DoD's PEO C4I awarded $22.3M for program management and support services to Booz Allen Hamilton

Contract Overview

Contract Amount: $22,338,165 ($22.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2010-09-23

End Date: 2015-09-22

Contract Duration: 1,825 days

Daily Burn Rate: $12.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE PROGRAM EXECUTIVE OFFICE (PEO) FOR COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS AND INTELLIGENCE (C4I) IS ACQUIRING PROGRAM MANAGEMENT, ACQUISITION MANAGEMENT, LOGISTICS MANAGEMENT, STRATEGIC MANAGEMENT, MANPOWER MANAGEMENT, OPERATIONS SUPPORT, IMPLEMENTATION/MODERNIZATION MANAGEMENT, PROCESS IMPROVEMENT, TECHNICAL ADVICE, ADMINISTRATIVE AND FINANCIAL MANAGEMENT SUPPORT SERVICES.

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92110, UNITED STATES OF AMERICA

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $22.3 million to BOOZ ALLEN HAMILTON INC for work described as: THE PROGRAM EXECUTIVE OFFICE (PEO) FOR COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS AND INTELLIGENCE (C4I) IS ACQUIRING PROGRAM MANAGEMENT, ACQUISITION MANAGEMENT, LOGISTICS MANAGEMENT, STRATEGIC MANAGEMENT, MANPOWER MANAGEMENT, OPERATIONS SUPPORT, IMPLEMENTATION/MODERNIZATION MAN… Key points: 1. Contract provides essential program, acquisition, and logistics management support. 2. Services span strategic planning, operations, and financial management. 3. Booz Allen Hamilton, a large incumbent contractor, secured this award. 4. The contract duration of 5 years suggests a need for sustained support. 5. This award falls under engineering services, indicating a technical and managerial focus.

Value Assessment

Rating: fair

The total award of $22.3 million over five years averages to approximately $4.46 million annually. Benchmarking this against similar large-scale program management contracts within the Department of Defense is challenging without more granular data on the specific services and labor mix. However, the duration and scope suggest a significant investment. Further analysis would require comparing specific labor categories and rates to market averages for similar support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of 3 bidders suggests a moderate level of competition for this type of specialized support. While full and open competition is generally preferred, the specific number of bidders can influence price discovery and the ultimate value achieved.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, potentially driving down costs and ensuring the government receives competitive pricing.

Public Impact

Benefits the Department of the Navy by providing critical program management and operational support. Delivers services essential for the effective execution of Command, Control, Communications, Computers, and Intelligence (C4I) programs. Geographic impact is primarily within the Department of Defense's operational and administrative centers. Supports a workforce of program managers, analysts, and administrative staff, potentially including subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor lock-in due to long-term support needs.
Reliance on a single large contractor for critical program functions.
Limited transparency into specific task order costs and performance metrics.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Booz Allen Hamilton is an established contractor with a known track record.
Contract duration aligns with the long-term nature of C4I program development.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically engineering services. The market for program management and acquisition support within the defense sector is substantial, with numerous large and small businesses competing for these types of contracts. Spending in this area is driven by the continuous need for modernization and sustainment of complex defense systems.

Small Business Impact

The contract was not set aside for small businesses, and the prime contractor, Booz Allen Hamilton, is a large business. There is no explicit information provided regarding subcontracting plans or goals for small businesses. This suggests that opportunities for small businesses may be limited to specific task orders or through lower-tier subcontracting, rather than direct set-asides.

Oversight & Accountability

Oversight is typically managed by the Program Executive Office (PEO) for C4I and the contracting officer's representative (COR). Accountability measures would be embedded within the contract's performance work statement and reporting requirements. Transparency is generally maintained through contract awards databases, but detailed performance metrics and financial breakdowns may not be publicly available.

Related Government Programs

Department of Defense Program Management Support
C4I Systems Acquisition
Naval IT Services
Engineering and Technical Services

Risk Flags

Potential for cost creep in cost-plus contracts.
Reliance on incumbent contractor may limit innovation.
Scope definition clarity is crucial for performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.3 million to BOOZ ALLEN HAMILTON INC. THE PROGRAM EXECUTIVE OFFICE (PEO) FOR COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS AND INTELLIGENCE (C4I) IS ACQUIRING PROGRAM MANAGEMENT, ACQUISITION MANAGEMENT, LOGISTICS MANAGEMENT, STRATEGIC MANAGEMENT, MANPOWER MANAGEMENT, OPERATIONS SUPPORT, IMPLEMENTATION/MODERNIZATION MANAGEMENT, PROCESS IMPROVEMENT, TECHNICAL ADVICE, ADMINISTRATIVE AND FINANCIAL MANAGEMENT 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 $22.3 million.

What is the period of performance?

Start: 2010-09-23. End: 2015-09-22.

What is Booz Allen Hamilton's track record with similar DoD contracts?

Booz Allen Hamilton is a well-established government contractor with extensive experience supporting the Department of Defense across various domains, including C4I. They have a long history of providing program management, acquisition, logistics, and technical support services. Their track record includes numerous large, complex contracts with agencies like the Navy, Army, and Air Force. While specific performance details for this particular contract are not publicly detailed, their general reputation is that of a capable, albeit expensive, provider of high-level consulting and support services. Past performance evaluations, often available through government contract databases or agency reports, would offer more specific insights into their success rates and client satisfaction on comparable engagements.

How does the $22.3 million award compare to other program management contracts for C4I systems?

The $22.3 million award for five years of support represents an average annual value of approximately $4.46 million. This figure is moderate when compared to the vast landscape of defense contracting, particularly for major acquisition programs. Larger, more complex C4I system development or sustainment efforts can involve hundreds of millions or even billions of dollars over their lifecycle. However, for dedicated program management, acquisition, and administrative support services, this award is substantial and reflects the critical nature of the functions being supported. Comparable contracts for similar support services within the DoD can range from a few million to tens of millions annually, depending on the scope, duration, and specific technical requirements.

What are the primary risks associated with this type of support contract?

Key risks include potential cost overruns if the fixed-fee component is not carefully managed against evolving requirements. There's also a risk of contractor performance not meeting expectations, impacting the efficiency and effectiveness of C4I program execution. Over-reliance on a single contractor for critical functions can create vendor lock-in and reduce flexibility. Furthermore, ensuring adequate knowledge transfer and continuity, especially if the contract transitions to a different vendor in the future, poses a risk. Finally, maintaining robust oversight to ensure the services delivered align with the government's strategic objectives and provide true value for money is an ongoing challenge.

How effective is full and open competition in ensuring value for money in this contract?

Full and open competition is generally considered the most effective method for ensuring value for money, as it theoretically maximizes the number of potential bidders and fosters a competitive environment. In this case, with 3 bidders, there was a degree of competition, which should have incentivized each bidder to offer competitive pricing and robust technical solutions. However, the effectiveness is contingent on the specific requirements of the solicitation and the capabilities of the bidding companies. If the market for such specialized program management support is limited, even full and open competition might result in fewer bidders than ideal. Continuous monitoring of performance and costs throughout the contract lifecycle is crucial to confirm that value for money is indeed being achieved.

What is the historical spending trend for program management support within PEO C4I?

Historical spending data for PEO C4I's program management support services would reveal trends in contract awards over time. Typically, such spending fluctuates based on the lifecycle stages of major C4I programs, modernization initiatives, and overall defense budget allocations. Periods of significant system development or upgrades often correlate with increased spending on program management and acquisition support. Conversely, during sustainment phases or budget constraints, spending might stabilize or decrease. Analyzing historical data would show whether this $22.3 million award is in line with, above, or below previous spending levels for similar services, providing context on the current investment.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002410R3209

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)

Address: BOOZ ALLEN HAMILTON INC, MC LEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,583,079

Exercised Options: $24,583,079

Current Obligation: $22,338,165

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $20,600,000

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4024

IDV Type: IDC

Timeline