Booz Allen Hamilton awarded $30.6M for intelligence support, raising value-for-money questions

Contract Overview

Contract Amount: $30,604,189 ($30.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2016-05-27

End Date: 2021-08-12

Contract Duration: 1,903 days

Daily Burn Rate: $16.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF INTELLIGENCE SUPPORT

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $30.6 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF INTELLIGENCE SUPPORT Key points: 1. Contract awarded to a single, large incumbent, suggesting limited recent competition. 2. Cost-plus-fixed-fee structure can incentivize cost overruns. 3. Intelligence support services are critical but often opaque, making performance assessment difficult. 4. Long contract duration (1903 days) may not reflect current needs or market evolution. 5. Missile Defense Agency relies on specialized expertise, potentially limiting the bidder pool. 6. No small business set-aside indicates focus on large, established firms.

Value Assessment

Rating: questionable

The contract's value is difficult to benchmark due to the specialized nature of intelligence support. The cost-plus-fixed-fee (CPFF) pricing structure, while common for R&D and complex services, carries inherent risks of cost escalation. Without detailed performance metrics or comparable contract data, assessing whether the $30.6 million represents good value for the services rendered is challenging. The lack of transparency typical in intelligence contracts further complicates a definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were theoretically allowed to participate. However, the award to a single incumbent, Booz Allen Hamilton, suggests that either the competition was not robust, or the incumbent possessed unique qualifications that made them the sole viable option. The presence of only two bids (no) might indicate a specialized market or high barriers to entry for potential competitors.

Taxpayer Impact: While full and open competition was utilized, the limited number of bids and the award to a single, established contractor may have reduced the downward pressure on pricing that broader competition could provide.

Public Impact

Provides critical intelligence support services to the Missile Defense Agency. Enhances national security by supporting the agency's mission. Services likely involve analysis, data processing, and strategic planning related to missile defense. Benefits the Department of Defense by ensuring access to vital intelligence. Workforce implications include employment for highly skilled analysts and technical experts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee structure may lead to higher costs than fixed-price contracts.
Limited competition, despite 'full and open' designation, could impact price.
Opaqueness inherent in intelligence contracts makes performance and value assessment difficult.
Long contract duration might not align with rapidly evolving intelligence needs.

Positive Signals

Awarded through full and open competition, theoretically allowing broad participation.
Booz Allen Hamilton is a well-established contractor with significant experience in government services.
Contract supports a critical national security mission for the Missile Defense Agency.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on intelligence support. This is a highly specialized niche within the broader consulting market, often dominated by a few large, experienced firms. The market size for such specialized intelligence services is substantial, driven by defense and national security needs. Benchmarking is difficult due to the classified or sensitive nature of the work, but spending on intelligence analysis and support services by the DoD is in the billions annually.

Small Business Impact

The contract was not set aside for small businesses, and the awardee, Booz Allen Hamilton, is a large corporation. This suggests that the services required were beyond the typical scope or capability of small businesses, or that the competition focused on large, established prime contractors. There is no explicit indication of subcontracting plans for small businesses within the provided data, though large prime contractors often utilize small business subcontractors for specialized tasks.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management structures, potentially including the Missile Defense Agency's internal oversight bodies. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse. Transparency is limited due to the nature of intelligence support services, making public oversight challenging. Accountability would be measured through contract performance reviews and adherence to the cost-plus-fixed-fee agreement.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Services
Defense Intelligence Support
Technical and Management Consulting Services
Missile Defense Systems Support
Department of Defense IT and Professional Services

Risk Flags

Potential for cost overruns due to CPFF structure.
Limited competition despite 'full and open' designation.
Opaqueness of intelligence services hinders performance assessment.
Contract duration may exceed evolving needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.6 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF INTELLIGENCE 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 (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $30.6 million.

What is the period of performance?

Start: 2016-05-27. End: 2021-08-12.

What is the specific nature of the 'intelligence support' provided under this contract?

The provided data classifies the contract under NAICS code 541690 (Other Scientific and Technical Consulting Services) and describes it as 'INTELLIGENCE SUPPORT'. While specific details are often classified or sensitive, this typically encompasses a range of activities including intelligence analysis, data collection and processing, threat assessment, strategic planning support, and potentially the development or implementation of intelligence systems. For the Missile Defense Agency, this support would likely be focused on understanding adversary missile capabilities, operational environments, and potential threats to inform the development and deployment of missile defense systems.

How does the $30.6 million contract value compare to similar intelligence support contracts awarded by the DoD?

Direct comparison of this $30.6 million contract value to similar intelligence support contracts is challenging due to the often classified or sensitive nature of such awards and the specialized services provided. However, the Missile Defense Agency and other intelligence-focused components of the Department of Defense routinely award contracts in the tens to hundreds of millions of dollars for intelligence analysis, technical support, and systems integration. Booz Allen Hamilton, as a major incumbent contractor in this space, frequently secures large-value contracts. Without specific details on the scope, duration, and deliverables, a precise benchmark is difficult, but the value appears within the expected range for specialized, long-term intelligence support to a major defense agency.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for intelligence support?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for intelligence support is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This can reduce the contractor's incentive to control costs, as they are guaranteed their costs will be covered. For intelligence support, where requirements can be complex and evolve, there's a risk that costs could escalate beyond initial projections. This necessitates robust oversight from the government to ensure costs remain reasonable and that the fixed fee remains appropriate for the effort.

Given the award to Booz Allen Hamilton, what does this suggest about the contractor's track record and expertise in intelligence support?

The award of a $30.6 million intelligence support contract to Booz Allen Hamilton by the Missile Defense Agency strongly suggests a significant track record and established expertise in this domain. Booz Allen Hamilton is a well-known and large government contractor with extensive experience providing professional, scientific, and technical services, including a substantial portfolio in intelligence and defense. Winning such a contract implies they possess the necessary security clearances, specialized personnel, technical capabilities, and understanding of the government's complex intelligence requirements. Their incumbency or prior success in similar roles likely played a key role in securing this award.

How has historical spending on intelligence support services by the Missile Defense Agency trended over time?

Analyzing historical spending trends for intelligence support services specifically by the Missile Defense Agency (MDA) requires access to detailed historical contract databases and budget allocations, which are not fully available in the provided data. However, it is generally understood that spending on intelligence, surveillance, and reconnaissance (ISR), as well as specialized intelligence analysis and support, has been a consistent and significant component of the Department of Defense's budget for decades. Given the critical nature of missile defense, the MDA's reliance on advanced intelligence would likely correlate with sustained or increasing investment in these support services, particularly in response to evolving global threats.

What are the implications of this contract being a 'DEFINITIVE CONTRACT' awarded under 'FULL AND OPEN COMPETITION'?

A 'Definitive Contract' is a contract that provides for the procurement of goods or services to be furnished during an indefinite period, with a fixed price or a fixed fee, and a determined maximum quantity. Awarding this under 'Full and Open Competition' means that all responsible sources were permitted to submit a bid, and the contract was awarded based on the best value to the government. In this context, it suggests the government sought a long-term, comprehensive solution for intelligence support, allowing any qualified vendor to compete. The fact that only two bids were received, however, might indicate a specialized market or high barriers to entry, even within a full and open competition framework.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HQ014715R0016

Offers Received: 2

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: $38,163,659

Exercised Options: $35,833,603

Current Obligation: $30,604,189

Actual Outlays: $1,792,248

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $93,183

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline