DoD's F-35 JPO contract for administrative management services awarded to Booz Allen Hamilton Inc. for over $95 million

Contract Overview

Contract Amount: $95,166,621 ($95.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2024-04-03

End Date: 2026-04-02

Contract Duration: 729 days

Daily Burn Rate: $130.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: THE F-35 LIGHTNING II JOINT PROGRAM OFFICE (JPO) LEADS THE LIFE-CYCLE PROGRAM MANAGEMENT OF THE F-35A, F-35B, AND F-35C- THE FIFTH-GENERATION JOINT STRIKE FIGHTER AIR SYSTEM.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $95.2 million to BOOZ ALLEN HAMILTON INC for work described as: THE F-35 LIGHTNING II JOINT PROGRAM OFFICE (JPO) LEADS THE LIFE-CYCLE PROGRAM MANAGEMENT OF THE F-35A, F-35B, AND F-35C- THE FIFTH-GENERATION JOINT STRIKE FIGHTER AIR SYSTEM. Key points: 1. Contract supports life-cycle program management for the F-35 joint strike fighter air system. 2. Administrative management and general management consulting services are the primary focus. 3. The contract duration is 729 days, indicating a significant, medium-term engagement. 4. This award represents a substantial investment in program management for a critical defense asset. 5. The fixed-price contract type suggests a defined scope and budget, potentially mitigating cost overruns. 6. The contract was awarded via full and open competition, implying a robust selection process.

Value Assessment

Rating: good

The contract value of over $95 million for administrative management and general management consulting services for the F-35 program is substantial. Benchmarking this against similar large-scale defense program management contracts is challenging due to the unique nature of the F-35. However, the firm fixed-price structure suggests an effort to control costs. The specific services provided will determine the ultimate value for money, but the scale indicates a need for expert support in managing a complex, multi-service aviation program.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This process is designed to foster a competitive environment, potentially leading to better pricing and service offerings. The presence of two bids suggests a degree of competition, though a higher number of bidders would typically indicate stronger price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring that the government receives the best possible value through a rigorous selection process and competitive pricing.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches (Air Force, Navy, Marines) relying on the F-35 program. Services delivered include critical program management, administrative support, and consulting for the F-35 Joint Program Office. The geographic impact is national, supporting a key defense initiative, with potential international implications due to the F-35's global deployment. Workforce implications include support for specialized consulting roles and the personnel within the F-35 JPO who will leverage these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the administrative and management needs evolve beyond the initial contract definition.
Reliance on a single contractor for critical program management functions could pose a risk if performance falters.
Ensuring the long-term strategic alignment of consulting services with the evolving needs of the F-35 program.

Positive Signals

Awarded through full and open competition, suggesting a competitive selection process.
Firm fixed-price contract type helps to control costs and provides budget certainty.
The contractor, Booz Allen Hamilton, has extensive experience in government contracting and defense sector support.
The contract duration of 729 days allows for sustained support to the F-35 JPO.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is crucial for supporting complex government programs, particularly in defense, where intricate logistics, technological integration, and multi-service coordination are paramount. The F-35 program itself represents a massive investment in advanced aerospace technology, and its effective management requires specialized expertise that consulting firms like Booz Allen Hamilton provide. Comparable spending benchmarks would likely be found within other major defense acquisition programs requiring extensive program office support.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and does not appear to have specific subcontracting requirements for small businesses explicitly stated in this snippet. Therefore, the direct impact on the small business ecosystem from this particular award is likely minimal, unless Booz Allen Hamilton voluntarily engages small businesses as subcontractors for specialized support.

Oversight & Accountability

Oversight for this contract would typically be managed by the F-35 Joint Program Office (JPO) and the contracting agency, the Department of the Air Force. Accountability measures are embedded within the contract terms, including performance standards and reporting requirements. Transparency is generally maintained through contract award databases and public reporting, though specific operational details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

F-35 Lightning II Joint Program Office
Department of Defense Acquisition Programs
Aerospace Engineering and Support Services
Defense Management Consulting Contracts

Risk Flags

Contract duration is significant, requiring sustained oversight.
Potential for knowledge transfer gaps between contractor and government personnel.
Complexity of the F-35 program necessitates robust performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $95.2 million to BOOZ ALLEN HAMILTON INC. THE F-35 LIGHTNING II JOINT PROGRAM OFFICE (JPO) LEADS THE LIFE-CYCLE PROGRAM MANAGEMENT OF THE F-35A, F-35B, AND F-35C- THE FIFTH-GENERATION JOINT STRIKE FIGHTER AIR SYSTEM.

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 $95.2 million.

What is the period of performance?

Start: 2024-04-03. End: 2026-04-02.

What is the specific breakdown of administrative management and general management consulting services to be provided under this contract?

The provided data snippet does not detail the specific breakdown of services. However, based on the context of the F-35 Joint Program Office (JPO), these services likely encompass a wide range of activities. This could include strategic planning, program execution support, budget management, risk assessment and mitigation, stakeholder coordination, policy development, process improvement, and general administrative functions necessary for the effective life-cycle management of the F-35 air system. The exact deliverables and performance metrics would be detailed in the contract's statement of work (SOW).

How does the $95 million contract value compare to historical spending on administrative support for the F-35 program?

The provided data does not include historical spending figures for administrative support of the F-35 program, making a direct comparison impossible. However, the F-35 is one of the most complex and expensive defense programs in history, involving multiple variants and international partners. It is reasonable to assume that significant and sustained investment in program management and administrative support, potentially in the hundreds of millions or billions over its life cycle, has been and will continue to be required. This $95 million award represents a portion of that ongoing support.

What are the key performance indicators (KPIs) that Booz Allen Hamilton will be measured against for this contract?

Specific Key Performance Indicators (KPIs) are not detailed in the provided data. Typically, for administrative and management consulting contracts supporting major defense programs, KPIs would focus on areas such as adherence to schedule, budget performance, quality of deliverables, effectiveness of recommendations, stakeholder satisfaction, and successful implementation of proposed solutions. The contract's Statement of Work (SOW) and Performance Work Statement (PWS) would outline these specific metrics and evaluation criteria.

What is Booz Allen Hamilton's track record with the F-35 program or similar large-scale defense management contracts?

Booz Allen Hamilton is a well-established government contractor with extensive experience supporting defense programs. While the specific data here doesn't detail their prior involvement with the F-35 program, the company frequently secures contracts for management consulting, systems engineering, and program support across various branches of the U.S. military and intelligence agencies. Their long history and broad capabilities suggest a strong track record in managing complex, high-value defense initiatives, making them a likely candidate for such a significant award.

What are the potential risks associated with relying on external consultants for critical program management functions of the F-35?

Key risks include a potential lack of deep, institutional knowledge that organic government personnel possess, which could lead to suboptimal recommendations or a disconnect from long-term program goals. There's also the risk of 'brain drain' if key personnel leave the contractor, impacting continuity. Over-reliance on consultants might also reduce the government's organic capability in program management over time. Furthermore, ensuring that the consultants' advice aligns perfectly with the unique operational needs and strategic objectives of the multi-service F-35 program requires diligent oversight and clear communication.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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: 2

Pricing Type: FIRM FIXED PRICE (J)

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: $104,448,131

Exercised Options: $104,448,131

Current Obligation: $95,166,621

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $2,900,556

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA701420D0008

IDV Type: IDC

Timeline