DoD's $49M IGF Product Manager Contract Awarded to Booz Allen Hamilton for Army Software Technology Insertion

Contract Overview

Contract Amount: $48,953,198 ($49.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2015-12-21

End Date: 2017-12-20

Contract Duration: 730 days

Daily Burn Rate: $67.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF PRODUCT MANAGER DISTRIBUTED COMMON GROUND SYSTEM - ARMY SOFTWARE TECHNOLOGY III INSERTION. THIS IS PART OF THE INCREMENT I APPROACH AND THE FINAL TECHNOLOGY INSERTION (III) TO THIS APPROACH.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $49.0 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF PRODUCT MANAGER DISTRIBUTED COMMON GROUND SYSTEM - ARMY SOFTWARE TECHNOLOGY III INSERTION. THIS IS PART OF THE INCREMENT I APPROACH AND THE FINAL TECHNOLOGY INSERTION (III) TO THIS APPROACH. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 3. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 4. The contract duration is 730 days, indicating a medium-term project. 5. The awardee, Booz Allen Hamilton, is a large, established government contractor. 6. The contract falls under Engineering Services (NAICS 541330).

Value Assessment

Rating: fair

The total contract value is approximately $49 million over two years. Without specific performance metrics or comparable contract data for similar software technology insertion projects, it is difficult to definitively assess value for money. The Cost Plus Fixed Fee (CPFF) contract type introduces some risk, as costs can escalate beyond initial estimates, although the fixed fee component provides some cost control. Benchmarking this against other similar software development and integration contracts within the Department of Defense would be necessary for a more robust assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred for maximizing price discovery and achieving best value, the actual number of bidders can influence the intensity of that competition.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, generally provides a better opportunity for taxpayers to receive competitive pricing compared to sole-source or limited competition awards.

Public Impact

The primary beneficiary is the Department of the Army, specifically the IGF Product Manager, receiving updated software technology. The contract delivers software technology insertion, likely enhancing the capabilities of existing Army systems. The geographic impact is primarily within the continental United States, where Army software development and deployment typically occur. Workforce implications include potential employment for software engineers, project managers, and technical specialists at Booz Allen Hamilton and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not closely monitored.
The specific nature of 'software technology insertion' can be broad, requiring clear definition of deliverables and success metrics to avoid scope creep.
Reliance on a single large contractor for critical technology insertion may limit future flexibility or innovation from smaller firms.

Positive Signals

Awarded through full and open competition, indicating a structured and potentially competitive process.
The contract is a delivery order under an existing IDIQ, suggesting a pre-vetted contractor and established framework.
Booz Allen Hamilton has a significant track record in government contracting, implying experience and established processes.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to IT and defense systems. The market for defense IT services is substantial, with significant government spending allocated to software development, integration, and modernization. This contract represents a component of the broader effort to maintain and upgrade the technological capabilities of military systems, fitting into a sector characterized by long-term contracts and specialized expertise.

Small Business Impact

The data indicates that small business participation (sb) was false and that the contract was not a small business set-aside (ss). This suggests that small businesses were not specifically targeted for this award. There is no information provided regarding subcontracting plans, so the extent to which small businesses may be involved as subcontractors cannot be determined from this data alone.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The Cost Plus Fixed Fee (CPFF) structure necessitates robust financial oversight to ensure costs are reasonable and allocable. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse. Transparency is generally facilitated through contract award databases, though detailed performance reporting may be internal.

Related Government Programs

Army Software Development Contracts
Defense IT Modernization Programs
Indefinite-Delivery/Indefinite-Quantity (IDIQ) Contracts
Engineering Services for Defense

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring of costs.
Potential for integration challenges with legacy systems.
Definition of 'technology insertion' needs clear scope management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.0 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF PRODUCT MANAGER DISTRIBUTED COMMON GROUND SYSTEM - ARMY SOFTWARE TECHNOLOGY III INSERTION. THIS IS PART OF THE INCREMENT I APPROACH AND THE FINAL TECHNOLOGY INSERTION (III) TO THIS APPROACH.

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 $49.0 million.

What is the period of performance?

Start: 2015-12-21. End: 2017-12-20.

What is the specific nature of the 'IGF Product Manager Distributed Common Ground System - Army Software Technology III Insertion' and what are the expected outcomes?

The 'IGF Product Manager Distributed Common Ground System - Army Software Technology III Insertion' refers to a specific phase (Technology Insertion III) of an incremental approach to updating the software for the Army's Distributed Common Ground System (DCGS). DCGS is a critical intelligence, surveillance, and reconnaissance (ISR) system used by the Army to process and disseminate intelligence data. This contract likely aims to integrate new technologies, improve functionalities, or address obsolescence within the DCGS software suite. The expected outcomes would include enhanced intelligence processing capabilities, improved user interfaces, better data fusion, and potentially increased system efficiency and security, ultimately supporting Army intelligence operations.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types in terms of cost control for software development?

Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. While the fixed fee provides some incentive for the contractor to control costs (as the fee doesn't increase with costs), it can also lead to cost overruns if the initial cost estimates are inaccurate or if scope creep occurs. Unlike Firm-Fixed-Price (FFP) contracts where the contractor bears the risk of cost overruns, CPFF shifts more cost risk to the government. For complex, evolving projects like software technology insertion where requirements might not be fully defined upfront, CPFF can be suitable, but it requires stringent government oversight of costs and performance to ensure value for money and prevent excessive spending.

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

Booz Allen Hamilton is a major government contractor with extensive experience in providing IT, engineering, and consulting services to the Department of Defense (DoD). They have a long history of managing large-scale, complex projects, including software development, system integration, and technology insertion for various military branches. Their track record includes numerous contracts related to intelligence systems, command and control, and other critical defense IT infrastructure. While specific performance details for individual contracts are often not public, their sustained presence and significant contract awards suggest a generally accepted capability and reliability in delivering services to the DoD. However, like any large contractor, they may have faced scrutiny or performance issues on specific projects over their long history.

What are the potential risks associated with technology insertion into legacy systems like the DCGS?

Technology insertion into legacy systems like the Distributed Common Ground System (DCGS) carries several potential risks. One primary risk is integration complexity; new technologies may not seamlessly interface with existing architecture, leading to unforeseen technical challenges, delays, and increased costs. Another risk is scope creep, where the definition of 'insertion' expands beyond initial intentions, leading to budget overruns and schedule slippage. There's also the risk of introducing new vulnerabilities or instability into a system that is critical for operations. Furthermore, if the new technology becomes obsolete quickly or doesn't deliver the expected performance improvements, the investment may not yield the desired return. Finally, workforce adaptation and training on the new technologies can also pose a challenge.

How does the $49 million contract value compare to overall DoD spending on intelligence systems or software development?

The $49 million contract value for this specific technology insertion phase is a relatively modest amount within the broader context of the Department of Defense's overall spending on intelligence systems and software development. The DoD's annual budget runs into hundreds of billions of dollars, with a significant portion allocated to IT modernization, intelligence, surveillance, and reconnaissance (ISR) platforms, and software sustainment and development. For instance, major programs like the DCGS itself, or other large-scale IT initiatives, can involve billions of dollars over their lifecycle. Therefore, while $49 million is a substantial sum for a single contract, it represents a small fraction of the total DoD IT and intelligence-related expenditures, indicating it's likely a focused effort within a larger, ongoing modernization strategy.

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: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DRIVE, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $66,988,877

Exercised Options: $48,953,198

Current Obligation: $48,953,198

Subaward Activity

Number of Subawards: 25

Total Subaward Amount: $71,046,043

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T06DE401

IDV Type: IDC

Timeline