DoD Awards Booz Allen Hamilton $15.6M for Shore ATC IPTM Support
Contract Overview
Contract Amount: $15,659,965 ($15.7M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2022-08-03
End Date: 2026-08-02
Contract Duration: 1,460 days
Daily Burn Rate: $10.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SHORE AIR TRAFFIC CONTROL (ATC) INTEGRATED PRODUCT TEAM MANAGEMENT (IPTM) TECHNICAL AND LOGISTICS SUPPORT
Place of Performance
Location: NORTH CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29419
Plain-Language Summary
Department of Defense obligated $15.7 million to BOOZ ALLEN HAMILTON INC for work described as: SHORE AIR TRAFFIC CONTROL (ATC) INTEGRATED PRODUCT TEAM MANAGEMENT (IPTM) TECHNICAL AND LOGISTICS SUPPORT Key points: 1. Contract awarded to a single, large business prime. 2. Focus on engineering services for air traffic control systems. 3. Potential for cost overruns due to Cost Plus Fixed Fee structure. 4. Limited visibility into specific performance metrics and value.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type allows for cost reimbursement plus a fixed fee. While this can be beneficial for complex projects, it carries a risk of cost escalation if not managed tightly. Benchmarking against similar engineering support contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific awardee is Booz Allen Hamilton, a large incumbent contractor. The impact on price discovery is positive due to competition, but the final price reflects the negotiated terms for this specific service.
Taxpayer Impact: Taxpayer funds are being used for specialized engineering and logistics support for critical air traffic control infrastructure. The value for money depends on the effective delivery of services and cost control.
Public Impact
Ensures continued operation and modernization of shore-based air traffic control systems. Supports naval aviation readiness and safety. Potential impact on civilian air traffic control if technology is shared or transferable.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure may lead to higher costs.
- Lack of small business participation.
- Limited transparency on specific performance metrics.
Positive Signals
- Awarded under full and open competition.
- Supports critical defense infrastructure.
- Experienced contractor selected.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense-related air traffic control. Spending benchmarks for similar specialized technical support can vary widely based on complexity and duration, but $15.6 million over four years suggests a significant but not extraordinary investment for critical infrastructure.
Small Business Impact
The data indicates no small business participation in this contract. This suggests that the prime contractor, Booz Allen Hamilton, is handling the entirety of the work, potentially missing opportunities to leverage specialized small business expertise and support economic diversity.
Oversight & Accountability
Oversight will be crucial to ensure Booz Allen Hamilton delivers on the technical and logistics support requirements within the Cost Plus Fixed Fee structure. The Department of the Navy's contracting officers and program managers are responsible for monitoring performance, costs, and adherence to contract terms.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost escalation risk due to CPFF contract type.
- Lack of small business involvement.
- Potential for vendor lock-in with incumbent.
- Limited transparency on specific deliverables and success metrics.
Tags
engineering-services, department-of-defense, sc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.7 million to BOOZ ALLEN HAMILTON INC. SHORE AIR TRAFFIC CONTROL (ATC) INTEGRATED PRODUCT TEAM MANAGEMENT (IPTM) TECHNICAL AND LOGISTICS SUPPORT
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 $15.7 million.
What is the period of performance?
Start: 2022-08-03. End: 2026-08-02.
What specific technical and logistical challenges does the Shore ATC IPTM face that necessitate this level of funding?
The Shore ATC IPTM likely manages complex, legacy air traffic control systems that require continuous technical updates, maintenance, and integration with newer technologies. Challenges could include aging infrastructure, cybersecurity threats, evolving air traffic management regulations, and the need for specialized expertise to ensure operational readiness and safety for naval aviation operations.
How will the Cost Plus Fixed Fee structure be managed to mitigate potential cost overruns and ensure value for taxpayer money?
Effective management of a Cost Plus Fixed Fee contract requires robust oversight from the Department of the Navy. This includes detailed cost tracking, regular audits, performance reviews, and clear communication channels with Booz Allen Hamilton. Establishing realistic baseline costs and closely monitoring expenditures against the fixed fee will be critical to prevent unnecessary escalation and ensure the government receives the best value.
What are the key performance indicators (KPIs) for this contract, and how will they be measured to assess effectiveness?
Key performance indicators would likely focus on system uptime, response times for technical support, successful implementation of upgrades, adherence to safety protocols, and overall mission support effectiveness. These KPIs should be clearly defined in the contract and regularly monitored through performance reports, site visits, and potentially user feedback to ensure the services provided are meeting the critical needs of the air traffic control operations.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6523618R0168
Offers Received: 3
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: $17,971,869
Exercised Options: $17,583,118
Current Obligation: $15,659,965
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $1,623,579
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6523621D4800
IDV Type: IDC
Timeline
Start Date: 2022-08-03
Current End Date: 2026-08-02
Potential End Date: 2027-08-02 00:00:00
Last Modified: 2025-12-23
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