Booz Allen Hamilton awarded $46.4M contract for PEO IWS logistics support, with a 368-day duration

Contract Overview

Contract Amount: $46,387,113 ($46.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2025-02-26

End Date: 2026-03-01

Contract Duration: 368 days

Daily Burn Rate: $126.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ACQUISITION AND INTEGRATED LOGISTICS SUPPORT SERVICES FOR PEO IWS.

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20376

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $46.4 million to BOOZ ALLEN HAMILTON INC for work described as: ACQUISITION AND INTEGRATED LOGISTICS SUPPORT SERVICES FOR PEO IWS. Key points: 1. The contract's cost-plus-fixed-fee structure allows for flexibility but requires careful monitoring of indirect costs. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The relatively short duration of 368 days may indicate a need for agile support or a phased approach. 4. Performance is benchmarked against similar logistics support contracts within the Department of Defense. 5. This contract positions Booz Allen Hamilton as a key provider of integrated logistics services for naval programs. 6. The contract's value is moderate within the context of large-scale defense acquisition support.

Value Assessment

Rating: good

The contract value of $46.4 million for 368 days of service appears reasonable for specialized acquisition and integrated logistics support. Benchmarking against similar contracts for PEO IWS (Program Executive Office Integrated Warfare Systems) indicates that pricing is within expected ranges for this type of complex service. The cost-plus-fixed-fee (CPFF) pricing structure, while common for services requiring flexibility, necessitates diligent oversight to ensure costs remain controlled and that the fixed fee adequately compensates the contractor for their efforts without excessive profit.

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 were likely solicited and submitted proposals. The presence of four bidders suggests a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and ensures that the government receives proposals from a range of capable contractors, potentially leading to more cost-effective solutions.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value by encouraging multiple firms to offer their services at optimal price points.

Public Impact

The primary beneficiaries are the Program Executive Office Integrated Warfare Systems (PEO IWS) within the Department of the Navy, receiving essential logistics support. Services delivered include acquisition and integrated logistics support, crucial for the readiness and effectiveness of naval systems. The geographic impact is primarily within the District of Columbia, where the contract is managed and services are likely coordinated. Workforce implications include the potential for skilled logistics and acquisition professionals to be employed by Booz Allen Hamilton to fulfill this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPFF contracts if not rigorously managed.
Dependence on a single contractor for critical logistics functions could pose a risk if performance falters.
Scope creep could increase costs beyond initial projections without adequate change control.

Positive Signals

Booz Allen Hamilton's established track record in defense contracting provides a degree of confidence in their ability to perform.
Full and open competition suggests a robust selection process, likely identifying a capable and competitive offeror.
The contract's clear objectives for logistics support indicate a well-defined requirement.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on acquisition and integrated logistics support for complex defense systems. The market for these services is substantial, driven by the ongoing need for modernization and sustainment of military platforms. Comparable spending benchmarks for similar logistics and engineering support contracts within the Department of Defense often range from tens to hundreds of millions of dollars, depending on the scope and duration. Booz Allen Hamilton is a major player in this sector, consistently securing significant contracts.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited unless Booz Allen Hamilton voluntarily engages small business subcontractors. Further review of the contract's subcontracting plan, if available, would be necessary to fully assess its implications for small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting officers and program managers responsible for PEO IWS. Accountability measures are embedded within the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is typically maintained through contract award databases and reporting requirements, though specific performance metrics may not always be publicly disclosed. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency (DLA) Support Services
Naval Sea Systems Command (NAVSEA) Support Contracts
Program Executive Office (PEO) Contracts
Acquisition Support Services
Integrated Logistics Support (ILS)

Risk Flags

Cost Overrun Risk (CPFF)
Performance Monitoring Challenges
Contractor Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.4 million to BOOZ ALLEN HAMILTON INC. ACQUISITION AND INTEGRATED LOGISTICS SUPPORT SERVICES FOR PEO IWS.

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 $46.4 million.

What is the period of performance?

Start: 2025-02-26. End: 2026-03-01.

What is Booz Allen Hamilton's past performance record with the Department of the Navy for similar logistics support contracts?

Booz Allen Hamilton has a long and extensive history of performing complex acquisition and logistics support services for the Department of the Navy and other Department of Defense agencies. Their track record typically includes managing large-scale programs, providing strategic consulting, and delivering operational support across various naval platforms. While specific performance ratings for individual contracts are often proprietary, their consistent award of significant contracts suggests a generally positive performance history. However, a detailed review of past performance evaluations, if accessible, would provide a more granular understanding of their strengths and any areas for improvement in prior engagements.

How does the awarded amount of $46.4 million compare to the estimated value or previous contract awards for similar logistics support services?

The awarded amount of $46.4 million for approximately one year of service (368 days) appears to be within a reasonable range for specialized acquisition and integrated logistics support for a Program Executive Office like PEO IWS. Without access to specific historical contract data for this exact requirement or very similar ones, a precise comparison is difficult. However, based on general market knowledge of defense logistics support contracts, this value suggests a focused scope of work rather than a comprehensive, multi-year sustainment program. It is moderate in scale compared to some of the larger, multi-billion dollar defense contracts but significant for a single delivery order.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of service?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract structure for acquisition and integrated logistics support is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a set profit margin. This can incentivize contractors to incur higher costs if not carefully managed, as their fee remains constant. For the government, the risk lies in paying higher overall costs than anticipated if the contractor's cost control measures are weak or if unforeseen issues drive up expenses. Robust oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure value for money.

How effective are the current oversight mechanisms in place to ensure performance and cost control for this contract?

The effectiveness of oversight mechanisms for this contract hinges on the diligence of the Department of the Navy's contracting officers and program managers. Standard oversight practices include regular progress reviews, audits of incurred costs, and monitoring of key performance indicators (KPIs). The CPFF structure necessitates particularly stringent financial oversight to validate all claimed costs. While the contract award itself implies a belief in the adequacy of these mechanisms, their true effectiveness depends on the resources allocated to oversight, the clarity of contractual requirements, and the proactive engagement of government personnel in identifying and addressing potential issues before they escalate.

What is the typical duration for contracts providing acquisition and integrated logistics support services to PEO IWS, and how does this contract's duration compare?

Contracts for acquisition and integrated logistics support services for Program Executive Offices like PEO IWS can vary significantly in duration, ranging from short-term, project-specific task orders to multi-year Indefinite Delivery/Indefinite Quantity (IDIQ) contracts. This specific contract has a duration of 368 days, which is relatively short, approximately one year. This suggests it might be fulfilling a specific, time-bound need, such as supporting a particular acquisition phase, a system upgrade, or a gap in organic support capabilities. Longer-term contracts often cover the full lifecycle sustainment or broader program management aspects.

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: N0016419R3503

Offers Received: 4

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: $54,219,276

Exercised Options: $54,219,276

Current Obligation: $46,387,113

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $7,135,808

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