DoD's $39M Civilian Mariner Wireless Network contract awarded to Booz Allen Hamilton, raising competition concerns

Contract Overview

Contract Amount: $39,090,711 ($39.1M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2025-06-16

End Date: 2027-06-15

Contract Duration: 729 days

Daily Burn Rate: $53.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CIVILIAN MARINER WIRELESS NETWORK (CIVMAR WIN) INSTALLATION AND SUSTAINMENT

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $39.1 million to BOOZ ALLEN HAMILTON INC for work described as: CIVILIAN MARINER WIRELESS NETWORK (CIVMAR WIN) INSTALLATION AND SUSTAINMENT Key points: 1. Contract awarded to a single, large business, Booz Allen Hamilton, with no indication of small business participation. 2. The $39M award for Computer Systems Design Services lacks competitive bidding, suggesting potential overpricing. 3. The contract duration of 729 days for installation and sustainment needs clear performance metrics. 4. The 'VIRGINIA' location might offer insights into regional IT service costs, but benchmarks are needed.

Value Assessment

Rating: questionable

The $39M contract value for Computer Systems Design Services is significant. Without competitive pricing data, it's difficult to assess if this represents fair market value compared to similar government or commercial contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This lack of competition limits price discovery and may lead to higher costs for the government.

Taxpayer Impact: The absence of competition means taxpayers may be paying a premium for these services, as there was no market pressure to drive down the price.

Public Impact

Mariners on civilian vessels will have access to wireless network services, potentially improving communication and operational efficiency. The reliance on a single vendor for critical network infrastructure could pose a risk if the vendor fails to perform or experiences financial difficulties. The Department of the Navy's investment in this technology highlights a commitment to modernizing its fleet's communication capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
No small business participation
Potential for inflated pricing

Positive Signals

Definitive contract awarded
Firm Fixed Price contract type

Sector Analysis

This contract falls under Computer Systems Design Services, a sector experiencing high demand. Benchmarks for similar network installation and sustainment contracts within the federal government or private sector are crucial for evaluating cost-effectiveness.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. This represents a missed opportunity for small business participation in federal contracting.

Oversight & Accountability

The 'NOT COMPETED' status warrants further oversight to ensure the justification for a sole-source award was robust and that the pricing is reasonable. Accountability for performance will be key given the lack of competitive pressure.

Related Government Programs

Computer Systems Design Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award lacks competition
Potential for inflated pricing
No small business participation identified
Significant contract value requires robust oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.1 million to BOOZ ALLEN HAMILTON INC. CIVILIAN MARINER WIRELESS NETWORK (CIVMAR WIN) INSTALLATION AND SUSTAINMENT

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 $39.1 million.

What is the period of performance?

Start: 2025-06-16. End: 2027-06-15.

What is the justification for awarding this contract on a sole-source basis, and what steps were taken to ensure fair and reasonable pricing?

The justification for a sole-source award is critical. Typically, this requires demonstrating that only one responsible source can provide the required services or that exceptional circumstances exist. Without this justification, the award raises concerns about potential circumvention of competitive procurement rules. Fair and reasonable pricing would ideally be validated through market research, historical pricing data, or independent cost estimates, especially in the absence of competitive bids.

What are the specific performance metrics and service level agreements (SLAs) in place to ensure the effectiveness of the Civilian Mariner Wireless Network?

Given the $39M value and the 2-year duration, clear performance metrics and SLAs are essential. These should define network uptime, data transfer speeds, latency, security protocols, and response times for technical support. Effective monitoring and reporting mechanisms are needed to track Booz Allen Hamilton's performance against these standards and ensure the network meets the operational needs of the civilian mariners.

How does the $39M contract value compare to industry benchmarks for similar wireless network installation and sustainment services for maritime operations?

A direct comparison to industry benchmarks is challenging without more specific details on the scope of services, geographic coverage, and technology deployed. However, $39M for a 2-year contract suggests a substantial investment. Benchmarking against similar government contracts (if available) or large-scale commercial deployments would be necessary to determine if this represents a competitive price point or if potential cost efficiencies were missed due to the sole-source nature of the award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $99,998,699

Exercised Options: $99,998,699

Current Obligation: $39,090,711

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline