DoD awards $12M for IT services to Booz Allen Hamilton, focusing on classified and unclassified mobility capabilities

Contract Overview

Contract Amount: $11,999,982 ($12.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2025-09-19

End Date: 2026-09-18

Contract Duration: 364 days

Daily Burn Rate: $33.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MOBILITY ENTERPRISE SERVICES FOR DOD MOBILITY CLASSIFIED AND UNCLASSIFIED CAPABILITY IN SUPPORT OF 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 $12.0 million to BOOZ ALLEN HAMILTON INC for work described as: MOBILITY ENTERPRISE SERVICES FOR DOD MOBILITY CLASSIFIED AND UNCLASSIFIED CAPABILITY IN SUPPORT OF DISA Key points: 1. Contract value appears reasonable for specialized IT mobility services supporting defense operations. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract's duration of one year with a firm-fixed-price structure indicates defined scope and cost control. 4. Performance is tied to the Defense Information Systems Agency (DISA), a critical component of military IT infrastructure. 5. The service category, Computer Systems Design Services, is broad and encompasses significant technical expertise. 6. No small business set-aside was utilized, indicating the primary awardee is a large business.

Value Assessment

Rating: good

The contract value of approximately $12 million for a one-year period for specialized IT mobility services seems aligned with market rates for similar complex defense IT support. Benchmarking against other large-scale IT service contracts awarded by DISA or similar defense agencies would provide further context, but the price appears to be within a reasonable range given the critical nature of classified and unclassified mobility capabilities. The firm-fixed-price structure also suggests a degree of cost certainty for the government.

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 in the provided data, but the competitive nature of the award process suggests that multiple companies likely vied for this opportunity. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and encourages innovation among potential bidders.

Public Impact

The primary beneficiaries are the Department of Defense personnel who rely on secure and efficient mobility capabilities for their operations. The services delivered will support the enhancement and maintenance of classified and unclassified mobility systems. The geographic impact is likely nationwide and potentially global, given the operational scope of the DoD. Workforce implications may include the need for highly skilled IT professionals specializing in secure mobility solutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively procured.
Dependence on a single contractor for critical mobility infrastructure could pose risks.
Scope creep could lead to cost overruns if not managed tightly under the firm-fixed-price structure.

Positive Signals

Award to a well-established contractor with a track record in defense IT.
Firm-fixed-price contract provides cost certainty.
One-year duration allows for periodic reassessment of needs and contractor performance.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and integration for defense applications. The market for defense IT services is substantial, driven by the continuous need for advanced technological solutions to maintain national security. This contract supports DISA's mission to provide information capabilities and services, fitting into a larger ecosystem of defense modernization and cybersecurity efforts. Comparable spending benchmarks would involve looking at other large IT service contracts awarded to system integrators by various branches of the military.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the awardee, Booz Allen Hamilton, is a large business. This suggests that the primary focus was on securing specialized capabilities from a large, established provider. There is no explicit information on subcontracting plans for small businesses within this specific award, but large prime contractors often engage small businesses for specific components or services.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Information Systems Agency (DISA) contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specific services within a set budget. Transparency is facilitated through contract award databases, though detailed performance metrics are typically internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
Department of Defense Mobility Programs
Classified Network Support Contracts
Unclassified Network Support Contracts
Computer Systems Design Services

Risk Flags

Potential for vendor lock-in
Reliance on contractor for critical infrastructure
Scope definition clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.0 million to BOOZ ALLEN HAMILTON INC. MOBILITY ENTERPRISE SERVICES FOR DOD MOBILITY CLASSIFIED AND UNCLASSIFIED CAPABILITY IN SUPPORT OF 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 $12.0 million.

What is the period of performance?

Start: 2025-09-19. End: 2026-09-18.

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

Booz Allen Hamilton has a long and extensive history of providing IT and management consulting services to the Department of Defense and other federal agencies. They are a major prime contractor on numerous large-scale IT programs, including those involving cybersecurity, cloud computing, data analytics, and systems integration. Their experience spans across various military branches and defense agencies, including significant work with DISA. This includes managing complex networks, developing secure communication systems, and supporting mission-critical IT infrastructure. Their substantial portfolio suggests a deep understanding of the DoD's operational requirements and procurement processes, making them a frequent and capable bidder for high-value defense contracts.

How does the $12 million value compare to other DISA mobility IT contracts?

The $12 million contract value for one year of service is moderate within the context of large federal IT procurements, particularly for an agency like DISA which manages vast and complex information systems. While specific comparable contract values fluctuate based on scope, duration, and technological requirements, this amount appears reasonable for specialized mobility enterprise services. Larger, multi-year contracts for enterprise-wide IT modernization or sustainment can easily reach hundreds of millions or even billions of dollars. This particular award seems focused on a defined set of mobility capabilities, suggesting it might be a component of a larger IT strategy or a specific operational need rather than a comprehensive overhaul.

What are the primary risks associated with this contract for the DoD?

Key risks for the DoD in this contract include potential vendor lock-in if future requirements are not competitively re-bid, reliance on a single contractor for critical mobility functions which could impact operational continuity if performance falters, and the possibility of scope creep leading to cost increases despite the firm-fixed-price structure. Ensuring robust performance monitoring and clear definition of deliverables are crucial to mitigate these risks. Additionally, maintaining the security of classified and unclassified data handled by the contractor is paramount, requiring stringent cybersecurity oversight.

How effective are firm-fixed-price contracts in managing costs for IT services like this?

Firm-fixed-price (FFP) contracts are generally considered effective for managing costs when the scope of work is well-defined and understood, as is often the case with established IT services. This contract type shifts most of the cost risk to the contractor, incentivizing them to control expenses and deliver within the agreed-upon price. For the DoD, FFP provides budget certainty and protects against cost overruns due to contractor inefficiencies. However, if the scope is not precisely defined or unforeseen technical challenges arise, contractors may be less willing to absorb additional costs, potentially leading to disputes or a reluctance to perform beyond the minimum requirements.

What is the historical spending trend for Computer Systems Design Services by DISA?

Historical spending by DISA on Computer Systems Design Services (NAICS 541512) has been substantial, reflecting the agency's role as a central provider of IT infrastructure and services for the Department of Defense. DISA consistently awards significant contracts in this category to support everything from network operations and cybersecurity to enterprise resource planning systems and specialized software development. Annual spending can fluctuate based on modernization initiatives, emerging threats, and budget allocations, but it generally represents a multi-billion dollar segment of DISA's overall IT budget. Analyzing specific trends would require access to detailed historical contract databases, but the consistent need for these services indicates ongoing investment.

What are the implications of this contract being awarded as a 'Delivery Order'?

The designation 'DELIVERY ORDER' typically implies that this contract is part of a larger indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar multiple-award contract vehicle. This means that the $12 million represents the value of a specific order placed against a pre-existing contract, rather than the total value of a new, standalone contract. IDIQ vehicles allow agencies to procure services or supplies over a period of time up to a certain ceiling amount, issuing individual delivery orders as needs arise. This approach offers flexibility and can streamline the procurement process for recurring or anticipated needs, but it also means the total spending under the parent contract could be significantly higher than this single order.

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

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: $84,195,233

Exercised Options: $14,399,714

Current Obligation: $11,999,982

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $12,800,000

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