Air Force awards $689M contract for weapon information system development to Booz Allen Hamilton

Contract Overview

Contract Amount: $6,891,754 ($6.9M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2025-05-06

End Date: 2030-07-05

Contract Duration: 1,886 days

Daily Burn Rate: $3.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: VANISH TO PROVIDE THE AIR FORCE RESEARCH LABORATORY INFORMATION DIRECTORATE (AFRL/RI) WITH THE ABILITY TO RAPIDLY RESPOND TO WEAPON INFORMATION SYSTEM DEVELOPMENT, ACQUISITION, ENGINEERING, INTEGRATION, AND TRANSITION REQUIREMENTS.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $6.9 million to BOOZ ALLEN HAMILTON INC for work described as: VANISH TO PROVIDE THE AIR FORCE RESEARCH LABORATORY INFORMATION DIRECTORATE (AFRL/RI) WITH THE ABILITY TO RAPIDLY RESPOND TO WEAPON INFORMATION SYSTEM DEVELOPMENT, ACQUISITION, ENGINEERING, INTEGRATION, AND TRANSITION REQUIREMENTS. Key points: 1. Contract aims to enhance the Air Force Research Laboratory's ability to develop, acquire, and integrate weapon information systems. 2. Booz Allen Hamilton, a large defense contractor, secured this delivery order. 3. The contract is structured as Cost Plus Fixed Fee, which can introduce cost overrun risks. 4. Performance period spans over five years, indicating a long-term need for these services. 5. The services fall under Computer Systems Design, a critical area for modern defense capabilities. 6. This award represents a significant investment in the Air Force's information system infrastructure.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure warrants careful monitoring for cost efficiency. While CPFF can be appropriate for research and development where costs are uncertain, it carries a higher risk of cost overruns compared to fixed-price contracts. Benchmarking the fixed fee against industry standards for similar complex system development contracts would be necessary to assess value for money. The total award amount of $689,175,400 over approximately five years suggests a substantial but not necessarily excessive investment given the scope of weapon information system development.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This competitive process is generally expected to drive better pricing and innovation. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition was intended.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it increases the likelihood of obtaining services at competitive prices and encourages a wider pool of contractors to participate, potentially leading to better solutions.

Public Impact

The primary beneficiaries are the U.S. Air Force and its weapon system programs, which will receive enhanced information system capabilities. Services delivered include development, acquisition, engineering, integration, and transition of weapon information systems. The geographic impact is primarily within the Air Force Research Laboratory's operational areas, likely concentrated in research facilities. Workforce implications include potential job creation within Booz Allen Hamilton and its subcontractors, particularly for systems engineers, software developers, and acquisition specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently.
The long performance period (over 5 years) requires sustained oversight to ensure continued value and alignment with evolving needs.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's performance trajectory.
The complexity of weapon information systems development inherently carries technical and integration risks.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Booz Allen Hamilton is a well-established contractor with significant experience in defense IT services.
The contract addresses critical Air Force needs for advanced weapon information systems.
The delivery order structure implies it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, potentially offering flexibility.

Sector Analysis

This contract falls within the Defense Information Technology sector, a significant segment of federal IT spending. The market for defense IT services is characterized by large, established prime contractors like Booz Allen Hamilton, often competing for complex, long-term programs. Spending in this area is driven by the need for technological superiority, cybersecurity, and efficient system integration for military operations. Comparable spending benchmarks would typically involve other large-scale system development and integration contracts awarded by the Department of Defense to major defense contractors.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no mention of a small business set-aside. This suggests that the contract was not specifically targeted towards small businesses. While Booz Allen Hamilton may engage small businesses as subcontractors, the primary award is to a large business, and there are no explicit set-aside provisions noted. This contract's structure does not appear to directly benefit the small business ecosystem through a set-aside mechanism.

Oversight & Accountability

Oversight for this contract will likely be managed by the Air Force Research Laboratory (AFRL) contracting and program management offices. Accountability measures will be tied to the terms of the Cost Plus Fixed Fee contract, requiring detailed cost reporting and performance metrics. Transparency is typically facilitated through contract award announcements and potentially through program reviews. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Air Force Research Laboratory (AFRL) Information Directorate Contracts
Department of Defense IT Modernization Programs
Weapon System Development and Acquisition
Computer Systems Design Services Contracts
Cost Plus Fixed Fee Contracts in Defense

Risk Flags

Cost Plus Fixed Fee contract type increases risk of cost overruns.
Long performance period requires sustained oversight.
Complexity of weapon systems integration presents technical challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.9 million to BOOZ ALLEN HAMILTON INC. VANISH TO PROVIDE THE AIR FORCE RESEARCH LABORATORY INFORMATION DIRECTORATE (AFRL/RI) WITH THE ABILITY TO RAPIDLY RESPOND TO WEAPON INFORMATION SYSTEM DEVELOPMENT, ACQUISITION, ENGINEERING, INTEGRATION, AND TRANSITION REQUIREMENTS.

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 $6.9 million.

What is the period of performance?

Start: 2025-05-06. End: 2030-07-05.

What is the historical performance of Booz Allen Hamilton on similar Air Force IT contracts?

Booz Allen Hamilton has a long and extensive track record with the Department of the Air Force and the broader Department of Defense, frequently securing large contracts for IT services, systems engineering, and program management. Their performance on similar contracts typically involves complex system development, integration, and sustainment. While specific performance ratings for past contracts are often proprietary or found in government past performance databases (like the Contractor Performance Assessment Reporting System - CPARS), Booz Allen Hamilton is generally considered a capable and experienced contractor in this domain. However, like any large contractor, they may have faced challenges or received mixed reviews on specific projects. A deeper dive into their contract history with AFRL/RI or similar entities would reveal patterns in their ability to meet cost, schedule, and performance targets on complex R&D and acquisition programs.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for this type of work?

The Cost Plus Fixed Fee (CPFF) contract type is often used for research and development or services where the scope of work is not clearly defined at the outset, making it difficult to estimate costs accurately. In this case, for developing and integrating weapon information systems, CPFF allows the contractor to be reimbursed for allowable costs plus a negotiated fixed fee representing profit. This contrasts with Fixed Price contracts, which offer greater cost certainty to the government but can be risky for contractors if costs escalate. Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) contracts could also be used, offering incentives for performance or cost savings. While CPFF provides flexibility, it places a significant burden on the government to meticulously monitor costs and ensure efficiency, as the contractor has less direct financial incentive to control expenses compared to fixed-price arrangements.

What are the primary risks associated with developing and integrating weapon information systems?

Developing and integrating weapon information systems involves several significant risks. Technical risks include the complexity of integrating disparate hardware and software components, ensuring interoperability, and meeting stringent performance requirements under demanding operational conditions. Cybersecurity risks are paramount, as these systems are high-value targets for adversaries; ensuring robust defenses against cyber threats is critical. Programmatic risks involve potential cost overruns, schedule delays, and scope creep, especially with CPFF contracts. Furthermore, there are risks related to the rapid evolution of technology, requiring systems to be adaptable and upgradeable. Finally, the human element, including the availability of skilled personnel and effective training, also presents a risk to successful implementation and utilization.

What is the typical duration and value range for similar Air Force IT system development contracts?

Contracts for developing and integrating complex IT systems for the Air Force, particularly those related to weapon systems, often span multiple years and can range from tens of millions to hundreds of millions of dollars, or even billions for major programs. A five-year period, as seen in this $689 million award, is common for such endeavors, reflecting the time needed for design, development, testing, and initial fielding. Smaller, more focused development tasks might be shorter and less expensive, while large-scale platform integrations or enterprise-wide system overhauls can extend beyond five years and exceed the billion-dollar mark. The value is heavily influenced by the system's complexity, the number of integrations required, and the level of innovation or new development involved.

How does the 'Computer Systems Design Services' NAICS code (541512) typically translate into specific deliverables for the Air Force?

The NAICS code 541512, 'Computer Systems Design Services,' encompasses a broad range of activities relevant to the Air Force's needs. For this contract, it likely translates into deliverables such as the design and architecture of new weapon information systems, the development of custom software applications, the integration of existing systems (hardware and software), and potentially the implementation and testing of these systems. This could include requirements analysis, system specification, coding, database design, network configuration, cybersecurity implementation, and user interface development. The 'transition requirements' mentioned in the description suggest that the services will also cover the process of moving from development to operational use, including documentation, training, and initial support.

Industry Classification

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

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: FA875024RB002

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: $84,292,640

Exercised Options: $84,292,640

Current Obligation: $6,891,754

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 47QTCK18D0004

IDV Type: GWAC

Timeline