DoD's $49.4M C4I and Space Systems Support Contract Awarded to Booz Allen Hamilton

Contract Overview

Contract Amount: $49,430,199 ($49.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2020-03-11

End Date: 2025-06-15

Contract Duration: 1,922 days

Daily Burn Rate: $25.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE PROGRAM EXECUTIVE OFFICES (PEOS) FOR COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS AND INTELLIGENCE (C4I) AND SPACE SYSTEMS (SS) ARE ACQUIRING EXECUTIVE, MANAGEMENT, TECHNICAL AND ADMINISTRATIVE SUPPORT SERVICES TO INTEGRATE AND SUPPORT A COMMON SE

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92110

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $49.4 million to BOOZ ALLEN HAMILTON INC for work described as: THE PROGRAM EXECUTIVE OFFICES (PEOS) FOR COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS AND INTELLIGENCE (C4I) AND SPACE SYSTEMS (SS) ARE ACQUIRING EXECUTIVE, MANAGEMENT, TECHNICAL AND ADMINISTRATIVE SUPPORT SERVICES TO INTEGRATE AND SUPPORT A COMMON SE Key points: 1. Contract provides essential executive, management, technical, and administrative support for critical C4I and Space Systems. 2. Booz Allen Hamilton, a large incumbent contractor, secured this delivery order. 3. The contract duration extends over five years, indicating a long-term need for these services. 4. The award was made under full and open competition, suggesting a robust bidding process. 5. The contract type is Cost Plus Fixed Fee (CPFF), which can present cost control challenges. 6. This award falls within the Engineering Services sector, aligning with specialized technical support.

Value Assessment

Rating: fair

The contract's value of $49.4 million over approximately five years for executive, management, and technical support services appears reasonable given the scope. However, the Cost Plus Fixed Fee (CPFF) contract type warrants careful monitoring to ensure cost efficiencies. Benchmarking against similar large-scale support contracts for defense agencies would provide a clearer picture of value for money, but the duration and breadth of services suggest a significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The specific number of bidders is not provided, but this approach generally fosters competitive pricing and allows the government to select the best value. The use of full and open competition suggests a healthy market for these types of specialized support services.

Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to secure these critical support services at the most advantageous price possible, reducing the risk of overpayment.

Public Impact

The primary beneficiaries are the Program Executive Offices (PEOs) for Command, Control, Communications, Computers and Intelligence (C4I) and Space Systems (SS), receiving crucial support. Services delivered include executive, management, technical, and administrative support, vital for program integration and sustainment. The geographic impact is primarily within the Department of the Navy's operational and developmental spheres. Workforce implications include the potential for continued employment for Booz Allen Hamilton's personnel and the need for specialized skills within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type can lead to cost overruns if not managed diligently.
Long contract duration may reduce flexibility to adapt to changing technological needs.
Reliance on a single large contractor for critical support functions could pose a risk.

Positive Signals

Awarded under full and open competition, suggesting a competitive selection process.
Contract provides essential support for critical C4I and Space Systems programs.
Booz Allen Hamilton is an established contractor with significant experience in defense support.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting complex defense programs related to C4I and Space Systems. The market for such specialized support is dominated by large, experienced defense contractors. Spending in this area is driven by the government's continuous need for advanced technological integration and program management in critical national security domains. Comparable spending benchmarks would involve other large-scale support contracts for defense agencies managing similar complex systems.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Booz Allen Hamilton is a large business. There is no explicit mention of subcontracting requirements for small businesses within the provided data. This suggests that the primary focus is on the prime contractor's capabilities, and the impact on the small business ecosystem may be limited unless subcontracting opportunities arise organically.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting officers and program managers. The CPFF structure necessitates robust financial oversight to ensure costs are reasonable and allocable. Transparency is generally maintained through contract reporting mechanisms, though specific details on public access to performance metrics are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense C4I Programs
Space Systems Acquisition
Naval Information Warfare Systems
Defense Engineering Services
Contractor Support Services

Risk Flags

Cost Control Risk (CPFF)
Technological Obsolescence Risk (Long Duration)
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.4 million to BOOZ ALLEN HAMILTON INC. THE PROGRAM EXECUTIVE OFFICES (PEOS) FOR COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS AND INTELLIGENCE (C4I) AND SPACE SYSTEMS (SS) ARE ACQUIRING EXECUTIVE, MANAGEMENT, TECHNICAL AND ADMINISTRATIVE SUPPORT SERVICES TO INTEGRATE AND SUPPORT A COMMON SE

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 $49.4 million.

What is the period of performance?

Start: 2020-03-11. End: 2025-06-15.

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

Booz Allen Hamilton has an extensive track record with the Department of Defense, frequently securing large contracts for management, technical, and consulting services across various branches and agencies. They are a well-established prime contractor known for supporting complex defense programs, including C4I and space systems. Their history includes numerous awards for similar support functions, often under competitive bidding processes. While specific performance metrics for this particular contract are not detailed here, their long-standing presence and continued awards suggest a generally satisfactory performance history in meeting government requirements, though like any large contractor, they may have faced scrutiny on specific projects regarding cost or delivery.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for this type of service?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined, or when there is uncertainty about the costs involved, which can be common in complex R&D or system integration projects. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This contrasts with Firm-Fixed-Price (FFP) contracts, where the price is set regardless of actual costs, incentivizing contractor efficiency but carrying higher risk for the contractor if costs escalate. Cost-reimbursement contracts like CPFF offer flexibility but require stringent government oversight to control costs and prevent contractor overspending, as the contractor has less financial incentive to minimize expenses compared to FFP.

What are the potential risks associated with a five-year contract duration for C4I and Space Systems support?

A five-year duration for C4I and Space Systems support presents several potential risks. Technology in these fields evolves rapidly; a long-term contract might lock the government into outdated solutions or make it difficult to incorporate newer, more effective technologies. Programmatic requirements can also shift significantly over five years due to changing geopolitical landscapes or strategic priorities, potentially rendering the contracted support less relevant or requiring costly modifications. Furthermore, long-term reliance on a single contractor, even if performing adequately, can reduce competitive pressure and potentially lead to complacency or less innovation over time. Ensuring flexibility and clear modification clauses within the contract is crucial to mitigate these risks.

What is the typical market size and competition level for C4I and Space Systems support services within the DoD?

The market for C4I and Space Systems support services within the DoD is substantial, characterized by high demand and significant investment due to national security imperatives. This sector typically attracts a limited number of large, highly specialized defense contractors with the requisite technical expertise, security clearances, and infrastructure. While competition exists, it is often concentrated among these major players. Full and open competition is the standard, but the pool of capable bidders is often smaller than in less specialized sectors. The high barriers to entry, including extensive experience requirements and security protocols, shape the competitive landscape, making it a market where established incumbents often have an advantage.

How does this contract's value compare to overall DoD spending on C4I and Space Systems?

The $49.4 million value of this specific contract for executive, management, technical, and administrative support services represents a component of the broader DoD spending on C4I and Space Systems. Overall DoD investment in these areas runs into the tens or hundreds of billions of dollars annually, encompassing research and development, procurement of hardware and software, and sustainment. This contract, while significant in its own right, is likely a smaller piece of the total pie, focused on the essential support functions needed to manage and integrate these complex programs. Its value should be assessed relative to the specific services provided and the duration, rather than as a proxy for total program costs.

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: N0003919R3503

Offers Received: 1

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: $60,040,988

Exercised Options: $60,040,988

Current Obligation: $49,430,199

Actual Outlays: $3,453,541

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $7,759,102

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