Booz Allen Hamilton awarded $122M for Navy program management support, with contract ending January 2026

Contract Overview

Contract Amount: $122,184,241 ($122.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2021-02-01

End Date: 2026-01-31

Contract Duration: 1,825 days

Daily Burn Rate: $67.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THIS EFFORT ACQUIRES CONTRACTOR SUPPORT SERVICES TO ASSIST PMW 120 WITH PROGRAM MANAGEMENT, ACQUISITION MANAGEMENT, CONTRACT MANAGEMENT, BUSINESS MANAGEMENT, AND INSTALLATION MANAGEMENT ACTIVITIES FOR PMW 120 PROGRAMS AND PROJECTS.

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $122.2 million to BOOZ ALLEN HAMILTON INC for work described as: THIS EFFORT ACQUIRES CONTRACTOR SUPPORT SERVICES TO ASSIST PMW 120 WITH PROGRAM MANAGEMENT, ACQUISITION MANAGEMENT, CONTRACT MANAGEMENT, BUSINESS MANAGEMENT, AND INSTALLATION MANAGEMENT ACTIVITIES FOR PMW 120 PROGRAMS AND PROJECTS. Key points: 1. Contract provides essential program, acquisition, and business management support to PMW 120. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can introduce cost uncertainty. 4. Performance is located in California, potentially impacting local workforce and economy. 5. The contract duration is 5 years, indicating a long-term need for these services. 6. This award represents a significant investment in specialized contractor support for naval programs.

Value Assessment

Rating: fair

The total contract value of $122.2 million over five years averages to approximately $24.4 million annually. Benchmarking this against similar program management support contracts is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, can lead to higher costs if not carefully managed, as contractor incentives are tied to completing the work rather than cost efficiency. The fixed fee component provides some cost control, but the overall value for money will depend heavily on the contractor's performance and the government's oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. This approach generally promotes a competitive environment, which can lead to better pricing and a wider selection of qualified contractors. The number of bidders and the specific evaluation criteria would provide further insight into the strength of the competition and its impact on price discovery.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the best value from a broad range of capable firms.

Public Impact

Naval program management offices (PMW 120) receive critical support to execute their missions. Services include program, acquisition, contract, business, and installation management. The contract's location in California may create or sustain jobs in the region. Effective program management contributes to the successful delivery of naval capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type can lead to cost overruns if not managed tightly.
Long-term contract duration requires sustained government oversight to ensure continued value.
Specific performance metrics and deliverables are not detailed, making performance assessment difficult.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Contractor (Booz Allen Hamilton) is a well-established firm with significant government contracting experience.
Clear definition of support areas (program management, acquisition, etc.) indicates a focused requirement.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on engineering and management consulting for defense applications. The market for such services is substantial, driven by government needs for specialized expertise in complex program execution. Comparable spending often involves large, multi-year contracts for program support, reflecting the intricate nature of defense acquisition and modernization efforts. The annual value aligns with typical large-scale support contracts in this domain.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) was not a specific set-aside for this contract. While the prime contractor is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would need to be assessed through contract compliance reports or specific subcontracting plans, which are not detailed here. The impact on the small business ecosystem is therefore indirect and dependent on the prime contractor's subcontracting strategy.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy's contracting officers and program managers within PMW 120. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards, reporting requirements, and payment schedules tied to milestones. Transparency is facilitated through contract award databases, though detailed performance data and cost breakdowns may be limited to government personnel. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Programs
Program Executive Office (PEO) Support Services
Defense Acquisition Support Contracts
Management and Consulting Services for Government

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration necessitates sustained government monitoring for performance and value.
Potential for scope creep in complex program management environments.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $122.2 million to BOOZ ALLEN HAMILTON INC. THIS EFFORT ACQUIRES CONTRACTOR SUPPORT SERVICES TO ASSIST PMW 120 WITH PROGRAM MANAGEMENT, ACQUISITION MANAGEMENT, CONTRACT MANAGEMENT, BUSINESS MANAGEMENT, AND INSTALLATION MANAGEMENT ACTIVITIES FOR PMW 120 PROGRAMS AND PROJECTS.

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 $122.2 million.

What is the period of performance?

Start: 2021-02-01. End: 2026-01-31.

What is Booz Allen Hamilton's track record with similar Department of Defense contracts?

Booz Allen Hamilton is a major government contractor with extensive experience supporting the Department of Defense across various agencies and programs. They frequently secure contracts for program management, systems engineering, IT services, and strategic consulting. Their historical performance data, often available through federal procurement databases like FPDS or SAM.gov, would show a pattern of large-value awards and a wide range of services provided. While generally considered a capable contractor, like any large firm, specific contract performance can vary, and a detailed review of past performance evaluations for similar contracts would be necessary for a comprehensive assessment. Their long-standing presence suggests a generally positive relationship with the government, but specific contract successes and challenges should be investigated.

How does the $122.2 million total value compare to other program management support contracts for naval systems?

The $122.2 million total contract value, spread over five years, represents an average annual value of approximately $24.4 million. This figure is substantial but falls within the typical range for large, comprehensive program management support contracts awarded by the Department of the Navy for major systems commands like NAVSEA (which PMW 120 falls under). Contracts for supporting entire program executive offices or major acquisition programs can easily reach hundreds of millions or even billions of dollars over their lifecycle. Therefore, while significant, this contract's value is commensurate with the complexity and duration of supporting a specific program management office (PMW 120) and its associated projects within the naval enterprise.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the government may end up paying more than necessary if the contractor's costs are not well-controlled or if the scope of work expands significantly without adequate adjustments. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' portion means the government bears the risk of actual incurred costs. This can incentivize contractors to incur higher costs, as their fee is a percentage of those costs (though in CPFF, the fee is fixed, the total cost is reimbursed). Effective government oversight, detailed cost monitoring, and robust negotiation are crucial to mitigate the risk of cost overruns and ensure value for money under a CPFF arrangement.

What is the expected impact of this contract on the Navy's program management capabilities?

This contract is expected to significantly enhance the Navy's program management capabilities by providing specialized contractor support to PMW 120. This support covers critical functions such as program planning, execution oversight, acquisition strategy development, contract administration, and financial management. By augmenting the organic government workforce with external expertise, the Navy can potentially accelerate program timelines, improve decision-making, ensure compliance with complex regulations, and manage resources more effectively. The contractor's role is to supplement, not replace, government program managers, allowing the government team to focus on strategic direction and critical oversight.

How has spending on program management support services by the Department of the Navy evolved over the past five years?

Spending on program management support services by the Department of the Navy has generally remained robust over the past five years, reflecting the continuous need for specialized expertise to manage complex naval acquisition programs and sustain existing fleets. While specific figures fluctuate based on budgetary priorities, major defense initiatives, and the lifecycle stage of various platforms, the overall trend indicates a sustained reliance on contractor support for program management, systems engineering, and acquisition logistics. Factors such as shipbuilding schedules, modernization efforts, and cybersecurity requirements contribute to the demand for these services. Detailed analysis would require examining historical spending data across relevant NAICS codes (like 541330) and contract vehicles.

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: N0003920R3006

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $140,683,284

Exercised Options: $126,993,142

Current Obligation: $122,184,241

Actual Outlays: $95,378

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $20,039,054

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7264

IDV Type: IDC

Timeline