DoD's $312M ISR Contract Awarded to Booz Allen Hamilton Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $312,293,479 ($312.3M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2021-03-18
End Date: 2025-05-14
Contract Duration: 1,518 days
Daily Burn Rate: $205.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE FIORE
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $312.3 million to BOOZ ALLEN HAMILTON INC for work described as: INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE FIORE Key points: 1. Significant contract value of $312M for ISR services. 2. Booz Allen Hamilton, a large incumbent, secured the award. 3. Potential risks include cost overruns and limited innovation due to competition structure. 4. Spending falls within the IT and Defense sectors, with a focus on intelligence gathering.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee contract type for $312M raises concerns about cost control. Without clear benchmarks, it's difficult to assess if the pricing is competitive against similar ISR service contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While advertised as full and open competition, the award to a single large contractor may limit true price discovery. The effectiveness of the competition in driving down costs needs further examination.
Taxpayer Impact: Taxpayer funds are being utilized for this significant ISR contract. The cost-plus structure necessitates robust oversight to ensure efficient use of funds and prevent potential overspending.
Public Impact
Enhances national security through intelligence, surveillance, and reconnaissance capabilities. Supports critical Department of Defense operations and decision-making. Potential for technological advancements in ISR, though competition structure may limit this. Impacts the aerospace and defense industry, particularly IT and consulting services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus contract type can lead to cost overruns.
- Limited visibility into specific performance metrics and value realization.
- Potential for vendor lock-in with a single large provider.
Positive Signals
- Addresses critical national security needs for ISR.
- Awarded by a major federal agency (DoD).
- Long-term contract duration suggests sustained operational support.
Sector Analysis
This contract falls within the IT and Defense sectors, specifically focusing on Intelligence, Surveillance, and Reconnaissance (ISR) services. Spending benchmarks for similar ISR contracts can vary widely based on scope and technology, but $312M represents a substantial investment.
Small Business Impact
The contract data indicates that small businesses were not primary awardees, as Booz Allen Hamilton is a large corporation. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
The Cost Plus Fixed Fee structure requires diligent oversight from the Department of Defense to ensure costs are reasonable and allocable. Regular audits and performance reviews are crucial for accountability.
Related Government Programs
- Wired Telecommunications Carriers
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost overruns due to CPFF structure.
- Limited innovation potential from a single large contractor.
- Difficulty in benchmarking against similar, potentially more efficient contracts.
- Potential for scope creep without stringent oversight.
- Lack of small business participation.
Tags
wired-telecommunications-carriers, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $312.3 million to BOOZ ALLEN HAMILTON INC. INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE FIORE
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 $312.3 million.
What is the period of performance?
Start: 2021-03-18. End: 2025-05-14.
What specific ISR capabilities are being procured, and how do they align with current and future defense needs?
The contract aims to procure advanced Intelligence, Surveillance, and Reconnaissance (ISR) capabilities. These likely include data collection, analysis, and dissemination services crucial for battlefield awareness, threat detection, and strategic intelligence gathering. The alignment with future needs depends on the adaptability of the procured technologies and services to evolving geopolitical landscapes and emerging threats.
How effectively did the full and open competition process ensure the best value for taxpayers, given the cost-plus fixed fee structure?
While advertised as full and open, the effectiveness of the competition in securing best value is questionable due to the cost-plus fixed fee (CPFF) contract type. CPFF contracts inherently shift cost risk to the government, potentially leading to higher final costs than fixed-price contracts. Robust evaluation criteria and negotiation strategies are essential to ensure value, but the structure itself warrants scrutiny.
What are the key performance indicators (KPIs) for this contract, and how will their achievement be measured to ensure effectiveness?
Key performance indicators (KPIs) for ISR contracts typically include data accuracy, timeliness of delivery, system uptime, and responsiveness to tasking. Effectiveness will be measured through regular performance reviews, adherence to delivery schedules, and potentially independent verification of data quality. The specific KPIs and measurement methodologies should be clearly defined in the contract's performance work statement.
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: FA875021R1002
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: $499,911,147
Exercised Options: $499,911,147
Current Obligation: $312,293,479
Actual Outlays: $2,610,276
Subaward Activity
Number of Subawards: 80
Total Subaward Amount: $59,271,276
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
Start Date: 2021-03-18
Current End Date: 2025-05-14
Potential End Date: 2025-05-14 00:00:00
Last Modified: 2025-12-03
More Contracts from Booz Allen Hamilton Inc
- Task Order (TO) 47qfca21f0018 IS Hereby Awarded to Booz Allen Hamilton, Inc. (BAH) to Provide Enterprise Level Data to the Ousd(c), and ITS Strategic Partners (I.E., DOD Fourth Estate, DOD Departments, and IC Community) — $1.4B (General Services Administration)
- Transformation Twenty-One Total Technology Next Generation (T4NG) Task Order - Benefits Integrated Delivery — $1.4B (Department of Veterans Affairs)
- Federal Contract — $1.2B (General Services Administration)
- Product and Technology Ecosystem Management Services (ptems)which Includes Product Delivery and Lifecycle Management to Transform VA by Tapping Into Emerging Technologies, Connecting Developers With VA Data, and Making Human Centered Design (HCD) — $1.1B (Department of Veterans Affairs)
- Task Order Award — $1.1B (General Services Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)