Booz Allen Hamilton awarded $22.8M for defense IT support, highlighting strong competition and long-term engagement

Contract Overview

Contract Amount: $22,812,405 ($22.8M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2019-11-01

End Date: 2024-10-31

Contract Duration: 1,826 days

Daily Burn Rate: $12.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GATEWAY SECURITY AND ENGINEERING SUPPORT

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $22.8 million to BOOZ ALLEN HAMILTON INC for work described as: GATEWAY SECURITY AND ENGINEERING SUPPORT Key points: 1. Contract value indicates significant demand for specialized IT and engineering services within the defense sector. 2. The firm fixed-price structure suggests a focus on predictable costs and defined deliverables. 3. A long contract duration of 1826 days points to a sustained need for these services. 4. The high number of bids received suggests a competitive market for this type of specialized support. 5. This award represents a substantial investment in maintaining and enhancing critical defense information systems. 6. The contractor's extensive experience in government contracting likely played a role in securing this award.

Value Assessment

Rating: good

The contract's firm fixed-price nature provides cost certainty for the government. While specific per-unit costs are not detailed, the overall value of $22.8 million for nearly five years of comprehensive IT and engineering support appears reasonable given the specialized nature of defense systems. Benchmarking against similar large-scale IT support contracts for defense agencies suggests this award falls within expected ranges for complex projects requiring deep technical expertise and security clearances.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 7 bidders vying for this opportunity, the competition level was robust. This suggests that the Defense Information Systems Agency (DISA) was able to solicit a wide range of qualified contractors, fostering a competitive environment that likely drove pricing and service quality improvements.

Taxpayer Impact: Strong competition benefits taxpayers by encouraging lower prices and better service offerings from contractors. It ensures that the government is not locked into a single provider and can leverage market forces to achieve best value.

Public Impact

The Department of Defense benefits from enhanced IT and engineering support, crucial for national security operations. Services delivered likely include system design, integration, maintenance, and technical consulting for critical defense networks. The contract's primary geographic impact is within Maryland (MD), a key hub for defense information systems. Workforce implications include the potential for skilled IT professionals and engineers to be employed on this long-term project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term contract duration could lead to vendor lock-in if not managed carefully.
Reliance on a single large contractor for critical IT functions may pose risks if performance degrades.
The specialized nature of defense IT support requires continuous monitoring to ensure evolving threats are addressed.

Positive Signals

Awarded under full and open competition, ensuring a competitive marketplace.
Firm fixed-price contract provides cost predictability for the government.
Contractor (Booz Allen Hamilton) has a strong track record in government IT services.
Long-term engagement allows for deep understanding and optimization of defense systems.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT services and computer-related support for government agencies. The market for defense IT services is substantial, driven by the need for secure, reliable, and advanced technological infrastructure to support military operations. Comparable spending benchmarks for large-scale IT support contracts within the Department of Defense often run into tens or hundreds of millions of dollars annually, reflecting the complexity and criticality of these systems.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to a large, established contractor like Booz Allen Hamilton suggests that the primary focus was on securing specialized expertise. This may limit direct opportunities for small businesses to participate as prime contractors on this specific award, though they may be involved as subcontractors if opportunities arise.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Defense Information Systems Agency (DISA). Performance monitoring, quality assurance, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Information Technology Services
IT Support Services
Computer Systems Design Services
Government IT Contracting
Defense Engineering Support

Risk Flags

Long contract duration
High value contract
Specialized IT services
Defense sector criticality

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.8 million to BOOZ ALLEN HAMILTON INC. GATEWAY SECURITY AND ENGINEERING SUPPORT

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 Information Systems Agency).

What is the total obligated amount?

The obligated amount is $22.8 million.

What is the period of performance?

Start: 2019-11-01. End: 2024-10-31.

What is Booz Allen Hamilton's track record with similar large-scale IT support contracts within the Department of Defense?

Booz Allen Hamilton has a long and extensive history of securing and performing large-scale IT support and engineering contracts with the Department of Defense and other federal agencies. They are a well-established prime contractor known for their expertise in areas such as cybersecurity, systems engineering, data analytics, and IT modernization. Their track record includes numerous multi-year, high-value awards across various defense components, demonstrating a consistent ability to meet complex requirements and deliver critical services. This experience likely positions them favorably for competitive bids on similar defense IT contracts, as evidenced by their success in securing this $22.8 million award.

How does the $22.8 million value compare to other IT support contracts awarded by DISA or similar defense agencies?

The $22.8 million value for this 5-year contract (approximately $4.56 million per year) for Gateway Security and Engineering Support is within a common range for specialized IT services provided to defense agencies. Large-scale IT modernization, cybersecurity, and systems engineering contracts for entities like DISA can often range from tens to hundreds of millions of dollars over their lifecycle. While not the largest contract, its value reflects a significant, long-term commitment to essential support functions. Compared to contracts for commodity IT hardware or basic help desk services, this award's value is commensurate with the complexity, security requirements, and specialized engineering expertise demanded by defense information systems.

What are the primary risks associated with a long-term (1826 days) IT support contract of this magnitude?

The primary risks associated with a long-term IT support contract of this magnitude include technological obsolescence, where the contracted services or systems may become outdated before the contract ends. Another significant risk is vendor lock-in, making it difficult and costly to switch providers if performance issues arise or better solutions become available. Contractor performance degradation over time is also a concern, as is the potential for key personnel turnover impacting institutional knowledge. Furthermore, the concentration of critical IT functions with a single large contractor can create systemic risks if the contractor faces financial instability or security breaches. Robust oversight and performance management are crucial to mitigate these risks.

How does the 'full and open competition' with 7 bidders impact the value and quality of services received by the government?

Full and open competition with a substantial number of bidders, such as the 7 involved in this contract, generally enhances the value and quality of services received by the government. It allows for a wider pool of potential solutions and encourages competitive pricing as contractors vie for the award. This competitive pressure incentivizes bidders to offer their best technical approaches and most cost-effective pricing strategies. The presence of multiple bidders also increases the likelihood that the government will select a contractor with the most suitable capabilities and a strong understanding of the requirements, ultimately leading to better service delivery and potentially lower overall costs compared to a less competitive procurement.

What is the typical role of a contractor like Booz Allen Hamilton in providing 'Gateway Security and Engineering Support' for the Department of Defense?

For the Department of Defense, a contractor like Booz Allen Hamilton providing 'Gateway Security and Engineering Support' typically plays a crucial role in safeguarding and optimizing critical network entry points and underlying infrastructure. This can encompass a wide range of services, including designing, implementing, and maintaining robust cybersecurity measures to protect against intrusions and data breaches. It also involves engineering support for the hardware and software that form the 'gateway' – the access points to defense networks. This includes network architecture, system integration, performance monitoring, vulnerability assessments, and ensuring compliance with stringent defense security protocols. Their role is vital in maintaining the integrity, availability, and confidentiality of sensitive defense information systems.

Given the contract is for 'Other Computer Related Services' (NAICS 541519), what specific types of services might be included beyond standard IT support?

The NAICS code 541519, 'Other Computer Related Services,' is broad and suggests services that go beyond typical IT help desk or network administration. For a defense contract like this, it could encompass specialized areas such as IT system integration, custom software development or modification, IT project management, IT consulting, data analytics services, cloud computing implementation and management, cybersecurity consulting, and IT infrastructure design and engineering. The 'Gateway Security and Engineering Support' title further implies a focus on the architecture, security, and operational integrity of critical access points and related systems, potentially involving advanced technical analysis and solution development rather than routine maintenance.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HC102815R0030

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

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: $24,154,252

Exercised Options: $22,858,565

Current Obligation: $22,812,405

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102818D0006

IDV Type: IDC

Timeline