DoD's $26.9M Medical Evacuation System contract awarded to Booz Allen Hamilton shows fair value with 5 bidders

Contract Overview

Contract Amount: $26,882,776 ($26.9M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2016-06-01

End Date: 2021-11-30

Contract Duration: 2,008 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF TRANSCOM MEDICAL REGULATING AND COMMAND&CONTROL EVACUATION SYSTEM

Place of Performance

Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $26.9 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF TRANSCOM MEDICAL REGULATING AND COMMAND&CONTROL EVACUATION SYSTEM Key points: 1. The contract's value appears reasonable given the scope of IT systems design and integration for critical medical evacuation command and control. 2. With 5 bidders, the competition level suggests a healthy market for these specialized IT services, potentially leading to competitive pricing. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. Performance occurred over a significant period (2016-2021), allowing for phased development and implementation. 5. This contract falls within the broader IT services sector, supporting defense logistics and medical readiness. 6. The award was a delivery order against a larger indefinite-delivery contract, indicating a structured procurement approach.

Value Assessment

Rating: good

The contract's total value of approximately $26.9 million over its period of performance (2016-2021) suggests a moderate annual spend. Benchmarking against similar IT systems design and integration contracts for defense logistics and medical command and control is challenging without more specific data on system complexity and scope. However, the fixed-price contract type generally indicates that the government secured a defined scope of work at a negotiated price, which is a positive indicator for value. The presence of multiple bidders also supports the notion that the pricing was likely competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with five distinct bidders vying for the work. This indicates that the solicitation was widely advertised, and multiple capable vendors were able to respond. The presence of five bidders suggests a reasonably competitive environment for this type of specialized IT service, which typically benefits price discovery and encourages vendors to offer their best terms.

Taxpayer Impact: A competitive award process with multiple bidders generally leads to better pricing for taxpayers by fostering a more efficient market and reducing the likelihood of inflated costs.

Public Impact

The primary beneficiaries are the Department of Defense and its medical personnel, who gain an enhanced capability for managing and commanding medical evacuations. The services delivered include the design and integration of a critical command and control system for medical evacuation operations. The geographic impact is likely global, supporting military operations wherever U.S. forces are deployed. Workforce implications include the need for skilled IT professionals for system development and maintenance, as well as training for military personnel to operate the new system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if system requirements were not clearly defined upfront.
Dependence on contractor expertise for a critical defense system requires robust oversight.
Long performance period could introduce risks related to technology obsolescence if not managed proactively.

Positive Signals

Awarded under full and open competition, indicating a broad market engagement.
Fixed-price contract type helps control costs and manage financial risk.
Multiple bidders suggest a healthy competitive landscape for this service.
The system supports a critical military function, enhancing operational readiness.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on computer systems design and integration. The market for defense IT services is substantial, driven by the need for advanced technological solutions to support military operations, logistics, and command and control. Comparable spending benchmarks would involve analyzing other large-scale IT system development contracts within the Department of Defense or other federal agencies focused on mission-critical infrastructure.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses mentioned. The prime contractor, Booz Allen Hamilton, is a large business. Therefore, the direct impact on the small business ecosystem through this specific award is likely minimal, though large prime contractors often engage small businesses as subcontractors on broader efforts.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Transportation Command (USTRANSCOM) contracting office and program managers. Accountability measures would be embedded in the contract's performance work statement, delivery schedules, and quality assurance provisions. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Health Agency IT Systems
Military Medical Logistics Systems
USTRANSCOM Command and Control Systems
Global Medical Evacuation Support
Defense Information Systems Agency (DISA) Contracts

Risk Flags

Potential for technology obsolescence over the contract duration.
Reliance on contractor for critical defense system functionality.
Need for continuous monitoring of performance and security.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.9 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF TRANSCOM MEDICAL REGULATING AND COMMAND&CONTROL EVACUATION SYSTEM

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 (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $26.9 million.

What is the period of performance?

Start: 2016-06-01. End: 2021-11-30.

What was the specific nature of the "Computer Systems Design Services" provided under this contract?

The contract, "IGF::OT::IGF TRANSCOM MEDICAL REGULATING AND COMMAND&CONTROL EVACUATION SYSTEM," focused on designing and implementing a command and control system for medical evacuation. This likely involved developing software, integrating hardware, establishing communication protocols, and ensuring the system could effectively manage and regulate the movement of patients requiring evacuation. The services would encompass requirements analysis, system architecture design, software development, testing, deployment, and potentially initial training and documentation, all tailored to the unique demands of military medical logistics and patient tracking during transit.

How does the $26.9 million cost compare to similar medical evacuation IT systems developed for the DoD?

Direct comparison of the $26.9 million cost is difficult without detailed specifications of comparable systems. However, the value appears reasonable for a system designed to manage critical medical evacuations across potentially global operations over a five-year period. Factors influencing cost include system complexity, integration with existing infrastructure, cybersecurity requirements, and the level of redundancy and reliability needed for a mission-critical application. Given the specialized nature and the fixed-price award with multiple bidders, the cost likely reflects a competitive market rate for such sophisticated IT solutions within the defense sector.

What were the key performance indicators (KPIs) or metrics used to evaluate Booz Allen Hamilton's performance?

While specific KPIs are not detailed in the provided data, typical performance metrics for such a contract would likely include system uptime and availability, response times for critical functions, data accuracy and integrity, successful integration with other military systems, adherence to delivery schedules, and user satisfaction from medical and command personnel. The fixed-price nature of the contract implies that meeting the defined scope and quality standards within the agreed budget was paramount. Performance would be monitored through regular progress reports, system testing, and potentially site visits or operational assessments.

What are the potential risks associated with a long-term IT system contract like this, and how were they mitigated?

Long-term IT contracts carry risks such as technological obsolescence, changing requirements, and contractor performance issues. For this contract, mitigation strategies likely included phased development allowing for adaptation, clear contract clauses for managing scope changes, and robust government oversight. The fixed-price structure incentivized the contractor to deliver efficiently. Furthermore, the five-year performance period (2016-2021) suggests a deliberate approach to system deployment and refinement, potentially incorporating feedback loops to ensure the system remained relevant and effective throughout its lifecycle.

How has spending on similar medical command and control IT systems evolved within the DoD since this contract's award?

Spending on military IT systems, particularly those related to command, control, and logistics, has generally increased since 2016, driven by advancements in technology and evolving geopolitical landscapes. The DoD continues to invest heavily in modernizing its IT infrastructure, focusing on areas like cloud computing, artificial intelligence, cybersecurity, and data analytics. Contracts for systems like the medical evacuation command and control likely see ongoing modernization efforts or replacements with newer technologies to maintain operational effectiveness and interoperability with the broader defense network.

What is Booz Allen Hamilton's track record with similar large-scale IT system integration contracts for the Department of Defense?

Booz Allen Hamilton has a long-standing and extensive track record of providing IT services, systems engineering, and consulting to the Department of Defense and other federal agencies. They are known for handling complex, large-scale projects involving command and control, intelligence, logistics, and cybersecurity. Their experience typically includes developing and integrating sophisticated technological solutions for various military branches and combatant commands. This specific contract aligns well with their core competencies in IT modernization and defense support.

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

Offers Received: 5

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,901,668

Exercised Options: $26,882,776

Current Obligation: $26,882,776

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0306J

IDV Type: FSS

Timeline