DoD's $38.7M ELAN Re-engineering Initiative Awarded to Booz Allen Hamilton Under Full and Open Competition

Contract Overview

Contract Amount: $38,739,855 ($38.7M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2023-08-01

End Date: 2026-01-31

Contract Duration: 914 days

Daily Burn Rate: $42.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE LOCAL AREA NETWORK (ELAN) RE-ENGINEERING INITIATIVE

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46249

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $38.7 million to BOOZ ALLEN HAMILTON INC for work described as: ENTERPRISE LOCAL AREA NETWORK (ELAN) RE-ENGINEERING INITIATIVE Key points: 1. The contract focuses on Computer Systems Design Services, a critical area for defense operations. 2. Booz Allen Hamilton, a major defense contractor, secured the award. 3. The project spans over three years, indicating a significant undertaking. 4. The award is a Firm Fixed Price type, providing cost certainty.

Value Assessment

Rating: good

The contract value of $38.7M for a 3-year ELAN re-engineering initiative appears reasonable given the scope and the specialized nature of defense IT services. Benchmarking against similar large-scale network infrastructure projects within the DoD suggests this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically drives competitive pricing and ensures the government receives the best value. The use of a Delivery Order under a larger contract vehicle suggests a structured procurement process.

Taxpayer Impact: Full and open competition is intended to maximize taxpayer value by fostering a competitive environment that drives down costs and improves service quality.

Public Impact

Enhances critical IT infrastructure for the Defense Finance and Accounting Service. Supports the modernization of the DoD's network capabilities. Potential for improved operational efficiency and cybersecurity posture. Impacts personnel relying on secure and reliable network services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in a large re-engineering project.
Dependence on a single contractor for critical infrastructure.
Long duration could lead to technology obsolescence if not managed.

Positive Signals

Firm Fixed Price contract provides cost predictability.
Awarded through full and open competition.
Focus on re-engineering suggests modernization efforts.

Sector Analysis

The IT sector, particularly within defense, sees significant investment in network infrastructure and modernization. Spending benchmarks for similar large-scale network re-engineering projects within government agencies often range in the tens of millions, aligning with this award.

Small Business Impact

This contract was awarded to a large business (Booz Allen Hamilton) and did not indicate any specific set-asides for small businesses. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within this initiative.

Oversight & Accountability

The Defense Finance and Accounting Service (DFAS) is responsible for overseeing this contract. Standard DoD oversight mechanisms for IT projects, including regular reporting and performance reviews, should be in place to ensure accountability and successful execution.

Related Government Programs

Computer Systems Design Services
Department of Defense Contracting
Defense Finance and Accounting Service Programs

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Risk of vendor lock-in due to specialized nature of re-engineering.
Dependency on contractor's ability to deliver advanced IT solutions.
Long project timeline increases risk of technological obsolescence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.7 million to BOOZ ALLEN HAMILTON INC. ENTERPRISE LOCAL AREA NETWORK (ELAN) RE-ENGINEERING INITIATIVE

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 Finance and Accounting Service).

What is the total obligated amount?

The obligated amount is $38.7 million.

What is the period of performance?

Start: 2023-08-01. End: 2026-01-31.

What specific metrics will be used to measure the success and value of the ELAN re-engineering initiative?

Success metrics should focus on quantifiable improvements in network performance, reliability, and security. Key Performance Indicators (KPIs) could include reduced latency, increased uptime, faster data transfer rates, and a measurable decrease in security incidents post-re-engineering. The contract should clearly define these metrics and the methodology for tracking and reporting them to ensure accountability and demonstrate value to taxpayers.

What are the primary risks associated with the long duration of this network re-engineering project?

The primary risks of a 3-year duration include technological obsolescence, where the re-engineered network may not incorporate the latest advancements by its completion. There's also a risk of vendor lock-in, making future transitions more complex and costly. Furthermore, evolving threat landscapes require continuous adaptation, which can be challenging to maintain over an extended project timeline without proactive management and flexibility.

How will the effectiveness of the re-engineered ELAN be assessed post-implementation?

Effectiveness will be assessed through a combination of performance testing, user feedback, and security audits. Post-implementation, rigorous testing will validate that the network meets or exceeds the defined performance benchmarks. User satisfaction surveys will gauge the impact on end-users, while independent security assessments will confirm the enhanced security posture. Regular operational reviews will ensure sustained effectiveness and identify any necessary adjustments.

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

Solicitation ID: HQ042323R0007

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: $47,558,692

Exercised Options: $38,739,855

Current Obligation: $38,739,855

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $11,784,687

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCK18D0004

IDV Type: GWAC

Timeline