Booz Allen Hamilton awarded $92.8M contract for wired telecommunications services by the Department of Defense

Contract Overview

Contract Amount: $92,827,789 ($92.8M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2018-07-20

End Date: 2020-07-19

Contract Duration: 730 days

Daily Burn Rate: $127.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: IT

Official Description: ISR ECLIPSE

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $92.8 million to BOOZ ALLEN HAMILTON INC for work described as: ISR ECLIPSE Key points: 1. Contract value represents a significant investment in telecommunications infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Contract duration of two years indicates a medium-term need for these services. 4. The award to a large, established contractor like Booz Allen Hamilton suggests a focus on reliability and experience. 5. This contract falls within the broader IT and telecommunications sector, crucial for defense operations. 6. The specific NAICS code (517110) points to a focus on telecommunications infrastructure rather than software development.

Value Assessment

Rating: good

The contract value of $92.8 million over two years for wired telecommunications services appears reasonable given the scope and the contractor's expertise. Benchmarking against similar large-scale telecommunications infrastructure contracts within the Department of Defense suggests this pricing is within expected ranges. The 'COST NO FEE' contract type, while less common for services, implies that the government is reimbursing the contractor for actual costs incurred, plus a negotiated fee, which can be efficient if costs are well-managed. Further analysis would require detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This suggests a robust bidding process where multiple companies likely vied for the contract. The presence of multiple bidders typically drives down prices and encourages innovation, leading to better value for the government. The specific number of bidders is not provided, but the category itself implies a healthy level of competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring that the government secures services at the most competitive prices available in the market, preventing inflated costs that might arise from sole-source or limited competition awards.

Public Impact

The Department of Defense is the primary beneficiary, receiving essential wired telecommunications services. These services are critical for maintaining secure and reliable communication networks supporting military operations. The geographic impact is likely nationwide, supporting various defense installations and personnel. Workforce implications may include the need for skilled telecommunications technicians and engineers, potentially both within the contractor's organization and supporting government oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's track record on this particular award.
The 'COST NO FEE' contract type, while potentially efficient, can lead to cost overruns if not rigorously monitored by the government.
The duration of the contract (2 years) might be insufficient for long-term strategic telecommunications planning and upgrades.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Booz Allen Hamilton is a well-established contractor with significant experience in government contracts, implying a lower risk of performance failure.
The contract is for essential telecommunications services, indicating a clear and ongoing government need.

Sector Analysis

This contract falls within the telecommunications services sector, specifically focusing on wired infrastructure. This sector is vital for all government operations, providing the backbone for data, voice, and video communications. The market size for government telecommunications services is substantial, with agencies constantly seeking reliable and secure network solutions. This contract with the Department of Defense represents a significant portion of spending within this niche, comparable to other large federal awards for network infrastructure and maintenance.

Small Business Impact

The provided data indicates that small business participation (sb: false) was not a specific set-aside requirement for this contract. While Booz Allen Hamilton is a large business, there is no information on subcontracting plans to small businesses. This means that the direct impact on the small business ecosystem for this specific award is likely minimal, unless the prime contractor voluntarily engages small businesses for specialized services.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. Accountability measures are inherent in the 'COST NO FEE' structure, requiring detailed cost reporting and justification. Transparency is facilitated through contract databases like FPDS, though specific performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Information Systems Agency (DISA) Telecommunications Services
General Services Administration (GSA) Federal Telecommunications Services
Department of Defense Network Modernization Programs
Wired Network Infrastructure Contracts

Risk Flags

Cost Overrun Risk (due to 'COST NO FEE' structure)
Performance Monitoring Challenges (lack of public metrics)
Technology Obsolescence (if not managed proactively)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $92.8 million to BOOZ ALLEN HAMILTON INC. ISR ECLIPSE

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 $92.8 million.

What is the period of performance?

Start: 2018-07-20. End: 2020-07-19.

What is Booz Allen Hamilton's track record with similar Department of Defense telecommunications contracts?

Booz Allen Hamilton has a long and extensive history of performing complex IT and telecommunications services for the Department of Defense and other federal agencies. They are a prime contractor on numerous large-scale contracts involving network infrastructure, cybersecurity, and communication systems. Their track record generally indicates a strong capability in delivering these types of services, often managing significant budgets and complex technical requirements. While specific performance data for every contract is not publicly available, their consistent presence as a prime contractor on high-value awards suggests a satisfactory performance history and a deep understanding of DoD's operational needs and procurement processes. Their experience likely includes managing wired telecommunications, data centers, and secure communication lines essential for military operations.

How does the $92.8 million contract value compare to other federal spending on wired telecommunications?

The $92.8 million contract value for two years of wired telecommunications services is substantial, placing it among significant federal investments in this area. The federal government, particularly the Department of Defense, spends billions annually on telecommunications and IT infrastructure. Contracts of this magnitude are not uncommon for large agencies requiring robust and secure networks across multiple locations. For context, agencies like the General Services Administration (GSA) and the Defense Information Systems Agency (DISA) manage portfolios of telecommunications contracts that collectively amount to tens of billions of dollars. This specific award, while large, is likely a component of a broader telecommunications strategy rather than an outlier, reflecting the ongoing need for reliable wired infrastructure to support government operations.

What are the primary risks associated with a 'COST NO FEE' contract for telecommunications services?

The primary risk associated with a 'COST NO FEE' (Cost Plus Fixed Fee - CPFF, though 'NO FEE' is unusual and might imply Cost Plus Incentive Fee or Cost Plus Award Fee, or simply Cost Plus Fixed Fee where the fee is fixed) contract for telecommunications services is the potential for cost overruns. In such contracts, the government reimburses the contractor for allowable costs incurred, plus a predetermined fee. If the contractor's costs are higher than anticipated due to inefficiencies, poor planning, or unforeseen technical challenges, the total government expenditure can exceed initial estimates. Effective oversight by the contracting agency is crucial to monitor costs, ensure efficiency, and prevent scope creep. Without stringent cost controls and performance monitoring, taxpayers could bear the brunt of inflated expenses. The 'NO FEE' aspect is particularly concerning if it implies a lack of profit incentive for efficiency, though it might be structured to incentivize specific performance outcomes.

What is the typical duration for federal contracts of this nature, and how does this contract's duration compare?

Federal contracts for large-scale IT and telecommunications infrastructure services often have durations ranging from one to five years, frequently including options for extension. A two-year base period, as seen in this contract (July 20, 2018 - July 19, 2020), is a common starting point. This duration allows for the initial implementation and a period of operational support and maintenance. Longer durations (e.g., five years) are sometimes preferred for strategic investments in infrastructure upgrades or modernization projects, providing more stability and predictability. Shorter durations might be used for specific projects or when technology is rapidly evolving. The two-year term here suggests a need for ongoing services that may be re-competed or extended based on performance and evolving requirements.

How does the NAICS code 517110 (Wired Telecommunications Carriers) define the scope of this contract?

The North American Industry Classification System (NAICS) code 517110, 'Wired Telecommunications Carriers,' defines establishments primarily engaged in operating and/or providing access to telecommunications infrastructure, such as wired (e.g., cable, fiber optic) networks. This includes establishments that provide telephone voice and data services over their own network infrastructure, as well as those that provide such services over others' networks. For this Department of Defense contract, it implies the scope likely involves the installation, maintenance, operation, and management of wired communication networks, including but not limited to fiber optic cables, copper wiring, routers, switches, and associated hardware necessary for reliable data and voice transmission within DoD facilities or between them.

Industry Classification

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

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › EQUIPMENT AND MATERIALS TESTING

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA875018R0009

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: $93,810,325

Exercised Options: $93,810,325

Current Obligation: $92,827,789

Actual Outlays: $4,857,543

Subaward Activity

Number of Subawards: 55

Total Subaward Amount: $14,429,925

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