DOD awards $45.8M contract for classified IT engineering and support to Booz Allen Hamilton

Contract Overview

Contract Amount: $45,775,048 ($45.8M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2020-07-20

End Date: 2025-09-19

Contract Duration: 1,887 days

Daily Burn Rate: $24.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DOD MOBILITY CLASSIFIED CAPABILITY ENGINEERING AND SUPPORT SERVICES

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $45.8 million to BOOZ ALLEN HAMILTON INC for work described as: DOD MOBILITY CLASSIFIED CAPABILITY ENGINEERING AND SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for computer systems design services, a common IT support function. 3. Firm Fixed Price contract type aims to control costs and provide predictability. 4. Long duration of 1887 days indicates a significant, ongoing need for these services. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. No small business set-aside was utilized, meaning large businesses were likely primary bidders.

Value Assessment

Rating: good

The contract's total value of $45.8 million over approximately five years suggests a substantial investment in classified IT capabilities. Benchmarking this against similar large-scale IT support contracts within the Department of Defense is challenging without more specific service details. However, the firm fixed-price structure is a positive indicator for cost control. The contract's duration and scope imply a need for specialized expertise, and the pricing should reflect competitive market rates for such high-security services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency likely sought proposals that best met technical requirements and offered competitive pricing.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential contractors, increasing the likelihood of receiving competitive bids and potentially lower prices.

Public Impact

The Department of Defense benefits from enhanced classified IT capabilities and engineering support. Services delivered are critical for maintaining secure and operational classified systems. The primary geographic impact is likely within Maryland, where the contract is managed. Workforce implications include the potential for skilled IT professionals to be engaged in high-security projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite fixed-price structure.
Dependence on a single large contractor for critical classified IT functions.
Risk of vendor lock-in if specialized knowledge becomes highly concentrated.
Challenges in ensuring continuous innovation within a long-term, fixed-scope contract.

Positive Signals

Firm fixed-price contract type helps manage budget predictability.
Full and open competition suggests a robust selection process.
Long-term nature of the contract provides stability for critical IT services.
Award to a well-established contractor like Booz Allen Hamilton may indicate reliability.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and support for classified environments. The market for such specialized services is significant within the defense industry, driven by the constant need for secure and advanced technological infrastructure. Comparable spending benchmarks would involve analyzing other large-scale IT support contracts awarded by defense agencies for similar classified capabilities, often involving complex system integration and cybersecurity.

Small Business Impact

The absence of small business set-asides for this contract suggests that the primary award went to a large business, likely Booz Allen Hamilton. While this specific contract may not directly benefit small businesses through a set-aside, large prime contractors are often required to meet subcontracting goals with small businesses on larger IDIQ vehicles or prime contracts. The impact on the small business ecosystem depends on whether Booz Allen Hamilton actively seeks small business partners for specialized support roles within this classified domain.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Information Systems Agency (DISA), a component of the Department of Defense. Accountability measures would include performance metrics outlined in the contract, regular reporting requirements, and adherence to security protocols for classified systems. Transparency is generally limited for classified contracts due to national security concerns, but internal DoD oversight and potentially Inspector General reviews would ensure compliance and proper use of funds.

Related Government Programs

Defense Information Systems Agency IT Support Contracts
Department of Defense Classified Systems Engineering
Computer Systems Design Services (NAICS 541512)
IT Services for National Security

Risk Flags

Potential for scope creep in long-term IT contracts.
Reliance on contractor for critical classified systems.
Risk of technological obsolescence.
Personnel security and retention challenges for contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.8 million to BOOZ ALLEN HAMILTON INC. DOD MOBILITY CLASSIFIED CAPABILITY ENGINEERING AND SUPPORT SERVICES

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 $45.8 million.

What is the period of performance?

Start: 2020-07-20. End: 2025-09-19.

What is Booz Allen Hamilton's track record with similar classified IT support contracts for the Department of Defense?

Booz Allen Hamilton has a long-standing and extensive track record of providing IT, cybersecurity, and engineering services to the Department of Defense and other intelligence community agencies. They are a major prime contractor on numerous classified programs, often holding significant positions in areas like systems engineering, software development, and operational support for complex defense systems. Their experience includes managing large-scale, high-security projects, which aligns with the nature of this contract. Past performance evaluations and contract awards data from federal procurement databases would provide more granular detail on their specific successes and any challenges encountered on previous classified engagements.

How does the $45.8 million value compare to other classified IT support contracts awarded by DISA or the DOD?

The $45.8 million value for this five-year contract represents a significant but not extraordinary investment for specialized classified IT engineering and support services within the Department of Defense. DISA and other DOD components frequently award contracts in the tens or hundreds of millions of dollars for complex IT infrastructure, cybersecurity, and systems development, particularly for classified environments. The value is commensurate with the long duration (nearly five years) and the specialized nature of supporting classified capabilities. Benchmarking requires comparing it to contracts with similar scope, security requirements, and service delivery models, which are often difficult to access publicly due to classification.

What are the primary risks associated with a long-term, firm-fixed-price contract for classified IT services?

Key risks for a long-term, firm-fixed-price contract in classified IT include potential scope creep if requirements evolve significantly beyond the initial definition, leading to contractor claims or reduced quality if not managed. There's also the risk of technological obsolescence if the contract doesn't adequately account for future advancements. Contractor performance degradation over time, especially if key personnel depart, is another concern. Furthermore, the fixed-price nature can incentivize the contractor to cut corners on quality or innovation if not rigorously overseen. For classified services, security breaches or compromises represent the highest risk, regardless of contract type.

How effective is the firm-fixed-price (FFP) contract type in ensuring value for money for classified IT services?

The Firm-Fixed-Price (FFP) contract type is generally considered effective for ensuring value for money when the scope of work is well-defined and risks are understood. It shifts the cost risk to the contractor, incentivizing them to manage costs efficiently to maximize profit. For classified IT services, where requirements can be complex and evolving, FFP can be effective if the initial scope is robustly defined and change management processes are stringent. However, if requirements change substantially, FFP can lead to costly change orders or disputes. Value for money is ultimately determined by the quality of services delivered relative to the price paid, which requires strong government oversight and performance monitoring.

What is the historical spending trend for computer systems design services (NAICS 541512) within the Department of Defense?

The Department of Defense is consistently one of the largest federal government spenders on computer systems design services (NAICS 541512). Historical spending data indicates a substantial and often increasing trend in this category over the past decade, driven by modernization efforts, cybersecurity needs, and the integration of advanced technologies across various military branches and agencies. While specific figures fluctuate annually based on budget allocations and program priorities, the DOD's reliance on external IT service providers for design, integration, and support remains a significant and stable component of its overall IT expenditure. This contract aligns with that broader trend.

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: $46,117,265

Exercised Options: $46,117,265

Current Obligation: $45,775,048

Actual Outlays: $19,219,863

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $1,511,236

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC108420D0004

IDV Type: IDC

Timeline