Booz Allen Hamilton awarded $38.4M for systems engineering and program support by the Department of Defense

Contract Overview

Contract Amount: $38,432,789 ($38.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2018-04-01

End Date: 2026-01-31

Contract Duration: 2,862 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SYSTEMS ENGINEERING AND PROGRAM 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 $38.4 million to BOOZ ALLEN HAMILTON INC for work described as: SYSTEMS ENGINEERING AND PROGRAM SUPPORT Key points: 1. Contract value represents a significant investment in specialized engineering and program management services. 2. The full and open competition indicates a broad market search for qualified contractors. 3. The contract duration of over 7 years suggests a long-term need for these critical support functions. 4. The cost-plus-fixed-fee pricing structure allows for flexibility but requires careful monitoring of costs. 5. This award falls within the broader category of professional services supporting defense information systems. 6. The contract's performance period extends well into the future, indicating ongoing program requirements.

Value Assessment

Rating: good

The contract value of $38.4 million over approximately 7.5 years averages to roughly $5.1 million annually. Benchmarking this against similar large-scale systems engineering and program support contracts within the Department of Defense is challenging without more specific service details. However, the pricing structure (Cost Plus Fixed Fee) suggests that the government is paying for actual costs incurred plus a pre-determined fee, which can be efficient if costs are well-managed. The fixed fee component provides some cost certainty for the contractor and a defined profit margin.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that all responsible sources were permitted to submit offers. The data indicates one award, but the number of bidders is not specified. Full and open competition is generally the preferred method as it maximizes the potential for competitive pricing and innovation by drawing from the widest possible pool of qualified contractors.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining the best value by fostering a competitive environment that drives down prices and encourages high-quality service delivery.

Public Impact

The primary beneficiaries are the Department of Defense agencies requiring advanced systems engineering and program management expertise. Services delivered likely include technical guidance, strategic planning, and operational support for complex defense systems. The geographic impact is centered around the Defense Information Systems Agency's operational areas, likely within Maryland. Workforce implications include the potential for high-skilled engineering and program management jobs, both directly with the contractor and indirectly through the supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not rigorously managed and monitored.
The long duration of the contract may present challenges in adapting to evolving technological requirements.
Lack of specific performance metrics in the provided data makes it difficult to assess effectiveness proactively.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
The contractor, Booz Allen Hamilton, has a significant track record in government contracting, implying experience and capability.
The contract addresses critical defense information systems, indicating alignment with national security priorities.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader professional services market supporting government operations. The market for systems engineering and program support is substantial, particularly within the defense industry, where complex technological systems require specialized expertise. Spending in this area is driven by the need for advanced technological solutions, lifecycle management, and strategic program oversight. Comparable spending benchmarks would typically involve analyzing other large-scale engineering support contracts awarded by agencies like DISA or other branches of the DoD.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, as a large prime contractor, Booz Allen Hamilton may engage small businesses as subcontractors for specialized services, contributing to the small business ecosystem indirectly. The extent of this subcontracting would depend on the prime contractor's own small business subcontracting plan.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA) or equivalent within the Department of Defense. Accountability measures are embedded within the Cost Plus Fixed Fee structure, requiring detailed cost reporting and justification. Transparency is facilitated through contract award databases and reporting requirements, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency (DISA) Contracts
Systems Engineering Support Services
Program Management Support
Department of Defense IT Services
Engineering Consulting Services

Risk Flags

Long contract duration may outpace technological advancements.
Cost-plus-fixed-fee requires diligent cost oversight.
Limited public detail on specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.4 million to BOOZ ALLEN HAMILTON INC. SYSTEMS ENGINEERING AND PROGRAM 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 $38.4 million.

What is the period of performance?

Start: 2018-04-01. End: 2026-01-31.

What is Booz Allen Hamilton's track record with similar large-scale defense contracts?

Booz Allen Hamilton is a well-established government contractor with extensive experience in providing systems engineering, technology, and management consulting services to the Department of Defense and other federal agencies. They have a history of winning and performing on large, complex contracts, often involving IT modernization, cybersecurity, and strategic program support. Their track record includes numerous awards across various defense branches and agencies, demonstrating a capacity to handle significant budgets and long-term engagements. While specific performance metrics for past contracts are not detailed here, their continued success in securing major awards suggests a generally positive performance history and strong client relationships within the federal sector.

How does the $38.4 million contract value compare to other systems engineering contracts awarded by DISA?

The $38.4 million contract value for systems engineering and program support is a substantial award, but its relative size within DISA's portfolio depends on the specific scope and duration. DISA manages a vast array of IT and engineering contracts, many of which can reach hundreds of millions or even billions of dollars over their lifecycle. This particular contract, spanning over seven years, represents a significant, but not necessarily top-tier, investment. To provide a precise comparison, one would need to analyze the average contract value for similar services awarded by DISA over comparable periods, considering factors like contract type, specific technical requirements, and the number of bidders.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risks associated with a CPFF contract of this magnitude and duration revolve around cost control and potential for scope creep. While the fixed fee provides a defined profit margin for the contractor, the 'cost plus' element means the government bears the risk of actual costs incurred. If the contractor's costs are higher than anticipated due to inefficiencies, unforeseen technical challenges, or poor project management, the total expenditure for the government can escalate significantly. For a long-duration contract, there's also the risk that the initial cost estimates or the fixed fee may not adequately account for inflation, evolving labor rates, or changes in technology over the contract's life. Robust oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks.

How does the 'full and open competition' aspect influence the value proposition for the taxpayer?

Full and open competition is designed to maximize value for the taxpayer by ensuring that the government receives offers from the widest possible range of qualified contractors. This competitive pressure typically drives down prices, encourages innovation, and leads to higher quality services as contractors vie for the award. By allowing all responsible sources to participate, the government increases its chances of finding the most cost-effective solution and avoids the potential inefficiencies or higher costs often associated with sole-source or limited competition procurements. The process fosters transparency and accountability, making it more likely that taxpayer funds are used efficiently.

What are the potential implications of the contract's long performance period (2018-2026) on technological relevance?

A long performance period, such as the 2862 days (over 7 years) for this contract, presents a dual-edged sword regarding technological relevance. On one hand, it provides stability and allows for deep integration of services and long-term program development, which can be crucial for complex defense systems. On the other hand, technology evolves rapidly, especially in the defense IT sector. There's a risk that the technologies, methodologies, or systems supported under this contract could become outdated before its completion. To mitigate this, the contract likely includes provisions for technical refresh, adaptation to new standards, or requires the contractor to propose innovative solutions that maintain relevance throughout the period of performance. Effective contract management is key to ensuring the services remain cutting-edge.

How does the 'Engineering Services' classification (NAICS 541330) inform our understanding of the contract's scope?

The classification of 'Engineering Services' under NAICS code 541330 indicates that the core of this contract involves the application of engineering principles and expertise to design, develop, and manage complex systems. This typically encompasses a wide range of activities, including systems design, integration, testing, evaluation, technical analysis, and program management support for hardware, software, and complex technological projects. For a defense contract, this often translates to supporting the lifecycle of military platforms, communication systems, intelligence gathering tools, or other critical defense infrastructure. It suggests a focus on technical problem-solving, ensuring systems meet stringent performance and security requirements, and providing the specialized knowledge needed to bring sophisticated defense projects to fruition.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

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, MC LEAN, 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: $43,394,534

Exercised Options: $38,454,579

Current Obligation: $38,432,789

Actual Outlays: $4,790,698

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $2,095,591

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU108

IDV Type: IDC

Timeline