DoD's $84M Navy EBS contract to Booz Allen Hamilton faces scrutiny over value and competition

Contract Overview

Contract Amount: $84,193,946 ($84.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2015-09-28

End Date: 2019-12-27

Contract Duration: 1,551 days

Daily Burn Rate: $54.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::CT::IGF TO IS TO BE EXECUTED IN SUPPORT OF PEO-EIS PMW 220, NAVY ENTERPRISE BUSINESS SOLUTIONS (EBS) PROGRAM IN AREAS OF TECHNICAL OPERATIONS SUSTAINMENT, AUDIT READINESS SUPPORT, ECP SUPPORT, SPECIAL PROJECTS,&KNOWLEDGE TRANSFER SUPPORT SERVICES. TECHNICAL OPERATIONS CONSISTS OF GENERAL SYSTEM OPERATIONS, RELEASE MANAGEMENT, TESTING, QUALITY ASSURANCE, INFORMATION ASSURANCE, TECHNICAL INFRASTRUCTURE SUPPORT, SAP BASIS ADMINISTRATION,&TOOL ADMINISTRATION.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $84.2 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::CT::IGF TO IS TO BE EXECUTED IN SUPPORT OF PEO-EIS PMW 220, NAVY ENTERPRISE BUSINESS SOLUTIONS (EBS) PROGRAM IN AREAS OF TECHNICAL OPERATIONS SUSTAINMENT, AUDIT READINESS SUPPORT, ECP SUPPORT, SPECIAL PROJECTS,&KNOWLEDGE TRANSFER SUPPORT SERVICES. TECHNICAL OPERATIONS CONSI… Key points: 1. The contract supports critical Navy Enterprise Business Solutions (EBS) with a significant $84M value. 2. Booz Allen Hamilton, a large incumbent, secured this delivery order. 3. The contract's Cost Plus Fixed Fee (CPFF) structure warrants close examination for cost control. 4. While listed under Engineering Services, the scope includes broad IT operations and support.

Value Assessment

Rating: questionable

The CPFF pricing structure can lead to cost overruns if not tightly managed. Benchmarking against similar IT operations and sustainment contracts is difficult without more granular cost data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded via full and open competition, suggesting a competitive process. However, the specific award mechanism (delivery order) and the incumbent's strong position may have influenced price discovery.

Taxpayer Impact: Taxpayer funds are being utilized for essential Navy IT infrastructure and support services. The CPFF structure necessitates robust oversight to ensure cost efficiency and prevent overspending.

Public Impact

Impacts the operational efficiency and audit readiness of the Navy's enterprise systems. Ensures continuity of critical IT services for a major defense program. Supports knowledge transfer and special projects within the PEO-EIS PMW 220. Affects the broader defense IT services market and potential competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) pricing can incentivize higher costs.
Lack of detailed cost breakdowns makes value assessment challenging.
Potential for scope creep in 'special projects' and 'knowledge transfer'.
Incumbency advantage for Booz Allen Hamilton.

Positive Signals

Awarded through full and open competition.
Supports critical Navy IT infrastructure (EBS).
Includes provisions for audit readiness and technical sustainment.
Long-term contract duration allows for stable support.

Sector Analysis

This contract falls within the Engineering Services sector, but its core functions heavily overlap with IT services, specifically enterprise resource planning (ERP) support and sustainment. Defense IT spending is a significant portion of federal procurement, with benchmarks varying widely based on service type and complexity.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). There is no information provided on subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The contract is managed by the Defense Contract Management Agency (DCMA), suggesting established oversight mechanisms. However, the CPFF structure requires diligent monitoring of costs and performance to ensure accountability and prevent waste.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure.
Potential for cost overruns due to CPFF.
Limited transparency on specific performance metrics.
Incumbency advantage in a competitive bidding process.
Broad scope encompassing IT operations and specialized support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $84.2 million to BOOZ ALLEN HAMILTON INC. IGF::CT::IGF TO IS TO BE EXECUTED IN SUPPORT OF PEO-EIS PMW 220, NAVY ENTERPRISE BUSINESS SOLUTIONS (EBS) PROGRAM IN AREAS OF TECHNICAL OPERATIONS SUSTAINMENT, AUDIT READINESS SUPPORT, ECP SUPPORT, SPECIAL PROJECTS,&KNOWLEDGE TRANSFER SUPPORT SERVICES. TECHNICAL OPERATIONS CONSISTS OF GENERAL SYSTEM OPERATIONS, RELEASE MANAGEMENT, TESTING, QUALITY ASSURANCE, INFORMATION ASSURANCE, TECHNICAL INFRASTRUCTURE SUPPORT, SAP BASIS ADMINISTRATION,&TOOL ADMINISTRATION.

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 $84.2 million.

What is the period of performance?

Start: 2015-09-28. End: 2019-12-27.

What specific metrics are used to assess the 'technical operations sustainment' value delivered under this CPFF contract?

The contract details mention 'general system operations, release management, testing, quality assurance, information assurance, technical infrastructure support, SAP BASIS administration, and tool administration.' Value assessment would likely rely on metrics such as system uptime, incident resolution times, successful release deployments, security compliance adherence, and user satisfaction surveys. However, without specific KPIs defined in the contract or performance reports, quantifying the precise value delivered is challenging.

How does the 'full and open competition' for this delivery order ensure optimal price discovery given the incumbent's position?

While 'full and open competition' theoretically allows any qualified vendor to bid, the nature of a delivery order against an existing contract can still favor the incumbent. Optimal price discovery depends on the number and competitiveness of bidders, the clarity of the statement of work, and the government's negotiation strategy. If few new bidders participated or if the SOW closely mirrored existing services, the incumbent's established knowledge and pricing might have had a significant advantage, potentially limiting true price competition.

What are the primary risks associated with the 'knowledge transfer support services' component, and how are they mitigated?

The primary risks include incomplete or ineffective knowledge transfer, leading to future sustainment gaps, and potential 'brain drain' if key personnel depart after transferring knowledge. Mitigation strategies typically involve clearly defined knowledge transfer plans, measurable objectives for transfer completion, phased transitions, and potentially retention bonuses for key personnel. The CPFF structure might also incentivize faster, less thorough knowledge transfer if not carefully monitored.

Industry Classification

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

Solicitation ID: N0002415R3442

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: $105,472,114

Exercised Options: $105,472,114

Current Obligation: $84,193,946

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $14,762,039

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017811D6682

IDV Type: IDC

Timeline