DoD Awards Booz Allen Hamilton $77M for Simulation Center Support, Raising Value Concerns
Contract Overview
Contract Amount: $76,960,626 ($77.0M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2018-09-27
End Date: 2023-09-26
Contract Duration: 1,825 days
Daily Burn Rate: $42.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST NO FEE
Sector: Defense
Official Description: THE CONTRACTOR WILL PROVIDE ALL PERSONNEL, EQUIPMENT, SUPPLIES, FACILITIES, TRANSPORTATION, TOOLS, MATERIALS, SUPERVISION, AND OTHER ITEMS AND NON-PERSONAL SERVICES NECESSARY TO PERFORM SUPPORT AND MATERIALS TO THE NATIONAL SIMULATION CENTER (NSC) SUPPORT OPERATIONS (SO) AND TRAINING AND DOCTRINE COMMAND (TRADOC) CAPABILITIES MANAGER-INTEGRATED TRAINING ENVIRONMENT (TCM-ITE) AT FORT LEAVENWORTH, KS, AND THE LOGISTICS AND EXERCISE DIRECTORATE AT FORT LEE, VA, AND FORT HOOD TX AS DEFINED IN THE PWS.
Place of Performance
Location: FORT LEAVENWORTH, LEAVENWORTH County, KANSAS, 66027
State: Kansas Government Spending
Plain-Language Summary
Department of Defense obligated $77.0 million to BOOZ ALLEN HAMILTON INC for work described as: THE CONTRACTOR WILL PROVIDE ALL PERSONNEL, EQUIPMENT, SUPPLIES, FACILITIES, TRANSPORTATION, TOOLS, MATERIALS, SUPERVISION, AND OTHER ITEMS AND NON-PERSONAL SERVICES NECESSARY TO PERFORM SUPPORT AND MATERIALS TO THE NATIONAL SIMULATION CENTER (NSC) SUPPORT OPERATIONS (SO) AND TRAI… Key points: 1. Significant contract value of $77M for simulation and training support. 2. Booz Allen Hamilton, a large incumbent, secured the award. 3. Potential for limited competition due to specialized nature of services. 4. Focus on IT and professional services within the Defense sector.
Value Assessment
Rating: questionable
The $77M contract value over five years appears high for 'All Other Professional, Scientific, and Technical Services'. Benchmarking against similar simulation support contracts is needed to assess if the pricing is competitive and reflects fair market value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the specialized nature of simulation center support may limit the number of truly capable bidders, potentially impacting the competitive intensity.
Taxpayer Impact: The significant contract value necessitates robust oversight to ensure taxpayer funds are used efficiently and effectively for critical training and simulation needs.
Public Impact
Ensures critical training and simulation capabilities for the Army remain operational. Supports personnel at multiple key military installations across the US. Potential for long-term reliance on a single contractor for specialized support. Impacts the readiness and effectiveness of military training programs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value without clear performance metrics.
- Potential for vendor lock-in due to specialized services.
- Limited transparency on cost breakdown and profit margins.
Positive Signals
- Awarded through full and open competition.
- Supports critical national defense training infrastructure.
- Long-term contract provides stability for essential services.
Sector Analysis
This contract falls within the Professional, Scientific, and Technical Services sector, specifically supporting simulation and training for the Department of Defense. Spending in this area is crucial for military readiness but requires careful management to avoid cost overruns.
Small Business Impact
The contract was awarded to Booz Allen Hamilton, a large business. There is no indication that small businesses were involved as subcontractors, which could be an area for improvement in future solicitations.
Oversight & Accountability
The contract is managed by the Department of the Army. Oversight should focus on ensuring performance standards are met, costs are controlled, and the contractor delivers the required support effectively to the National Simulation Center and TRADOC.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High contract value warrants detailed cost analysis.
- Potential for limited competition in specialized technical services.
- Lack of small business participation noted.
- Need for clear performance metrics and oversight.
Tags
all-other-professional-scientific-and-te, department-of-defense, ks, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $77.0 million to BOOZ ALLEN HAMILTON INC. THE CONTRACTOR WILL PROVIDE ALL PERSONNEL, EQUIPMENT, SUPPLIES, FACILITIES, TRANSPORTATION, TOOLS, MATERIALS, SUPERVISION, AND OTHER ITEMS AND NON-PERSONAL SERVICES NECESSARY TO PERFORM SUPPORT AND MATERIALS TO THE NATIONAL SIMULATION CENTER (NSC) SUPPORT OPERATIONS (SO) AND TRAINING AND DOCTRINE COMMAND (TRADOC) CAPABILITIES MANAGER-INTEGRATED TRAINING ENVIRONMENT (TCM-ITE) AT FORT LEAVENWORTH, KS, AND THE LOGISTICS AND EXERCISE DIRECTORATE AT FORT LEE, VA, AND FORT HOOD TX AS DEFINED IN THE PW
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 Army).
What is the total obligated amount?
The obligated amount is $77.0 million.
What is the period of performance?
Start: 2018-09-27. End: 2023-09-26.
What specific performance metrics are in place to ensure the $77M contract delivers value for simulation and training support?
The provided data does not detail specific performance metrics. A thorough review of the Performance Work Statement (PWS) and contract clauses is necessary to identify and assess the metrics used to evaluate the contractor's performance. Effective oversight should track these metrics closely to ensure the government receives the intended value and that taxpayer funds are utilized efficiently for critical simulation and training operations.
What is the risk of vendor lock-in given the specialized nature of simulation center support?
There is a moderate risk of vendor lock-in due to the specialized nature of simulation and training support. Booz Allen Hamilton's incumbent status and expertise may make it difficult for new entrants to compete effectively on future procurements. Agencies should consider strategies to foster competition, such as breaking down the requirement into smaller components or actively seeking new market entrants during the solicitation process.
How does this contract contribute to the overall effectiveness of military training and readiness?
This contract is vital for maintaining and enhancing the operational effectiveness of the National Simulation Center and TRADOC's Integrated Training Environment. By providing essential personnel, equipment, and support services, it ensures that military personnel receive realistic and up-to-date training. The successful execution of this contract directly impacts the readiness of forces by enabling advanced simulation capabilities crucial for modern warfare preparation.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical 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: W911S016R0003
Offers Received: 2
Pricing Type: COST NO FEE (S)
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: $80,315,969
Exercised Options: $77,862,587
Current Obligation: $76,960,626
Actual Outlays: $2,300
Subaward Activity
Number of Subawards: 75
Total Subaward Amount: $26,300,083
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W911S018D0004
IDV Type: IDC
Timeline
Start Date: 2018-09-27
Current End Date: 2023-09-26
Potential End Date: 2023-09-26 00:00:00
Last Modified: 2025-09-29
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