Booz Allen Hamilton awarded $24.1M contract for Air Force Civil Engineer Center support, highlighting custom computer programming services

Contract Overview

Contract Amount: $24,109,467 ($24.1M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2023-05-26

End Date: 2026-05-22

Contract Duration: 1,092 days

Daily Burn Rate: $22.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: GARDEM SUSTAINMENT & FIELD SITE SUPPORT FOR AF CIVIL ENGINEER CENTER OPERATIONS

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $24.1 million to BOOZ ALLEN HAMILTON INC for work described as: GARDEM SUSTAINMENT & FIELD SITE SUPPORT FOR AF CIVIL ENGINEER CENTER OPERATIONS Key points: 1. Contract value of $24.1 million over approximately 3 years indicates significant investment in specialized IT support. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The contract's focus on custom computer programming services points to a need for tailored software solutions. 4. Performance period extending to May 2026 allows for sustained support and development. 5. The award to a large, established contractor like Booz Allen Hamilton suggests a preference for experienced providers in complex IT domains. 6. This contract falls under IT services, specifically custom computer programming, a critical area for modern defense operations.

Value Assessment

Rating: good

The contract value of $24.1 million for approximately three years of support appears reasonable for specialized IT services. Benchmarking against similar custom computer programming contracts within the Department of Defense is necessary for a definitive value assessment. However, the full and open competition suggests that pricing was likely vetted against multiple proposals, which generally promotes fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of a competitive bidding process is a positive sign for price discovery and ensuring the government receives the best value. The exact number of bidders is not specified, but the nature of the competition suggests a healthy level of interest from the market.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at the most advantageous price point, reducing the risk of overpayment for essential IT support.

Public Impact

The primary beneficiaries are the Department of the Air Force's Civil Engineer Center, which will receive enhanced operational support. Services delivered include custom computer programming, likely supporting critical infrastructure management, data analysis, and operational efficiency. The geographic impact is primarily within the United States, supporting Air Force installations managed by the Civil Engineer Center. Workforce implications may include the need for skilled software developers, IT specialists, and project managers, potentially sourced by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if custom solutions are highly proprietary and difficult to transition.
Reliance on a single large contractor could limit future flexibility in sourcing similar services.
Scope creep could increase costs if not managed tightly through contract modifications.

Positive Signals

Award through full and open competition suggests a competitive pricing structure.
Experienced contractor with a proven track record in government IT services.
Clear performance period allows for structured project management and delivery.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming services (NAICS 541511). This is a significant market for government agencies requiring tailored software solutions for complex operations. The total addressable market for IT services within the federal government is substantial, with agencies consistently investing in digital transformation and specialized software to enhance efficiency and mission effectiveness. This contract represents a portion of that broader IT spending.

Small Business Impact

The contract was awarded to Booz Allen Hamilton Inc., a large business. There is no indication of a small business set-aside for this specific award. While the prime contractor is a large business, there is potential for subcontracting opportunities for small businesses, depending on the contractor's subcontracting plan and the specific needs of the project. Further analysis of subcontracting reports would be needed to assess the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures are typically embedded within the contract terms, including performance metrics, delivery schedules, and payment milestones. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD IT Modernization Programs
Air Force Logistics and Readiness IT Support
Custom Software Development Services
Cloud Computing and Data Analytics Support

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Potential for scope creep in custom development projects.
Dependence on a single large contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.1 million to BOOZ ALLEN HAMILTON INC. GARDEM SUSTAINMENT & FIELD SITE SUPPORT FOR AF CIVIL ENGINEER CENTER OPERATIONS

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 $24.1 million.

What is the period of performance?

Start: 2023-05-26. End: 2026-05-22.

What is Booz Allen Hamilton's track record with similar custom computer programming contracts for the Department of Defense?

Booz Allen Hamilton has a extensive history of performing IT services, including custom computer programming, for the Department of Defense and other federal agencies. They have been awarded numerous contracts for software development, systems integration, and IT support across various branches of the military. Their track record generally indicates a capacity to handle large, complex projects. Specific performance metrics and past performance evaluations on similar contracts would provide a more granular assessment, but their established presence suggests a high likelihood of meeting contractual requirements. Reviewing past performance reviews and any documented issues on previous DoD contracts would offer further insight into their reliability and effectiveness in this domain.

How does the $24.1 million contract value compare to other custom computer programming services procured by the Air Force in the last three years?

The $24.1 million contract value for approximately three years of custom computer programming services for the Air Force Civil Engineer Center appears to be within a moderate range for specialized IT support. To provide a precise comparison, one would need to analyze the average contract values for similar NAICS codes (e.g., 541511) awarded by the Air Force over the past three years. Factors such as contract duration, scope of work, and the specific technical requirements significantly influence pricing. Given that this was a full and open competition, the price achieved likely reflects market conditions for such services. Without a detailed market analysis of comparable contracts, it's difficult to definitively state if it's high or low, but it does not immediately suggest an outlier value for complex IT development.

What are the primary risks associated with this type of 'Cost Plus Fixed Fee' contract for custom programming?

Cost Plus Fixed Fee (CPFF) contracts, while offering flexibility for evolving requirements common in custom programming, carry inherent risks. For the government, the primary risk is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government agrees to pay all allowable costs plus a fixed fee. This can lead to cost overruns if not meticulously managed. For the contractor, the risk lies in accurately estimating the fixed fee to cover their overhead and profit, especially if unforeseen technical challenges or scope changes arise that were not adequately accounted for in the fee negotiation. Effective oversight, detailed cost tracking, and robust change management are crucial to mitigate these risks for both parties.

What specific performance metrics or deliverables are likely being used to assess the success of this contract?

While specific performance metrics are not detailed in the provided data, contracts for custom computer programming services typically include deliverables such as functional software modules, completed code, system documentation, user training materials, and successful integration testing results. Performance metrics often focus on adherence to schedule, meeting technical specifications and quality standards (e.g., defect rates, code efficiency), and user satisfaction. For the Air Force Civil Engineer Center, metrics might also relate to the impact of the software on operational efficiency, data accuracy, or decision-making capabilities. Regular progress reports, demonstrations, and acceptance testing by government personnel are standard methods for assessing performance and ensuring deliverables meet the contract's objectives.

How has federal spending on custom computer programming services (NAICS 541511) trended in recent years, and where does this contract fit?

Federal spending on custom computer programming services (NAICS 541511) has generally shown a consistent upward trend over the past decade, driven by the increasing digitization of government operations and the need for specialized software solutions. Agencies across the board, including the Department of Defense, are investing heavily in modernizing legacy systems, developing new applications, and enhancing data analytics capabilities. This $24.1 million contract for the Air Force Civil Engineer Center fits within this broader trend, representing a specific investment in tailored IT capabilities to support a critical mission function. It aligns with the government's ongoing efforts to leverage technology for improved efficiency, security, and operational effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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: $24,109,467

Exercised Options: $24,109,467

Current Obligation: $24,109,467

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $584,364

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA875019D0003

IDV Type: IDC

Timeline