DoD Awards $219M IT Services Contract to Booz Allen Hamilton for Threat Reduction
Contract Overview
Contract Amount: $219,125,088 ($219.1M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2023-07-22
End Date: 2026-07-22
Contract Duration: 1,096 days
Daily Burn Rate: $199.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: MISSION INFORMATION TECHNOLOGY SERVICES
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $219.1 million to BOOZ ALLEN HAMILTON INC for work described as: MISSION INFORMATION TECHNOLOGY SERVICES Key points: 1. Significant contract value of $219.1M for IT services. 2. Booz Allen Hamilton, a large established firm, is the sole awardee. 3. Contract type is Cost Plus Award Fee, which can lead to higher costs. 4. Services fall under Computer Systems Design, a common IT sector.
Value Assessment
Rating: fair
The contract is a Cost Plus Award Fee (CPAF) type, which allows for reimbursement of costs plus a fee that is based on performance. This structure can incentivize good performance but also carries a risk of higher overall costs compared to fixed-price contracts if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, it is a delivery order against a larger contract vehicle, and the specific competition for this order is not detailed.
Taxpayer Impact: The use of full and open competition is generally positive for taxpayers as it aims to secure the best value. However, the CPAF structure requires careful oversight to ensure cost efficiency.
Public Impact
Supports critical defense missions for the Defense Threat Reduction Agency. Ensures continued access to essential IT and computer systems design services. Potential for innovation and improved efficiency through award fee structure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPAF contract type may lead to cost overruns.
- No small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Long-term contract provides stability for services.
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services. The Department of Defense is a major consumer of these services, with significant spending benchmarks often exceeding hundreds of millions for complex IT support.
Small Business Impact
The data indicates that this contract was not awarded to a small business (sb: false). There is no specific mention of small business subcontracting goals or participation in the provided details.
Oversight & Accountability
The contract is a delivery order against a larger contract vehicle, suggesting existing oversight mechanisms. The CPAF structure necessitates robust government oversight to manage costs and ensure performance targets are met.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Threat Reduction Agency Programs
Risk Flags
- Cost Plus Award Fee structure carries inherent cost risk.
- No small business participation identified.
- Potential for scope creep in CPAF contracts.
- Dependence on a single large contractor for critical services.
Tags
computer-systems-design-services, department-of-defense, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $219.1 million to BOOZ ALLEN HAMILTON INC. MISSION INFORMATION TECHNOLOGY 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 Threat Reduction Agency).
What is the total obligated amount?
The obligated amount is $219.1 million.
What is the period of performance?
Start: 2023-07-22. End: 2026-07-22.
What is the typical cost range for similar Computer Systems Design Services contracts awarded by the DoD?
The cost range for similar Computer Systems Design Services contracts awarded by the DoD can vary widely based on scope, duration, and complexity. However, contracts in the tens to hundreds of millions of dollars are common for large-scale IT support and system design. Benchmarking against specific contract types like CPAF and the specific agency's needs is crucial for a precise comparison.
What are the key performance indicators (KPIs) tied to the award fee for this contract?
The specific Key Performance Indicators (KPIs) tied to the award fee are not detailed in the provided data. Typically, for CPAF contracts, KPIs would relate to mission accomplishment, system availability, response times, user satisfaction, and adherence to security protocols. The Defense Threat Reduction Agency would define these metrics to ensure Booz Allen Hamilton meets critical operational requirements.
How does the 'full and open competition' for the parent contract vehicle translate to value for this specific delivery order?
While the parent contract vehicle was awarded through full and open competition, the value for this specific delivery order depends on the competitive nature of the bidding process for the order itself. If multiple vendors competed for this specific order, it likely drove better pricing and terms. However, if it was a sole-source task order against a competitively awarded IDIQ, the value proposition relies on the initial competition of the IDIQ.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
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: $266,062,278
Exercised Options: $266,062,278
Current Obligation: $219,125,088
Actual Outlays: $17,826,903
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $1,072,474
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0004
IDV Type: GWAC
Timeline
Start Date: 2023-07-22
Current End Date: 2026-07-22
Potential End Date: 2026-07-22 00:00:00
Last Modified: 2026-01-07
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