Booz Allen Hamilton awarded $145M for PEO-EIS Enterprise Professional Support Services by DoD

Contract Overview

Contract Amount: $145,411,609 ($145.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2019-05-08

End Date: 2023-10-07

Contract Duration: 1,613 days

Daily Burn Rate: $90.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: PEO-EIS ENTERPRISE PROFESSIONAL SUPPORT SERVICES

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $145.4 million to BOOZ ALLEN HAMILTON INC for work described as: PEO-EIS ENTERPRISE PROFESSIONAL SUPPORT SERVICES Key points: 1. Contract value represents significant investment in enterprise-level support for Program Executive Office - Enterprise Information Systems. 2. The contract was awarded under full and open competition, suggesting a robust bidding process. 3. The cost-plus-fixed-fee (CPFF) pricing structure may lead to cost overruns if not carefully managed. 4. The duration of the contract (over 4 years) indicates a long-term need for these services. 5. The services provided are critical for the operational efficiency and strategic planning of PEO-EIS. 6. The contract's performance is managed by the Defense Contract Management Agency, a key oversight body.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details and comparable contract data. However, a $145 million award over more than four years for enterprise professional support services within the Department of Defense suggests a substantial investment. The CPFF contract type carries inherent risks of cost escalation, which warrants close monitoring to ensure value for money. Comparing this to similar large-scale professional support contracts within defense agencies would provide a clearer picture of its relative cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of multiple bidders (3 noted) suggests a competitive environment, which typically drives better pricing and service quality. The level of competition is a positive sign for price discovery and ensures that the government has a range of options to choose from, potentially leading to a more favorable outcome.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible services at a reasonable price. Full and open competition reduces the risk of inflated costs often associated with less competitive or sole-source procurements.

Public Impact

The primary beneficiaries are the various programs and initiatives managed by the PEO-EIS within the Department of Defense. Services delivered likely include program management, systems engineering, acquisition support, and other professional services essential for large-scale defense IT and enterprise systems. The geographic impact is primarily within the Department of Defense's operational and administrative centers, potentially across multiple locations. Workforce implications include the direct employment of Booz Allen Hamilton staff and potential indirect impacts on government personnel supporting PEO-EIS.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee (CPFF) contract type can incentivize contractor to increase costs to maximize profit, requiring diligent oversight.
The significant dollar value and long duration increase the potential impact of any performance issues or cost overruns.
Reliance on a single large contractor for critical enterprise support could pose a risk if contractor performance degrades or if the contractor faces financial instability.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield better value.
The contract is managed by the Defense Contract Management Agency, suggesting established oversight mechanisms are in place.
The contractor, Booz Allen Hamilton, is a well-established firm with extensive experience in government contracting, particularly in defense and IT sectors.

Sector Analysis

This contract falls within the professional services sector, specifically supporting defense IT and enterprise systems. The market for such services is large and highly competitive, with numerous firms vying for government contracts. Booz Allen Hamilton is a major player in this space. Comparable spending benchmarks would involve looking at other large enterprise support contracts awarded by DoD or other federal agencies for similar scope and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false). While there is no direct indication of small business subcontracting requirements, large prime contractors like Booz Allen Hamilton often engage small businesses for specialized support. The absence of a specific set-aside suggests the primary focus was on securing the best overall solution from a large, capable provider, rather than prioritizing small business participation directly through this prime contract.

Oversight & Accountability

Oversight for this contract is provided by the Defense Contract Management Agency (DCMA). Accountability measures are typically embedded within the contract terms, including performance metrics, reporting requirements, and payment schedules tied to deliverables. Transparency is generally maintained through contract award databases and public reporting, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

PEO-EIS Enterprise Information Systems
Department of Defense IT Services
Professional Services Contracts
Defense Acquisition Support

Risk Flags

Cost-plus-fixed-fee contract type requires diligent oversight to manage potential cost overruns.
Long contract duration increases exposure to performance risks and potential changes in requirements.
Significant contract value necessitates robust accountability and performance management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $145.4 million to BOOZ ALLEN HAMILTON INC. PEO-EIS ENTERPRISE PROFESSIONAL SUPPORT SERVICES

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $145.4 million.

What is the period of performance?

Start: 2019-05-08. End: 2023-10-07.

What is the specific breakdown of services provided under this contract?

The provided data identifies the contract as 'PEO-EIS ENTERPRISE PROFESSIONAL SUPPORT SERVICES' awarded to Booz Allen Hamilton. While the specific breakdown of services is not detailed in the summary data, contracts of this nature typically encompass a wide range of professional support functions. These often include program management, strategic planning, systems engineering, acquisition lifecycle support, financial management, cybersecurity consulting, and IT infrastructure support. The 'Enterprise Professional Support Services' designation suggests a broad scope aimed at enabling the overall mission and operations of the Program Executive Office for Enterprise Information Systems (PEO-EIS) within the Department of Defense.

How does the $145 million award compare to historical spending on similar PEO-EIS support?

Without access to historical spending data specifically for PEO-EIS enterprise professional support services, a direct comparison is difficult. However, the $145 million award over approximately 4 years (1613 days) represents a significant, multi-year investment. This figure suggests a sustained need for comprehensive support. To provide a robust comparison, one would need to analyze prior contracts for similar services awarded to PEO-EIS or comparable Program Executive Offices within the DoD, looking at both total value and annual spending rates to identify trends and assess if this award is within expected parameters or represents a notable increase or decrease.

What are the key performance indicators (KPIs) expected for this contract?

The provided summary data does not specify the Key Performance Indicators (KPIs) for this contract. However, for enterprise professional support services within the Department of Defense, KPIs typically focus on areas such as program schedule adherence, budget performance, quality of deliverables, responsiveness to task orders, and successful implementation of strategic initiatives. For a Cost Plus Fixed Fee (CPFF) contract, KPIs might also include efficient resource utilization and adherence to cost projections within the fixed fee component. The Defense Contract Management Agency (DCMA) would likely be responsible for monitoring these KPIs.

What is the risk associated with the Cost Plus Fixed Fee (CPFF) contract type?

The Cost Plus Fixed Fee (CPFF) contract type presents a unique risk profile. While it provides the contractor with a guaranteed profit margin (the fixed fee), it also incentivizes the contractor to incur costs, as the fee is calculated as a percentage of the total allowable costs. This can lead to cost overruns if not managed diligently. For the government, the primary risk is paying higher-than-expected total costs. Effective oversight, detailed cost tracking, and clear definition of allowable costs are crucial to mitigate these risks and ensure the government receives good value. The fixed fee itself is negotiated and should reflect a reasonable profit for the services rendered.

How many bidders participated in the 'full and open competition' for this contract?

The provided data indicates that there were 3 bidders for this contract, which was awarded under 'full and open competition'. This suggests a moderately competitive environment. While more bidders could potentially drive prices lower, three bidders generally indicate that the opportunity was known and accessible to multiple capable firms. The government's evaluation process would have assessed the proposals from these three bidders to determine the best value, considering both technical merit and price, to ensure taxpayer funds are used effectively.

What is the track record of Booz Allen Hamilton in delivering similar enterprise support services to the DoD?

Booz Allen Hamilton is a long-standing and prominent contractor for the Department of Defense, with extensive experience in providing a wide array of professional and technical services, including enterprise support, IT modernization, cybersecurity, and program management. They have a significant track record of managing large, complex contracts for various DoD agencies. While specific performance details for this particular contract are not in the summary data, Booz Allen Hamilton's general reputation and historical involvement suggest they possess the capacity and expertise to handle such requirements. However, as with any large contract, ongoing performance monitoring by the government is essential.

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: N0003919R3502

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 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: $168,109,469

Exercised Options: $158,890,976

Current Obligation: $145,411,609

Actual Outlays: $25,162,533

Subaward Activity

Number of Subawards: 54

Total Subaward Amount: $9,894,897

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7264

IDV Type: IDC

Timeline