DoD's F-35 Lifecycle Logistics Contract Awarded to Booz Allen Hamilton for $250M

Contract Overview

Contract Amount: $250,102,576 ($250.1M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2016-10-18

End Date: 2024-11-04

Contract Duration: 2,939 days

Daily Burn Rate: $85.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: F-35 LIFECYCLE LOGISTICS IGF::OT::IGF

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $250.1 million to BOOZ ALLEN HAMILTON INC for work described as: F-35 LIFECYCLE LOGISTICS IGF::OT::IGF Key points: 1. Significant contract value of $250M for lifecycle logistics support. 2. Booz Allen Hamilton, a major defense contractor, holds the award. 3. Potential risks include long-term dependency and cost overruns in complex programs. 4. The IT and Engineering Services sector is highly competitive, but this award is specific.

Value Assessment

Rating: good

The contract's Cost Plus Fixed Fee structure allows for flexibility but requires careful oversight to manage costs effectively. Benchmarking against similar large-scale logistics support contracts is essential to ensure value.

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. This method typically leads to better price discovery and value for the government.

Taxpayer Impact: The competitive award aims to secure the best value for taxpayers in supporting the critical F-35 program.

Public Impact

Ensures continued operational readiness and sustainment for the F-35 fighter jet fleet. Supports advanced technological integration and maintenance for a key defense asset. Impacts the defense industrial base and associated supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 85 / 10

Warning Flags

Long-term contract duration may lead to cost creep.
Complexity of F-35 logistics requires robust oversight.

Positive Signals

Awarded through full and open competition.
Experienced contractor with a strong track record.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting complex defense systems. Spending benchmarks for similar lifecycle logistics contracts for major weapon systems are typically in the hundreds of millions to billions of dollars.

Small Business Impact

While the prime contractor is a large business, opportunities for small businesses may exist further down the supply chain through subcontracting. The data does not indicate direct small business participation in this specific award.

Oversight & Accountability

The Department of the Navy's oversight is crucial for managing the Cost Plus Fixed Fee contract, ensuring performance objectives are met and costs are controlled. Regular audits and performance reviews are standard for such significant awards.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to CPFF structure.
Long-term dependency on a single contractor.
Complexity of F-35 logistics may strain oversight.
Cybersecurity risks associated with sensitive defense data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $250.1 million to BOOZ ALLEN HAMILTON INC. F-35 LIFECYCLE LOGISTICS 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: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $250.1 million.

What is the period of performance?

Start: 2016-10-18. End: 2024-11-04.

How does the total contract value compare to the estimated lifecycle costs of the F-35 program?

This $250 million contract represents a portion of the overall F-35 lifecycle costs, which are estimated to be in the trillions over the program's lifespan. While significant, it's essential to view this award within the broader context of sustainment and operational expenses for a major defense platform.

What are the primary risks associated with a Cost Plus Fixed Fee contract for complex defense logistics?

The primary risks include potential cost overruns if the fixed fee is not adequately calculated against the actual effort required, and the contractor may lack strong incentives to control costs beyond the fee. Robust government oversight and clear performance metrics are vital to mitigate these risks.

How effectively does this contract ensure the long-term readiness and technological relevance of the F-35 fleet?

The contract's effectiveness hinges on the contractor's ability to provide timely and efficient logistics support, including maintenance, supply chain management, and technical expertise. Continuous monitoring of performance metrics and adaptation to evolving threats and technological advancements will be key to ensuring long-term readiness.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6833515R0343

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MC LEAN, 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: $262,369,304

Exercised Options: $259,958,695

Current Obligation: $250,102,576

Actual Outlays: $17,264,931

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $14,984,423

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU108

IDV Type: IDC

Timeline