Department of the Navy's $52.2M C4I Systems contract awarded to Booz Allen Hamilton Inc. was not competed

Contract Overview

Contract Amount: $52,205,669 ($52.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2015-12-08

End Date: 2018-07-31

Contract Duration: 966 days

Daily Burn Rate: $54.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF ENGINEERING, DESIGN, DEVELOPMENT, ACQUISITION OF C4I SYSTEMS.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $52.2 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF ENGINEERING, DESIGN, DEVELOPMENT, ACQUISITION OF C4I SYSTEMS. Key points: 1. The contract utilized a Cost Plus Fixed Fee (CPFF) pricing structure, which can lead to cost overruns if not carefully managed. 2. Awarded as a sole-source contract, the lack of competition may have limited opportunities for price discovery and potentially higher costs. 3. The contract duration of 966 days (approximately 2.6 years) suggests a significant undertaking in C4I systems development. 4. The contractor, Booz Allen Hamilton Inc., is a large, established firm with extensive experience in government contracting, particularly in defense and IT. 5. The contract's focus on C4I (Command, Control, Communications, Computers, and Intelligence) systems indicates a critical need for advanced defense capabilities. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted to support small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without detailed cost breakdowns and comparisons to similar C4I system development efforts. The CPFF structure inherently carries higher risk for cost control compared to fixed-price contracts. However, given the specialized nature of C4I systems and the contractor's expertise, the price may reflect the complexity and required innovation. Further analysis would require access to the contract's detailed cost elements and performance metrics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not publicly competed. This approach is typically used when only one responsible source can provide the required supplies or services. The lack of competition means there were no other bidders to compare against, potentially impacting the government's ability to secure the most favorable pricing and terms.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government does not benefit from competitive bidding to drive down prices.

Public Impact

The primary beneficiaries are the Department of the Navy and its operational forces, who receive enhanced C4I capabilities. The contract delivers critical services related to the design, development, and acquisition of advanced command, control, communications, computer, and intelligence systems. The geographic impact is likely centered around naval operations and command centers, potentially worldwide, depending on the deployment of these C4I systems. While not explicitly a workforce development contract, the project likely involves a significant number of highly skilled engineers, analysts, and technical personnel employed by Booz Allen Hamilton.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to less favorable pricing.
CPFF contract type can incentivize cost increases if not rigorously managed.
Lack of transparency inherent in sole-source procurements makes independent value assessment difficult.

Positive Signals

Award to a large, experienced contractor like Booz Allen Hamilton suggests a focus on capability and reliability.
C4I systems are critical for national defense, indicating a high-priority requirement.
The contract was awarded by the Department of the Navy, a major defense entity with established procurement processes.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to the development and acquisition of complex C4I systems. The market for such specialized defense technology is often dominated by a few large, established government contractors. Spending in this area is driven by national security needs and technological advancements in military communications and intelligence gathering. Comparable spending benchmarks would typically involve other large-scale defense IT and systems integration contracts.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary contractor, Booz Allen Hamilton, was expected to perform the majority of the work internally or with large business partners. Consequently, this contract is unlikely to have a direct positive impact on the small business ecosystem within this specific procurement.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures would be defined within the contract terms, including performance standards and reporting requirements. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Defense C4I Systems Modernization
Naval Command and Control Systems
Intelligence, Surveillance, and Reconnaissance (ISR) Technology
Military Communications Infrastructure
Defense Information Technology Services

Risk Flags

Sole-source award
Cost-reimbursement contract type (CPFF)
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.2 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF ENGINEERING, DESIGN, DEVELOPMENT, ACQUISITION OF C4I SYSTEMS.

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 $52.2 million.

What is the period of performance?

Start: 2015-12-08. End: 2018-07-31.

What is the track record of Booz Allen Hamilton Inc. in delivering C4I systems for the Department of Defense?

Booz Allen Hamilton Inc. has a long and extensive track record of supporting the Department of Defense (DoD) across a wide range of services, including C4I systems. They are a major contractor known for their expertise in systems engineering, integration, and IT solutions for defense clients. Their involvement in C4I projects often spans from initial concept development and design through to implementation, sustainment, and modernization. The company has consistently secured large contracts within the DoD, indicating a strong relationship and perceived capability. While specific performance metrics for individual contracts are often proprietary, their continued success in winning competitive and sole-source awards suggests a generally positive performance history and a deep understanding of military requirements in this domain.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for C4I system development?

The Cost Plus Fixed Fee (CPFF) contract type is characterized by the government reimbursing the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used for research and development or complex projects where the scope is not well-defined, making it difficult to estimate costs accurately upfront. Compared to fixed-price contracts, CPFF offers greater flexibility for the contractor to adapt to changing requirements, but it places a higher burden on the government to monitor costs and prevent overruns. For C4I system development, where innovation and adaptation are often necessary, CPFF can be suitable. However, it carries a higher risk of cost escalation for the government than a firm-fixed-price contract, which incentivizes the contractor to control costs more aggressively.

What are the potential risks associated with a sole-source award for critical defense systems like C4I?

Sole-source awards for critical defense systems like C4I present several potential risks. Primarily, the lack of competition means the government does not benefit from the price reductions and innovative solutions that typically emerge from a competitive bidding process. This can lead to higher costs for taxpayers. Furthermore, without competing alternatives, the government may have limited leverage to negotiate favorable terms or ensure the absolute best technology is being procured. There's also a risk of complacency from the sole provider, as they face no immediate threat from competitors. In some cases, sole-source awards might be necessary due to unique capabilities or national security concerns, but they require robust justification and oversight to mitigate these inherent risks.

What is the typical market size and competitive landscape for C4I system development contracts within the DoD?

The market for C4I system development contracts within the DoD is substantial, representing billions of dollars annually. This sector is characterized by a relatively small number of large, prime defense contractors who possess the technical expertise, security clearances, and infrastructure required to handle these complex programs. Companies like Booz Allen Hamilton, Lockheed Martin, Northrop Grumman, and Raytheon are dominant players. The competitive landscape can be intense for awarded contracts, but the barriers to entry for new, smaller companies are high due to the specialized nature of the technology, stringent security requirements, and the need for extensive past performance. Many large contracts are awarded through competitive processes, but sole-source awards are also not uncommon for highly specialized or urgent needs.

How has federal spending on C4I systems evolved over the past decade, and what are the key drivers?

Federal spending on C4I systems has remained a significant and consistent priority for the Department of Defense over the past decade, driven by evolving geopolitical threats and the need for technological superiority. Key drivers include the modernization of legacy systems, the integration of new technologies like artificial intelligence and cyber capabilities, and the demand for seamless communication and data sharing across different military branches and allied forces. Spending is also influenced by strategic shifts, such as increased focus on information warfare, space-based C4I assets, and resilient communication networks. While specific figures fluctuate annually based on budget allocations and program priorities, the overall trend indicates sustained investment in maintaining and enhancing these critical command and control capabilities to meet modern warfare challenges.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0042115R0051

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: $64,858,828

Exercised Options: $64,858,828

Current Obligation: $52,205,669

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $12,862,270

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline