Booz Allen Hamilton awarded $66M+ for Distance Learning Support, with a 46-month duration

Contract Overview

Contract Amount: $66,026,181 ($66.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2021-09-27

End Date: 2025-08-04

Contract Duration: 1,407 days

Daily Burn Rate: $46.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: DISTANCE LEARNING (DL) SUPPORT

Place of Performance

Location: SAINT INIGOES, SAINT MARYS County, MARYLAND, 20684

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $66.0 million to BOOZ ALLEN HAMILTON INC for work described as: DISTANCE LEARNING (DL) SUPPORT Key points: 1. Contract value of over $66 million for distance learning support indicates a significant investment in educational technology and services. 2. The contract was awarded through full and open competition, suggesting a robust market for these services. 3. A duration of 1407 days (approximately 46 months) points to a long-term need for sustained support. 4. The engineering services NAICS code (541330) suggests a focus on technical and design aspects of distance learning solutions. 5. The contract's performance period spans across fiscal years, requiring careful budget management and forecasting. 6. The cost-plus-fixed-fee pricing structure allows for flexibility but requires diligent oversight to manage costs effectively.

Value Assessment

Rating: good

The contract value of over $66 million for distance learning support appears reasonable given the nearly four-year performance period. Benchmarking against similar large-scale IT and engineering support contracts for federal agencies suggests that the overall award amount is within expected ranges for comprehensive service delivery. The cost-plus-fixed-fee (CPFF) structure, while common for complex projects, necessitates close monitoring of direct costs to ensure value for money. Without specific per-unit cost data for the services rendered, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors were eligible to bid. The presence of four bidders (no) suggests a healthy level of competition for this type of service. A competitive process generally leads to better price discovery and encourages contractors to offer more favorable terms and innovative solutions to win the award. The fact that it was competed openly is a positive sign for efficient use of taxpayer funds.

Taxpayer Impact: Full and open competition ensures that the government explores the widest possible market, leading to potentially lower prices and better quality services for taxpayers. It minimizes the risk of inflated costs associated with limited competition.

Public Impact

The primary beneficiaries are likely Department of Defense personnel, including military members and civilian employees, who will receive enhanced distance learning capabilities. The services delivered are expected to support the development, implementation, and maintenance of distance learning platforms and content. The geographic impact is likely broad, potentially supporting personnel across various military branches and installations. Workforce implications may include the need for specialized instructional designers, IT support staff, and project managers within the contractor's organization and potentially within the DoD.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed meticulously, as the contractor is reimbursed for allowable costs plus a fixed fee.
Long-term contracts like this require continuous performance monitoring to ensure the services remain relevant and effective as technology evolves.
Dependence on a single large contractor for critical distance learning infrastructure could pose a risk if the contractor's performance falters or if they face financial instability.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace and potentially better value.
The substantial contract value suggests a recognized and significant need for distance learning support within the Department of Defense.
The long performance period allows for sustained development and improvement of distance learning capabilities, fostering stability.

Sector Analysis

The federal IT and professional services sector is characterized by significant government spending on technology, consulting, and support services. This contract falls within the broader category of IT services and engineering support, which are crucial for modernizing government operations. The market for distance learning solutions has grown substantially, driven by the need for flexible and accessible training for federal employees and military personnel. Comparable spending benchmarks for large-scale IT support contracts often run into tens or hundreds of millions of dollars over several years, making this award size consistent with industry trends.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, Booz Allen Hamilton. While large contracts can sometimes include subcontracting opportunities for small businesses, the absence of explicit set-aside language means that the direct impact on the small business ecosystem for this specific award may be limited unless subcontracting plans are actively pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Performance metrics and deliverables outlined in the contract will be key to monitoring progress. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to ensure that costs are allowable and reasonable. Transparency is generally maintained through contract reporting requirements, though specific public-facing dashboards for this contract are not detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Human Resources Activity - Training and Education
DoD Digital Modernization Strategy
Military Branch E-Learning Initiatives
Federal Government IT Services Contracts
Professional Services Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Performance Monitoring Complexity
Long-Term Contract Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $66.0 million to BOOZ ALLEN HAMILTON INC. DISTANCE LEARNING (DL) SUPPORT

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 $66.0 million.

What is the period of performance?

Start: 2021-09-27. End: 2025-08-04.

What is Booz Allen Hamilton's track record with similar distance learning or educational technology contracts for the Department of Defense?

Booz Allen Hamilton has a long history of providing a wide range of professional and technical services to the Department of Defense (DoD), including IT support, systems engineering, and program management. While specific details on their past distance learning contracts are not provided here, their extensive experience with the DoD suggests they possess the necessary security clearances, understanding of military operational environments, and technical capabilities to manage such a program. They have been involved in various large-scale IT modernization and support efforts across different military branches. Their ability to secure this significant contract indicates a strong past performance record relevant to complex government service requirements.

How does the $66 million contract value compare to other federal spending on distance learning support?

The $66 million contract value for distance learning support over approximately 46 months is substantial and aligns with the significant investments the federal government, particularly the Department of Defense, makes in training and education technologies. Large federal IT and professional services contracts often reach these figures, especially when they encompass comprehensive support, development, and sustainment over multiple years. For context, other federal agencies also award multi-million dollar contracts for learning management systems, content development, and related IT infrastructure. This specific award reflects a considerable commitment to enhancing digital learning capabilities within the Navy, likely driven by evolving training needs and the advantages of remote or hybrid learning models.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for distance learning support?

The primary risk with a CPFF contract for distance learning support is the potential for cost overruns if the contractor's actual costs exceed initial estimates, although their profit (the fixed fee) remains constant. This structure requires robust government oversight to scrutinize allowable costs and ensure efficiency. If the scope of work is not clearly defined or if unforeseen technical challenges arise, costs can escalate. For distance learning, this could involve unexpected complexities in integrating new technologies, developing specialized content, or scaling platforms. The government bears the risk of higher-than-expected costs, while the contractor is incentivized to complete the work within the agreed-upon fee structure, potentially leading to a balance between cost control and project completion.

How effective are distance learning programs supported by contracts like this in improving military readiness or workforce skills?

The effectiveness of distance learning programs supported by such contracts is highly dependent on the quality of the platform, content, instruction, and user engagement. When well-executed, these programs can significantly improve military readiness and workforce skills by providing flexible, accessible, and standardized training. They allow personnel to train at their own pace, access specialized courses regardless of location, and stay current with evolving requirements. However, effectiveness can be hampered by poor user experience, lack of interactivity, inadequate technical support, or a mismatch between training content and operational needs. The success of this specific contract will hinge on the contractor's ability to deliver high-quality, engaging, and relevant learning solutions that demonstrably meet the DoD's training objectives.

What are the historical spending patterns for distance learning support within the Department of the Navy?

Historical spending patterns for distance learning support within the Department of the Navy (DoN) have generally shown a consistent and increasing trend over the years, mirroring broader government and commercial shifts towards digital education. The DoN, like other military branches, invests heavily in training technologies to ensure personnel are proficient and adaptable. This includes funding for learning management systems (LMS), courseware development, simulation technologies, and associated IT infrastructure and support services. While specific historical dollar amounts for this exact service category are not provided, the recurring need for updated training and the expansion of online learning modalities suggest sustained, and likely growing, budgetary allocations towards distance learning solutions over multiple fiscal years.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0042120R3009

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: $87,899,988

Exercised Options: $75,616,389

Current Obligation: $66,026,181

Actual Outlays: $19,557,559

Subaward Activity

Number of Subawards: 26

Total Subaward Amount: $7,883,992

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