DoD's $47.6M AISED contract awarded to Booz Allen Hamilton faces scrutiny over cost and competition
Contract Overview
Contract Amount: $47,581,606 ($47.6M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2015-09-30
End Date: 2020-09-30
Contract Duration: 1,827 days
Daily Burn Rate: $26.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::OT::IGF ASSURED INFORMATION SYSTEMS&EXPLOITATION DEVELOPMENT (AISED) (NAICS: 541712)
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $47.6 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF ASSURED INFORMATION SYSTEMS&EXPLOITATION DEVELOPMENT (AISED) (NAICS: 541712) Key points: 1. The contract, valued at $47.6 million, was awarded for computer systems design services. 2. Booz Allen Hamilton, a large business, received the award under full and open competition. 3. The contract type is Cost Plus Fixed Fee, which can pose risks for cost control. 4. The sector is Defense, specifically IT services within the Defense Department.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed tightly. Benchmarking CPFF contracts for similar IT services is challenging without detailed cost breakdowns, but the $47.6M value over five years suggests a significant investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a broad solicitation. However, the specific impact on price discovery for this complex IT service requires further analysis of the bidding process and awarded price.
Taxpayer Impact: Taxpayer funds are being utilized for advanced information systems development. The effectiveness of the competition in securing the best value for the government is a key consideration.
Public Impact
Development of advanced information systems for defense purposes. Potential for technological advancements impacting national security. Significant government expenditure on specialized IT services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Large business award
- No small business participation noted
Positive Signals
- Full and open competition
- Awarded to a reputable contractor
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design, for the Department of Defense. Spending in this area is substantial, driven by the need for advanced technological capabilities.
Small Business Impact
The data indicates this contract was not awarded to a small business (ss: false, sb: false). There is no explicit mention of small business subcontracting goals or participation, which could be an area for improvement.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), suggesting established oversight mechanisms. However, the CPFF structure necessitates vigilant monitoring to ensure cost efficiency and prevent potential overruns.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Lack of small business participation.
- Complexity of IT services may limit true price competition.
- Long contract duration (5 years) increases risk exposure.
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 $47.6 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF ASSURED INFORMATION SYSTEMS&EXPLOITATION DEVELOPMENT (AISED) (NAICS: 541712)
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $47.6 million.
What is the period of performance?
Start: 2015-09-30. End: 2020-09-30.
What specific deliverables and milestones were established to ensure value for money under this CPFF contract?
The contract likely outlines specific technical performance metrics and delivery schedules for the AISED program. However, without access to the contract details, it's difficult to ascertain the precise milestones. CPFF contracts rely heavily on robust government oversight to track progress and ensure that the fixed fee aligns with the contractor's performance and the overall value delivered to the DoD.
How effectively did the full and open competition process ensure competitive pricing for these specialized IT services?
While 'full and open competition' suggests a broad solicitation, the effectiveness in achieving competitive pricing depends on the number and quality of bids received, as well as the complexity of the services. For specialized IT services like AISED, the market may have limited qualified bidders, potentially impacting the price discovery. A thorough review of the bidding process and awarded price against independent cost estimates would be needed.
What is the long-term strategic value of the AISED program to the Department of Defense?
The AISED program's strategic value lies in its contribution to the Department of Defense's information superiority and exploitation capabilities. By developing advanced information systems, it aims to enhance intelligence gathering, analysis, and operational effectiveness. The success of this program is critical for maintaining a technological edge in a rapidly evolving geopolitical landscape.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
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: $49,363,836
Exercised Options: $49,363,836
Current Obligation: $47,581,606
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $352,044
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: GS00Q09BGD0019
IDV Type: GWAC
Timeline
Start Date: 2015-09-30
Current End Date: 2020-09-30
Potential End Date: 2020-09-30 00:00:00
Last Modified: 2023-07-11
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