Booz Allen Hamilton awarded $109M contract for PEO C4I program management and acquisition support

Contract Overview

Contract Amount: $109,047,910 ($109.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2022-03-16

End Date: 2026-03-15

Contract Duration: 1,460 days

Daily Burn Rate: $74.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PROGRAM MANAGEMENT, SCHEDULING, CONTRACT MANAGEMENT, AND ACQUISITION SUPPORT SERVICES IN SUPPORT OF PEO C4I, PMW/A 170.

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $109.0 million to BOOZ ALLEN HAMILTON INC for work described as: PROGRAM MANAGEMENT, SCHEDULING, CONTRACT MANAGEMENT, AND ACQUISITION SUPPORT SERVICES IN SUPPORT OF PEO C4I, PMW/A 170. Key points: 1. Contract provides essential program management, scheduling, and acquisition support for PEO C4I. 2. The contract value of $109M over approximately 4 years indicates significant investment in program oversight. 3. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 4. The use of Cost Plus Fixed Fee (CPFF) pricing requires careful monitoring of costs to ensure value. 5. This contract supports critical Command, Control, Communications, Computers, and Intelligence (C4I) systems. 6. The delivery order structure allows for phased execution and adaptation to evolving needs. 7. The contractor, Booz Allen Hamilton, has a substantial presence in government contracting. 8. The contract is managed by the Department of the Navy, supporting a key defense agency.

Value Assessment

Rating: good

The contract value of approximately $109 million over four years for program management and acquisition support appears reasonable given the critical nature of PEO C4I systems. Benchmarking against similar large-scale program support contracts within the Department of Defense suggests this level of investment is within expected ranges for complex acquisition programs. The CPFF contract type necessitates diligent oversight to ensure costs remain aligned with the fixed fee and that overall value is maximized for the government.

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 bidders had the opportunity to submit proposals. The presence of two bidders, as suggested by the 'no' field, implies a competitive environment, though the exact number of proposals received and the evaluation process would provide a clearer picture of the competition's intensity. A competitive award process generally fosters better price discovery and encourages contractors to offer more favorable terms.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces, ensuring that the government receives the best possible value for its investment in critical program management services.

Public Impact

The primary beneficiaries are the Program Executive Office for Command, Control, Communications, Computers, and Intelligence (PEO C4I) and its various program offices. Services delivered include program management, scheduling, contract management, and acquisition support, crucial for the successful execution of defense acquisition programs. The geographic impact is primarily within the Department of Defense's C4I infrastructure, with potential implications for naval operations and readiness. Workforce implications include the employment of skilled professionals in program management, acquisition, and engineering roles, supporting the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts require robust government oversight to prevent cost overruns and ensure fair pricing.
The duration of the contract (approx. 4 years) necessitates ongoing performance monitoring to ensure sustained quality of services.
Reliance on a single contractor for critical program management functions could pose a risk if performance degrades or if the contractor faces unforeseen challenges.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a fair price.
Booz Allen Hamilton is a well-established contractor with extensive experience in government program management and C4I systems.
The contract supports a critical defense acquisition program, indicating alignment with national security priorities.
The delivery order structure allows for flexibility and adaptation to evolving program requirements.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), specifically supporting defense acquisition programs related to Command, Control, Communications, Computers, and Intelligence (C4I). The market for such specialized program management and acquisition support services is substantial within the federal government, particularly the Department of Defense. Comparable spending often involves large, multi-year contracts for program offices managing complex weapon systems and IT infrastructure, where effective oversight and strategic planning are paramount.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it detail subcontracting plans. Given the nature of the services and the prime contractor, it is possible that subcontracting opportunities may exist for specialized support, but this would require further investigation into the contract's specific terms and the contractor's subcontracting goals. The absence of explicit set-asides suggests the primary focus was on securing the best overall solution through full and open competition.

Oversight & Accountability

Oversight for this contract is primarily the responsibility of the Department of the Navy, specifically the Program Executive Office for C4I (PEO C4I) and its contracting officers. Accountability measures are embedded within the Cost Plus Fixed Fee contract structure, which requires detailed cost reporting and justification. Transparency is facilitated through contract award databases and reporting requirements, though specific performance metrics and detailed cost breakdowns may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

PEO C4I Programs
Naval C4ISR Systems
Defense Acquisition Support Services
Program Management Support Contracts
IT and Communications Acquisition

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage costs.
Potential for performance degradation over the contract's multi-year duration.
Reliance on a single contractor for critical program functions.
Complexity of C4I systems requires specialized expertise and management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $109.0 million to BOOZ ALLEN HAMILTON INC. PROGRAM MANAGEMENT, SCHEDULING, CONTRACT MANAGEMENT, AND ACQUISITION SUPPORT SERVICES IN SUPPORT OF PEO C4I, PMW/A 170.

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 $109.0 million.

What is the period of performance?

Start: 2022-03-16. End: 2026-03-15.

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

Booz Allen Hamilton is a major government contractor with extensive experience providing program management, systems engineering, and acquisition support services across various Department of Defense agencies. They frequently hold large, complex contracts supporting major defense acquisition programs, including those related to C4I systems. Their historical performance on similar contracts generally indicates a strong capability in managing intricate projects, navigating complex regulatory environments, and delivering technical expertise. However, like any large contractor, they have also faced scrutiny and contract disputes on specific engagements. A detailed review of their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) for comparable contracts would provide a more granular understanding of their specific strengths and weaknesses relevant to this PEO C4I support role.

How does the $109 million contract value compare to other program management support contracts for similar defense agencies?

The $109 million contract value for approximately four years of program management, scheduling, contract management, and acquisition support services for PEO C4I is within the expected range for large-scale defense acquisition programs. Major Program Executive Offices (PEOs) within the Department of Defense often manage portfolios of programs valued in the billions, requiring substantial support contracts for oversight and execution. Contracts for similar services supporting other PEOs or major program offices (e.g., for aviation, shipbuilding, or ground systems) can range from tens to hundreds of millions of dollars over their lifecycle. The specific value is influenced by the complexity of the programs being supported, the number of personnel required, and the duration of the support. This contract appears to be a significant, but not unprecedented, investment for ensuring the effective management of critical C4I capabilities.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for program management services?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a negotiated fixed fee. While the fee is fixed, the government bears the risk of increased costs. This necessitates robust government oversight, including detailed cost monitoring, auditing, and rigorous review of contractor expenditures to ensure that costs are reasonable, allocable, and necessary. Without effective oversight, contractors may have less incentive to control costs compared to fixed-price contracts. For program management services, risks also include potential scope creep if requirements are not clearly defined and managed, and performance issues if the contractor fails to deliver the expected level of expertise or support, impacting the overall success of the acquisition programs.

How does the 'full and open competition' award method impact the value received by taxpayers?

Awarding a contract through 'full and open competition' generally benefits taxpayers by fostering a competitive environment where multiple capable contractors can bid. This competition drives down prices as contractors strive to offer the most attractive proposals to win the contract. It ensures that the government is not limited to a single source and can leverage market forces to achieve better value. Taxpayers benefit from potentially lower overall costs for the services rendered, increased innovation as contractors compete on solutions, and greater transparency in the procurement process. The presence of multiple bidders increases the likelihood that the government secures high-quality services at a fair and reasonable price, maximizing the return on taxpayer investment.

What is the significance of this contract supporting PEO C4I, and what are the implications of delays or failures in these systems?

The Program Executive Office for Command, Control, Communications, Computers, and Intelligence (PEO C4I) is critical for developing, acquiring, and sustaining the Navy's and Marine Corps' information technology and C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) capabilities. These systems are the backbone of modern military operations, enabling communication, situational awareness, and decision-making. Delays or failures in PEO C4I programs can have severe implications, including compromising operational effectiveness, endangering personnel, increasing costs due to schedule slippage, and potentially impacting national security. Therefore, effective program management and acquisition support, as provided under this contract, are paramount to ensuring these vital systems are delivered on time, within budget, and meet stringent performance requirements.

What does the 'Delivery Order' (DO) contract type signify in this context?

A Delivery Order (DO) is a type of task order issued under a larger indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar contract vehicle. In this case, it signifies that the $109 million contract is likely an IDIQ contract or a similar framework agreement, and this specific award is for a defined scope of work with a specific value and period of performance. The 'Delivery Order' structure allows the government to procure services incrementally as needed, providing flexibility to adapt to changing requirements and priorities. It means that the $109 million represents the value of this particular order, and potentially other orders could be issued under the parent contract. This approach is common for services that require ongoing support over an extended period, allowing for phased execution and better management of resources.

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: N0003921R3021

Offers Received: 2

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: $181,967,757

Exercised Options: $129,952,320

Current Obligation: $109,047,910

Actual Outlays: $2,119,369

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $21,076,440

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