Air Force cancels $3.7B business transformation recompete
Gettyimages.com / Ana Rocio Garcia Franco
By
Ross Wilkers
This decision to not proceed with awards comes five months after proposals were due.
No one will get an award on the recompete of a large Air Force contract vehicle focused on business and other major strategic transformation initiatives across the service branch.
A short and sweet update posted Friday on the potential five-year, $3.7 Department of the Air Force Strategic Transformation Support II vehicle says enough:
“Effective 19 May 2025, this requirement has been canceled.”
The Air Force released a final solicitation for DAFSTS II in October. Bids were due by Dec. 19, 2024, and the intended start date for the new contract was to be on or about June 17.
All of that is moot now after the Air Force’s decision to pull the plug on DAFSTS II, a move that appears to follow a government-wide theme of increased spotlight and scrutiny on consulting contracts.
The Defense Department’s ongoing reviews of those contracts comes further into focus when looking at the list of incumbents on the current AFSTS contract awarded in 2020.
Data from GovTribe highlights Deloitte, KPMG, Booz Allen Hamilton, Digital Mobilizations and Accenture’s U.S. federal subsidiary as the top five task order recipients on AFSTS. The Air Force has obligated $1.4 billion in total task order volume against that vehicle ahead of its scheduled expiration date of June 16.
In April, at least three of those firms lost contracts after the Pentagon cancelled several as part of Department of Government Efficiency reviews at DOD.