Booz Allen Hamilton awarded $97.4M for CRASH PROJECT SUPPORT by the Department of the Air Force

Contract Overview

Contract Amount: $97,371,432 ($97.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2023-09-25

End Date: 2026-12-18

Contract Duration: 1,180 days

Daily Burn Rate: $82.5K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CRASH PROJECT SUPPORT

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $97.4 million to BOOZ ALLEN HAMILTON INC for work described as: CRASH PROJECT SUPPORT Key points: 1. Contract awarded at a competitive price point, indicating potential value for money. 2. Full and open competition suggests a healthy market for these engineering services. 3. Contract duration of nearly four years allows for sustained support and performance monitoring. 4. Firm Fixed Price contract type shifts risk to the contractor, potentially benefiting the government. 5. The contract falls within the broad category of engineering services, a critical sector for defense operations. 6. The award amount is substantial, reflecting the complexity and scope of the support required.

Value Assessment

Rating: good

The contract's firm fixed-price structure is a positive indicator for cost control. Benchmarking against similar engineering support contracts within the Department of Defense is necessary for a definitive value assessment. However, the competitive award process suggests that the pricing was likely vetted against market rates. The total award value of $97.4 million over approximately four years indicates a significant investment in specialized engineering services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a full and open competition process. The number of bidders is not specified, but the 'full-and-open' designation implies that all responsible sources were permitted to submit offers. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: A full and open competition process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The Department of the Air Force benefits from specialized engineering support for critical projects. This contract likely supports advanced technological development and maintenance within the Air Force. The services provided are crucial for ensuring the operational readiness and effectiveness of Air Force assets. The geographic impact is primarily within the United States, supporting defense infrastructure and operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if project requirements are not clearly defined and managed.
Reliance on a single contractor for extended periods could lead to vendor lock-in.
Ensuring the contractor maintains adequate staffing levels and expertise throughout the contract duration.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Full and open competition suggests a robust market and potentially competitive pricing.
The contractor, Booz Allen Hamilton, has a significant track record in government contracting.
The contract duration allows for sustained focus and development of specialized capabilities.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a vital component of the broader professional, scientific, and technical services industry. This sector is characterized by high demand from government agencies, particularly in defense, for specialized expertise in design, analysis, and project management. The market size for engineering services supporting the federal government is substantial, with significant annual spending allocated to these critical functions.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false). As a large contract awarded to a major contractor, there may be opportunities for small businesses to participate as subcontractors. Further analysis would be needed to determine the extent of small business subcontracting plans and their adherence.

Oversight & Accountability

Oversight will likely be managed by the contracting officer and the relevant program management office within the Department of the Air Force. Performance will be monitored against the firm fixed-price contract terms. Transparency is generally maintained through contract award databases, though specific performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Engineering Services
Aerospace Support Contracts
Professional and Technical Services
Department of Defense IT and Engineering Support

Risk Flags

Contract Duration
Large Contract Value
Firm Fixed Price Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $97.4 million to BOOZ ALLEN HAMILTON INC. CRASH PROJECT SUPPORT

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 $97.4 million.

What is the period of performance?

Start: 2023-09-25. End: 2026-12-18.

What is Booz Allen Hamilton's track record with the Department of Defense for similar engineering support contracts?

Booz Allen Hamilton Inc. is a well-established government contractor with a substantial history of serving the Department of Defense (DoD). They have been awarded numerous contracts across various agencies, including the Air Force, Navy, and Army, for a wide range of services, including engineering, IT, cybersecurity, and management consulting. Their track record with the DoD is extensive, often involving large-scale, complex projects. While specific performance details for past contracts are not always public, their continued success in winning competitive bids suggests a generally positive performance history and strong client relationships within the defense sector. Analyzing their past performance on similar engineering support contracts would involve reviewing contract award data, past performance evaluations (if available), and any publicly reported issues or successes.

How does the $97.4 million award compare to typical spending on similar engineering support contracts within the Air Force?

The $97.4 million award for CRASH PROJECT SUPPORT is a significant sum, indicative of a substantial and potentially long-term engineering services requirement. To benchmark this against typical spending, one would need to analyze historical contract data for similar engineering support services within the Department of the Air Force. This would involve identifying contracts with comparable NAICS codes (e.g., 541330 - Engineering Services) and service descriptions. Factors such as contract duration, scope of work, and specific technical requirements would influence comparisons. Generally, large, multi-year engineering support contracts for major defense programs can range from tens to hundreds of millions of dollars. This award appears to be within the upper range for a single, definitive contract of this nature, suggesting a critical or extensive need.

What are the primary risks associated with a firm fixed-price contract of this magnitude and duration?

The primary risks associated with a firm fixed-price (FFP) contract of this magnitude ($97.4 million) and duration (nearly four years) primarily lie with the contractor, Booz Allen Hamilton. If the contractor underestimates costs, experiences unforeseen technical challenges, or faces significant increases in labor or material costs, their profit margins could be severely impacted. For the government, the main risk is that the contractor might cut corners on quality or performance to protect their profit if costs escalate beyond initial projections, although the FFP structure incentivizes the contractor to manage costs effectively. Another risk is the potential for scope creep; if the project requirements expand significantly without a formal contract modification and price adjustment, it could lead to disputes or performance issues. Ensuring robust contract management and clear definition of requirements are crucial to mitigate these risks.

How does the 'full-and-open' competition impact the government's ability to secure competitive pricing for engineering services?

A 'full-and-open' competition process is designed to maximize the number of potential bidders and foster robust price discovery, which directly benefits the government by securing competitive pricing. When all responsible sources are allowed to compete, it creates a market dynamic where contractors are incentivized to offer their best possible pricing and technical solutions to win the contract. This broad competition reduces the likelihood of inflated prices that might occur in a sole-source or limited-competition scenario. For engineering services, where technical expertise and innovation are key, full and open competition ensures that the government can evaluate a wide array of capabilities and cost proposals, ultimately leading to a more favorable outcome for taxpayers. The Department of the Air Force's decision to use this method for the CRASH PROJECT SUPPORT contract suggests a commitment to achieving the best value.

What are the potential implications of this contract on the broader engineering services market, particularly for smaller firms?

This $97.4 million contract awarded to Booz Allen Hamilton, a large incumbent contractor, has several implications for the broader engineering services market. Firstly, it signifies continued strong demand for specialized engineering support within the defense sector, particularly for the Air Force. Secondly, while the contract itself is not a small business set-aside, it creates significant subcontracting opportunities. Smaller firms specializing in niche engineering disciplines, testing, or specific technical support may have opportunities to partner with Booz Allen Hamilton. However, the dominance of large contractors in securing such substantial prime contracts can also present challenges for smaller firms trying to break into the prime contracting space directly. The focus on full and open competition, while beneficial for price, means smaller firms must be highly competitive to win prime contracts against larger, more established players.

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: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

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: $97,371,432

Exercised Options: $97,371,432

Current Obligation: $97,371,432

Actual Outlays: $4,775,392

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline