Booz Allen Hamilton awarded $74.3M for C4ISR technical engineering and sustainment support by GSA

Contract Overview

Contract Amount: $74,348,749 ($74.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2017-07-01

End Date: 2022-12-31

Contract Duration: 2,009 days

Daily Burn Rate: $37.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: C4ISR TECHNICAL ENGINEERING RESEARCH AND SUSTAINMENT SUPPORT IGF::OT::IGF

Place of Performance

Location: EGLIN AFB, OKALOOSA County, FLORIDA, 32542

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $74.3 million to BOOZ ALLEN HAMILTON INC for work described as: C4ISR TECHNICAL ENGINEERING RESEARCH AND SUSTAINMENT SUPPORT IGF::OT::IGF Key points: 1. Contract value represents a significant investment in critical defense infrastructure. 2. Booz Allen Hamilton, a large incumbent contractor, holds a strong position in this market. 3. The contract's duration and value suggest potential for long-term sustainment needs. 4. Performance context is crucial given the technical complexity of C4ISR systems. 5. This contract falls within the IT and Defense sectors, requiring specialized expertise. 6. The use of Time and Materials pricing warrants scrutiny for cost control.

Value Assessment

Rating: fair

The contract value of $74.3 million over five years for C4ISR technical engineering and sustainment support appears within a reasonable range for large-scale defense IT services. However, without specific benchmarks for comparable C4ISR sustainment contracts or detailed cost breakdowns, a definitive value-for-money assessment is challenging. The Time and Materials (T&M) pricing structure, while common for research and development, can lead to cost overruns if not closely managed, potentially impacting overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The fact that it resulted in a single delivery order suggests that Booz Allen Hamilton was the selected awardee from a competitive pool. The level of competition, while initially broad, ultimately led to one prime contractor, which is typical for complex, specialized services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. However, the ultimate price paid is dependent on the specific bids received and the negotiation process.

Public Impact

The primary beneficiaries are likely military branches and defense agencies requiring advanced C4ISR capabilities. Services delivered include technical engineering, research, and sustainment support for complex command, control, communications, computers, intelligence, surveillance, and reconnaissance systems. The geographic impact is likely nationwide, supporting various military installations and operational theaters. Workforce implications include the employment of highly skilled engineers, technicians, and subject matter experts in defense IT and C4ISR.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost escalation if not rigorously monitored.
The long duration of the contract (over 5 years) necessitates continuous performance evaluation.
Reliance on a single large contractor for critical sustainment may pose a risk if performance degrades.
The complexity of C4ISR systems requires specialized and potentially scarce technical expertise.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Booz Allen Hamilton is a well-established contractor with significant experience in defense IT.
The contract addresses critical national security needs related to C4ISR capabilities.
The sustained nature of the support indicates a commitment to maintaining vital defense systems.

Sector Analysis

The Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) sector is a critical component of the defense industry, encompassing a vast market for technology and services. This contract fits within the broader IT services and defense contracting landscape, where specialized engineering, research, and sustainment are paramount. Spending in this area is consistently high due to the evolving nature of threats and the need for technological superiority. Comparable spending benchmarks would typically be found within large defense IT service contracts awarded by agencies like the Department of Defense.

Small Business Impact

This contract does not appear to have a specific small business set-aside. As a large prime contract awarded to a major defense contractor, the primary impact on small businesses would likely be through subcontracting opportunities. It is important to assess whether Booz Allen Hamilton is meeting its subcontracting goals to ensure small businesses have a fair opportunity to participate in this significant federal spend.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA) and potentially the contracting agency utilizing the services. Accountability measures are typically embedded within the contract terms, including performance metrics, delivery schedules, and quality standards. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

Defense Information Technology Contracting
C4ISR Systems Development
Technical Engineering Services
IT Sustainment Support
Federal IT Services
Command and Control Systems

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Long-term reliance on a single large contractor.
Complexity of C4ISR systems requires specialized expertise.
Need for continuous performance monitoring over contract duration.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $74.3 million to BOOZ ALLEN HAMILTON INC. C4ISR TECHNICAL ENGINEERING RESEARCH AND SUSTAINMENT SUPPORT IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $74.3 million.

What is the period of performance?

Start: 2017-07-01. End: 2022-12-31.

What is the historical spending pattern for C4ISR technical engineering and sustainment support by the General Services Administration?

Historical spending data for C4ISR technical engineering and sustainment support by the General Services Administration (GSA) is not readily available as a distinct category in public databases. GSA primarily acts as a procurement and management agency, often facilitating contracts for other federal agencies. The provided data point of $74.3 million awarded to Booz Allen Hamilton represents a specific contract award. To understand broader historical spending, one would need to analyze contract awards across various agencies that procure C4ISR services, potentially aggregating data from the Department of Defense and other intelligence agencies. Analyzing trends would involve looking at the total value of similar contracts over time, the number of awards, and the dominant contractors in the space. Without more granular data specific to GSA's direct C4ISR sustainment spending, a comprehensive historical pattern is difficult to establish from this single data point.

How does the pricing structure (Time and Materials) compare to other C4ISR sustainment contracts?

Time and Materials (T&M) pricing is a common contract type for services where the extent or duration of the work cannot be predetermined, such as research, development, or sustainment of complex systems like C4ISR. Compared to Fixed-Price contracts, T&M offers flexibility but carries a higher risk of cost overruns for the government if not managed diligently. Many C4ISR sustainment contracts, especially those involving ongoing maintenance, upgrades, and unforeseen technical challenges, utilize T&M or a hybrid approach (e.g., T&M for labor, fixed-price for materials). Benchmarking requires comparing the effective hourly rates and total costs against similar T&M contracts for comparable C4ISR services, considering factors like labor categories, geographic location, and contractor overhead. Without specific comparative data, it's difficult to definitively state if this contract's T&M pricing is advantageous or disadvantageous, but it necessitates robust oversight to ensure cost efficiency.

What is Booz Allen Hamilton's track record with similar C4ISR contracts?

Booz Allen Hamilton has a substantial and long-standing track record in providing C4ISR technical engineering, research, and sustainment support to various government agencies, particularly the Department of Defense. They are a major incumbent contractor in this space, consistently winning large-scale contracts for complex systems integration, cybersecurity, and technical services related to intelligence, surveillance, and reconnaissance. Their experience spans decades, involving numerous programs across different military branches. This extensive history suggests a deep understanding of the technical requirements, operational environments, and program management needs inherent in C4ISR sustainment. However, as with any large contractor, past performance reviews and specific contract outcomes would provide a more detailed assessment of their success on individual programs.

What are the potential risks associated with relying on a single contractor for C4ISR sustainment?

Relying on a single contractor, such as Booz Allen Hamilton in this case, for critical C4ISR sustainment presents several potential risks. Firstly, there's a risk of vendor lock-in, where the government becomes heavily dependent on the contractor's proprietary knowledge and systems, making it difficult and costly to switch providers. Secondly, reduced competition can lead to complacency and potentially higher prices over time, as the contractor may face less pressure to innovate or optimize costs. Thirdly, if the contractor experiences financial difficulties, management issues, or significant performance degradation, it could severely disrupt essential C4ISR operations, impacting national security. Finally, a single point of failure in contractor personnel or key technical expertise could jeopardize the sustainment of vital systems.

How does the $74.3M contract value compare to overall federal IT spending in the defense sector?

The $74.3 million awarded to Booz Allen Hamilton for C4ISR technical engineering and sustainment support is a significant sum for a single contract. However, when compared to the overall federal IT spending, particularly within the defense sector, it represents a fraction of the total. The Department of Defense alone spends tens of billions of dollars annually on IT services, encompassing everything from enterprise resource planning systems to advanced cyber capabilities and specialized platforms like C4ISR. This specific contract likely falls within the broader category of defense IT services or systems engineering and technical assistance (SETA). While substantial, $74.3 million is not an outlier in the context of large, multi-year defense contracts for complex technological support, highlighting the immense scale of federal IT investments in national security.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID04170009

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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: $89,567,260

Exercised Options: $85,825,104

Current Obligation: $74,348,749

Actual Outlays: $-9,234

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $3,296,153

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q09BGD0019

IDV Type: GWAC

Timeline