Booz Allen Hamilton awarded $22.86M for Advanced Cyber Electromagnetic Activities Engineering by the Department of the Army

Contract Overview

Contract Amount: $22,861,331 ($22.9M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2015-10-01

End Date: 2020-12-04

Contract Duration: 1,891 days

Daily Burn Rate: $12.1K/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 THIS PERFORMANCE-BASED TASK ORDER, W15P7T-10-D-D415-KY08, ENTITLED "ADVANCED CYBER ELECTROMAGNETIC ACTIVITIES (CEMA) ENGINEERING (ACE)," IS ISSUED ON A COST-PLUS-FIXED-FEE (CPFF) BASIS IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF CONTRACT W15P7T-10-D-D415 AND MODIFICATIONS THERETO. THE R23G ORDER NUMBER ASSOCIATED WITH THIS TASK IS R23G-0821, SOLICITATION NUMBER W56KGU-15-R-0008.

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $22.9 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF THIS PERFORMANCE-BASED TASK ORDER, W15P7T-10-D-D415-KY08, ENTITLED "ADVANCED CYBER ELECTROMAGNETIC ACTIVITIES (CEMA) ENGINEERING (ACE)," IS ISSUED ON A COST-PLUS-FIXED-FEE (CPFF) BASIS IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF CONTRACT W15P7T-10-D-D415 AND MODIF… Key points: 1. Contract awarded on a Cost-Plus-Fixed-Fee basis, indicating potential for cost overruns if not managed closely. 2. Full and open competition was utilized, suggesting a competitive environment for this engineering services contract. 3. The contract duration of 1891 days (over 5 years) indicates a long-term need for these specialized services. 4. Performance-based task order structure aims to link payment to achieved outcomes. 5. The contract falls under Engineering Services (NAICS 541330), a critical sector for defense modernization. 6. The task order was issued under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, suggesting a framework for ongoing support.

Value Assessment

Rating: fair

The contract's Cost-Plus-Fixed-Fee (CPFF) structure requires careful monitoring to ensure value for money, as it allows for reimbursement of costs plus a fixed fee. Benchmarking against similar CPFF contracts for advanced engineering services is necessary to assess pricing reasonableness. The fixed fee component provides some incentive for the contractor to control costs, but the overall value is highly dependent on effective cost management and the definition of the fixed fee relative to the scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The solicitation number W56KGU-15-R-0008 suggests a competitive process. The number of bidders is not specified, but the use of full and open competition generally promotes price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, driving down prices and encouraging innovation from a wider pool of contractors.

Public Impact

The Department of the Army benefits from advanced engineering support for cyber and electromagnetic activities. Services delivered are critical for national defense and maintaining technological superiority in the electromagnetic spectrum. The contract's impact is primarily within the defense sector, supporting military operations and readiness. Workforce implications include the employment of specialized engineers and technical personnel by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contracts can lead to cost overruns if not rigorously managed.
The long duration of the contract may not adapt quickly to rapidly evolving cyber threats.
Scope creep could be a risk if not clearly defined and controlled within the task order.
Reliance on a single contractor for this critical function could pose a risk if performance degrades.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing and selection.
Performance-based task order structure aligns contractor incentives with government objectives.
Contractor (Booz Allen Hamilton) is a well-established entity with significant experience in defense contracting.
The contract supports critical national defense capabilities in cyber and electromagnetic activities.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a vital component of the defense industrial base. The market for advanced cyber and electromagnetic activities (CEMA) engineering is highly specialized, driven by the increasing importance of electronic warfare and cyber defense. Spending in this area is substantial across the Department of Defense, reflecting the ongoing need for technological superiority. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts for CEMA or related defense technologies.

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 arising from a specific set-aside. However, as a large prime contractor, Booz Allen Hamilton may engage small businesses as subcontractors for specialized support, though this is not explicitly detailed in the provided information.

Oversight & Accountability

Oversight for this task order would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army. The performance-based nature of the task order implies that progress and deliverables would be monitored against defined metrics. Transparency is facilitated through contract awards databases, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Cybersecurity Services
Information Technology Services
Research and Development
Defense Engineering Support
Electromagnetic Spectrum Operations

Risk Flags

Cost Overrun Risk (CPFF)
Technological Obsolescence
Scope Creep Potential
Long-Term Contract Management

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.9 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF THIS PERFORMANCE-BASED TASK ORDER, W15P7T-10-D-D415-KY08, ENTITLED "ADVANCED CYBER ELECTROMAGNETIC ACTIVITIES (CEMA) ENGINEERING (ACE)," IS ISSUED ON A COST-PLUS-FIXED-FEE (CPFF) BASIS IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF CONTRACT W15P7T-10-D-D415 AND MODIFICATIONS THERETO. THE R23G ORDER NUMBER ASSOCIATED WITH THIS TASK IS R23G-0821, SOLICITATION NUMBER W56KGU-15-R-0008.

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 $22.9 million.

What is the period of performance?

Start: 2015-10-01. End: 2020-12-04.

What is Booz Allen Hamilton's track record with similar Cost-Plus-Fixed-Fee (CPFF) contracts for the Department of Defense?

Booz Allen Hamilton Inc. has a extensive history of performing CPFF contracts with the Department of Defense across various domains, including IT, intelligence, and engineering services. Their extensive experience suggests a familiarity with the administrative and oversight requirements inherent in CPFF arrangements. However, the success and value derived from such contracts are highly dependent on the specific scope, the clarity of the fixed fee, and the government's oversight capabilities. Analyzing past performance metrics, cost variances, and audit findings for comparable Booz Allen Hamilton CPFF contracts would provide a more granular assessment of their performance and cost control effectiveness in similar engagements.

How does the $22.86 million award compare to other Advanced Cyber Electromagnetic Activities (CEMA) engineering contracts?

The $22.86 million award for CEMA engineering represents a significant, but not exceptionally large, investment for a multi-year task order. The duration of over five years (1891 days) suggests a substantial scope of work. To benchmark effectively, one would need to compare this award against other CPFF task orders or contracts specifically for CEMA engineering services awarded by the Department of Defense or other federal agencies. Factors such as the specific technical requirements, the level of innovation required, and the contractor's overhead structure influence pricing. Without access to a broader dataset of comparable CEMA engineering contracts, it is difficult to definitively state whether this represents excellent, fair, or questionable value solely based on the dollar amount.

What are the primary risks associated with a Cost-Plus-Fixed-Fee (CPFF) contract for advanced engineering services?

The primary risk with CPFF contracts, especially for advanced engineering services, is the potential for cost overruns. While the contractor's fee is fixed, their allowable costs are reimbursed. If the project scope is not precisely defined, or if unforeseen technical challenges arise, the contractor may incur higher costs than anticipated. This can lead to the government paying more than initially budgeted. Effective risk mitigation requires robust government oversight, clear definition of requirements, stringent change control processes, and regular performance reviews to ensure the contractor is managing costs efficiently and that the fixed fee remains appropriate for the work performed. The long duration of this contract amplifies these risks if not managed proactively.

How effective is 'full and open competition' in ensuring competitive pricing for specialized engineering services like CEMA?

Full and open competition is generally the most effective method for ensuring competitive pricing, as it allows any qualified vendor to bid. This broadens the potential supplier base, increasing the likelihood of receiving competitive offers and fostering price discovery. For specialized services like CEMA engineering, the effectiveness depends on the number of capable vendors in the market. If the market is highly concentrated with few qualified bidders, even full and open competition might result in limited price variation. However, it still provides the best mechanism for the government to solicit and evaluate the widest range of technical solutions and pricing structures, thereby maximizing the potential for value.

What are the implications of this contract's duration (over 5 years) on technological relevance in the CEMA field?

A contract duration exceeding five years for a field as dynamic as Cyber Electromagnetic Activities (CEMA) presents a significant challenge in maintaining technological relevance. The CEMA landscape evolves rapidly due to advancements in technology and the emergence of new threats. While the contract is performance-based, which should allow for adaptation, there's a risk that the initial technical approach or solutions may become outdated before the contract's completion. To mitigate this, the contract must include mechanisms for incorporating new technologies, adapting to evolving threat environments, and potentially periodic reviews or modifications to ensure the services remain cutting-edge and effective throughout its term.

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: $23,276,520

Exercised Options: $23,276,520

Current Obligation: $22,861,331

Subaward Activity

Number of Subawards: 22

Total Subaward Amount: $5,130,931

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