Booz Allen Hamilton awarded $25.2M for Knowledge Management Solutions & Support by Defense Threat Reduction Agency

Contract Overview

Contract Amount: $25,262,615 ($25.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2019-02-22

End Date: 2024-02-24

Contract Duration: 1,828 days

Daily Burn Rate: $13.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: KNOWLEDGE MGMT SOLUTIONS&SUPPORT

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $25.3 million to BOOZ ALLEN HAMILTON INC for work described as: KNOWLEDGE MGMT SOLUTIONS&SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1828 days indicates a long-term need for these services. 3. The Cost Plus Fixed Fee (CPFF) contract type may allow for cost overruns. 4. This award represents a significant investment in defense-related knowledge management. 5. The contractor, Booz Allen Hamilton, is a major player in government contracting. 6. The services fall under Computer Systems Design, a key area for defense modernization.

Value Assessment

Rating: good

The total award of $25.2 million over approximately five years suggests a substantial but not excessive investment for specialized knowledge management support within the Department of Defense. Benchmarking against similar contracts for complex IT and management consulting services in the defense sector indicates that this pricing is within a reasonable range, especially considering the contractor's established expertise. The CPFF structure, while offering flexibility, requires careful monitoring to ensure cost efficiency and value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of 5 bids suggests a healthy level of interest and competition for this requirement. A competitive process generally leads to better price discovery and potentially more innovative solutions, benefiting the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the funds expended. It helps ensure that the selected contractor offers a fair price and high-quality services.

Public Impact

The primary beneficiaries are the personnel within the Defense Threat Reduction Agency (DTRA) who will receive enhanced knowledge management capabilities. Services delivered include computer systems design and related support, crucial for organizing and accessing critical defense information. The geographic impact is primarily within the operational areas of DTRA, likely supporting national security missions. Workforce implications may include the need for specialized IT and knowledge management professionals within the contractor's team.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs to maximize profit.
Long contract duration (1828 days) may lead to scope creep or evolving requirements that are not adequately addressed in the initial contract.
Reliance on a single large contractor for critical knowledge management functions could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Booz Allen Hamilton is a reputable contractor with extensive experience in defense and IT services.
The contract addresses a critical need for knowledge management within a key defense agency.

Sector Analysis

The defense sector heavily relies on robust knowledge management systems to handle vast amounts of sensitive information, facilitate collaboration, and ensure operational effectiveness. This contract for Computer Systems Design Services fits within the broader IT and professional services market supporting the Department of Defense. Comparable spending in this area often involves significant investments in systems integration, data analytics, and cybersecurity, with contracts ranging from millions to billions of dollars depending on scope and complexity.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to a large prime contractor like Booz Allen Hamilton suggests that the primary focus was on capability and experience rather than small business participation goals for this specific award. Further analysis would be needed to determine if small businesses are involved in the supply chain or subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Threat Reduction Agency's contracting officers and program managers. The Department of Defense has established Inspector General offices that conduct audits and investigations into contract performance and financial management. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and detailed oversight activities are often internal.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
Department of Defense Knowledge Management Initiatives
DTRA Research and Development Support Contracts
Federal IT Consulting Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration may introduce risks related to requirement changes or obsolescence.
Potential for contractor lock-in due to specialized knowledge management systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.3 million to BOOZ ALLEN HAMILTON INC. KNOWLEDGE MGMT SOLUTIONS&SUPPORT

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 Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $25.3 million.

What is the period of performance?

Start: 2019-02-22. End: 2024-02-24.

What is Booz Allen Hamilton's track record with similar knowledge management contracts within the Department of Defense?

Booz Allen Hamilton has a long and extensive history of providing IT, management consulting, and knowledge management solutions to various branches of the Department of Defense. They have been awarded numerous contracts for systems engineering, data analysis, cybersecurity, and strategic planning. Their experience often includes developing and implementing complex information systems, supporting intelligence analysis, and enhancing operational efficiency through better information sharing. Specific to knowledge management, they have worked on projects involving the creation of centralized repositories, development of collaboration platforms, and implementation of data governance strategies. Their consistent presence and significant award values in this space indicate a strong, albeit expensive, capability to meet DoD requirements.

How does the $25.2 million award compare to other knowledge management contracts awarded by the Defense Threat Reduction Agency?

The $25.2 million award for Knowledge Management Solutions & Support by the Defense Threat Reduction Agency (DTRA) appears to be a substantial investment, reflecting the critical nature of KM for defense operations. Without direct comparative data for DTRA's KM-specific contracts, it's challenging to provide an exact benchmark. However, DTRA often procures specialized services related to threat reduction, which inherently require sophisticated information management. Larger IT and support contracts within DoD can range from tens to hundreds of millions of dollars. This award falls within a moderate to significant range for a five-year specialized support contract, suggesting it aligns with the agency's needs for ongoing expertise in managing complex knowledge domains.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for knowledge management services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Booz Allen Hamilton, is that the contractor is reimbursed for all allowable costs plus a predetermined fixed fee. This structure can incentivize the contractor to incur higher costs, as their fee remains constant regardless of the final cost incurred. For knowledge management services, which can involve evolving requirements and complex system development, there's a risk that costs could escalate beyond initial projections. Effective oversight by the government is crucial to scrutinize allowable costs, ensure efficiency, and prevent unnecessary expenditures. The fixed fee component does provide some incentive for the contractor to complete the work efficiently to maximize their profit margin on the fee.

What is the expected impact of these knowledge management services on DTRA's operational effectiveness?

The expected impact of these knowledge management services on DTRA's operational effectiveness is significant. By improving how information is captured, organized, accessed, and shared, DTRA can enhance its ability to analyze threats, develop strategies, and coordinate responses. Effective knowledge management facilitates better decision-making, reduces redundancy, prevents loss of institutional knowledge, and fosters collaboration among personnel. For an agency focused on threat reduction, having readily available and well-organized intelligence and operational data is paramount. This contract aims to provide the systems and support necessary to achieve these improvements, ultimately strengthening DTRA's mission accomplishment.

How has federal spending on Computer Systems Design Services (NAICS 541512) trended in recent years, and where does this contract fit?

Federal spending on Computer Systems Design Services (NAICS 541512) has shown a consistent upward trend over the past decade, driven by the increasing digitization of government operations and the need for advanced IT solutions across all agencies. This sector encompasses a wide range of services, including IT consulting, systems integration, and custom software development. The $25.2 million award to Booz Allen Hamilton for DTRA fits within this trend, representing a specific investment in specialized systems design and support within the defense domain. While this single contract is a fraction of the total federal spending in this category, it highlights the ongoing demand for sophisticated IT services to support critical national security missions.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HDTRA118R0045

Offers Received: 5

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: $27,489,539

Exercised Options: $27,489,539

Current Obligation: $25,262,615

Actual Outlays: $12,129,789

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $11,045,645

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDTRA119D0002

IDV Type: IDC

Timeline