Booz Allen Hamilton awarded $140.6M IT services contract by Navy, with 8 bidders competing

Contract Overview

Contract Amount: $140,602,224 ($140.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2018-08-30

End Date: 2026-05-11

Contract Duration: 2,811 days

Daily Burn Rate: $50.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: INFORMATION TECHNOLOGY SERVICES FOR NAVSEA 00I

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20376

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $140.6 million to BOOZ ALLEN HAMILTON INC for work described as: INFORMATION TECHNOLOGY SERVICES FOR NAVSEA 00I Key points: 1. Contract value of $140.6 million over its period of performance. 2. Competition involved 8 bidders, indicating a moderately competitive landscape. 3. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed closely. 4. Performance period extends to May 2026, suggesting a long-term need for these services. 5. The contract is for Information Technology Services for NAVSEA 00I. 6. Geographic location is Washington D.C.

Value Assessment

Rating: fair

The contract's total value of $140.6 million over nearly 8 years suggests a significant investment in IT services. Benchmarking this against similar large-scale IT support contracts for naval operations is crucial. The Cost Plus Fixed Fee (CPFF) pricing structure, while allowing for flexibility, carries inherent risks of cost escalation if not rigorously monitored. Without specific performance metrics or cost breakdowns, a definitive value-for-money assessment is challenging, but the competitive nature of the award offers some assurance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 8 distinct bidders vying for the opportunity. The presence of multiple bidders suggests a healthy level of interest and capability within the market for these specialized IT services. This level of competition is generally favorable for price discovery and can incentivize contractors to offer competitive terms.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation from multiple providers.

Public Impact

The primary beneficiary is the Department of the Navy (NAVSEA 00I), receiving essential IT services. Services delivered likely include IT support, system maintenance, cybersecurity, and potentially software development or integration. The geographic impact is concentrated in Washington D.C., where the contractor is located. The contract supports a workforce of IT professionals, contributing to employment in the technology sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contract type can lead to cost overruns if not managed effectively.
Long performance period (2018-2026) requires sustained oversight to ensure continued value.
Lack of specific performance data makes it difficult to assess efficiency beyond the competitive award.

Positive Signals

Awarded under full and open competition with 8 bidders.
Contractor (Booz Allen Hamilton) is a well-established entity in government contracting.
Clear definition of services for NAVSEA 00I indicates a focused requirement.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, a critical area for defense agencies. The market for government IT services is substantial, with significant spending allocated annually to support complex defense systems and operations. NAVSEA, as a major naval command, relies heavily on robust IT infrastructure and support, making this contract a key component of their operational capability. Comparable spending benchmarks would involve analyzing other large IT support contracts awarded to prime contractors by DoD components.

Small Business Impact

This contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears limited, though the prime contractor may engage small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are embedded within the CPFF contract structure, requiring detailed cost reporting and justification. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) IT Support Contracts
Department of Defense Information Technology Services
Cost Plus Fixed Fee IT Contracts
Engineering Services for Defense

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Long contract duration requires sustained oversight.
Limited public data on specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $140.6 million to BOOZ ALLEN HAMILTON INC. INFORMATION TECHNOLOGY SERVICES FOR NAVSEA 00I

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 $140.6 million.

What is the period of performance?

Start: 2018-08-30. End: 2026-05-11.

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

Booz Allen Hamilton Inc. is a major government contractor with extensive experience providing IT and engineering services across various defense agencies, including the Department of the Navy. They have a long history of securing large-value contracts for complex projects. Analyzing their past performance on similar CPFF contracts, particularly those involving IT modernization, cybersecurity, and system integration for naval commands, would provide insight into their ability to manage costs and deliver effectively. Their extensive portfolio suggests a strong capability, but specific contract performance reviews and past issues, if any, would be necessary for a comprehensive assessment.

How does the $140.6 million contract value compare to other IT service contracts awarded by NAVSEA?

The $140.6 million value for this IT services contract awarded to Booz Allen Hamilton by NAVSEA is substantial, reflecting the critical nature of IT support for naval operations. To benchmark this, one would compare it against the average and median values of IT service contracts awarded by NAVSEA or similar naval commands over the past five years. Factors such as contract duration, scope of services (e.g., cybersecurity, infrastructure, software development), and the specific NAVSEA directorate being supported would influence these comparisons. A value of this magnitude suggests a significant, long-term requirement, potentially placing it in the upper quartile of IT support contracts for the command.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this size and duration?

The primary risks associated with a $140.6 million CPFF contract spanning nearly eight years are cost overruns and potential scope creep. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. If costs escalate beyond initial projections due to unforeseen technical challenges, inefficient management, or changes in requirements, the government bears the increased cost. The fixed fee, however, remains constant, incentivizing the contractor to control costs to maximize their profit margin. Effective oversight, rigorous cost tracking, and clear definition of work are paramount to mitigating these risks and ensuring the government receives value.

How effective is the 'full and open competition' with 8 bidders in ensuring competitive pricing for these IT services?

Full and open competition with 8 bidders is generally considered a strong indicator of a healthy and competitive market for the IT services required by NAVSEA 00I. A larger number of bidders typically increases the likelihood of receiving a wider range of proposals and more competitive pricing, as contractors vie for the award. This scenario allows the government to leverage market forces to achieve better value. However, the ultimate effectiveness also depends on the clarity of the solicitation, the evaluation criteria, and the specific capabilities and pricing strategies of the competing firms. While 8 bidders suggest good competition, a detailed analysis of the winning bid relative to others would be needed for a definitive assessment of price competitiveness.

What are the historical spending patterns for IT services within NAVSEA 00I or similar naval commands?

Historical spending patterns for IT services within NAVSEA 00I or similar naval commands typically show a consistent and significant investment. These patterns are driven by the continuous need to maintain, upgrade, and secure complex IT systems essential for naval operations, research, and administration. Spending often fluctuates based on modernization initiatives, cybersecurity threats, and evolving technological requirements. Analyzing past contract awards, their values, durations, and the types of IT services procured (e.g., infrastructure, software development, cybersecurity, data analytics) would reveal trends. This specific $140.6 million contract appears to align with the substantial, long-term IT support requirements characteristic of such commands.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0017417R3024

Offers Received: 8

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: $177,491,038

Exercised Options: $177,491,038

Current Obligation: $140,602,224

Actual Outlays: $2,607,000

Subaward Activity

Number of Subawards: 37

Total Subaward Amount: $20,595,757

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