DoD's $33.2M IGF contract for engineering modeling awarded to Booz Allen Hamilton, highlighting custom programming services

Contract Overview

Contract Amount: $33,243,325 ($33.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2018-02-08

End Date: 2020-02-07

Contract Duration: 729 days

Daily Burn Rate: $45.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: IT

Official Description: IGF::CT::IGF SYSTEMS ENGINEERING ARCHITECTURE MODELING FOR SPACE

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $33.2 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::CT::IGF SYSTEMS ENGINEERING ARCHITECTURE MODELING FOR SPACE Key points: 1. The contract's value appears reasonable given the specialized nature of engineering modeling for space systems. 2. Full and open competition suggests a healthy market for these services, potentially leading to competitive pricing. 3. The duration of the contract (729 days) indicates a significant, ongoing need for these specialized services. 4. Performance context is crucial; the effectiveness of the modeling will determine the true value for money. 5. This contract falls within the IT and Defense sectors, specifically supporting advanced engineering and simulation capabilities.

Value Assessment

Rating: good

The contract value of $33.2 million for engineering modeling services over two years is within a typical range for complex defense projects. Benchmarking against similar contracts for specialized modeling and simulation in the aerospace and defense sector suggests this pricing is competitive. The 'COST NO FEE' contract type, while unusual, implies that the government is bearing the cost of the contractor's labor and overhead, with Booz Allen Hamilton receiving no additional fee beyond their direct costs. This structure can sometimes lead to cost efficiencies if managed well by the government.

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. The presence of two bidders suggests a degree of competition, though more bidders would typically indicate a more robustly contested market. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers for specialized services.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the best possible price for the required engineering modeling services. A competitive award reduces the risk of overpayment and encourages efficient service delivery.

Public Impact

The primary beneficiaries are the Department of Defense and its various agencies requiring advanced engineering and modeling capabilities for space systems. The services delivered include custom computer programming and engineering modeling, crucial for designing, simulating, and validating space-related technologies. The geographic impact is primarily within the United States, supporting defense initiatives and potentially involving personnel at various DoD installations. Workforce implications include the employment of highly skilled engineers, programmers, and analysts by Booz Allen Hamilton and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the 'COST NO FEE' structure is not rigorously monitored.
Dependence on a single contractor for critical engineering modeling could pose a risk if performance falters.
The specialized nature of the work might limit the pool of qualified personnel, impacting future contract competition.

Positive Signals

Awarded through full and open competition, suggesting a competitive market for these services.
Booz Allen Hamilton is a well-established contractor with significant experience in defense and engineering.
The contract supports critical national security objectives related to space systems.

Sector Analysis

This contract operates within the Information Technology and Defense sectors, specifically focusing on specialized engineering and modeling services. The market for such services is characterized by high barriers to entry due to the need for advanced technical expertise and security clearances. Comparable spending benchmarks in this niche often involve significant investments in simulation, virtual prototyping, and systems engineering for complex platforms like spacecraft and advanced weaponry. The total contract value of $33.2 million over two years places it as a mid-sized award within the broader defense IT services landscape.

Small Business Impact

This contract does not appear to have a specific small business set-aside. Booz Allen Hamilton, the prime contractor, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. The impact on the small business ecosystem is therefore likely minimal unless Booz Allen Hamilton voluntarily includes small businesses in its subcontracting efforts.

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. Accountability measures are embedded in the contract terms and performance metrics. 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 Engineering Services
Space Systems Development
Custom Software Development
Defense IT Services
Modeling and Simulation Contracts

Risk Flags

Cost Control Risk (Cost No Fee)
Performance Dependency
Technical Complexity
Contractor Lock-in Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.2 million to BOOZ ALLEN HAMILTON INC. IGF::CT::IGF SYSTEMS ENGINEERING ARCHITECTURE MODELING FOR SPACE

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 $33.2 million.

What is the period of performance?

Start: 2018-02-08. End: 2020-02-07.

What is the track record of Booz Allen Hamilton in delivering similar engineering modeling services for space systems?

Booz Allen Hamilton has a long-standing and extensive track record in providing a wide array of services to the Department of Defense and other government agencies, including complex engineering, systems integration, and IT solutions. They have been involved in numerous projects related to space systems, encompassing areas like mission planning, satellite operations, and advanced technology development. Their experience often includes developing sophisticated modeling and simulation tools to support the design, testing, and deployment of space assets. While specific details of past performance on contracts directly comparable to this one are not publicly detailed here, their general reputation and extensive portfolio suggest a strong capability in this domain. The government's decision to award this contract, especially if it was competed, implies a positive assessment of their past performance and technical qualifications.

How does the $33.2 million contract value compare to other federal spending on similar engineering modeling services?

The $33.2 million contract value for two years of engineering modeling services for space systems is a significant but not extraordinary amount within the context of large federal defense contracts. The market for specialized engineering and modeling services, particularly for space applications, is inherently expensive due to the high level of technical expertise, advanced software, and security requirements involved. Comparable contracts can range from a few million dollars for smaller, focused projects to hundreds of millions for broader systems engineering efforts. Given the 'Custom Computer Programming Services' NAICS code (541511) and the defense sector focus, this contract appears to be in the mid-to-upper range for specialized modeling tasks. Without specific benchmarks for identical services, it's difficult to definitively state if it's high or low, but it aligns with the typical investment required for such critical national security capabilities.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include potential cost overruns, given the 'COST NO FEE' contract type which requires diligent government oversight of contractor expenses. Performance risk is also present, as the effectiveness of the engineering modeling directly impacts the success of space system development; failure to deliver accurate or timely models could lead to costly redesigns or mission failures. Technical risk exists in ensuring the models accurately represent complex space environments and system behaviors. Mitigation strategies likely involve robust government oversight by the DCMA, clearly defined performance metrics and milestones within the contract, regular progress reviews, and potentially independent verification and validation of the modeling outputs. The selection of an experienced contractor like Booz Allen Hamilton also serves as a risk mitigation factor.

How effective is the 'COST NO FEE' contract type in ensuring value for money in this context?

The 'COST NO FEE' (CNF) contract type is less common than fixed-price or cost-plus-incentive-fee contracts. In a CNF structure, the contractor is reimbursed for their allowable costs but receives no additional fee or profit. This can be effective in ensuring value for money if the government has strong cost-control mechanisms and oversight, as the contractor has less incentive to inflate costs to increase profit. However, it can also reduce the contractor's incentive to innovate or be highly efficient, as their profit is not tied to performance or cost savings. For highly specialized, R&D-intensive work like advanced engineering modeling, where scope can be uncertain, CNF might be used to ensure the government gets the necessary work done without paying a premium fee, provided rigorous oversight is maintained to prevent cost creep.

What are the historical spending patterns for engineering modeling services within the Department of Defense?

Historical spending patterns within the Department of Defense for engineering modeling services show a consistent and significant investment, driven by the complexity and criticality of modern defense systems, particularly in areas like aerospace, cybersecurity, and advanced materials. Spending in this category has generally trended upwards over the past decade, reflecting the increasing reliance on simulation and digital tools for design, testing, and training. Contracts often fall under categories like 'Engineering, Scientific, and Technical Consulting Services' or specific IT/software development codes. The DoD frequently utilizes various contract types, including cost-plus and fixed-price, depending on the project's maturity and risk profile. Major defense contractors and specialized IT firms are the primary recipients of this spending, indicating a concentrated market for these high-end services.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › Space R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

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: $67,785,791

Exercised Options: $39,538,810

Current Obligation: $33,243,325

Actual Outlays: $1,422,344

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $1,081,110

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA873215D0003

IDV Type: IDC

Timeline