DoD's $47.6M EDSI contract with Booz Allen Hamilton faces scrutiny over value and competition

Contract Overview

Contract Amount: $47,597,947 ($47.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2021-06-24

End Date: 2025-05-14

Contract Duration: 1,420 days

Daily Burn Rate: $33.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: ENTERPRISE DEVELOPMENT AND SOLUTIONS INTEGRATION (EDSI)

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: ENTERPRISE DEVELOPMENT AND SOLUTIONS INTEGRATION (EDSI) Key points: 1. The contract's value of $47.6M for EDSI services raises questions about cost-effectiveness. 2. Booz Allen Hamilton, a large incumbent, secured this delivery order, potentially limiting broader competition. 3. The 'VA' status suggests a specific program, but its overall risk profile needs further assessment. 4. The IT sector, particularly defense IT, often sees high spending, making benchmarks crucial.

Value Assessment

Rating: questionable

The $47.6M award for EDSI services, with a Cost Plus Fixed Fee structure, warrants closer examination. Without detailed performance metrics and comparison to similar integration contracts, assessing its value for money is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While awarded under 'full and open competition,' the nature of a delivery order to an incumbent like Booz Allen Hamilton may not fully leverage competitive pressures. The price discovery mechanism for Cost Plus Fixed Fee contracts can be less efficient than fixed-price arrangements.

Taxpayer Impact: The impact on taxpayers is moderate, as the competitive process was initiated, but the cost-plus structure could lead to higher final costs than anticipated.

Public Impact

Taxpayers are funding enterprise development and solutions integration for the Air Force. The contract supports critical defense IT infrastructure, impacting national security operations. The use of a Cost Plus Fixed Fee contract may lead to cost overruns if not managed tightly. The duration of the contract (1420 days) indicates a long-term commitment to these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure
Potential for limited true competition despite 'full and open' award
Lack of clear value for money assessment

Positive Signals

Awarded under full and open competition
Supports critical Department of Defense mission

Sector Analysis

This contract falls within the IT services sector, specifically focusing on enterprise development and integration for the Department of Defense. Spending in defense IT is substantial, and benchmarks for similar integration projects are essential for evaluating cost-effectiveness.

Small Business Impact

The data indicates this contract was not awarded to a small business. There is no information provided on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The 'VA' designation suggests potential oversight mechanisms are in place, but the effectiveness of this oversight in controlling costs and ensuring value for the $47.6M expenditure needs further investigation. Accountability for performance and cost management is key.

Related Government Programs

Wired Telecommunications Carriers
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Cost Plus Fixed Fee structure can lead to higher costs.
Potential for limited competition despite 'full and open' award.
Lack of detailed performance metrics for value assessment.
Incumbent contractor may have an advantage.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.6 million to BOOZ ALLEN HAMILTON INC. ENTERPRISE DEVELOPMENT AND SOLUTIONS INTEGRATION (EDSI)

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 $47.6 million.

What is the period of performance?

Start: 2021-06-24. End: 2025-05-14.

What specific enterprise development and solutions integration services are being provided under this contract, and how do they align with current Air Force strategic objectives?

The contract details 'ENTERPRISE DEVELOPMENT AND SOLUTIONS INTEGRATION (EDSI)' for the Department of the Air Force. While the specific services are not itemized, EDSI typically encompasses the design, development, implementation, and integration of complex IT systems and software solutions. These likely support critical Air Force operational and administrative functions, aiming to enhance efficiency, interoperability, and mission capabilities within the defense IT infrastructure.

Given the Cost Plus Fixed Fee structure, what are the primary cost drivers, and what mechanisms are in place to mitigate potential cost overruns?

The primary cost drivers in a Cost Plus Fixed Fee (CPFF) contract are direct labor, indirect costs, and other direct expenses incurred by the contractor. The 'fixed fee' component is negotiated upfront and represents the contractor's profit. Mitigation strategies typically include robust government oversight, detailed cost reporting requirements, performance metrics tied to fee adjustments, and clear definitions of allowable and unallowable costs.

How does the $47.6M award compare to industry benchmarks for similar enterprise development and integration projects within the defense sector?

Benchmarking this $47.6M award requires detailed comparison with similar contracts for enterprise development and solutions integration within the Department of Defense. Factors such as contract scope, complexity, duration (1420 days), and the specific technologies involved are critical. Without access to proprietary cost data or a comprehensive market analysis of comparable projects, a precise benchmark assessment is challenging, but the scale suggests a significant investment.

Industry Classification

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

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: FA875021R1003

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: $76,652,124

Exercised Options: $76,652,124

Current Obligation: $47,597,947

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $21,995,282

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