Booz Allen Hamilton awarded $95M for Army data modernization, facing scrutiny over value and competition

Contract Overview

Contract Amount: $95,044,026 ($95.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2017-10-12

End Date: 2020-09-14

Contract Duration: 1,068 days

Daily Burn Rate: $89.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: NEW TASK ORDER FOR DATA ENTERPRISE MODERNIZATION AND INTEGRATION SUPPORT

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $95.0 million to BOOZ ALLEN HAMILTON INC for work described as: NEW TASK ORDER FOR DATA ENTERPRISE MODERNIZATION AND INTEGRATION SUPPORT Key points: 1. Contract value appears high relative to duration, prompting questions about cost-effectiveness. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process. 3. The contract type (Cost Plus Fixed Fee) can sometimes lead to cost overruns. 4. Performance period spans nearly three years, indicating a significant, long-term engagement. 5. This award falls within engineering services, a broad category with diverse market rates. 6. The contractor has a substantial presence in federal IT and defense sectors.

Value Assessment

Rating: fair

The total award of $95 million over approximately three years suggests an average annual value of around $31.7 million. Benchmarking this against similar data modernization and integration support contracts within the Department of Defense is crucial. Without specific comparable data, it's difficult to definitively assess if this represents excellent value. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, can sometimes result in higher costs than fixed-price contracts if not managed tightly. Further analysis of the fixed fee and direct costs would be needed to confirm value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. While the number of bidders is not specified, this method generally promotes a competitive environment, which can lead to better pricing and innovation. The agency's decision to use full and open competition suggests confidence in the market's ability to provide qualified contractors.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and a wider pool of innovative solutions when contracts are competed openly. This approach aims to ensure that the government receives the best possible value by leveraging market forces.

Public Impact

The Department of the Army is the primary beneficiary, receiving support for critical data enterprise modernization and integration. Services delivered are expected to enhance the Army's data management capabilities and operational efficiency. The contract is geographically focused on Maryland (MD), indicating a concentration of work in that region. Workforce implications may include the creation or reallocation of specialized IT and engineering roles within the contractor's organization and potentially within the Army.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may incentivize higher spending if not closely monitored.
The significant award amount warrants close scrutiny of performance and cost controls.
Lack of specific details on the number of bidders in the full and open competition makes it hard to gauge the true competitive pressure.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
The contract addresses a critical need for data modernization, which is vital for military operations.
The contractor, Booz Allen Hamilton, is a well-established entity with significant experience in federal contracts.

Sector Analysis

This contract falls within the Engineering Services (NAICS 541330) sector, which is a broad category encompassing a wide range of technical consulting and design services. The federal IT and defense sectors represent a significant portion of spending within this category. The market for data modernization and integration support is highly competitive, with numerous large and small businesses vying for contracts. Comparable spending benchmarks would typically be found within IT modernization initiatives across various federal agencies, particularly those with large data infrastructures like the Department of Defense.

Small Business Impact

The data indicates that small business participation (ss and sb flags are false) was not a specific set-aside requirement for this particular task order. Therefore, there are no direct subcontracting implications mandated by small business set-aside provisions for this award. However, the prime contractor may still engage small businesses as subcontractors, depending on their own internal strategies and the specific needs of the project. The absence of a set-aside means the primary focus was on full and open competition.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Army. Performance monitoring, cost tracking, and adherence to contract terms are standard oversight mechanisms. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Department of Defense IT Modernization Programs
Army Data Strategy Initiatives
Enterprise Resource Planning (ERP) Systems Support
Cloud Computing Services for Defense
Cybersecurity Support Services

Risk Flags

Cost Overrun Risk (CPFF)
Value for Money Assessment Needed
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $95.0 million to BOOZ ALLEN HAMILTON INC. NEW TASK ORDER FOR DATA ENTERPRISE MODERNIZATION AND INTEGRATION 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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $95.0 million.

What is the period of performance?

Start: 2017-10-12. End: 2020-09-14.

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

Booz Allen Hamilton has a long history of performing on CPFF contracts across various federal agencies, including the Department of Defense. Analyzing their past performance on similar CPFF contracts would involve reviewing contract close-out data, any reported cost variances, and performance evaluations. CPFF contracts require robust oversight to ensure costs remain reasonable and the fixed fee adequately compensates the contractor for their effort without incentivizing excessive spending. A review of publicly available contract data and performance reports would be necessary to assess their specific track record on managing costs and delivering value under this contract type for similar data modernization efforts.

How does the $95 million award compare to other data enterprise modernization contracts awarded by the Army or DoD in recent years?

To compare this $95 million award, one would need to analyze recent contract awards for 'data enterprise modernization and integration support' or similar service descriptions within the Department of the Army and the broader DoD. Key comparison points would include the total contract value, period of performance, contract type (e.g., CPFF, FFP), and the specific services rendered. For instance, if similar three-year contracts for comparable services have been awarded in the range of $50-$70 million, this $95 million award might appear on the higher end, warranting further investigation into the scope and complexity. Conversely, if other contracts of similar scope and duration are in the $100-$120 million range, this award might be considered competitive.

What are the specific risks associated with a Cost Plus Fixed Fee (CPFF) contract for data modernization projects?

The primary risk with CPFF contracts, especially for complex projects like data modernization, is the potential for cost overruns. While the contractor is paid their actual costs plus a fixed fee, there's less incentive for them to control costs compared to a firm-fixed-price contract. If the project scope expands or unforeseen technical challenges arise, costs can escalate. For the government, the risk lies in paying more than anticipated if cost controls are not rigorously enforced. Effective oversight, detailed cost tracking, and clear performance metrics are essential to mitigate these risks and ensure the government receives good value.

What specific performance metrics or deliverables are expected under this contract to ensure program effectiveness?

The provided data does not detail the specific performance metrics or deliverables for this contract. However, for a data enterprise modernization and integration support contract, typical deliverables would likely include modernized data architectures, integrated data systems, data quality reports, system performance benchmarks, security compliance documentation, and potentially training materials. Performance metrics would focus on factors such as system uptime, data accuracy rates, integration success rates, project milestone completion, and adherence to security protocols. The contracting officer's representative (COR) would be responsible for monitoring these metrics and ensuring the contractor meets the defined standards for program effectiveness.

What has been the historical spending trend for data enterprise modernization and integration support within the Department of the Army?

Historical spending trends for data enterprise modernization and integration support within the Department of the Army would require analyzing aggregated contract data over several fiscal years. This would involve searching for contracts with relevant keywords (e.g., 'data modernization,' 'data integration,' 'enterprise data services') and service codes (like NAICS 541330 or IT-related codes) awarded by the Army. Observing these trends would reveal whether spending in this area is increasing, decreasing, or remaining stable, and identify major contractors or program areas receiving significant investment. Such analysis helps contextualize the $95 million award within the Army's broader strategic investments in data capabilities.

How does the geographic concentration in Maryland (MD) impact the overall cost and execution of this contract?

A geographic concentration in Maryland (MD) for this contract could have several implications. It may suggest that the primary work will be performed at or near major Army installations or facilities located in Maryland, potentially reducing travel costs for government personnel overseeing the contract. However, labor costs in the Maryland region, particularly for specialized IT and engineering talent, can be higher than in other parts of the country. This could influence the overall cost-effectiveness of the contract. The concentration might also indicate a focus on specific Army commands or programs headquartered in that area, suggesting the modernization efforts are tied to those entities' operational needs.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D 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: $124,594,284

Exercised Options: $106,048,708

Current Obligation: $95,044,026

Subaward Activity

Number of Subawards: 200

Total Subaward Amount: $19,093,003

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