PEO LCS Awards $228M for Littoral Combat Ship Support, Booz Allen Hamilton Dominates

Contract Overview

Contract Amount: $228,067,629 ($228.1M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2015-10-14

End Date: 2023-12-30

Contract Duration: 2,999 days

Daily Burn Rate: $76.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Defense

Official Description: IGF::OT::IGF THE PROGRAM EXECUTIVE OFFICE FOR LITTORAL COMBAT SHIPS (PEO LCS) IS SEEKING PROFESSIONAL SUPPORT SERVICES (PSS) TO AUGMENT THE GOVERNMENT'S EXISTING PERSONNEL, KNOWLEDGE AND PROCESSES.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $228.1 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF THE PROGRAM EXECUTIVE OFFICE FOR LITTORAL COMBAT SHIPS (PEO LCS) IS SEEKING PROFESSIONAL SUPPORT SERVICES (PSS) TO AUGMENT THE GOVERNMENT'S EXISTING PERSONNEL, KNOWLEDGE AND PROCESSES. Key points: 1. Booz Allen Hamilton holds the majority of contract value, indicating significant incumbency. 2. Engineering Services sector sees substantial investment, driven by complex defense platforms. 3. Risk of vendor lock-in and potential cost overruns exist due to long duration and CPIF contract type. 4. The program's success hinges on effective knowledge transfer and process augmentation for the government.

Value Assessment

Rating: good

The total award of $228M over nearly 8 years suggests a substantial investment. Benchmarking against similar professional support services contracts for complex defense programs is necessary to fully assess value, but the duration and CPIF structure warrant close monitoring.

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 dominance of a single awardee (Booz Allen Hamilton) in this data snippet suggests potential concentration.

Taxpayer Impact: While competition was sought, the long-term nature and CPIF structure mean taxpayers are exposed to performance and cost risks over the contract's life.

Public Impact

Supports critical Littoral Combat Ship program, impacting naval defense capabilities. Long-term contract (nearly 8 years) ensures continuity but requires sustained oversight. Significant funding allocated, reflecting the complexity and importance of the services provided. Potential for knowledge transfer to government personnel is a key benefit for long-term self-sufficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration
Cost Plus Incentive Fee (CPIF) contract type
Single dominant awardee in data

Positive Signals

Full and open competition
Augments government personnel and processes

Sector Analysis

This contract falls within Engineering Services, a sector critical for defense acquisition. Spending benchmarks for similar professional support services on major defense platforms are typically high due to complexity and specialized expertise required.

Small Business Impact

The provided data does not indicate any specific subcontracting goals or participation by small businesses in this particular award. Further investigation would be needed to determine the extent of small business involvement.

Oversight & Accountability

The long duration and CPIF contract type necessitate robust oversight from the Defense Contract Management Agency (DCMA) to ensure performance standards are met and costs are controlled effectively.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Potential for cost overruns due to CPIF structure
Long contract duration increases risk of obsolescence or changing requirements
High concentration of value with one contractor
Dependence on contractor for critical knowledge and processes

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $228.1 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF THE PROGRAM EXECUTIVE OFFICE FOR LITTORAL COMBAT SHIPS (PEO LCS) IS SEEKING PROFESSIONAL SUPPORT SERVICES (PSS) TO AUGMENT THE GOVERNMENT'S EXISTING PERSONNEL, KNOWLEDGE AND PROCESSES.

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 $228.1 million.

What is the period of performance?

Start: 2015-10-14. End: 2023-12-30.

What is the specific performance metric driving the incentive fee in this CPIF contract, and how has Booz Allen Hamilton historically performed against these metrics on similar contracts?

The specific performance metric driving the incentive fee is not detailed in the provided data. CPIF contracts typically link incentives to achieving cost, schedule, or performance targets. Understanding these specific metrics is crucial for assessing value. Booz Allen Hamilton's historical performance on similar complex defense support contracts would provide insight into their ability to meet these targets and thus the overall cost-effectiveness of this award.

Given the nearly 8-year duration, what mechanisms are in place to prevent vendor lock-in and ensure the government can adapt to evolving LCS requirements or transition services if needed?

Mechanisms to prevent vendor lock-in over an 8-year period often include phased transition plans, clear deliverables for knowledge transfer to government personnel, and defined exit strategies. The contract likely includes clauses for termination for convenience and potentially options for service level adjustments. Regular reviews and performance assessments by PEO LCS are critical to ensure the government retains flexibility and control over evolving requirements.

How does the $228M total award compare to the estimated annual cost of augmenting LCS program personnel and processes, and what is the projected return on investment for this support?

The $228M award over approximately 8 years equates to roughly $28.5M annually. Comparing this to the estimated cost of augmenting LCS program personnel and processes requires detailed internal government cost data. The projected return on investment is tied to the successful delivery of LCS platforms, improved operational readiness, and cost efficiencies gained through the augmented support, which are difficult to quantify without specific program outcome data.

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: N0002413R3328

Offers Received: 4

Pricing Type: COST PLUS INCENTIVE FEE (V)

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: $240,754,805

Exercised Options: $240,754,805

Current Obligation: $228,067,629

Subaward Activity

Number of Subawards: 39

Total Subaward Amount: $9,380,092

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