DoD awards $22.2M for cloud software dataops services to Booz Allen Hamilton

Contract Overview

Contract Amount: $22,226,007 ($22.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2022-09-09

End Date: 2026-09-08

Contract Duration: 1,460 days

Daily Burn Rate: $15.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CLOUD SOFTWARE DATAOPS SERVICES FOR BASE YEAR.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $22.2 million to BOOZ ALLEN HAMILTON INC for work described as: CLOUD SOFTWARE DATAOPS SERVICES FOR BASE YEAR. 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 contract vehicle. 3. Services are for cloud software data operations, a critical area for modern defense. 4. The contract duration is approximately 4 years, indicating a long-term need. 5. Fixed-price contract type may offer cost certainty but could limit flexibility. 6. The awardee, Booz Allen Hamilton, is a large, established government contractor.

Value Assessment

Rating: good

The contract value of $22.2 million over four years averages to approximately $5.55 million per year. Benchmarking this against similar cloud software and data operations contracts is challenging without more specific service details. However, given the nature of specialized IT services for the Department of Defense, this price point appears within a reasonable range for a large prime contractor. The firm fixed-price structure suggests that the government has negotiated a set price for the defined scope of work, which is generally favorable for cost control.

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 data shows two bids were received. While two bids suggest some level of competition, it is on the lower end for a full and open competition, which could potentially limit the extent of price discovery and innovation compared to a scenario with a larger number of bidders.

Taxpayer Impact: A competitive process, even with two bidders, is generally beneficial for taxpayers as it encourages contractors to offer competitive pricing and terms to win the award.

Public Impact

The Department of Defense benefits from enhanced cloud software data operations capabilities. Improved data management and analysis can support better decision-making for military operations. The services are delivered within Virginia, potentially impacting the local IT workforce. The contract supports the modernization of defense IT infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may not have driven the lowest possible price.
Firm fixed-price contracts can sometimes lead to scope creep issues if not managed tightly.
Reliance on a single large contractor for critical data operations could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, ensuring a broad initial search for qualified vendors.
Booz Allen Hamilton has a strong track record in government contracting, suggesting reliability.
The firm fixed-price contract type provides budget certainty for the government.
The contract addresses a critical need for data operations in the cloud.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on cloud software and data operations. The market for cloud services and data analytics within the federal government is substantial and growing, driven by the need for modernization and improved efficiency. Comparable spending benchmarks for custom computer programming services (NAICS 541511) for the Department of Defense are typically in the millions of dollars annually, depending on the scope and complexity. This contract's value aligns with the typical scale of such specialized IT engagements.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to a large prime contractor like Booz Allen Hamilton suggests that small businesses are unlikely to be directly involved as the prime, though they may participate as subcontractors if Booz Allen Hamilton chooses to engage them. Further analysis would be needed to determine if subcontracting plans exist and their impact on the small business ecosystem.

Oversight & Accountability

The contract is a delivery order under a larger contract vehicle, implying that oversight mechanisms are likely in place at the contract vehicle level. The Department of the Navy, as the awarding agency, would be responsible for oversight of this specific delivery order. The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver within the agreed-upon cost. Transparency would be enhanced by public reporting of performance metrics and any modifications to the contract.

Related Government Programs

Cloud Computing Services
Data Analytics Services
Custom Computer Programming Services
Department of Defense IT Modernization Programs

Risk Flags

Limited competition (2 bidders)
Potential for scope creep in FFP contracts
Reliance on a single prime contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.2 million to BOOZ ALLEN HAMILTON INC. CLOUD SOFTWARE DATAOPS SERVICES FOR BASE YEAR.

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 $22.2 million.

What is the period of performance?

Start: 2022-09-09. End: 2026-09-08.

What is Booz Allen Hamilton's track record with similar cloud data operations contracts for the Department of Defense?

Booz Allen Hamilton is a major government contractor with extensive experience in IT services, including cloud computing, data analytics, and cybersecurity, for the Department of Defense. They have a history of winning and performing on large-scale contracts related to IT modernization and data management. While specific details on past cloud data operations contracts would require deeper research into their contract history, their overall profile suggests a strong capability in this domain. Their performance on previous DoD contracts, including any past delivery orders under similar vehicles, would be a key indicator of their reliability and expertise for this current award.

How does the $22.2 million value compare to other cloud data operations contracts awarded by the DoD?

The $22.2 million value for approximately four years of cloud software data operations services is a significant but not extraordinary amount for a large federal IT contract. The Department of Defense awards numerous IT contracts annually, many of which are in the multi-million dollar range. To provide a precise comparison, one would need to analyze contracts with similar scopes (cloud, data operations, software development) and durations awarded to similar types of contractors (large system integrators). However, based on general knowledge of federal IT spending, this contract's value appears consistent with the scale of specialized services required by a major agency like the DoD for critical functions.

What are the primary risks associated with this firm fixed-price contract for cloud data operations?

The primary risks associated with a firm fixed-price (FFP) contract for cloud data operations revolve around potential scope creep and the contractor's ability to absorb unforeseen costs. If the requirements for data operations evolve significantly beyond the initial scope, the contractor may face pressure to absorb additional work without additional compensation, potentially impacting quality or leading to disputes. Conversely, if the contractor underestimates the complexity or resources required, they might cut corners to maintain profitability, affecting service delivery. Effective contract management, clear definition of requirements, and robust communication channels are crucial to mitigate these risks and ensure successful performance.

How effective are delivery orders under larger contract vehicles for procuring specialized IT services like cloud data operations?

Delivery orders (DOs) under larger contract vehicles, such as Indefinite Delivery/Indefinite Quantity (IDIQ) contracts, are a common and often effective mechanism for procuring specialized IT services like cloud data operations. They offer flexibility and speed compared to starting a new full and open competition for each specific need. The pre-competed nature of the underlying IDIQ vehicle ensures that the awardee has already met stringent requirements. DOs allow agencies to tailor specific task orders to their immediate needs, including scope, duration, and pricing, while leveraging the established terms and conditions of the parent contract. This approach can lead to faster acquisition cycles and potentially better pricing due to the established relationship and competition at the IDIQ level.

What is the historical spending trend for custom computer programming services (NAICS 541511) by the Department of the Navy?

The Department of the Navy, like other branches of the DoD, has shown a consistent and increasing trend in spending on custom computer programming services (NAICS 541511) over the past decade. This growth is driven by the ongoing need to modernize legacy systems, develop new software applications, and integrate complex IT solutions to support evolving mission requirements. Spending in this category often fluctuates based on major modernization initiatives, cybersecurity upgrades, and the adoption of new technologies like cloud computing and artificial intelligence. Analyzing historical data reveals a significant investment in these services to maintain technological superiority and operational effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

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: $24,317,842

Exercised Options: $22,226,007

Current Obligation: $22,226,007

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,246,720

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA830720G0032

IDV Type: BOA

Timeline