Air Force awards $15.5M engineering services contract to Booz Allen Hamilton for strategic planning support
Contract Overview
Contract Amount: $15,459,325 ($15.5M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2024-12-01
End Date: 2026-11-30
Contract Duration: 729 days
Daily Burn Rate: $21.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: REQUIRED TO SUPPORT ANALYSIS ACROSS ALL PHASES OF AIR FORCE DESIGN TO SUPPORT THE STRATEGIC PLANNING AND PROGRAMMING PROCESS:
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301
Plain-Language Summary
Department of Defense obligated $15.5 million to BOOZ ALLEN HAMILTON INC for work described as: REQUIRED TO SUPPORT ANALYSIS ACROSS ALL PHASES OF AIR FORCE DESIGN TO SUPPORT THE STRATEGIC PLANNING AND PROGRAMMING PROCESS: Key points: 1. Contract focuses on critical engineering services for Air Force strategic planning and programming. 2. Booz Allen Hamilton, a large, established firm, is the sole awardee. 3. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 4. Pricing appears to be firm-fixed-price, which can offer cost certainty. 5. The contract duration is two years, aligning with typical strategic planning cycles. 6. The awardee has a significant presence in the Washington D.C. area, a hub for federal contracting.
Value Assessment
Rating: good
The contract value of $15.5 million over two years for specialized engineering services in strategic planning appears reasonable. Benchmarking against similar contracts for high-level advisory and engineering support within the Department of Defense suggests this pricing is within expected ranges. The firm-fixed-price structure provides a degree of cost control for the Air Force, although the ultimate value will depend on the quality and impact of the strategic planning outputs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. While the data provided specifies this is a delivery order, the underlying IDIQ vehicle was likely competed broadly. The number of bidders for the specific delivery order is not detailed, but the full and open nature of the parent contract suggests a competitive environment that should drive fair pricing.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and a wider range of innovative solutions, ensuring the Air Force receives optimal value for its investment.
Public Impact
The primary beneficiary is the Department of the Air Force, which will receive enhanced strategic planning and programming capabilities. Services delivered will support critical decision-making processes for future Air Force initiatives and resource allocation. The geographic impact is primarily centered in Washington D.C., where the contractor is located and likely where much of the strategic planning work will be coordinated. Workforce implications include the potential for highly skilled engineers and analysts to be engaged in shaping the future of Air Force operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for over-reliance on a single large contractor for critical strategic functions.
- Risk of scope creep if strategic planning requirements are not clearly defined and managed.
- Dependence on contractor expertise could limit organic internal capability development over time.
Positive Signals
- Award to a well-established contractor with a proven track record in federal consulting.
- Firm-fixed-price contract type offers cost predictability.
- Two-year duration allows for focused effort on specific strategic planning objectives.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the federal contracting market supporting defense and aerospace. The market for strategic planning and program support services is substantial, with major defense contractors and specialized consulting firms vying for these high-value awards. The Air Force's investment aligns with broader trends in defense spending focused on maintaining technological superiority and strategic readiness.
Small Business Impact
This contract was not specifically set aside for small businesses, and the awardee, Booz Allen Hamilton, is a large business. There is no indication of specific small business subcontracting requirements tied to this particular delivery order. The focus on a large, established firm suggests that the primary goal was leveraging extensive experience and capacity rather than promoting small business participation.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure and the delivery order process, requiring the contractor to meet defined performance standards. Transparency is generally maintained through contract award databases, though specific strategic planning details may be sensitive.
Related Government Programs
- Air Force Strategic Planning and Programming Process Support
- Department of Defense Engineering Services
- Federal Management and Consulting Services
- Aerospace Engineering Support Contracts
Risk Flags
- Contract awarded to a large business, potentially limiting small business participation.
- Duration of two years may require follow-on contracts for sustained strategic planning efforts.
- Potential for contractor recommendations to be influenced by future business opportunities.
Tags
engineering-services, department-of-defense, department-of-the-air-force, full-and-open-competition, delivery-order, firm-fixed-price, strategic-planning, management-consulting, booz-allen-hamilton, washington-dc, large-business, defense-contracting
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.5 million to BOOZ ALLEN HAMILTON INC. REQUIRED TO SUPPORT ANALYSIS ACROSS ALL PHASES OF AIR FORCE DESIGN TO SUPPORT THE STRATEGIC PLANNING AND PROGRAMMING PROCESS:
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 $15.5 million.
What is the period of performance?
Start: 2024-12-01. End: 2026-11-30.
What is Booz Allen Hamilton's track record with the Department of the Air Force and similar strategic planning contracts?
Booz Allen Hamilton is a major federal contractor with a long history of supporting the Department of Defense, including the Air Force. They have extensive experience in providing management consulting, engineering services, and strategic planning support across various defense agencies. Their track record typically involves large, complex contracts requiring deep analytical capabilities and understanding of military operations and technology. While specific details on past strategic planning contracts with the Air Force would require deeper database analysis, their overall profile suggests a strong capability to execute this type of work. They are known for their ability to handle significant budgets and long-term engagements, often serving as a key advisor on major defense initiatives.
How does the $15.5 million value compare to similar Air Force strategic planning contracts?
The $15.5 million contract value over two years for engineering services supporting strategic planning is within a typical range for high-level advisory and analytical support within the Department of the Air Force. Contracts of this nature often involve specialized expertise and require significant research, analysis, and reporting. Similar engagements can range from a few million to tens of millions of dollars, depending on the scope, duration, and complexity of the strategic challenges addressed. Given that this is a delivery order under a potentially larger IDIQ, the value is likely representative of a specific phase or set of tasks within a broader strategic planning effort. The firm-fixed-price nature also suggests a defined scope, which helps in evaluating the value proposition.
What are the primary risks associated with this contract for the Air Force?
The primary risks associated with this contract include potential over-reliance on a single large contractor for critical strategic functions, which could limit the development of organic internal capabilities within the Air Force over time. There is also a risk of scope creep if the strategic planning requirements are not meticulously defined and managed, potentially leading to cost overruns or delays, although the firm-fixed-price structure mitigates some of this. Another risk is the contractor's ability to maintain objectivity and provide unbiased recommendations, especially if their future business relies heavily on follow-on work. Finally, the effectiveness of the strategic planning outputs is contingent on the quality of the analysis and the actionable insights provided by the contractor.
How effective is the firm-fixed-price (FFP) contract type in ensuring value for money in strategic planning services?
The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for money when the scope of work is well-defined and understood, as is often the goal in strategic planning. FFP shifts the risk of cost overruns to the contractor, incentivizing them to manage their resources efficiently and deliver the agreed-upon services within the set budget. For the Air Force, this provides cost certainty and predictability. However, the effectiveness hinges on the clarity of the SOW; if requirements are ambiguous or change significantly, an FFP contract can become problematic, potentially leading to disputes or the contractor resisting necessary changes. In strategic planning, where future uncertainties are inherent, careful SOW definition is crucial for FFP to maximize value.
What are the historical spending patterns for engineering and management consulting services by the Air Force?
The Air Force consistently spends significant amounts on engineering and management consulting services, reflecting the complexity of modern air and space operations and the need for specialized expertise. Historical data shows substantial annual outlays in categories like engineering services (NAICS 541330), management consulting services (NAICS 541611), and research and development (R&D) support. These expenditures are driven by requirements for strategic planning, program management, systems engineering, cybersecurity, intelligence analysis, and technological modernization. Spending often fluctuates based on geopolitical conditions, budget cycles, and the initiation of major acquisition programs. Booz Allen Hamilton, as a major player, frequently appears as a recipient of such contracts, indicating a sustained demand for their services within the Air Force.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA701424R0003
Offers Received: 3
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: $52,350,958
Exercised Options: $20,570,859
Current Obligation: $15,459,325
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $25,172,725
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
Start Date: 2024-12-01
Current End Date: 2026-11-30
Potential End Date: 2030-03-01 00:00:00
Last Modified: 2025-12-22
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