Navy awards $83.4M for C4I program management and engineering services to Booz Allen Hamilton

Contract Overview

Contract Amount: $83,365,341 ($83.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2019-06-27

End Date: 2024-06-30

Contract Duration: 1,830 days

Daily Burn Rate: $45.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE PROGRAM EXECUTIVE OFFICER FOR COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS, AND INTELLIGENCE (PEO C4I), PMW 790, SHORE AND EXPEDITIONARY INTEGRATION PROGRAM OFFICE IS ACQUIRING PROGRAM MANAGEMENT, ACQUISITION MANAGEMENT/CONTRACTS MANAGEMENT, SYSTEM ENGINEERING, CYBERSECURITY, AND FRONT OFFICE SUPPORT SERVICES FOR THE ACQUISITION, LIFE-CYCLE MANAGEMENT, PRODUCTION, ENGINEERING, DELIVERY AND INTEGRATION OF MULTIPLE SHORE AND EXPEDITIONARY C4I SYSTEMS.

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92110

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $83.4 million to BOOZ ALLEN HAMILTON INC for work described as: THE PROGRAM EXECUTIVE OFFICER FOR COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS, AND INTELLIGENCE (PEO C4I), PMW 790, SHORE AND EXPEDITIONARY INTEGRATION PROGRAM OFFICE IS ACQUIRING PROGRAM MANAGEMENT, ACQUISITION MANAGEMENT/CONTRACTS MANAGEMENT, SYSTEM ENGINEERING, CYBERSECURITY, … Key points: 1. Contract supports critical Command, Control, Communications, Computers, and Intelligence (C4I) systems for shore and expeditionary operations. 2. Services include program management, acquisition, systems engineering, and cybersecurity. 3. Booz Allen Hamilton, a large, established contractor, is the awardee. 4. The contract duration is 5 years, indicating a long-term need for these services. 5. The contract type is Cost Plus Fixed Fee (CPFF), which can carry higher risk for cost overruns. 6. The award was made under full and open competition, suggesting a competitive process.

Value Assessment

Rating: good

The contract value of $83.4 million over five years averages approximately $16.7 million annually. Benchmarking this against similar large-scale program management and engineering support contracts for complex defense systems is challenging without more granular data on the specific services and deliverables. However, the presence of multiple bidders in a full and open competition suggests that the pricing was likely competitive. The CPFF contract type requires careful oversight to ensure cost efficiency.

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 offers. The solicitation likely attracted a significant number of bidders given the scope and value of the requirement. The competitive process is expected to have driven price discovery and ensured a reasonable cost for the services provided.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value and pricing for essential C4I system support services. Full and open competition generally leads to more favorable pricing compared to sole-source or limited competition awards.

Public Impact

Naval forces benefit from enhanced Command, Control, Communications, Computers, and Intelligence (C4I) systems, improving operational effectiveness. Services delivered will support the acquisition, life-cycle management, production, engineering, delivery, and integration of critical C4I systems. The geographic impact is primarily within the United States, supporting shore-based facilities and expeditionary operations globally. The contract supports a workforce of skilled professionals in program management, engineering, cybersecurity, and acquisition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs to maximize fee, requiring robust oversight.
Long contract duration (5 years) may limit flexibility to adapt to changing technological needs or market conditions.
Reliance on a single large contractor for critical support services could pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, suggesting a robust and competitive bidding process.
Contractor (Booz Allen Hamilton) has extensive experience in government contracting and defense sector support.
Services are critical to maintaining and improving essential C4I capabilities for the Navy.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the defense industry's complex Command, Control, Communications, Computers, and Intelligence (C4I) systems. The market for such specialized support services is substantial, driven by ongoing modernization and sustainment efforts within the Department of Defense. Comparable spending often involves large, multi-year contracts for program management, systems engineering, and cybersecurity support for major defense acquisition programs.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major defense contractor, there may be opportunities for small businesses to participate as subcontractors. However, the primary awardee is a large business, and the direct impact on the small business ecosystem through this specific award is likely limited unless subcontracting plans are robustly implemented and monitored.

Oversight & Accountability

Oversight for this contract is likely managed by the Program Executive Officer for C4I (PEO C4I) and the specific program office (PMW 790). Accountability measures would be embedded within the contract's performance work statement and reporting requirements. Transparency is generally maintained through contract award databases and public reporting, though specific performance metrics may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval C4I Systems Modernization
Defense Program Management Support
Cybersecurity Services for Defense
Acquisition Management Support
Shore and Expeditionary Systems Integration

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage cost risks.
Long-term contract duration may necessitate periodic reviews to ensure continued alignment with evolving needs.
Reliance on a single large contractor for critical support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $83.4 million to BOOZ ALLEN HAMILTON INC. THE PROGRAM EXECUTIVE OFFICER FOR COMMAND, CONTROL, COMMUNICATIONS, COMPUTERS, AND INTELLIGENCE (PEO C4I), PMW 790, SHORE AND EXPEDITIONARY INTEGRATION PROGRAM OFFICE IS ACQUIRING PROGRAM MANAGEMENT, ACQUISITION MANAGEMENT/CONTRACTS MANAGEMENT, SYSTEM ENGINEERING, CYBERSECURITY, AND FRONT OFFICE SUPPORT SERVICES FOR THE ACQUISITION, LIFE-CYCLE MANAGEMENT, PRODUCTION, ENGINEERING, DELIVERY AND INTEGRATION OF MULTIPLE SHORE AND EXPEDITIONARY C4I SYSTEMS.

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 Navy).

What is the total obligated amount?

The obligated amount is $83.4 million.

What is the period of performance?

Start: 2019-06-27. End: 2024-06-30.

What is Booz Allen Hamilton's track record with similar Department of Defense contracts, particularly in C4I systems?

Booz Allen Hamilton is a well-established contractor with a significant history of supporting the Department of Defense across various domains, including C4I systems. They frequently win large, complex contracts involving program management, systems engineering, cybersecurity, and acquisition support. Their track record includes numerous awards for similar services to various branches of the military. While specific performance metrics for past contracts are not publicly detailed in this data, their continued success in securing high-value contracts suggests a generally positive performance history and strong capabilities in meeting defense requirements. However, like any large contractor, they may have faced past performance reviews or challenges on specific programs that are not detailed here.

How does the $83.4 million contract value compare to historical spending on similar C4I program management and engineering services?

The $83.4 million contract value over five years represents an average annual spend of approximately $16.7 million. This figure is substantial but needs to be contextualized within the broader landscape of defense C4I system acquisition and sustainment. Major defense programs often involve multi-billion dollar investments over their lifecycles. Contracts for program management, engineering, and cybersecurity support are critical components of these larger efforts. Annual spending in this specific category can fluctuate significantly based on program maturity, new system development, and modernization initiatives. Without access to detailed historical spending data for PEO C4I or comparable programs, it's difficult to definitively benchmark this award. However, it aligns with the scale expected for supporting significant C4I system portfolios within the Navy.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this acquisition?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract type is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs incurred, plus a fixed fee representing profit. Unlike fixed-price contracts, the government bears the risk of cost increases. If the contractor's costs escalate beyond initial estimates, the government pays the higher costs. While the fixed fee provides some cost certainty for the contractor's profit, it can incentivize less cost-consciousness compared to fixed-price arrangements. For the government, effective oversight, rigorous cost monitoring, and clear definition of allowable costs are crucial to mitigate the risk of excessive spending and ensure value for taxpayer money.

What is the expected program effectiveness or outcome from these services?

The expected outcome of these services is the successful acquisition, life-cycle management, production, engineering, delivery, and integration of multiple shore and expeditionary C4I systems. Effective program management, systems engineering, and cybersecurity support are crucial for ensuring that these C4I systems are reliable, secure, interoperable, and meet the evolving operational needs of the Navy. Improved C4I capabilities directly contribute to enhanced situational awareness, better command and control, and increased operational effectiveness for naval forces in both shore-based and expeditionary environments. The services aim to ensure that these complex systems are delivered on time, within budget (as defined by the CPFF structure), and perform as intended throughout their operational life.

How does the competition level (full and open) impact the value for taxpayers on this contract?

A full and open competition generally provides the best value for taxpayers. By allowing all responsible sources to compete, the government maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids. This competitive pressure typically drives down prices and encourages offerors to propose innovative solutions and demonstrate strong past performance to win the contract. For taxpayers, this means that the services procured are more likely to be acquired at a fair and reasonable price, reflecting market conditions and the capabilities of multiple competing firms. It also enhances transparency and accountability, as the selection process is based on clearly defined criteria and the merits of the proposals submitted.

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: N0003918R3007

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

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: $89,799,440

Exercised Options: $89,799,440

Current Obligation: $83,365,341

Actual Outlays: $13,089,751

Subaward Activity

Number of Subawards: 69

Total Subaward Amount: $36,877,855

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