Booz Allen Hamilton awarded $33.4M for wired telecommunications services, highlighting significant defense sector IT spending

Contract Overview

Contract Amount: $33,432,045 ($33.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2008-03-20

End Date: 2013-06-27

Contract Duration: 1,925 days

Daily Burn Rate: $17.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 18

Pricing Type: LABOR HOURS

Sector: IT

Official Description: LABOR

Place of Performance

Location: QUANTICO, PRINCE WILLIAM County, VIRGINIA, 22134, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $33.4 million to BOOZ ALLEN HAMILTON INC for work described as: LABOR Key points: 1. Contract value represents a substantial investment in essential telecommunications infrastructure. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Contract duration of over 5 years indicates a long-term need for these services. 4. The award to a large, established contractor like Booz Allen Hamilton is typical for complex defense IT requirements. 5. Focus on wired telecommunications points to foundational network needs within the Department of the Navy. 6. The 'LABOR HOURS' contract type suggests a focus on personnel time and expertise rather than fixed deliverables.

Value Assessment

Rating: good

The contract value of $33.4 million over approximately five years for wired telecommunications services appears reasonable given the scope and duration. Benchmarking against similar large-scale telecommunications contracts within the Department of Defense is necessary for a definitive value assessment. However, the full and open competition suggests that pricing was likely scrutinized against market rates. The 'LABOR HOURS' pricing structure, while flexible, can sometimes lead to cost overruns if not managed tightly, but it also allows for adaptation to evolving technical requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 18 bids suggests a robust level of competition for this requirement. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down prices and ensured the government received competitive offers for essential telecommunications services.

Public Impact

The Department of the Navy benefits from enhanced and reliable wired telecommunications infrastructure, crucial for command, control, and operational efficiency. This contract supports the delivery of essential communication services, underpinning various military operations and administrative functions. The geographic impact is likely concentrated around naval installations where these telecommunications services are deployed. The contract supports a significant workforce, including specialized technical personnel employed by Booz Allen Hamilton and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep due to 'LABOR HOURS' pricing if not rigorously monitored.
Reliance on a single large contractor for critical infrastructure could pose long-term dependency risks.
Scope definition challenges in long-term telecommunications contracts can lead to contract modifications and potential cost increases.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Significant number of bidders (18) suggests strong market interest and potential for good value.
Booz Allen Hamilton is a well-established contractor with a proven track record in defense IT.
Contract duration aligns with the long-term nature of telecommunications infrastructure investments.

Sector Analysis

The telecommunications sector is a critical component of the broader IT and defense industries, providing the foundational infrastructure for data transmission and communication. Spending in this area within the federal government is substantial, supporting everything from basic network connectivity to advanced secure communication systems. This contract falls within the 'Wired Telecommunications Carriers' NAICS code, indicating a focus on the physical infrastructure and services related to fixed-line networks. Comparable spending benchmarks would involve analyzing other large-scale telecommunications service contracts awarded by defense agencies.

Small Business Impact

While this contract was awarded to Booz Allen Hamilton, a large prime contractor, the implications for small businesses are not immediately clear from the provided data. There is no explicit indication of a small business set-aside. However, large prime contractors often utilize small business subcontractors to fulfill specific portions of their contracts, potentially creating subcontracting opportunities. Further analysis would be needed to determine the extent of small business participation in this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. Performance monitoring, invoicing review, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or identified during the contract's performance.

Related Government Programs

Defense-wide Telecommunications Services
Navy Information Technology Support Contracts
Wired Network Infrastructure Services
Federal Communications Commission (FCC) Regulated Services

Risk Flags

Potential for cost overruns due to 'LABOR HOURS' pricing.
Long-term dependency on a single large contractor.
Need for rigorous government oversight to manage labor hours effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.4 million to BOOZ ALLEN HAMILTON INC. LABOR

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 $33.4 million.

What is the period of performance?

Start: 2008-03-20. End: 2013-06-27.

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

Booz Allen Hamilton has a long and extensive history of supporting the Department of Defense (DoD) across a wide range of IT and telecommunications services. They are a major prime contractor known for handling complex, large-scale programs. Their experience often includes network design, implementation, maintenance, and cybersecurity for various military branches. Analyzing their past performance on contracts with similar scope, duration, and value within the DoD would provide context for their capability to execute this specific award successfully. Historical data suggests they are a reliable, albeit expensive, partner for the government in these critical areas.

How does the $33.4 million value compare to other wired telecommunications contracts awarded by the Navy in the last five years?

The $33.4 million award value over approximately five years places this contract in the mid-to-large tier for telecommunications services within the Department of the Navy. While not the largest, it represents a significant investment. To provide a precise comparison, one would need to analyze the average contract value, total spending, and the number of contracts awarded for similar 'Wired Telecommunications Carriers' (NAICS 517110) services by the Navy over the specified period. This would help determine if this specific award is higher, lower, or in line with typical spending patterns for such services, considering factors like contract duration and scope.

What are the primary risks associated with a 'LABOR HOURS' contract type for telecommunications services?

The primary risk associated with a 'LABOR HOURS' contract type, as seen in this award, is the potential for cost overruns if labor hours are not managed and controlled effectively. Unlike fixed-price contracts, the government pays for the actual time spent by contractor personnel. This necessitates robust oversight from the government to ensure efficient work practices and prevent unnecessary billings. Scope creep can also be a risk, as the flexibility of 'LABOR HOURS' can sometimes lead to the expansion of work beyond the original intent without a corresponding adjustment in the overall contract ceiling. However, this contract type also offers flexibility to adapt to evolving technical requirements common in telecommunications.

What is the significance of awarding this contract under 'FULL AND OPEN COMPETITION' with 18 bidders?

Awarding this contract under 'FULL AND OPEN COMPETITION' with 18 bidders is a positive indicator for the government and taxpayers. It signifies that the requirement was broadly advertised, allowing any responsible source to compete. The high number of bidders (18) suggests a healthy and competitive market for these telecommunications services. This level of competition typically drives down prices, encourages innovation, and increases the likelihood that the government secures the best possible value. It also reduces the risk of contractor lock-in and provides a benchmark against which future contract pricing can be assessed.

How does this contract contribute to the Department of the Navy's overall IT modernization or infrastructure sustainment efforts?

This contract directly contributes to the sustainment and potential modernization of the Department of the Navy's wired telecommunications infrastructure. Reliable wired networks are foundational for all IT operations, including data transfer, communication systems, and cybersecurity. By ensuring the availability and performance of these essential services, the contract supports the Navy's ability to conduct its missions effectively. Depending on the specific tasks outlined in the SOW, it could also involve upgrades or enhancements to existing infrastructure, thereby playing a role in broader IT modernization initiatives aimed at improving network speed, security, and resilience.

What are the potential long-term implications of relying on Booz Allen Hamilton for these critical telecommunications services?

The long-term implications of relying on a large, established contractor like Booz Allen Hamilton for critical telecommunications services are multifaceted. On the positive side, it ensures continuity of service and access to experienced personnel and established processes. However, prolonged reliance on a single large provider can potentially lead to reduced competitive pressure in future procurements, potentially higher costs over time, and a dependency that might make transitioning to new technologies or providers more complex. It underscores the importance of ongoing market research and strategic sourcing to ensure continued value and innovation.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: ELECTRICAL/ELECTRONIC EQPT COMPNTS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 18

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)

Address: 8283 GREENSBORO DRIVE, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $33,432,045

Exercised Options: $33,432,045

Current Obligation: $33,432,045

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA877104D0006

IDV Type: IDC

Timeline