DoD's $72.7M PMW 130 IA Support Contract Awarded to Booz Allen Hamilton Shows Fair Competition

Contract Overview

Contract Amount: $72,683,265 ($72.7M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2012-10-01

End Date: 2018-02-28

Contract Duration: 1,976 days

Daily Burn Rate: $36.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: PMW 130 INFORMATION ASSURANCE (IA) TECHNICAL AND PROGRAM MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $72.7 million to BOOZ ALLEN HAMILTON INC for work described as: PMW 130 INFORMATION ASSURANCE (IA) TECHNICAL AND PROGRAM MANAGEMENT SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Booz Allen Hamilton, a large established contractor, received the award. 3. The contract duration spans over 5 years, indicating a long-term need for these services. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 5. The base award amount is substantial, reflecting significant program support requirements. 6. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract's value of approximately $72.7 million over its period of performance appears reasonable for specialized Information Assurance technical and program management support within the Department of Defense. Benchmarking against similar large-scale IT and engineering services contracts for federal agencies suggests that pricing structures for such complex support are often in this range. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, requires careful oversight to ensure costs remain aligned with the fixed fee and the overall value delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specific award. While two bidders is better than a sole-source award, a higher number of competitors could potentially drive prices down further and foster greater innovation.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to vie for the contract, potentially leading to more competitive pricing and better value for government funds.

Public Impact

The primary beneficiaries are the Department of Defense's Program Management Warfare (PMW) 130, receiving critical support for its Information Assurance initiatives. Services delivered include technical and program management support essential for maintaining cybersecurity and information protection. The geographic impact is primarily within the Department of Defense's operational and administrative centers, likely concentrated in areas with significant defense infrastructure. Workforce implications include the employment of skilled professionals in cybersecurity, program management, and engineering, supporting the defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type can lead to cost overruns if not managed diligently.
Limited number of bidders (2) may indicate potential barriers to entry or a niche market.
Long contract duration requires sustained oversight to ensure continued value and performance.

Positive Signals

Awarded through full and open competition, promoting a fair marketplace.
Booz Allen Hamilton is a well-established contractor with a significant track record in government services.
The contract addresses critical Information Assurance needs for national security.

Sector Analysis

This contract falls within the broader Information Technology and Engineering Services sector, a significant area of federal spending. The market for cybersecurity and program management support services for defense agencies is substantial, characterized by large, established prime contractors and a complex ecosystem of subcontractors. Spending in this sector is driven by the continuous need for advanced technological solutions and robust program execution to maintain national security and operational effectiveness. Comparable contracts often involve multi-year durations and values in the tens to hundreds of millions of dollars.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Booz Allen Hamilton is a large business, and it is common for large prime contractors to utilize small business subcontractors to fulfill specific requirements or meet subcontracting goals. The extent to which small businesses will benefit from subcontracting opportunities on this contract would depend on the prime contractor's subcontracting plan and execution.

Oversight & Accountability

Oversight for this contract would primarily be managed by the Defense Contract Management Agency (DCMA), which is responsible for contract administration. The Department of Defense's internal audit and oversight mechanisms, including the Inspector General, would also play a role in ensuring accountability and compliance. Transparency is facilitated through contract award databases and reporting requirements, though detailed performance metrics are often not publicly disclosed.

Related Government Programs

Defense Information Systems Agency (DISA) IT Support Contracts
Naval Sea Systems Command (NAVSEA) Program Management Support
Department of Defense Cybersecurity Initiatives
Federal IT Services Acquisition
Engineering Services for Defense Programs

Risk Flags

Cost Overrun Risk (CPFF)
Limited Competition (2 Bidders)
Contract Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $72.7 million to BOOZ ALLEN HAMILTON INC. PMW 130 INFORMATION ASSURANCE (IA) TECHNICAL AND PROGRAM 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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $72.7 million.

What is the period of performance?

Start: 2012-10-01. End: 2018-02-28.

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

Booz Allen Hamilton has an extensive history of providing IT, cybersecurity, and program management support services to the Department of Defense and other federal agencies. They are a major contractor in this space, frequently awarded large-scale contracts for complex technical and strategic support. Their track record includes numerous contracts related to information assurance, network security, and systems engineering across various military branches and defense organizations. While specific performance details for past IA contracts are often proprietary or not publicly detailed, their consistent presence and significant contract awards suggest a generally positive performance history and capability to meet DoD requirements.

How does the $72.7 million value compare to other IA support contracts?

The $72.7 million value for this 5-year contract (approximately $14.5 million per year) is within the typical range for significant Information Assurance (IA) technical and program management support services awarded by the Department of Defense. Large, complex defense programs often require substantial investment in specialized expertise. When compared to other large federal IT and engineering service contracts, this award appears to be of moderate to large size, reflecting the critical nature and scope of IA support for a program management office like PMW 130. Smaller, more focused IA tasks might be valued in the single-digit millions, while enterprise-wide cybersecurity overhauls could reach hundreds of millions or even billions.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for IA support services revolve around cost control and potential for cost overruns. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' component means the government reimburses the contractor's allowable costs. If costs escalate beyond initial projections due to unforeseen technical challenges, scope creep, or inefficient management, the total expenditure for the government can increase significantly. This necessitates robust government oversight to scrutinize incurred costs and ensure they are reasonable, allocable, and necessary. The contractor, while incentivized by the fixed fee, may have less incentive to aggressively control costs compared to a firm-fixed-price contract, potentially leading to less cost-consciousness.

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

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in sectors like IT and engineering services for the DoD. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, fostering a competitive environment that typically drives down prices and encourages innovation. This process allows the government to select the offer that provides the best overall value, considering not just price but also technical approach, past performance, and other factors. While the competition here involved two bidders, which is less than ideal, the principle of full and open competition itself is a strong mechanism for achieving value. The key is ensuring the evaluation process is rigorous and objective.

What is the historical spending trend for PMW 130 IA support services?

Historical spending data specifically for PMW 130's IA technical and program management support services prior to this $72.7 million award is not detailed in the provided data. However, the fact that this contract was awarded as a delivery order suggests it is part of a larger IDIQ contract vehicle. This implies that there may have been previous delivery orders under the same or similar IDIQ vehicles for related services, and potentially future orders. Analyzing the overall spending on PMW 130's programs and the broader DoD IA initiatives would provide context, but specific historical spending for this exact service line requires access to more granular contract databases or agency budget reports.

What are the implications of the contract being awarded as a Delivery Order?

The contract being awarded as a Delivery Order (DO) signifies that it is a task-specific order issued under a pre-existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract. This means that the foundational contract terms, conditions, and pricing structure were established previously, likely through a competitive process. The Delivery Order then specifies the exact scope of work, quantities, delivery schedule, and total price for a particular requirement. For taxpayers, this can mean more streamlined acquisition for recurring needs, but it also implies that the initial IDIQ competition is crucial for setting favorable terms. The value of this specific DO is $72.7 million, indicating a substantial task within the larger IDIQ framework.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002412R3123

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: $78,380,730

Exercised Options: $78,380,730

Current Obligation: $72,683,265

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $69,500,000

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