Booz Allen Hamilton awarded $74M contract for SCMS Division support to the Navy

Contract Overview

Contract Amount: $74,011,577 ($74.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2022-02-24

End Date: 2027-02-24

Contract Duration: 1,826 days

Daily Burn Rate: $40.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: PROVIDE THE NAWCAD SCMS DIVISION PROJECT MANAGEMENT, SYSTEMS ENGINEERING, CONFIGURATION MANAGEMENT, ACQUISITION, STRATEGY, ORGANIZATIONAL, AND BUDGET EXECUTION SUPPORT REQUIRED TO MEET THE MISSION OF THE SCMS DIVISION.

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $74.0 million to BOOZ ALLEN HAMILTON INC for work described as: PROVIDE THE NAWCAD SCMS DIVISION PROJECT MANAGEMENT, SYSTEMS ENGINEERING, CONFIGURATION MANAGEMENT, ACQUISITION, STRATEGY, ORGANIZATIONAL, AND BUDGET EXECUTION SUPPORT REQUIRED TO MEET THE MISSION OF THE SCMS DIVISION. Key points: 1. Contract provides essential project management, systems engineering, and acquisition support. 2. The contract duration of 5 years indicates a long-term need for these services. 3. Full and open competition suggests a robust bidding process. 4. The Cost Plus Fixed Fee (CPFF) pricing structure may incentivize cost control. 5. This award is part of broader Department of Defense IT and engineering services spending. 6. The contract is managed by the Naval Air Systems Command (NAVAIR).

Value Assessment

Rating: good

The contract value of $74 million over five years for project management and engineering services appears reasonable given the scope. Benchmarking against similar large-scale support contracts for defense agencies suggests that the overall price point is within expected ranges. The CPFF structure, while potentially leading to cost overruns if not managed tightly, is common for complex services where final costs are difficult to predict upfront. Further analysis would require detailed cost breakdowns and comparison to specific service rates.

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 vendors had the opportunity to bid. The presence of multiple bidders generally fosters a competitive environment, which can lead to better pricing and service quality. The specific number of bidders is not provided, but the designation implies a broad solicitation process.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best value for the government by encouraging multiple firms to offer their services at competitive rates.

Public Impact

The primary beneficiaries are the Department of the Navy's SCMS Division, which receives critical support for its mission. Services delivered include project management, systems engineering, configuration management, and acquisition strategy. The contract's performance location is Maryland, impacting the local workforce in that region. This contract supports specialized technical and managerial roles within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain controlled and do not escalate beyond reasonable expectations.
The long duration of the contract necessitates ongoing performance monitoring to ensure continued value delivery.

Positive Signals

Awarded under full and open competition, suggesting a competitive marketplace for these services.
The contract supports critical defense functions, aligning with national security objectives.
Booz Allen Hamilton is a well-established contractor with extensive experience in government services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related systems command functions. The market for defense IT and engineering support services is substantial, with numerous large and small businesses competing for government contracts. This award represents a portion of the broader spending on professional services within the Department of Defense, which often involves complex, long-term engagements requiring specialized expertise.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Booz Allen Hamilton, may engage small businesses as subcontractors to fulfill specific aspects of the contract, depending on their internal subcontracting strategy and the availability of specialized small business capabilities.

Oversight & Accountability

Oversight for this contract will likely be managed by the Naval Air Systems Command (NAVAIR) contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance metrics, reporting requirements, and payment schedules tied to deliverables. Transparency is facilitated through contract award databases and public reporting mechanisms, though detailed internal oversight processes are not publicly disclosed.

Related Government Programs

Naval Air Systems Command (NAVAIR) Support Contracts
Department of Defense IT Services
Systems Engineering and Technical Assistance (SETA) Contracts
Defense Acquisition Support Services

Risk Flags

Cost Overrun Risk (CPFF Structure)
Performance Monitoring Intensity Required
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $74.0 million to BOOZ ALLEN HAMILTON INC. PROVIDE THE NAWCAD SCMS DIVISION PROJECT MANAGEMENT, SYSTEMS ENGINEERING, CONFIGURATION MANAGEMENT, ACQUISITION, STRATEGY, ORGANIZATIONAL, AND BUDGET EXECUTION SUPPORT REQUIRED TO MEET THE MISSION OF THE SCMS DIVISION.

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 $74.0 million.

What is the period of performance?

Start: 2022-02-24. End: 2027-02-24.

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

Booz Allen Hamilton has a long and extensive history of performing services for the Department of Defense across various agencies and branches. They are a major prime contractor for numerous complex IT, cybersecurity, intelligence, and engineering support programs. Their track record includes managing large-scale, multi-year contracts with significant dollar values, often involving sensitive national security missions. While specific performance metrics for past contracts are not publicly detailed, their continued success in winning competitive bids suggests a generally positive performance history and strong client relationships within the DoD. Analysis of past performance evaluations, where available, would provide a more granular understanding of their strengths and any areas for improvement.

How does the $74 million contract value compare to similar project management and engineering support contracts within the Navy?

The $74 million contract value over five years for project management, systems engineering, and acquisition support is within the typical range for large, complex support services awarded by the Department of the Navy. Similar contracts for SETA (Systems Engineering and Technical Assistance) or program management support to major naval commands can range from tens to hundreds of millions of dollars, depending on the scope, duration, and criticality of the supported systems. For instance, contracts supporting fleet readiness, platform development, or major IT system overhauls often fall into this financial bracket. The specific nature of SCMS Division support, focusing on project management and acquisition strategy, aligns with services that require significant expertise and sustained effort, justifying this investment level.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract structure, like the one awarded to Booz Allen Hamilton, is the potential for cost overruns. While the 'fixed fee' component provides the contractor with a guaranteed profit margin, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If costs escalate beyond initial estimates due to unforeseen complexities, scope creep, or inefficient performance, the total expenditure for the government can increase significantly. This necessitates robust government oversight to scrutinize incurred costs, ensure they are reasonable and allocable, and manage any changes to the contract scope effectively to mitigate the risk of the government paying more than the intended value for the services.

What is the strategic importance of the SCMS Division's mission that this contract supports?

The SCMS Division (System Capability and Management Support) within the Naval Air Systems Command (NAVAIR) plays a crucial role in ensuring the effective management, development, and sustainment of naval aviation systems. This includes critical functions like program management, systems engineering, configuration management, and acquisition strategy. The services provided under this contract are essential for maintaining the readiness, modernization, and lifecycle support of complex naval aviation platforms and associated technologies. By ensuring these foundational support functions are robustly executed, the SCMS Division contributes directly to the operational effectiveness and technological superiority of the U.S. Navy's air assets.

How has federal spending on engineering services for the Department of Defense evolved in recent years?

Federal spending on engineering services for the Department of Defense has remained a significant and relatively stable component of the overall defense budget. In recent years, there has been a continued emphasis on modernizing military platforms, developing advanced technologies (such as AI, cyber capabilities, and hypersonics), and ensuring the sustainment of existing systems. This translates into consistent demand for a wide range of engineering services, including systems engineering, research and development support, technical analysis, and program management. While specific spending figures fluctuate annually based on budget appropriations and strategic priorities, the overall trend indicates a sustained high level of investment in engineering expertise to support the DoD's complex mission requirements.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0042121R3003

Offers Received: 3

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: $99,063,832

Exercised Options: $89,616,630

Current Obligation: $74,011,577

Actual Outlays: $1,908,649

Subaward Activity

Number of Subawards: 45

Total Subaward Amount: $12,582,979

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