Booz Allen Hamilton awarded $90.4M for C4I systems engineering and development by the Department of the Navy

Contract Overview

Contract Amount: $90,401,168 ($90.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2010-04-07

End Date: 2015-12-15

Contract Duration: 2,078 days

Daily Burn Rate: $43.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING, DESIGN, DEVELOPMENT, ACQUISITION OF C4I SYSTEMS

Place of Performance

Location: SAINT INIGOES, SAINT MARYS County, MARYLAND, 20684

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $90.4 million to BOOZ ALLEN HAMILTON INC for work described as: ENGINEERING, DESIGN, DEVELOPMENT, ACQUISITION OF C4I SYSTEMS Key points: 1. Contract value represents significant investment in complex C4I system lifecycle. 2. Full and open competition suggests a robust market for these specialized services. 3. Cost-plus-fixed-fee structure may incentivize contractor efficiency while managing risk. 4. Contract duration of nearly 6 years indicates a long-term need for C4I system support. 5. Geographic concentration in Maryland points to proximity to key defense installations. 6. No small business set-aside indicates the primary contractor is a large business.

Value Assessment

Rating: good

The $90.4 million award for C4I systems engineering and development appears reasonable given the contract's scope and duration. While direct comparisons are difficult without specific system details, Booz Allen Hamilton is a well-established contractor in this space. The cost-plus-fixed-fee (CPFF) pricing structure is common for complex R&D and engineering efforts where costs can be uncertain. Benchmarking against similar large-scale C4I system development contracts would provide further insight into value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but this approach generally fosters competitive pricing and encourages innovation. The Department of the Navy likely sought the best technical solution and value through this competitive process.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at a fair market price and reduces the risk of overpayment compared to sole-source or limited competition awards.

Public Impact

The Department of the Navy benefits from advanced Command, Control, Communications, Computers, and Intelligence (C4I) systems, enhancing operational effectiveness. Services delivered include engineering, design, development, and acquisition of critical C4I capabilities. Geographic impact is primarily within Maryland, likely supporting naval operations and personnel in the region. Workforce implications include employment for highly skilled engineers, developers, and acquisition specialists within Booz Allen Hamilton and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not managed diligently.
Long contract duration could lead to scope creep or evolving requirements not fully captured in initial pricing.
Reliance on a single large contractor may limit opportunities for smaller, specialized firms in future procurements.

Positive Signals

Award to a reputable contractor with extensive experience in C4I systems.
Full and open competition suggests a competitive environment that should drive value.
Clear definition of services (engineering, design, development, acquisition) provides focus.
Contract duration allows for sustained development and integration of complex systems.

Sector Analysis

The C4I systems sector is a critical component of defense spending, encompassing technologies that enable communication, intelligence gathering, and command decision-making. This contract fits within the broader defense IT and systems integration market, which is characterized by high technical complexity and significant government investment. Comparable spending benchmarks would involve analyzing other large-scale C4I development contracts awarded by the DoD and other federal agencies.

Small Business Impact

The absence of a small business set-aside and the fact that the primary awardee is a large business suggest that this contract was not specifically targeted for small business participation. While Booz Allen Hamilton may engage small businesses as subcontractors, the primary contract value is not directly allocated to small business set-asides. This could limit direct opportunities for small businesses to secure prime contract positions on this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Performance reviews, milestone tracking, and financial audits are standard accountability measures. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Information Systems Agency (DISA) contracts
Naval Sea Systems Command (NAVSEA) contracts
Command, Control, Communications, Computers, and Intelligence (C4I) programs
DoD IT Modernization initiatives
Systems Engineering and Technical Assistance (SETA) contracts

Risk Flags

Cost-plus contract type requires diligent oversight to manage costs.
Long contract duration necessitates careful management of scope and requirements.
Potential for contractor performance issues on complex system development.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $90.4 million to BOOZ ALLEN HAMILTON INC. ENGINEERING, DESIGN, DEVELOPMENT, ACQUISITION OF C4I SYSTEMS

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 Navy).

What is the total obligated amount?

The obligated amount is $90.4 million.

What is the period of performance?

Start: 2010-04-07. End: 2015-12-15.

What is Booz Allen Hamilton's track record with similar C4I system development contracts for the Department of the Navy?

Booz Allen Hamilton has a long-standing and extensive track record of supporting the Department of the Navy (DoN) and the broader Department of Defense (DoD) in C4I systems. They have been involved in numerous contracts related to system design, integration, cybersecurity, and lifecycle support across various naval platforms and commands. Their experience spans across different phases of system development, from initial concept and requirements definition through to testing, deployment, and sustainment. Publicly available data indicates a history of significant awards in this domain, reflecting their established position as a prime contractor for complex defense systems. Analyzing specific past performance evaluations and contract modifications would provide a more granular understanding of their success rates and areas of expertise within C4I development for the DoN.

How does the $90.4 million contract value compare to other C4I system development contracts awarded by the Navy in recent years?

The $90.4 million award for C4I systems engineering, design, development, and acquisition falls within a common range for major defense system development efforts. However, without knowing the specific scope and complexity of the C4I systems involved, a direct comparison is challenging. Large-scale C4I programs, especially those involving new platform integration or significant technological advancements, can range from tens of millions to billions of dollars. Contracts for sustainment or upgrades of existing systems might be smaller. This $90.4 million award suggests a substantial, but not necessarily top-tier, investment in developing or significantly enhancing C4I capabilities. Benchmarking against contracts with similar stated objectives (e.g., 'development of new C4I capabilities for surface combatants') would provide a more accurate context for its relative size and value.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for C4I system development?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for C4I system development revolve around cost control and contractor incentive alignment. For the government, the risk is that the contractor may not be sufficiently incentivized to control costs, as the fee is fixed regardless of the actual expenses incurred (within allowable costs). This can lead to cost overruns if the contractor's initial cost estimates are inaccurate or if unforeseen technical challenges arise. The contractor, on the other hand, bears the risk of underestimating costs, as any expenses exceeding the estimated amount will reduce their profit margin. Effective oversight, robust cost tracking, and clear definition of work are crucial to mitigate these risks and ensure the government receives good value.

What does the contract duration of nearly 6 years (2078 days) imply about the nature of the C4I systems being developed?

A contract duration of nearly 6 years for C4I system development strongly implies that the project involves complex, long-term endeavors. This extended timeline suggests the development of sophisticated systems that require significant research, design, prototyping, testing, integration, and potentially multiple iterations. It indicates that the systems are not off-the-shelf solutions but likely involve custom engineering and adaptation to specific naval requirements. Such durations are typical for programs involving new technologies, integration with existing complex platforms (like ships or aircraft), or phased rollouts across different units. It also suggests a stable requirement and a commitment from the Department of the Navy to see the project through its full lifecycle.

How might the geographic concentration in Maryland impact the contract's execution and oversight?

The geographic concentration in Maryland, indicated by 'ST: MD', likely means the primary place of performance or the contractor's relevant facilities are located in that state. This proximity can facilitate closer collaboration and communication between the contractor (Booz Allen Hamilton) and the Department of the Navy, which has a significant presence in the Maryland region (e.g., Naval Air Station Patuxent River, Naval Surface Warfare Center Dahlgren Division). Easier access for government personnel to observe progress, conduct reviews, and resolve issues can enhance oversight efficiency. However, it also concentrates risk in a single geographic area and may limit opportunities for geographically dispersed small businesses to participate directly in on-site activities.

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

Solicitation ID: N0002409R3391

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: BOOZ ALLEN HAMILTON INC, MC LEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $94,262,118

Exercised Options: $94,262,118

Current Obligation: $90,401,168

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4024

IDV Type: IDC

Timeline