DoD's $23M Life-Cycle Management Program Sustained by Booz Allen Hamilton Under Full and Open Competition
Contract Overview
Contract Amount: $23,019,405 ($23.0M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2019-08-19
End Date: 2025-08-18
Contract Duration: 2,191 days
Daily Burn Rate: $10.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: SUSTAINMENT AND DEVELOPMENT OF THE LIFE-CYCLE MANAGEMENT PROGRAM
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $23.0 million to BOOZ ALLEN HAMILTON INC for work described as: SUSTAINMENT AND DEVELOPMENT OF THE LIFE-CYCLE MANAGEMENT PROGRAM Key points: 1. The contract focuses on computer systems design services, a critical area for defense operations. 2. Booz Allen Hamilton, a large established contractor, holds this award. 3. The contract's duration and cost-plus-fixed-fee structure warrant scrutiny for potential cost overruns. 4. The sector is IT services, with significant government spending in this area.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not managed tightly. The total award value of $23M over approximately 6 years suggests a moderate annual spend, but the CPFF structure requires careful oversight to ensure value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the specific nature of 'life-cycle management program' sustainment might limit the number of truly competitive bids in practice.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering competitive pricing. The CPFF structure, however, introduces risk that costs could exceed initial projections, potentially impacting the overall taxpayer investment.
Public Impact
Ensures continuity of critical life-cycle management IT systems for the Air Force. Supports ongoing modernization and sustainment efforts within a key defense agency. Potential for knowledge transfer and development of internal government capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Long contract duration may lead to scope creep or reduced agility.
- Specific services are not detailed, making it hard to assess true value.
Positive Signals
- Awarded under full and open competition.
- Contractor is a well-established firm with relevant experience.
- Supports critical defense IT infrastructure.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Government spending in this area is substantial, driven by the need for secure and efficient digital infrastructure across all agencies. Benchmarks for similar contracts are highly variable based on scope and complexity.
Small Business Impact
The data indicates this contract was not set aside for small businesses and the awardee is a large corporation. There is no indication of subcontracting opportunities for small businesses within this award notice.
Oversight & Accountability
The Department of the Air Force is responsible for oversight. The CPFF contract type necessitates robust financial and performance monitoring to ensure costs remain reasonable and objectives are met. Regular reporting and audits are crucial.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Lack of specific performance metrics in the provided data.
- Long contract duration may reduce flexibility.
- Limited insight into the specific services provided.
- No explicit mention of small business subcontracting goals.
Tags
computer-systems-design-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.0 million to BOOZ ALLEN HAMILTON INC. SUSTAINMENT AND DEVELOPMENT OF THE LIFE-CYCLE MANAGEMENT PROGRAM
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 $23.0 million.
What is the period of performance?
Start: 2019-08-19. End: 2025-08-18.
What specific metrics are used to measure the success and value delivered by the life-cycle management program sustainment?
The contract details should specify key performance indicators (KPIs) related to system uptime, performance efficiency, security compliance, and user satisfaction. Without these, assessing the true value derived from the $23M investment is challenging. Regular performance reviews against these metrics are essential for accountability.
How does the Department of Defense mitigate the inherent risks of cost overruns associated with Cost Plus Fixed Fee contracts in this specific engagement?
Mitigation strategies likely involve stringent oversight of contractor expenditures, detailed cost tracking, regular audits, and clearly defined ceilings or target costs. The Air Force must actively manage the scope and ensure that any cost increases are justified and directly linked to program requirements or approved changes.
What is the long-term strategy for this life-cycle management program, and how does this contract contribute to or align with that strategy?
Understanding the program's future roadmap is key. This contract ensures current operational capability, but its alignment with future modernization or potential replacement plans needs clarification. The strategy should address whether this sustainment is a bridge to a new system or an ongoing requirement.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA820719R0002
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: $30,776,995
Exercised Options: $25,457,254
Current Obligation: $23,019,405
Actual Outlays: $547,804
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 47QTCK18D0004
IDV Type: GWAC
Timeline
Start Date: 2019-08-19
Current End Date: 2025-08-18
Potential End Date: 2028-08-18 00:00:00
Last Modified: 2025-03-25
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