DoD's $24M C4ISR & Aviation Mission Equipment Engineering Services contract awarded to Booz Allen Hamilton

Contract Overview

Contract Amount: $24,026,970 ($24.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2017-08-25

End Date: 2023-02-28

Contract Duration: 2,013 days

Daily Burn Rate: $11.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF TASK ORDER FOR TECHNICAL SERVICES IN SUPPORT OF SYSTEMS MANAGED BY COMMAND,CONTROL, COMMUNICATIONS, COMPUTERS, INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE (C4ISR) AND THE PRODUCT MANAGERS AND DEVELOPERS FOR AVIATION MISSION EQUIPMENT (PM AME)FOR A 10 MONTH BASE PERIOD OF PERFORMANCE, AND 4 OPTION PERIODS AT 12 MONTHS.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $24.0 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF TASK ORDER FOR TECHNICAL SERVICES IN SUPPORT OF SYSTEMS MANAGED BY COMMAND,CONTROL, COMMUNICATIONS, COMPUTERS, INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE (C4ISR) AND THE PRODUCT MANAGERS AND DEVELOPERS FOR AVIATION MISSION EQUIPMENT (PM AME)FOR A 10 MONTH BASE P… Key points: 1. Contract provides technical support for critical C4ISR systems and aviation mission equipment. 2. The contract structure includes a base period and four option periods, indicating potential for long-term engagement. 3. Awarded under full and open competition, suggesting a robust market for these specialized engineering services. 4. The use of Cost Plus Fixed Fee (CPFF) pricing may require close oversight to manage costs effectively. 5. The contract's duration and scope suggest a significant role in supporting defense modernization efforts. 6. Virginia is the primary state for performance, aligning with the concentration of defense contractors in the region.

Value Assessment

Rating: good

The contract value of approximately $24 million over its potential duration appears reasonable for specialized engineering services supporting complex defense systems. Benchmarking against similar contracts for C4ISR and aviation equipment support is necessary for a definitive value assessment. However, the CPFF structure necessitates careful monitoring of labor hours and indirect costs to ensure cost efficiency and prevent overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors were likely invited to bid. This approach generally fosters a competitive environment, encouraging bidders to offer competitive pricing and innovative solutions. The number of bidders and the specific evaluation criteria would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to better pricing and a wider range of technical solutions, maximizing the value of federal investment.

Public Impact

The primary beneficiaries are the Department of the Army and the broader Department of Defense, receiving critical technical support for advanced defense systems. Services delivered include technical support for systems managed by Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) and Product Managers for Aviation Mission Equipment (AME). Performance is primarily located in Virginia, a hub for defense contracting and military operations. The contract supports the development and maintenance of sophisticated military technologies, indirectly impacting the defense industrial workforce and technological advancement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can sometimes lead to cost overruns if not managed diligently, requiring robust oversight.
The specialized nature of C4ISR and aviation mission equipment requires highly skilled personnel, potentially leading to higher labor costs.
Reliance on a single contractor for extended periods, even if competitively awarded, could limit future flexibility or innovation if not actively managed.

Positive Signals

Awarded through full and open competition, suggesting a healthy market and competitive pricing.
The contract supports critical defense capabilities, indicating alignment with national security priorities.
The multi-year structure with option periods provides stability for both the government and the contractor, ensuring continuity of essential services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related technology and systems. The market for C4ISR and aviation mission equipment is highly specialized, dominated by a few key defense contractors. Spending in this area is driven by the need for advanced technological capabilities in surveillance, communication, and aviation platforms, with significant government investment allocated annually to maintain and upgrade these systems.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, Booz Allen Hamilton, may engage small businesses as subcontractors for specialized support, though this is not explicitly detailed in the award information.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Army. The CPFF structure necessitates rigorous monitoring of costs, performance, and adherence to technical specifications. Transparency is generally maintained through contract reporting requirements, and potential issues could fall under the purview of the Department of Defense's Inspector General.

Related Government Programs

C4ISR Systems Support
Aviation Mission Equipment Procurement
Defense Engineering Services
Technical Support Services
Department of the Army Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Technical Complexity
Long-Term Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.0 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF TASK ORDER FOR TECHNICAL SERVICES IN SUPPORT OF SYSTEMS MANAGED BY COMMAND,CONTROL, COMMUNICATIONS, COMPUTERS, INTELLIGENCE, SURVEILLANCE, AND RECONNAISSANCE (C4ISR) AND THE PRODUCT MANAGERS AND DEVELOPERS FOR AVIATION MISSION EQUIPMENT (PM AME)FOR A 10 MONTH BASE PERIOD OF PERFORMANCE, AND 4 OPTION PERIODS AT 12 MONTHS.

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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $24.0 million.

What is the period of performance?

Start: 2017-08-25. End: 2023-02-28.

What is Booz Allen Hamilton's track record with similar Department of Defense contracts?

Booz Allen Hamilton has a long and extensive history of contracting with the Department of Defense, providing a wide range of services including systems engineering, IT support, intelligence analysis, and program management. They are a major defense contractor, frequently awarded large-scale, complex contracts across various branches of the military. Their performance on previous C4ISR and aviation-related contracts would be a key indicator of their capability and reliability for this specific task order. Historical data on contract awards, performance reviews, and any past disputes or corrective actions would offer a comprehensive view of their track record.

How does the $24 million value compare to similar engineering support contracts for C4ISR and aviation equipment?

The $24 million value for a 10-month base period with four 12-month option periods (totaling up to 50 months) is within a typical range for specialized engineering services supporting complex defense systems like C4ISR and aviation mission equipment. Contracts of this nature often involve significant research, development, integration, and sustainment efforts. Benchmarking would require comparing this contract's scope, duration, and specific deliverables against other awards for similar services to agencies like the Army, Navy, or Air Force. Factors such as the level of security clearance required, the specific technologies involved, and the geographic location of performance can influence pricing.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of service?

The primary risk with a CPFF contract structure for engineering services is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. While the fixed fee incentivizes efficiency, the government bears the risk of cost increases if the contractor's actual costs exceed estimates. Effective risk mitigation requires robust government oversight, including detailed cost monitoring, audits, and clear definition of allowable costs. Scope creep is another risk; any expansion of work beyond the original agreement must be carefully managed through contract modifications to avoid uncontrolled cost increases.

How effective is full and open competition in ensuring value for money for specialized defense engineering services?

Full and open competition is generally considered the most effective method for ensuring value for money, especially for specialized services where multiple capable vendors exist. It allows the government to solicit proposals from the widest possible pool of qualified contractors, fostering a competitive environment that drives down prices and encourages innovation. For complex areas like C4ISR and aviation mission equipment, this approach helps identify the best technical solutions at the most reasonable cost. However, the effectiveness also depends on the clarity of the solicitation, the rigor of the evaluation process, and the government's ability to accurately define its requirements.

What is the historical spending trend for C4ISR and aviation mission equipment engineering support within the Department of the Army?

Historical spending trends for C4ISR and aviation mission equipment engineering support within the Department of the Army have generally shown consistent and significant investment. These areas are critical to modern military operations, requiring continuous upgrades and maintenance due to rapid technological advancements and evolving threats. Spending typically fluctuates based on modernization priorities, budget allocations, and specific program requirements. Analyzing past budgets and contract awards for similar services would reveal patterns of investment, highlighting areas of sustained focus and potential shifts in strategic priorities over time.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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 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: $34,163,910

Exercised Options: $24,026,970

Current Obligation: $24,026,970

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $1,297,808

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T10DD415

IDV Type: IDC

Timeline