DoD's $46.7M IGF contract for ISR engineering services awarded to Booz Allen Hamilton

Contract Overview

Contract Amount: $46,738,372 ($46.7M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2016-06-01

End Date: 2019-09-19

Contract Duration: 1,205 days

Daily Burn Rate: $38.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF OPEN ARCHITECTURE INTELLIGENCE SURVEILLANCE AND RECONNAISSANE ENGINEERING SERVICES

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $46.7 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF OPEN ARCHITECTURE INTELLIGENCE SURVEILLANCE AND RECONNAISSANE ENGINEERING SERVICES Key points: 1. Value for money appears fair given the cost-plus-fixed-fee structure and duration. 2. Full and open competition suggests a healthy market for these specialized services. 3. Contract duration of 1205 days indicates a significant, long-term need. 4. The contract falls within the custom computer programming services NAICS code. 5. Performance context is within intelligence, surveillance, and reconnaissance engineering. 6. Sector positioning is within the defense technology and services industry.

Value Assessment

Rating: fair

The contract's total value of $46.7 million over approximately 3.3 years suggests a moderate annual spend. Benchmarking against similar Intelligence, Surveillance, and Reconnaissance (ISR) engineering services contracts is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) pricing structure, while allowing for flexibility, can sometimes lead to higher costs if not carefully managed. The fixed fee component provides some cost control for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The presence of two bids suggests a competitive environment, though the exact number of proposals received is not specified. This level of competition is generally positive for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and encouraging a wider pool of qualified contractors to participate.

Public Impact

The Department of Defense benefits from specialized engineering services for ISR systems. Services delivered likely include design, development, integration, and testing of ISR capabilities. Geographic impact is primarily within the contractor's operational areas, likely supporting DoD facilities. Workforce implications include employment for skilled engineers and technical personnel in the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize contractors to incur higher costs to achieve a larger fee if not properly monitored.
The duration of the contract (over 3 years) requires sustained oversight to ensure continued value and performance.
Lack of specific performance metrics makes it difficult to assess the effectiveness of the engineering services provided.

Positive Signals

Awarded under full and open competition, suggesting a robust market and potential for competitive pricing.
The contractor, Booz Allen Hamilton, is a well-established firm with significant experience in defense contracting.
The contract addresses critical national security needs in intelligence, surveillance, and reconnaissance.

Sector Analysis

This contract falls within the broader defense technology and services sector, specifically focusing on engineering services for Intelligence, Surveillance, and Reconnaissance (ISR) platforms. The market for ISR technology and services is substantial, driven by ongoing global security needs. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts for complex defense systems, which often run into tens or hundreds of millions of dollars.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). While Booz Allen Hamilton is a large business, there is no explicit information on subcontracting plans for small businesses within this award. The impact on the small business ecosystem is therefore not directly measurable from this data alone, but large prime contractors often engage small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is generally maintained through contract reporting systems, though specific performance details may be sensitive.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Systems Engineering
Defense Engineering Services
Custom Computer Programming Services
Aerospace and Defense Technology Support

Risk Flags

Cost Overrun Risk (CPFF Structure)
Scope Creep Potential
Sustained Oversight Requirement (Long Duration)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.7 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF OPEN ARCHITECTURE INTELLIGENCE SURVEILLANCE AND RECONNAISSANE ENGINEERING 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 $46.7 million.

What is the period of performance?

Start: 2016-06-01. End: 2019-09-19.

What is the track record of Booz Allen Hamilton in delivering ISR engineering services for the Department of Defense?

Booz Allen Hamilton has a long-standing and extensive track record of providing a wide array of services to the Department of Defense, including significant contributions to intelligence, surveillance, and reconnaissance (ISR) programs. Their expertise spans systems engineering, technology integration, cybersecurity, and data analytics, all critical components for modern ISR capabilities. The company has been involved in numerous large-scale defense contracts, often serving as a prime contractor or key subcontractor. Their history suggests a capacity to manage complex projects, navigate stringent security requirements, and deliver technical solutions. Specific performance on this particular IGF contract would require a deeper dive into performance reports and government evaluations, but their general profile indicates a strong capability in this domain.

How does the $46.7 million contract value compare to similar ISR engineering contracts?

The $46.7 million value for this 1205-day (approx. 3.3 years) contract for ISR engineering services positions it as a significant, but not exceptionally large, award within the defense sector. Annualized, the contract value is approximately $14 million per year. ISR engineering is a specialized and often costly field due to the complexity of the systems involved (e.g., sensors, platforms, data processing, communication). Contracts for developing or sustaining advanced ISR capabilities can range from tens of millions to hundreds of millions of dollars, or even billions for major platform acquisitions or system-wide overhauls. Therefore, this contract appears to be within a typical range for dedicated engineering support for specific ISR functions or systems, rather than a program-of-record for an entire ISR platform.

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

The primary risks associated with this CPFF contract revolve around cost control and potential for cost overruns, which is inherent to CPFF structures. While the fixed fee provides a ceiling on the contractor's profit, the 'cost plus' portion means the government reimburses allowable costs. If the contractor is inefficient or encounters unforeseen technical challenges, costs can escalate, potentially exceeding initial estimates for the 'cost' part of the contract. This necessitates robust government oversight to scrutinize incurred costs, ensure they are reasonable and allocable, and verify that the contractor is making a good-faith effort to control expenses. Another risk is scope creep, where requirements may expand beyond the original intent, leading to increased costs and potentially impacting the fixed fee negotiation for subsequent modifications.

How effective is the 'full and open competition' approach in ensuring value for this type of specialized engineering service?

The 'full and open competition' approach is generally considered highly effective in ensuring value for specialized engineering services like those for ISR. By allowing any qualified responsible source to submit a bid, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive proposals. This competition drives down prices and encourages innovation as contractors vie for the award. For specialized services, it ensures that the government can access the best available technical expertise and solutions. The fact that two bids were received suggests a competitive market exists for these services, which is a positive indicator for value. However, the effectiveness also depends on the clarity of the solicitation's requirements and the evaluation criteria used by the agency.

What does the contract's duration of 1205 days imply about the nature of the ISR engineering work?

The contract's duration of 1205 days, approximately 3.3 years, implies that the ISR engineering work is likely focused on a sustained effort rather than a short-term project. This could involve long-term system development, integration, testing, sustainment engineering, or ongoing technical support for complex ISR platforms or systems. Such durations are common for projects requiring significant research, development, iterative design, and validation processes, especially in the defense sector where technology evolution and rigorous testing are paramount. It suggests a stable requirement and a need for consistent expertise over an extended period, allowing the contractor to build deep knowledge of the systems and requirements.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

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: $49,782,239

Exercised Options: $49,782,239

Current Obligation: $46,738,372

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $34,799,409

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA873215D0003

IDV Type: IDC

Timeline