DoD Awards Booz Allen Hamilton $30.6M for Defense Enterprise Solutions Engineering and Test Support

Contract Overview

Contract Amount: $30,643,963 ($30.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2023-06-07

End Date: 2026-06-06

Contract Duration: 1,095 days

Daily Burn Rate: $28.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROVIDES ENGINEERING AND TEST SUPPORT FOR DEFENSE ENTERPRISE OFFICE SOLUTIONS SYSTEM

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $30.6 million to BOOZ ALLEN HAMILTON INC for work described as: PROVIDES ENGINEERING AND TEST SUPPORT FOR DEFENSE ENTERPRISE OFFICE SOLUTIONS SYSTEM Key points: 1. Contract awarded to a large, established firm, Booz Allen Hamilton. 2. Focus on IT services within the Defense sector. 3. Potential for cost overruns or scope creep given the long duration. 4. Competition method appears standard for this type of service.

Value Assessment

Rating: good

The contract value of $30.6M over three years suggests a reasonable rate for specialized engineering and test support. Benchmarking against similar IT services contracts for the DoD indicates this pricing is within expected ranges.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. The use of a Delivery Order under an existing contract suggests a structured procurement process aimed at achieving fair market value.

Taxpayer Impact: Full and open competition is intended to ensure taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs.

Public Impact

Ensures continued operational support for critical defense IT systems. Supports the modernization and testing of defense enterprise solutions. Impacts personnel within the Defense Information Systems Agency and potentially end-users of the supported systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Long-term contract duration (3 years) may lead to price increases over time.
  • Reliance on a single contractor for critical support functions.
  • Potential for scope creep if requirements are not clearly defined and managed.

Positive Signals

  • Awarded through full and open competition, suggesting competitive pricing.
  • Firm Fixed Price contract type limits cost risk for the government.
  • Contract supports essential defense IT infrastructure.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant area of IT spending for the Department of Defense. Benchmarks for similar services often range from hundreds of thousands to millions of dollars annually, depending on complexity and scope.

Small Business Impact

The contract data indicates that this award was not made to a small business. There is no specific indication of small business subcontracting goals within the provided data.

Oversight & Accountability

The Defense Information Systems Agency (DISA) is responsible for overseeing this contract. Standard oversight mechanisms for IT service contracts, including performance reviews and milestone tracking, would be expected.

Related Government Programs

  • Computer Systems Design Services
  • Department of Defense Contracting
  • Defense Information Systems Agency Programs

Risk Flags

  • Long contract duration may lead to price escalation.
  • Potential for scope creep.
  • Lack of small business participation.
  • Reliance on a single vendor for critical support.

Tags

computer-systems-design-services, department-of-defense, md, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.6 million to BOOZ ALLEN HAMILTON INC. PROVIDES ENGINEERING AND TEST SUPPORT FOR DEFENSE ENTERPRISE OFFICE SOLUTIONS SYSTEM

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 $30.6 million.

What is the period of performance?

Start: 2023-06-07. End: 2026-06-06.

What specific engineering and test methodologies will be employed to ensure the effectiveness of the Defense Enterprise Office Solutions?

The specific methodologies employed would typically be detailed in the contract's Statement of Work (SOW). This would likely include industry-standard practices such as Agile development, DevOps, various testing frameworks (unit, integration, system, user acceptance), and potentially specialized security testing protocols relevant to defense systems. The effectiveness hinges on rigorous adherence to these defined processes and continuous feedback loops.

How will the government mitigate the risk of vendor lock-in or over-reliance on Booz Allen Hamilton for these critical IT support functions over the contract's duration?

Mitigation strategies often include clearly defined contract deliverables, performance metrics, and phased transition plans. The government may also conduct market research periodically to assess alternative solutions or contractors. Maintaining strong internal government expertise to oversee the contractor's work and manage knowledge transfer is also crucial to prevent excessive dependency.

What is the projected return on investment or value proposition for the government in procuring these engineering and test support services?

The value proposition lies in ensuring the reliable, secure, and efficient operation of critical defense enterprise IT solutions. By outsourcing specialized engineering and testing, the DoD can leverage external expertise, potentially reducing internal staffing costs and accelerating development/deployment cycles. The ROI is measured by the improved functionality, reduced downtime, and enhanced security of the supported systems, ultimately contributing to mission effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT 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: 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: $72,926,656

Exercised Options: $30,667,233

Current Obligation: $30,643,963

Actual Outlays: $4,922,062

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

Start Date: 2023-06-07

Current End Date: 2026-06-06

Potential End Date: 2028-06-06 00:00:00

Last Modified: 2025-12-31

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