Booz Allen Hamilton awarded $21.86M contract for enterprise engineering and operational analysis support services by DoD

Contract Overview

Contract Amount: $21,860,168 ($21.9M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2022-09-30

End Date: 2026-09-29

Contract Duration: 1,460 days

Daily Burn Rate: $15.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: ENTERPRISE END TO END ENGINEERING AND OPERATIONAL ANALYSIS SUPPORT SERVICES(E4OAS).

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $21.9 million to BOOZ ALLEN HAMILTON INC for work described as: ENTERPRISE END TO END ENGINEERING AND OPERATIONAL ANALYSIS SUPPORT SERVICES(E4OAS). Key points: 1. Contract provides critical engineering and operational analysis support to the Defense Information Systems Agency (DISA). 2. The contract is a Delivery Order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, suggesting a pre-vetted contractor. 3. Awarded on a Cost Plus Fixed Fee basis, which can incentivize cost overruns if not closely monitored. 4. The duration of the contract is four years, indicating a long-term need for these services. 5. The specific North American Industry Classification System (NAICS) code 541512 points to computer systems design services. 6. The contract was awarded through full and open competition, suggesting a robust bidding process.

Value Assessment

Rating: good

The contract value of $21.86 million over four years averages to approximately $5.46 million per year. Benchmarking this against similar IT support services contracts within the Department of Defense is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) pricing structure requires careful oversight to ensure value for money, as it allows for reimbursement of costs plus a fixed fee, potentially leading to higher overall costs if not managed effectively. The absence of a specific base contract value for the IDIQ vehicle makes direct comparison difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it is a Delivery Order suggests it was placed against an existing IDIQ contract, which itself would have undergone a competitive process. The number of bidders for this specific delivery order is not provided, but the 'full and open' designation implies a competitive environment was established at the IDIQ level.

Taxpayer Impact: A full and open competition generally leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards. This ensures that the government receives competitive proposals, driving down prices.

Public Impact

The primary beneficiaries are the Department of Defense and specifically the Defense Information Systems Agency (DISA), which will receive enhanced engineering and operational analysis support. Services delivered include enterprise-level engineering and operational analysis, crucial for maintaining and improving complex defense IT systems. The geographic impact is likely concentrated around DISA facilities, primarily in Maryland, where the contractor's presence is noted. Workforce implications include the potential for skilled IT professionals and engineers to be engaged in supporting critical national defense infrastructure.

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 specific details of the IDIQ vehicle under which this delivery order was placed are not fully detailed, limiting a complete understanding of the competitive landscape.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's performance contextually.

Positive Signals

Awarded through full and open competition, suggesting a competitive process and potential for value.
Booz Allen Hamilton is a well-established contractor with significant experience in government IT and defense services.
The contract duration of four years indicates a stable, long-term need for these critical services.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the IT services market supporting government operations. The Defense Information Systems Agency (DISA) is a major consumer of such services, responsible for providing, operating, and assuring information systems for the military. Spending in this sector for defense is substantial, with numerous large and small businesses competing for contracts that involve system design, integration, and operational support. Benchmarks for similar contracts would typically be assessed based on the complexity of the systems supported and the level of expertise required.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Booz Allen Hamilton is a large business. While there is no direct small business set-aside, large prime contractors are often required to meet subcontracting goals with small businesses. The impact on the small business ecosystem would depend on whether Booz Allen Hamilton actively pursues small business subcontractors for specialized services under this contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Defense Information Systems Agency (DISA). As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing are crucial to ensure costs are reasonable and allocable. Transparency is typically managed through contract reporting mechanisms and performance reviews. The Inspector General for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Defense Information Systems Agency (DISA) IT Support Services
Department of Defense Enterprise IT Management
IT Services for National Security
Computer Systems Design and Related Services

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure requires diligent oversight to prevent cost overruns.
Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single delivery order under a potentially broad IDIQ vehicle may limit visibility into the full competitive landscape.
Contract performance metrics are not detailed, making objective assessment of value difficult without further information.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.9 million to BOOZ ALLEN HAMILTON INC. ENTERPRISE END TO END ENGINEERING AND OPERATIONAL ANALYSIS SUPPORT SERVICES(E4OAS).

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 $21.9 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-09-29.

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 performing large-scale IT support, engineering, and operational analysis services for the Department of Defense and other federal agencies. They are a prime contractor on numerous IDIQ vehicles and have been awarded billions of dollars in contracts related to C4ISR systems, cybersecurity, enterprise IT modernization, and data analytics. Their track record includes supporting critical missions across various branches of the military and defense agencies like DISA. While specific performance metrics for this particular contract are not detailed, their general performance history with the DoD is characterized by significant contract awards and a broad range of capabilities, often involving complex systems integration and strategic IT planning. However, like many large contractors, they have also faced scrutiny and contract disputes in the past, underscoring the importance of ongoing oversight.

How does the $21.86 million value compare to other enterprise engineering and operational analysis support contracts awarded by DISA or the DoD?

The $21.86 million value for this four-year contract, averaging approximately $5.46 million annually, is a substantial but not exceptionally large sum within the context of major Department of Defense IT and engineering support contracts. DISA, in particular, manages vast and complex IT infrastructures, often awarding contracts in the tens or hundreds of millions of dollars for enterprise-wide support. For instance, contracts for network operations, cybersecurity services, or major system modernization efforts can easily exceed this amount. This contract appears to be for specialized engineering and analysis support, which might command a premium but is likely part of a larger ecosystem of IT services. Therefore, while significant, its value is within the expected range for specialized, long-term support to a major defense agency.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of service?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract structure is the potential for cost overruns and reduced incentive for the contractor to control expenses. In a CPFF arrangement, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. While the fee is fixed, the contractor has less incentive to minimize costs compared to fixed-price contracts because their profit margin remains constant regardless of the total cost. This can lead to scope creep or less efficient resource management if not rigorously overseen. For the government, the risk is paying higher total costs than anticipated if cost controls are not strictly enforced through detailed monitoring, auditing, and clear definition of allowable costs. Effective oversight is paramount to mitigate these risks.

How does the 'Computer Systems Design Services' NAICS code (541512) inform the scope of work for this contract?

The NAICS code 541512, 'Computer Systems Design Services,' indicates that the core of this contract likely involves the design, development, integration, and implementation of computer systems. This can encompass a wide range of activities, including analyzing user needs, designing system architecture, developing software and hardware solutions, integrating different systems, and providing ongoing technical support and consultation. For an 'Enterprise End to End Engineering and Operational Analysis Support Services' contract, this NAICS code suggests the work will focus on the technical aspects of designing, building, and maintaining the complex IT infrastructure that supports the enterprise. It implies services related to system architecture, network design, software integration, and potentially the analysis of system performance and operational efficiency from a design perspective.

What are the implications of this contract being a Delivery Order under an IDIQ vehicle?

A Delivery Order (DO) issued under an Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract signifies that the underlying IDIQ contract has already been awarded through a prior competitive process. This means the contractor (Booz Allen Hamilton) has been pre-selected as a capable vendor for a specific range of services over a defined period. Issuing a DO allows the agency (DISA) to procure specific quantities of goods or services as needed, up to the maximum value of the IDIQ. The implications are twofold: for the agency, it provides flexibility and streamlined procurement for recurring needs; for the contractor, it offers a degree of guaranteed business, contingent on task orders being issued. For taxpayers, the initial competition for the IDIQ sets a baseline for pricing, but the specific pricing of each DO is negotiated or determined based on the IDIQ's terms.

Given the contract's focus on 'Engineering and Operational Analysis Support,' what specific performance outcomes should DISA be tracking?

For a contract focused on 'Enterprise End to End Engineering and Operational Analysis Support Services (E4OAS),' DISA should be tracking several key performance outcomes. These include metrics related to system design effectiveness (e.g., adherence to requirements, scalability, security by design), operational efficiency improvements (e.g., reduction in system downtime, faster processing times, optimized resource utilization), accuracy and timeliness of analysis reports, successful integration of new technologies or system upgrades, and the overall reliability and performance of the supported enterprise systems. Additionally, metrics on cost-effectiveness of proposed engineering solutions and the contractor's responsiveness to DISA's needs are crucial. The CPFF structure necessitates close monitoring of resource allocation and justification for all incurred costs against the defined scope and objectives.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HC104717R0001

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: $52,422,264

Exercised Options: $23,099,903

Current Obligation: $21,860,168

Actual Outlays: $2,453,402

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $1,326,527

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC104718D2004

IDV Type: IDC

Timeline