Booz Allen Hamilton awarded $3.58M contract for DISA labor services, extending through July 2026

Contract Overview

Contract Amount: $3,582,459 ($3.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2025-07-24

End Date: 2026-07-23

Contract Duration: 364 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: LABOR (TASKS 1-5) (DISA)

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $3.6 million to BOOZ ALLEN HAMILTON INC for work described as: LABOR (TASKS 1-5) (DISA) Key points: 1. Contract focuses on essential labor for IT tasks, indicating a need for specialized support. 2. The single award suggests a specific capability requirement or a competitive process that yielded one strong offer. 3. Fixed-fee pricing structure aims to control costs while allowing for flexibility in task execution. 4. Performance period of one year with options for extension provides agility for evolving needs. 5. Geographic focus on Maryland aligns with major defense information technology hubs. 6. The contract's value is modest, suggesting it may be a component of a larger IT services strategy.

Value Assessment

Rating: good

The contract value of $3.58 million for one year of labor services appears reasonable for specialized IT support within the Department of Defense. Benchmarking against similar contracts for IT labor in the defense sector would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) pricing structure, while offering flexibility, requires careful monitoring to ensure costs remain within the fixed fee parameters and do not escalate unexpectedly. The award amount is not exceptionally high, suggesting a potentially competitive pricing strategy by the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that only one award was made suggests that Booz Allen Hamilton was either the sole responsive and responsible bidder, or significantly outperformed other proposals based on the evaluation criteria. A single award from a full and open competition can sometimes indicate a highly specialized requirement or a market where only a few entities possess the necessary qualifications.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive environment, driving down prices and encouraging innovation. Even with a single award, the initial competitive process ensures that the government explored the market broadly, potentially securing a better price than through a sole-source or limited competition.

Public Impact

The primary beneficiaries are the Department of Defense and specifically the Defense Information Systems Agency (DISA), which will receive essential IT labor support. Services delivered will likely encompass a range of IT tasks critical to DISA's mission, ensuring operational continuity and effectiveness. The geographic impact is concentrated in Maryland, a key area for defense IT operations and personnel. Workforce implications include the direct employment of individuals by Booz Allen Hamilton to fulfill the contract's labor requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed fee is not adequately managed against evolving task requirements.
Dependence on a single contractor for critical labor functions could pose a risk if performance issues arise.
Limited visibility into the specific breakdown of labor hours and costs within the fixed fee structure.

Positive Signals

Awarded through full and open competition, suggesting a robust vetting of the market.
Booz Allen Hamilton is a well-established contractor with significant experience in defense IT services.
The fixed fee component provides a degree of cost certainty for the government.
The contract duration allows for stable support and reduces the frequency of re-competition.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on computer-related services. The IT services market for the federal government is substantial, with significant spending allocated to software development, systems integration, and IT support. Contracts like this are crucial for agencies like DISA to maintain and modernize their complex information systems. Comparable spending benchmarks would involve analyzing other contracts for IT labor support within the defense sector, looking at hourly rates, total contract values, and the scope of services provided.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The prime contractor, Booz Allen Hamilton, is a large business. This means that opportunities for small businesses would primarily be through subcontracting, if Booz Allen Hamilton chooses to engage them. The absence of a specific small business set-aside suggests that the primary focus was on obtaining the most capable vendor through full and open competition, rather than prioritizing small business participation at the prime contract level.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Information Systems Agency (DISA) contracting officers and technical points of contact. Performance monitoring will be crucial to ensure that the labor services provided meet the required standards and objectives within the fixed fee. Transparency is facilitated through contract reporting mechanisms and the standard procurement processes of the Department of Defense. While specific Inspector General (IG) jurisdiction for this particular delivery order isn't explicitly stated, the DoD IG generally has oversight over all defense spending.

Related Government Programs

IT Professional Services
Defense Information Technology Support
IT Labor Contracts
Cost Plus Fixed Fee Contracts
Defense Information Systems Agency Contracts

Risk Flags

Potential for cost escalation under CPFF structure.
Single award from full and open competition may warrant further review of competition dynamics.
Scope creep risk given the broad 'Other Computer Related Services' NAICS code.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.6 million to BOOZ ALLEN HAMILTON INC. LABOR (TASKS 1-5) (DISA)

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 $3.6 million.

What is the period of performance?

Start: 2025-07-24. End: 2026-07-23.

What is Booz Allen Hamilton's track record with DISA and similar IT labor contracts?

Booz Allen Hamilton has a long-standing and extensive track record of providing IT and professional services to the Department of Defense, including DISA. They are a major incumbent contractor across numerous defense IT programs. Their history includes managing large-scale IT support, systems engineering, cybersecurity, and data analytics services. For DISA specifically, they have held multiple contracts supporting various aspects of the agency's mission-critical infrastructure and services. This extensive experience suggests a deep understanding of DISA's operational environment, requirements, and procurement processes. Their past performance evaluations on similar contracts would be a key factor in their selection for this award, indicating a level of reliability and capability that aligns with the agency's needs for specialized IT labor.

How does the $3.58 million value compare to similar IT labor contracts awarded by DISA?

The $3.58 million value for a one-year contract for IT labor services is relatively modest when compared to the vast scale of DISA's overall IT spending. DISA manages extremely large and complex IT infrastructure and services, often involving contracts in the hundreds of millions or even billions of dollars. This particular contract, focused on specific labor tasks, likely represents a component of a larger IT services strategy or addresses a niche requirement. To benchmark effectively, one would need to compare it against other contracts for IT professional services or specific labor categories (e.g., system administrators, network engineers, cybersecurity analysts) awarded by DISA or similar defense agencies. The value suggests it might be for a specialized team or a defined set of tasks rather than broad, enterprise-wide support.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure revolve around cost control and contractor incentive. For the government, the risk is that the 'cost' portion could escalate beyond initial projections, even though the 'fee' is fixed. While the fixed fee incentivizes the contractor to control costs to maximize their profit margin, there's still a potential for scope creep or inefficiencies that drive up the allowable costs. The government must have robust oversight to scrutinize the costs submitted by the contractor. For the contractor, the risk lies in underestimating the costs required to perform the work within the fixed fee, potentially leading to reduced profit or even a loss if costs exceed expectations significantly. Effective management requires clear definition of work, diligent cost tracking, and proactive communication between the government and the contractor.

What does the 'Other Computer Related Services' NAICS code (541519) imply about the services being procured?

The North American Industry Classification System (NAICS) code 541519, 'Other Computer Related Services,' is a broad category that encompasses a wide range of IT services not specifically covered by more specialized codes. This implies that the contract is for computer services that don't fit neatly into categories like custom programming, computer systems design, or computer facilities management. Examples could include IT support services, IT consulting, data processing services, IT disaster recovery services, or specialized IT project management. The 'other' designation suggests flexibility in the types of tasks the contractor might perform, as long as they are computer-related and align with the overall objectives of DISA. It allows the agency to procure a variety of IT support functions under a single contract vehicle.

How might the 'Delivery Order' (AW) type impact the contract's execution and oversight?

A 'Delivery Order' (AW) typically indicates that this contract is a task order issued under a larger indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar multiple-award contract vehicle. This means the $3.58 million is for a specific delivery of goods or services within a defined period, rather than the total potential value of a larger contract. The impact on execution is that the scope, timeline, and specific deliverables are clearly defined for this order. Oversight is focused on ensuring the successful completion of this particular order according to its terms. From an administrative perspective, it simplifies the process compared to awarding a completely new contract, but it also means that the overall performance and value of the larger IDIQ contract would need separate analysis. The 'Delivery Order' nature suggests this is a discrete procurement action.

What are the implications of the contract ending on July 23, 2026, with a duration of 364 days?

The contract has a duration of 364 days, which is just shy of a full year, and an end date of July 23, 2026. This suggests that the initial period of performance is for approximately one year. The fact that it's precisely 364 days might be a standard practice to avoid certain regulatory thresholds or administrative requirements associated with a full 12-month period. The end date of July 23, 2026, implies that the contract was likely awarded sometime in late July 2025, aligning with the 364-day duration. This timeframe provides a defined period for the services to be rendered, allowing DISA to plan for future needs and potential re-competition or extension. The specific end date is crucial for budget planning and contract management.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HC102815R0030

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: $28,139,566

Exercised Options: $4,413,734

Current Obligation: $3,582,459

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