Navy IT Support Services Contract Awarded to Booz Allen Hamilton for $32.87M

Contract Overview

Contract Amount: $32,870,732 ($32.9M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2020-09-28

End Date: 2026-07-03

Contract Duration: 2,104 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 14

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: DEPARTMENT OF NAVY CHIEF INFORMATION OFFICE (DON CIO) INFORMATION TECHNOLOGY (IT) SUPPORT SERVICES

Place of Performance

Location: DUTTON, GLOUCESTER County, VIRGINIA, 23050

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $32.9 million to BOOZ ALLEN HAMILTON INC for work described as: DEPARTMENT OF NAVY CHIEF INFORMATION OFFICE (DON CIO) INFORMATION TECHNOLOGY (IT) SUPPORT SERVICES Key points: 1. Contract awarded to a single large business, Booz Allen Hamilton. 2. Significant contract value of $32.87 million over its duration. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract spans over 5 years, indicating a long-term need for IT support. 5. The sector is Information Technology, a critical area for government operations.

Value Assessment

Rating: good

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. However, the fixed fee component provides some cost certainty. Benchmarking against similar IT support services contracts would be necessary for a precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value offer.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure the most competitive pricing and best value for the services rendered.

Public Impact

Ensures continued IT support for the Department of the Navy, crucial for operational effectiveness. Supports a major defense contractor, Booz Allen Hamilton, with a significant contract award. The long duration of the contract suggests a stable, ongoing requirement for these services. The IT sector is vital for modern defense operations, impacting cybersecurity and data management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs if not closely monitored.
No small business participation noted, potentially missing opportunities for smaller innovative firms.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Long contract duration suggests a stable and predictable need for services.

Sector Analysis

This contract falls within the Information Technology sector, specifically for IT support services. Spending in this sector is consistently high across government agencies due to the increasing reliance on technology for operations, data management, and cybersecurity. Benchmarks for similar IT support contracts vary widely based on scope and duration.

Small Business Impact

The data indicates that this contract was not awarded to small businesses (sb: false). This suggests that the primary awardee is a large corporation, and there is no explicit mention of subcontracting opportunities for small businesses within this specific award notice.

Oversight & Accountability

The contract is managed by the Department of the Navy Chief Information Office (DON CIO), which is responsible for IT strategy and oversight. The duration and value of the contract warrant regular performance reviews and cost audits to ensure accountability and effective use of funds.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to CPFF contract type.
Lack of small business participation.
Long contract duration may reduce flexibility for future technological changes.
Limited detail on specific services and performance metrics provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.9 million to BOOZ ALLEN HAMILTON INC. DEPARTMENT OF NAVY CHIEF INFORMATION OFFICE (DON CIO) INFORMATION TECHNOLOGY (IT) 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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $32.9 million.

What is the period of performance?

Start: 2020-09-28. End: 2026-07-03.

What specific IT support services are included in this contract, and how do they align with the DON CIO's strategic objectives?

The contract details are limited in the provided data, but 'IT Support Services' typically encompass a broad range of activities including help desk support, network maintenance, system administration, cybersecurity support, and IT infrastructure management. These services are fundamental to the DON CIO's mission of providing secure and reliable IT capabilities to the Navy. A detailed review of the Statement of Work (SOW) would clarify the exact services and their strategic alignment.

Given the Cost Plus Fixed Fee structure, what mechanisms are in place to control costs and prevent scope creep?

Cost Plus Fixed Fee (CPFF) contracts require robust oversight. The Department of the Navy likely employs contract officers and technical representatives to monitor expenditures closely, review invoices, and ensure that work performed aligns strictly with the contract's defined scope. Regular performance reviews and audits are crucial to identify any potential cost overruns or deviations from the agreed-upon services, ensuring taxpayer funds are used efficiently.

How does the $32.87 million contract value compare to historical spending on similar IT support services within the Department of the Navy?

Without historical data or specific benchmarks for comparable IT support services contracts within the Department of the Navy, a direct comparison is difficult. However, $32.87 million over approximately five years represents a substantial investment. Analyzing past contracts for similar scope and duration, adjusted for inflation and technological advancements, would provide a clearer picture of whether this award represents a competitive and cost-effective expenditure for the Navy's IT needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0018920R3059

Offers Received: 14

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: $35,434,584

Exercised Options: $35,434,584

Current Obligation: $32,870,732

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $1,311,909

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