DoD's $17.8M IT contract to Booz Allen Hamilton for emerging tech labs shows fair value

Contract Overview

Contract Amount: $17,817,562 ($17.8M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2020-08-10

End Date: 2025-11-09

Contract Duration: 1,917 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EMERGING TECHNOLOGY&LAB ENVIROMENT

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $17.8 million to BOOZ ALLEN HAMILTON INC for work described as: EMERGING TECHNOLOGY&LAB ENVIROMENT Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. Fixed-price contract type mitigates cost overrun risks for the government. 3. Performance period extends over 5 years, indicating a long-term need for these services. 4. The contract is for computer systems design services, a critical area for defense modernization. 5. Small business participation is not explicitly detailed, warranting further investigation. 6. The award amount appears reasonable given the scope and duration of the services.

Value Assessment

Rating: good

The $17.8 million contract for emerging technology and lab environments appears to represent good value. While direct comparisons are difficult without more specific service details, the firm-fixed-price structure is favorable for cost control. The duration of the contract (over 3 years) suggests a sustained need, and the award amount seems aligned with typical IT services contracts of this nature within the federal government.

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. This competitive process is expected to drive more favorable pricing and ensure the government receives the best value. The number of bidders is not specified, but the open competition itself is a positive sign for price discovery.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at the most advantageous price point, reducing the risk of overpayment.

Public Impact

The Department of Defense benefits from enhanced capabilities in emerging technologies and laboratory environments. Services delivered are crucial for defense modernization and maintaining technological superiority. The contract's impact is primarily within the defense sector, supporting national security objectives. Workforce implications may include specialized IT professionals and researchers within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of explicit small business subcontracting goals may limit opportunities for smaller firms.
The broad nature of 'emerging technology' could lead to scope creep if not tightly managed.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Firm-fixed-price contract type provides cost certainty and reduces government risk.
Long performance period suggests a stable, ongoing requirement for critical IT services.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design and emerging technologies for defense applications. The federal IT services market is substantial, with agencies continually investing in advanced capabilities to maintain a technological edge. This contract aligns with the Defense Information Systems Agency's (DISA) mission to provide IT support and services to the DoD, fitting within a broader trend of modernization and innovation spending.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). While this doesn't preclude subcontracting to small businesses, there are no explicit goals mentioned. Further analysis would be needed to determine if small businesses are involved as subcontractors and the extent of their participation in supporting this contract, which could impact the broader small business ecosystem within the defense IT sector.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Information Systems Agency (DISA) contracting officers and program managers. As a delivery order under a larger contract vehicle, oversight mechanisms are likely established within the parent contract's framework. Transparency is generally maintained through contract award databases, but specific performance monitoring details are not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency IT Services
Department of Defense Research and Development
Emerging Technology Procurement
Computer Systems Design Services

Risk Flags

Potential for scope creep due to 'emerging technology' focus.
Risk of technology obsolescence impacting long-term value.
Lack of explicit small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.8 million to BOOZ ALLEN HAMILTON INC. EMERGING TECHNOLOGY&LAB ENVIROMENT

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 $17.8 million.

What is the period of performance?

Start: 2020-08-10. End: 2025-11-09.

What is the track record of Booz Allen Hamilton Inc. in delivering similar IT services for the Department of Defense?

Booz Allen Hamilton Inc. has a long and extensive history of providing IT and professional services to the Department of Defense and other federal agencies. They are a major contractor known for their expertise in areas such as systems engineering, cybersecurity, data analytics, and emerging technologies. Their track record includes numerous large-scale contracts supporting critical defense missions. While specific performance metrics for this particular contract are not publicly detailed, their established presence and significant contract awards suggest a generally strong capability in meeting government requirements. However, as with any large contractor, past performance reviews and specific contract outcomes can vary, and a deeper dive into individual contract performance data would be necessary for a comprehensive assessment.

How does the awarded amount of $17.8 million compare to similar contracts for emerging technology and lab environments within the DoD?

Comparing the $17.8 million award for emerging technology and lab environments requires context regarding the specific services, duration, and scope. Contracts for advanced IT services, R&D, and specialized lab support within the DoD can range significantly, from a few million to hundreds of millions of dollars. Given this contract's duration of approximately 3 years (August 2020 to November 2025) and its focus on computer systems design services for emerging tech, the $17.8 million figure suggests a moderate-sized engagement. It is not exceptionally high or low, indicating a potentially fair market price for the defined scope. Benchmarking against similar, publicly available contracts for comparable services and durations would provide a more precise value assessment.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks for this contract include potential scope creep, given the 'emerging technology' focus, which could lead to cost overruns or schedule delays if not managed effectively. Another risk is the rapid obsolescence of emerging technologies, requiring continuous adaptation and potentially impacting the long-term utility of the services. Contractor performance issues or failure to meet specific technical requirements also pose a risk. Mitigation strategies likely include robust contract management by the Defense Information Systems Agency (DISA), clear definition of deliverables and milestones, regular performance reviews, and the firm-fixed-price contract type, which incentivizes the contractor to control costs. The long-term nature of the contract also implies a need for agile development and adaptation processes.

How effective is the 'full and open competition' strategy in ensuring value for money for this specific contract?

The 'full and open competition' strategy is generally considered the most effective method for ensuring value for money in federal contracting. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. For this $17.8 million contract, this approach suggests that the Department of Defense received multiple proposals, allowing them to select the offer that provided the best combination of technical merit and price. While the specific number of bidders isn't detailed, the open competition itself is a strong indicator that the government is likely paying a fair market price and benefiting from the best available solutions. The firm-fixed-price nature further enhances value by capping the government's financial exposure.

What are the historical spending patterns for 'Computer Systems Design Services' by the Department of Defense, and how does this contract fit?

The Department of Defense is a significant spender on 'Computer Systems Design Services' (NAICS code 541512), reflecting its vast and complex IT infrastructure needs. Historical spending in this category is consistently in the billions of dollars annually, covering everything from system development and integration to cybersecurity solutions and cloud migration. This $17.8 million contract represents a relatively small portion of the DoD's overall expenditure on these services. It fits within the pattern of agencies procuring specialized IT expertise to support specific projects, such as the development and enhancement of laboratory environments for exploring and integrating new technologies. This contract aligns with the DoD's ongoing efforts to modernize its systems and maintain a technological advantage.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $18,190,410

Exercised Options: $17,830,435

Current Obligation: $17,817,562

Actual Outlays: $7,393,935

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $62,770

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC108420D0004

IDV Type: IDC

Timeline