Booz Allen Hamilton awarded $105.9M contract for MSO Enterprise Support by DARPA

Contract Overview

Contract Amount: $105,896,732 ($105.9M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2016-05-23

End Date: 2021-07-14

Contract Duration: 1,878 days

Daily Burn Rate: $56.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::CT::IGF - MSO ENTERPRISE SUPPORT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $105.9 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::CT::IGF - MSO ENTERPRISE SUPPORT Key points: 1. Contract value represents a significant investment in enterprise support services. 2. Competition dynamics suggest a potentially competitive bidding process for this award. 3. Contract duration of nearly five years indicates a long-term need for these services. 4. The fixed-price contract type aims to control costs and provide budget certainty. 5. This award falls within the engineering services sector, supporting advanced research. 6. The geographic location of the awardee in Virginia may have local economic implications.

Value Assessment

Rating: good

The contract value of $105.9 million over approximately five years suggests a substantial investment in enterprise support. Benchmarking against similar large-scale IT and engineering support contracts within the federal government is necessary for a precise value-for-money assessment. However, the firm-fixed-price structure indicates an effort to manage costs effectively. The number of bids received (2) is on the lower side for a contract of this magnitude, which could warrant further investigation into pricing competitiveness.

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. While the data shows two bids were received, the 'full and open' designation suggests a broad solicitation. The limited number of bidders could imply a specialized service requirement or a highly concentrated market for such expertise. Further analysis of the solicitation documents would clarify the reasons for the bidder count.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, generally promotes price discovery and can lead to more competitive pricing for taxpayers compared to sole-source awards.

Public Impact

The primary beneficiaries are likely the Defense Advanced Research Projects Agency (DARPA) and its research initiatives, which will receive essential enterprise support. Services delivered are expected to encompass a range of engineering and enterprise management functions critical to DARPA's operations. The geographic impact is primarily centered in Virginia, where the contractor is located, potentially creating or sustaining local jobs. Workforce implications include the employment of skilled engineers and support personnel by Booz Allen Hamilton to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bidders (2) for a contract of this size could indicate potential market concentration or barriers to entry.
The specific nature of 'MSO Enterprise Support' requires further definition to fully assess its scope and potential risks.
Contract duration of nearly five years necessitates ongoing monitoring for performance and potential cost overruns, despite the fixed-price structure.

Positive Signals

Awarded under full and open competition, suggesting a fair and accessible bidding process.
Firm-fixed-price contract type provides cost certainty and incentivizes contractor efficiency.
Booz Allen Hamilton is a well-established contractor with significant experience in federal contracting, suggesting a degree of reliability.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the federal contracting landscape supporting advanced research and development. The federal government spends billions annually on engineering services, encompassing a wide array of specialized expertise. DARPA, as a lead agency for cutting-edge technology, relies heavily on such services to manage complex projects. This contract's value is substantial but within the range of major federal engineering support awards.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Booz Allen Hamilton, a large prime contractor, is likely to subcontract portions of this work. Analysis of subcontracting plans would be necessary to determine the extent to which small businesses will participate in fulfilling this contract and the potential impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Defense and DARPA program officials. Accountability measures are inherent in the firm-fixed-price contract type, which places cost risk on the contractor. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Advanced Research Projects Agency (DARPA) Research and Development Contracts
Federal Engineering Services Contracts
Department of Defense Enterprise IT Support
Large Prime Contractor Awards

Risk Flags

Limited competition (2 bidders)
Potential for scope creep in complex enterprise support contracts
Need for detailed performance monitoring despite fixed-price structure

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $105.9 million to BOOZ ALLEN HAMILTON INC. IGF::CT::IGF - MSO ENTERPRISE 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 Advanced Research Projects Agency).

What is the total obligated amount?

The obligated amount is $105.9 million.

What is the period of performance?

Start: 2016-05-23. End: 2021-07-14.

What is the specific nature of 'MSO Enterprise Support' and what are the key deliverables expected under this contract?

The specific nature of 'MSO Enterprise Support' is not detailed in the provided data. Typically, 'MSO' could refer to 'Mission Systems Operations' or a similar operational designation within DARPA. Enterprise support generally encompasses a broad range of services including IT infrastructure management, cybersecurity, software development and maintenance, systems engineering, program management support, and administrative functions necessary for the smooth operation of an organization. Key deliverables would likely include operational system availability, cybersecurity compliance reports, system performance metrics, project status updates, and potentially the development or enhancement of specific enterprise systems critical to DARPA's mission. A thorough review of the contract statement of work (SOW) would be required to ascertain precise deliverables and performance standards.

How does the $105.9 million contract value compare to historical spending on similar enterprise support services by DARPA or the DoD?

Comparing the $105.9 million contract value requires context on the duration and scope of 'enterprise support' services. DARPA, known for its high-risk, high-reward research, often awards large contracts for specialized support. Historical spending on similar large-scale IT, systems engineering, and program management support contracts within DARPA and the broader DoD can vary significantly based on agency needs and technological advancements. For instance, contracts for managing complex research portfolios, developing advanced simulation environments, or providing overarching IT infrastructure for large research programs can easily reach tens or hundreds of millions of dollars over several years. Without specific historical benchmarks for 'MSO Enterprise Support,' it's challenging to definitively state if this value is high or low. However, for a contract spanning nearly five years, $105.9 million suggests a significant, ongoing requirement for critical support functions.

What are the potential risks associated with a firm-fixed-price contract for complex enterprise support services?

While firm-fixed-price (FFP) contracts are designed to provide cost certainty, they can introduce risks, particularly for complex services like enterprise support. The primary risk for the contractor is underestimating the scope, effort, or unforeseen challenges, leading to reduced profit margins or even losses if costs exceed the fixed price. For the government, the risk is that the contractor may cut corners on quality or scope to protect profitability, potentially impacting service delivery or system performance. If the SOW is not sufficiently detailed or if requirements evolve significantly, scope creep can become a major issue, potentially leading to disputes or change orders. Effective contract management, clear communication, and robust performance monitoring are crucial to mitigate these risks and ensure the government receives the intended value.

Given Booz Allen Hamilton's track record, what is the likelihood of successful performance on this contract?

Booz Allen Hamilton is a large, established government contractor with extensive experience across various federal agencies, including the Department of Defense and DARPA. They have a long history of performing complex IT, engineering, and management support services. Their track record generally indicates a strong capability to manage large contracts and deliver on technical requirements. While past performance is a positive indicator, successful execution still depends on the specific team assigned, the clarity of the contract requirements, and effective program management. Given their size and experience, the likelihood of successful performance is generally considered high, though continuous oversight remains important to ensure all contract objectives are met.

What does the limited number of bidders (2) suggest about the market for these specific enterprise support services?

A limited number of bidders, such as the two received for this $105.9 million contract, can suggest several market dynamics. It might indicate that the required services are highly specialized, requiring unique expertise, certifications, or clearances that only a few companies possess. Alternatively, it could point to a concentrated market where a few large players dominate the space. Barriers to entry, such as significant overhead costs, established relationships, or complex proposal requirements, might also deter potential bidders. In some cases, the specific solicitation or its timing might have inadvertently limited broader participation. Understanding the specific technical requirements and market landscape is key to interpreting the implications of having only two bidders.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MC LEAN, 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: $123,561,775

Exercised Options: $120,454,878

Current Obligation: $105,896,732

Actual Outlays: $5,037,079

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $57,498,462

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU108

IDV Type: IDC

Timeline