Booz Allen Hamilton awarded $55.5M for JPEO-JTRS enterprise professional support services

Contract Overview

Contract Amount: $55,473,671 ($55.5M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2011-09-28

End Date: 2016-09-27

Contract Duration: 1,826 days

Daily Burn Rate: $30.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SPAWAR IN SUPPORT OF JPEO-JTRS, INTENDS TO RELEASE A SEAPORT SOLICITATION TO OBTAIN THE FULL RANGE OF JPEO-JTRS ENTERPRISE PROFESSIONAL SUPPORT SERVICES TO ASSIST AND SUPPORT THE JPEO-JTRS AND JTRS PMOS IN EXECUTING THEIR RESPONSIBILITIES TO DEVELOP, PRODUCE AND FIELD A FAMILY OF INTEROPERABLE, DIGITAL, MODULAR, SOFTWARE DEFINED RADIOS WHILE APPLYING SOUND PROGRAM MANAGEMENT AND ACQUISITION TECHNIQUES TO MEET COST, SCHEDULE, AND PERFORMANCE REQUIREMENTS WHILE IMPLEMENTING JTRS AT MODERATE RISK.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $55.5 million to BOOZ ALLEN HAMILTON INC for work described as: SPAWAR IN SUPPORT OF JPEO-JTRS, INTENDS TO RELEASE A SEAPORT SOLICITATION TO OBTAIN THE FULL RANGE OF JPEO-JTRS ENTERPRISE PROFESSIONAL SUPPORT SERVICES TO ASSIST AND SUPPORT THE JPEO-JTRS AND JTRS PMOS IN EXECUTING THEIR RESPONSIBILITIES TO DEVELOP, PRODUCE AND FIELD A FAMILY OF… Key points: 1. Contract supports the development, production, and fielding of interoperable, digital, software-defined radios. 2. Services encompass a full range of enterprise professional support for JPEO-JTRS and PMOs. 3. The contract aims to meet cost, schedule, and performance requirements with moderate risk. 4. This award is a delivery order under a larger contract vehicle. 5. The duration of the contract is approximately 5 years.

Value Assessment

Rating: good

The contract value of $55.5 million over approximately five years suggests a significant investment in program support. Benchmarking this against similar enterprise support contracts for complex defense programs would be necessary for a precise value-for-money assessment. However, the fixed-fee structure on a cost-plus contract can provide some cost control, though the overall value is contingent on the efficiency of the contractor's performance and the actual costs incurred.

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 likely had the opportunity to submit proposals. This competitive process is generally expected to drive better pricing and service offerings. The number of bidders and the specific evaluation criteria would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it encourages a wider range of solutions and potentially lower prices through market forces.

Public Impact

The primary beneficiaries are the Joint Program Executive Office for Chemical, Biological, Radiological, and Nuclear Defense (JPEO-JTRS) and its Program Management Offices (PMOs). The services delivered are crucial for the successful development, production, and fielding of advanced radio systems. The geographic impact is likely concentrated around the program offices and development centers, but the end products will have national defense implications. Workforce implications include the employment of professionals in program management, engineering support, and acquisition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in cost-plus contracts if not managed tightly.
Reliance on a single contractor for critical enterprise support could pose a risk if performance degrades.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Clear objectives for developing and fielding essential defense communication systems.
Defined performance requirements and risk management approach.

Sector Analysis

This contract falls within the Defense sector, specifically supporting the development and acquisition of advanced communication systems. The market for defense program support services is substantial, with numerous companies specializing in engineering, program management, and acquisition support for government clients. This contract represents a portion of the broader spending on defense modernization and C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) capabilities.

Small Business Impact

Information regarding small business participation, including set-asides or subcontracting plans, is not explicitly provided in the data. However, given the nature of the services and the prime contractor, it is possible that smaller specialized firms could be engaged as subcontractors. Further analysis would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight is typically managed by the Defense Contract Management Agency (DCMA) and the contracting officer's representative (COR) for the JPEO-JTRS program. Accountability measures would be tied to the contract's performance metrics and reporting requirements. Transparency is generally maintained through contract awards databases and program reporting, though specific details of internal operations may be sensitive.

Related Government Programs

JPEO-JTRS Program
Department of Defense Acquisition Programs
Defense Communications Systems

Risk Flags

Cost-Plus contract type can lead to higher costs if not managed effectively.
Reliance on contractor for critical program support.
Complexity of developing software-defined radios and ensuring interoperability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.5 million to BOOZ ALLEN HAMILTON INC. SPAWAR IN SUPPORT OF JPEO-JTRS, INTENDS TO RELEASE A SEAPORT SOLICITATION TO OBTAIN THE FULL RANGE OF JPEO-JTRS ENTERPRISE PROFESSIONAL SUPPORT SERVICES TO ASSIST AND SUPPORT THE JPEO-JTRS AND JTRS PMOS IN EXECUTING THEIR RESPONSIBILITIES TO DEVELOP, PRODUCE AND FIELD A FAMILY OF INTEROPERABLE, DIGITAL, MODULAR, SOFTWARE DEFINED RADIOS WHILE APPLYING SOUND PROGRAM MANAGEMENT AND ACQUISITION TECHNIQUES TO MEET COST, SCHEDULE, AND PERFORMANCE REQUIREMENTS WHILE IMPLEMENTING JTRS AT MODERATE RISK.

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $55.5 million.

What is the period of performance?

Start: 2011-09-28. End: 2016-09-27.

What is the track record of Booz Allen Hamilton in supporting similar large-scale defense acquisition programs?

Booz Allen Hamilton has a long-standing and extensive track record of supporting complex defense acquisition programs across various agencies, including the Department of Defense. They are known for providing a wide range of services, including program management, systems engineering, cybersecurity, and strategic consulting. Their experience with programs like JPEO-JTRS, which involves developing and fielding critical communication systems, is substantial. The company has consistently been a major contractor for the DoD, handling numerous large-value contracts. While their overall track record is strong, specific performance on individual contracts can vary, and detailed reviews of past performance metrics would be necessary for a comprehensive assessment of their suitability for this specific role.

How does the cost-plus fixed-fee (CPFF) contract type compare to other pricing arrangements for this type of service?

The Cost-Plus Fixed Fee (CPFF) contract type is often used when the scope of work is well-defined but the exact costs are uncertain, as is common in complex R&D or system development efforts. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This structure provides the government with some cost certainty regarding the contractor's profit margin, as the fee is fixed regardless of the final cost. However, it still places the risk of cost overruns on the government. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government if requirements change but can be more expensive if the contractor's costs are higher than anticipated. Compared to Cost-Plus-Incentive-Fee (CPIF) contracts, CPFF lacks the built-in incentives for the contractor to control costs aggressively, as the profit is fixed.

What are the primary risks associated with the JPEO-JTRS program as indicated by the contract description?

The contract description explicitly mentions "applying sound program management and acquisition techniques to meet cost, schedule, and performance requirements while implementing JTRS at moderate risk." This suggests that the primary risks revolve around the inherent complexities of developing and fielding a family of interoperable, digital, software-defined radios. These risks likely include technical challenges in achieving interoperability across different radio platforms, potential schedule delays due to the complexity of software-defined architectures and integration, cost growth associated with unforeseen technical hurdles or evolving requirements, and performance risks related to ensuring the radios meet stringent operational demands in diverse environments. The 'moderate risk' designation implies that these challenges are recognized and being actively managed, but they remain significant factors.

What is the historical spending trend for enterprise professional support services within the Department of Defense?

Historical spending on enterprise professional support services within the Department of Defense (DoD) has been substantial and generally increasing over the past decade, driven by the need for specialized expertise in program management, systems engineering, acquisition support, and strategic planning for complex weapon systems and modernization efforts. The DoD relies heavily on contractors to supplement organic capabilities and provide specialized skills that may not be readily available internally. Spending in this category often fluctuates based on major acquisition programs entering different phases (e.g., development, production, sustainment) and overall defense budget priorities. While specific figures for 'enterprise professional support' can vary depending on how the category is defined and tracked, it represents a significant portion of the DoD's services acquisition budget, often running into billions of dollars annually across various contracts and agencies.

How does the 'moderate risk' stated in the contract abstract translate into performance expectations for the contractor?

The mention of implementing JTRS 'at moderate risk' suggests that the contractor is expected to operate within a framework that acknowledges and actively manages known or anticipated challenges in the program. This translates into performance expectations that go beyond simply executing tasks. The contractor is likely expected to proactively identify, assess, and mitigate risks related to cost, schedule, performance, and technology. This could involve implementing robust risk management processes, providing regular risk assessments and mitigation plans to the government, and demonstrating agility in adapting to changing circumstances or unforeseen issues. Performance metrics may include adherence to risk management plans, successful implementation of mitigation strategies, and contributing to the overall stability and predictability of the program despite its inherent complexities.

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: N0002411R3251

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $68,652,337

Exercised Options: $68,652,337

Current Obligation: $55,473,671

Subaward Activity

Number of Subawards: 47

Total Subaward Amount: $380,297,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4024

IDV Type: IDC

Timeline