Booz Allen Hamilton awarded $2.37M contract for FAA NAS systems engineering and integration strategic initiatives

Contract Overview

Contract Amount: $2,367,091 ($2.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Transportation

Start Date: 2023-08-08

End Date: 2026-08-07

Contract Duration: 1,095 days

Daily Burn Rate: $2.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TORFP 2201 NAS SYSTEMS ENGINEERING AND INTEGRATION STRATEGIC INITIATIVES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $2.4 million to BOOZ ALLEN HAMILTON INC for work described as: TORFP 2201 NAS SYSTEMS ENGINEERING AND INTEGRATION STRATEGIC INITIATIVES Key points: 1. Contract focuses on critical systems engineering and integration for the National Airspace System (NAS). 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Time and Materials contract type may pose cost control challenges if not managed closely. 4. Performance period of three years indicates a medium-term engagement for strategic initiatives. 5. The contract is a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The contractor, Booz Allen Hamilton, is a large, established firm with significant federal contracting experience.

Value Assessment

Rating: good

The contract value of $2.37 million for three years of engineering services appears reasonable for strategic initiatives within a complex system like the NAS. Benchmarking against similar large-scale engineering and integration contracts for critical infrastructure would provide further context. The Time and Materials (T&M) pricing structure, while common for evolving requirements, necessitates robust oversight to ensure cost efficiency and prevent scope creep. Without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging, but the award to an experienced contractor via competition is a positive indicator.

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 specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The use of full and open competition suggests the agency sought the best possible solution and value from the market.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process and encourages a wider range of innovative solutions.

Public Impact

The Federal Aviation Administration (FAA) benefits from enhanced systems engineering and integration capabilities for the National Airspace System. Strategic initiatives supported by this contract aim to improve the safety, efficiency, and modernization of air traffic control. The primary beneficiaries are the flying public and the aviation industry, through a more reliable and advanced NAS. Workforce implications may include specialized engineering and technical roles within Booz Allen Hamilton and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored and managed.
Lack of specific details on competition level (number of bidders) limits a full assessment of price discovery.
The strategic nature of the initiatives means that the full impact and success metrics may not be immediately apparent.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Contractor (Booz Allen Hamilton) is a well-established firm with extensive experience in government contracting and aerospace.
Focus on critical NAS systems engineering and integration addresses key government modernization goals.

Sector Analysis

This contract falls within the Engineering Services sector, specifically related to aerospace and defense systems. The market for systems engineering and integration services for critical infrastructure like the National Airspace System is highly specialized and dominated by large, experienced contractors. Spending in this area is driven by the need for continuous modernization, safety enhancements, and operational efficiency within the FAA's complex technological environment. Comparable spending benchmarks would typically involve other large-scale federal IT and engineering support contracts.

Small Business Impact

The provided data indicates that small business participation (sb) is false and there is no indication of a small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal, and there are no explicit subcontracting requirements for small businesses mentioned in this data. The focus appears to be on securing specialized expertise from larger, established firms.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA) contracting officers and program managers. As a delivery order, it is likely governed by the terms of a parent IDIQ contract, which would have its own oversight mechanisms. Transparency is facilitated by the contract award notice, but detailed performance reporting and Inspector General (IG) involvement would depend on the specific nature of the work and any identified issues or audits.

Related Government Programs

FAA NextGen Programs
Air Traffic Control Modernization
Aerospace Systems Engineering
Federal IT Services
Department of Transportation IT

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Scope creep risk for 'strategic initiatives' under T&M.
Limited transparency on the number of bidders in the competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.4 million to BOOZ ALLEN HAMILTON INC. TORFP 2201 NAS SYSTEMS ENGINEERING AND INTEGRATION STRATEGIC INITIATIVES

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $2.4 million.

What is the period of performance?

Start: 2023-08-08. End: 2026-08-07.

What is the track record of Booz Allen Hamilton in performing similar systems engineering and integration contracts for the FAA or other federal agencies?

Booz Allen Hamilton is a major federal contractor with a long history of providing systems engineering, integration, and technical support services across various government agencies, including the Department of Defense and the Department of Homeland Security. They have been involved in numerous large-scale technology modernization and strategic initiative projects. For the FAA specifically, their past performance likely includes support for air traffic management systems, aviation safety initiatives, and IT infrastructure. A detailed review of their contract history with the FAA would reveal specific projects, performance ratings, and any past issues or commendations related to similar work. Their extensive experience suggests a strong capability to handle complex engineering challenges, but also necessitates careful oversight to ensure alignment with current program goals and cost-effectiveness.

How does the awarded value of $2.37 million compare to similar systems engineering and integration contracts for the National Airspace System?

The awarded value of $2.37 million over three years for 'NAS SYSTEMS ENGINEERING AND INTEGRATION STRATEGIC INITIATIVES' represents a moderate investment for strategic support within the FAA. Contracts for major system overhauls or large-scale technology deployments within the NAS can range from tens of millions to billions of dollars. This particular contract, being for 'strategic initiatives' and awarded as a delivery order, suggests it might be focused on specific, targeted areas of engineering support, research, or planning rather than a full system implementation. To benchmark effectively, one would need to compare it to other contracts for specialized engineering services, feasibility studies, or integration planning within the aviation sector. Given the contractor's size and the critical nature of the NAS, the value appears to be within a reasonable range for focused strategic support, assuming the scope of work is well-defined and managed.

What are the primary risks associated with a Time and Materials (T&M) contract for strategic initiatives in a complex system like the NAS?

The primary risk with a Time and Materials (T&M) contract for strategic initiatives in the NAS is the potential for cost overruns due to the inherent difficulty in precisely defining the scope and duration of 'strategic initiatives' upfront. T&M contracts pay the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the project's requirements evolve significantly, or if labor hours are not meticulously tracked and managed, costs can escalate beyond initial estimates. For strategic initiatives, where exploration and adaptation are often key, this can be particularly challenging. Effective risk mitigation requires strong government oversight, detailed work breakdown structures, regular progress reviews, and clear communication channels to manage scope creep and ensure that the work remains aligned with the strategic objectives and budget.

What does the 'Engineering Services' (NAICS 541330) category typically encompass in the context of federal contracting, and how does this contract fit?

The NAICS code 541330, 'Engineering Services,' encompasses establishments that provide architectural and engineering services. This includes services related to civil, mechanical, electrical, industrial, and environmental engineering, as well as construction, management, and consulting. In the context of federal contracting, it often involves the design, development, analysis, testing, and integration of complex systems. This contract for 'NAS SYSTEMS ENGINEERING AND INTEGRATION STRATEGIC INITIATIVES' fits squarely within this category. It implies that Booz Allen Hamilton will be providing expert engineering advice, analysis, and potentially design or integration support to enhance or modernize aspects of the National Airspace System, a highly complex technological and operational environment.

What are the potential performance implications of awarding a delivery order under a potentially larger IDIQ contract for these strategic initiatives?

Awarding a delivery order under a larger Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract for these strategic initiatives means that the foundational contract vehicle has already been established, likely through a competitive process itself. This can streamline the acquisition process for specific task orders like this one. The performance implications depend heavily on the structure and terms of the parent IDIQ. If the IDIQ was well-competed and has robust performance standards, this delivery order should benefit from that framework. However, the specific performance requirements, deliverables, and success metrics for these 'strategic initiatives' will be detailed within this delivery order. Effective performance management will require close monitoring by the FAA to ensure the contractor meets the defined objectives within the T&M constraints and contributes meaningfully to the NAS modernization goals.

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MC LEAN, 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: $4,717,462

Exercised Options: $2,367,091

Current Obligation: $2,367,091

Actual Outlays: $1,790,392

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $100,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693KA822D00029

IDV Type: IDC

Timeline