton has a long and extensive track record of contracting with the Department of Defense, including the Department of the Air Force. They are a major federal contractor known for providing a wide array of services, including management consulting, IT solutions, engineering support, and cybersecurity. Historically, they have secured numerous large-value contracts across various defense agencies. Their performance on these contracts is generally viewed as consistent, though like any large contractor, they have experienced periods of scrutiny and contract reviews. Their established presence suggests a deep understanding of defense contracting requirements and processes, making them a frequent choice for complex support needs.

Are there any identified risks associated with this specific contract or the services provided?

Potential risks associated with this contract include the inherent challenges of long-term support engagements, such as scope creep, potential for cost overruns if not managed tightly under the firm-fixed-price structure, and ensuring consistent high-quality performance over the five-year period. Dependence on a single contractor for critical analytical and acquisition support could also pose a risk if the contractor's capabilities degrade or if key personnel depart. Furthermore, ensuring that the support provided truly aligns with the evolving needs of the SCSS program and the Air Force's strategic objectives requires ongoing government oversight and effective communication to mitigate risks related to misalignment or obsolescence of provided expertise.

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: FA701417R5007

Offers Received: 1

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: $19,513,335

Exercised Options: $19,347,730

Current Obligation: $17,992,143

Actual Outlays: $1,662,135

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $2,133,379

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