Booz Allen Hamilton awarded $45.8M for Enterprise Architecture support, raising value-for-money questions

Contract Overview

Contract Amount: $45,764,969 ($45.8M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2017-09-29

End Date: 2019-04-02

Contract Duration: 550 days

Daily Burn Rate: $83.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: IT

Official Description: IGF::OT::IGF ENTERPRISE ARCHITECTURE&ASSURED FRAMEWORK SUPPORT (EA2FS) SERVICES

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $45.8 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF ENTERPRISE ARCHITECTURE&ASSURED FRAMEWORK SUPPORT (EA2FS) SERVICES Key points: 1. Contract value appears high relative to duration, suggesting potential for cost efficiencies. 2. Limited public data on specific deliverables makes direct performance benchmarking difficult. 3. Sole-source award raises concerns about competitive pricing and market-driven value. 4. The contract's focus on enterprise architecture is critical for defense IT modernization. 5. Contractor's extensive experience in government IT services is a positive indicator. 6. Geographic concentration in Virginia may limit broader regional economic impact.

Value Assessment

Rating: fair

The contract's total value of $45.8 million over approximately 1.5 years results in a significant monthly expenditure. Without detailed performance metrics or comparison to similar EA support contracts, assessing the true value-for-money is challenging. The pricing structure (Cost No Fee) can sometimes lead to less cost control compared to fixed-price contracts. Benchmarking against industry standards for enterprise architecture consulting services would be necessary for a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The number of bidders is not specified, but the competitive nature of the award process is a positive sign for price discovery. However, the specific award mechanism (Delivery Order) suggests it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, which could influence the breadth of competition.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering price reductions and encouraging innovative solutions from multiple vendors.

Public Impact

The Department of Defense benefits from enhanced enterprise architecture and assured framework support, crucial for IT modernization. Services delivered likely include strategic planning, system integration guidance, and policy development for defense IT infrastructure. The primary geographic impact is within Virginia, where the contractor is located and likely where services are performed. The contract supports a workforce of skilled IT professionals and architects, contributing to the federal IT talent pool.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess if the full value of the contract is being realized.
The Cost No Fee pricing structure may offer less incentive for the contractor to aggressively control costs.
Limited information on specific deliverables hinders independent verification of service quality and impact.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Contractor (Booz Allen Hamilton) has a strong track record in providing IT and management consulting services to the federal government.
The contract addresses a critical need for enterprise architecture support within the Department of Defense.

Sector Analysis

The IT services sector, particularly within defense, is characterized by complex requirements and significant government spending. Enterprise architecture support is a specialized niche focused on aligning IT strategy with organizational goals, ensuring interoperability, and managing technological evolution. This contract fits within the broader category of IT professional services, where large firms like Booz Allen Hamilton are dominant players. Comparable spending benchmarks for EA support can vary widely based on scope, duration, and specific deliverables.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions, nor is there information on subcontracting plans. Given the prime contractor is Booz Allen Hamilton, a large business, there is potential for subcontracting opportunities. However, without explicit set-aside goals or reporting, the direct impact on the small business ecosystem is unclear and likely minimal unless specific subcontracting targets are met.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA) and the relevant program executive office within the Department of Defense. Accountability measures would be tied to contract deliverables and performance standards outlined in the contract. Transparency is moderate, as contract awards are publicly reported, but detailed performance data and cost breakdowns are often proprietary or classified.

Related Government Programs

DoD IT Modernization Programs
Defense Enterprise Architecture Services
Federal IT Consulting Contracts
IT Strategy and Planning Services

Risk Flags

Potential for cost overruns due to Cost No Fee pricing.
Lack of detailed public performance metrics hinders value assessment.
Complexity of integrating diverse defense IT systems.
Reliance on a single large contractor for critical EA support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.8 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF ENTERPRISE ARCHITECTURE&ASSURED FRAMEWORK SUPPORT (EA2FS) SERVICES

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 $45.8 million.

What is the period of performance?

Start: 2017-09-29. End: 2019-04-02.

What is the specific nature of the 'Assured Framework Support' provided under this contract?

The term 'Assured Framework Support' likely refers to services related to establishing and maintaining robust, secure, and reliable frameworks for the Department of Defense's IT infrastructure and operations. This could encompass cybersecurity measures, compliance with defense standards, ensuring system resilience, and implementing best practices for IT governance. Without more specific contract language or documentation, the precise scope remains somewhat generalized, but it points towards foundational support for critical defense systems and data integrity.

How does the $45.8 million contract value compare to similar Enterprise Architecture support contracts within the DoD?

Benchmarking this $45.8 million contract requires detailed comparison with similar EA support contracts awarded by the DoD. Factors such as contract duration, specific services rendered (e.g., strategic planning, system design, policy development), and the level of complexity of the supported systems are crucial. Generally, EA support contracts can range from a few million to tens of millions of dollars annually, depending on the scope. A contract of this magnitude over approximately 1.5 years suggests a significant level of support is being provided, potentially indicating a complex or high-priority initiative within the DoD's IT modernization efforts.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Specific Key Performance Indicators (KPIs) for this contract are not publicly detailed. However, typical KPIs for Enterprise Architecture support contracts often include metrics related to the successful integration of new systems, adherence to architectural standards, reduction in IT redundancies, improvement in system performance or security posture, and timely delivery of architectural documentation and guidance. The effectiveness of the 'Assured Framework Support' would likely be measured against established defense cybersecurity and operational readiness standards.

What is Booz Allen Hamilton's track record with similar large-scale IT support contracts for the Department of Defense?

Booz Allen Hamilton has a long and extensive track record of securing and performing large-scale IT support and consulting contracts for the Department of Defense and other federal agencies. They are a major incumbent in many defense IT modernization and strategic planning efforts. Their history includes numerous contracts related to enterprise architecture, cybersecurity, systems engineering, and program management. While specific performance details on every contract are not always public, their continued success in winning significant DoD contracts suggests a generally positive performance history and strong client relationships.

Are there any identified risks associated with the contractor or the nature of the services provided?

Risks associated with this contract are primarily related to the inherent complexities of large-scale IT transformation and the potential for cost overruns in 'Cost No Fee' contracts. Specific risks could include scope creep, challenges in integrating diverse defense systems, cybersecurity vulnerabilities if the assured framework is not robustly implemented, and potential delays in achieving desired architectural outcomes. Contractor-specific risks are generally low given Booz Allen Hamilton's established presence and expertise, but performance execution always carries some level of risk.

How has spending on Enterprise Architecture support evolved within the DoD over the past five years?

Spending on Enterprise Architecture (EA) support within the DoD has generally been substantial and has likely evolved in response to modernization imperatives and evolving threat landscapes. While precise figures for EA-specific spending can be difficult to isolate from broader IT budgets, there has been a consistent emphasis on improving IT interoperability, cybersecurity, and data management. Increased focus on cloud adoption, AI, and data analytics likely influences the nature and demand for EA services. Overall, the DoD's commitment to modernizing its complex IT infrastructure suggests sustained or potentially increasing investment in EA support functions.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA875017R0104

Offers Received: 1

Pricing Type: COST NO FEE (S)

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: $49,993,183

Exercised Options: $49,993,183

Current Obligation: $45,764,969

Actual Outlays: $5,165,433

Subaward Activity

Number of Subawards: 26

Total Subaward Amount: $1,232,476

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA873215D0034

IDV Type: IDC

Timeline