DoD's $61.7M contract for engineering services awarded to ARINC Engineering Services, LLC
Contract Overview
Contract Amount: $61,675,943 ($61.7M)
Contractor: Booz Allen Hamilton Engineering Services, LLC
Awarding Agency: Department of Defense
Start Date: 2004-03-02
End Date: 2006-03-03
Contract Duration: 731 days
Daily Burn Rate: $84.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 14
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: 200406!003480!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB006 !A!N! !Y!0044 ! !20040302!20070130!075916762!075916762!101458586!N!ARINC ENGINEERING SERVICES, LL!2551 RIVA ROAD !ANNAPOLIS !MD!21401!01600!003!24!ANNAPOLIS !ANNE ARUNDEL !MARYLAND !+000017147049!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !5!B!M! !A! !99990909!B! ! !A! !A!N!Y!2!014!B! !C!N!Z! ! !N!C!N! ! ! !C!Z!A!A!000!A!C!N! ! ! ! ! ! !0001! !
Place of Performance
Location: ANNAPOLIS, ANNE ARUNDEL County, MARYLAND, 21401
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $61.7 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC for work described as: 200406!003480!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB006 !A!N! !Y!0044 ! !20040302!20070130!075916762!075916762!101458586!N!ARINC ENGINEERING SERVICES, LL!2551 RIVA ROAD !ANNAPOLIS !MD!21401!01600!003!24!ANNAPOLIS !ANNE… Key points: 1. Contract awarded for engineering services, indicating a need for specialized technical expertise. 2. The contract duration of 731 days suggests a significant, ongoing project. 3. Awarded by the Department of the Army, highlighting a focus on defense-related technical support. 4. The contract type is 'Time and Materials', which can sometimes lead to cost overruns if not managed carefully. 5. The presence of 14 bidders suggests a competitive market for these specialized services. 6. The contract was awarded to ARINC Engineering Services, LLC, a known entity in the engineering sector.
Value Assessment
Rating: fair
The total award amount for this contract was $61,675,943.09. Benchmarking this against similar contracts is challenging without more specific service details. However, the 'Time and Materials' pricing structure, while common for evolving requirements, carries inherent risks of cost escalation compared to fixed-price contracts. The number of bidders (14) suggests a healthy level of competition, which should theoretically drive better pricing, but the final price relative to the value delivered requires deeper analysis of the specific engineering tasks performed.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, with 14 bids received. This indicates a robust bidding process where multiple qualified vendors had the opportunity to compete. A high number of bidders generally suggests a competitive environment, which can lead to more favorable pricing for the government and a wider selection of capable contractors. The government likely benefited from a range of technical solutions and price points.
Taxpayer Impact: The full and open competition with numerous bidders is positive for taxpayers, as it increases the likelihood of securing services at a competitive market rate and reduces the risk of contractor overpricing.
Public Impact
The primary beneficiaries are the Department of the Army, receiving essential engineering services. Services delivered likely include systems engineering, technical support, and potentially design or analysis related to electronics and communication equipment. The geographic impact is centered around the contracting agency, likely within the United States, supporting military operations. Workforce implications include employment for engineers and technical specialists within ARINC Engineering Services, LLC and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'Time and Materials' contract type can lead to cost overruns if not closely monitored.
- Lack of specific performance metrics in the provided data makes it difficult to assess true value for money.
- The broad nature of 'Systems Engineering Services' could mask inefficiencies if not precisely defined and managed.
Positive Signals
- Awarded under full and open competition, indicating a competitive bidding process.
- A significant number of bidders (14) suggests a healthy market for these services.
- The contractor, ARINC Engineering Services, LLC, is likely experienced in providing such technical support.
Sector Analysis
This contract falls within the Engineering Services sector, specifically related to electronics and communication equipment. The North American Industry Classification System (NAICS) code 541330 (Engineering Services) represents a large and diverse market. Federal spending in this area often supports defense, infrastructure, and technology development. Comparable spending benchmarks would depend heavily on the specific nature of the engineering tasks, but the scale of this award suggests a significant project.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (ss=false, sb=false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor may still engage small businesses as subcontractors, depending on their own procurement practices and the specific needs of the engineering services required.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Army's contracting officers and program managers. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated by the contract award data, but detailed oversight reports or Inspector General findings are not provided in this dataset.
Related Government Programs
- Defense Engineering Services
- Systems Engineering
- Electronics and Communication Equipment Procurement
- Department of the Army Contracts
- Time and Materials Contracts
Risk Flags
- Time and Materials contract type carries inherent cost escalation risk.
- Lack of specific performance metrics makes value assessment difficult.
- Broad service description ('Systems Engineering') requires diligent oversight.
Tags
department-of-defense, department-of-the-army, engineering-services, time-and-materials, full-and-open-competition, arinc-engineering-services-llc, electronics-and-communication-equipment, systems-engineering, maryland, defense-contracting, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $61.7 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC. 200406!003480!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB006 !A!N! !Y!0044 ! !20040302!20070130!075916762!075916762!101458586!N!ARINC ENGINEERING SERVICES, LL!2551 RIVA ROAD !ANNAPOLIS !MD!21401!01600!003!24!ANNAPOLIS !ANNE ARUNDEL !MARYLAND !+000017147049!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !5!B!M! !A! !999
Who is the contractor on this award?
The obligated recipient is BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $61.7 million.
What is the period of performance?
Start: 2004-03-02. End: 2006-03-03.
What specific systems or equipment was ARINC Engineering Services, LLC contracted to provide engineering services for?
The provided data indicates the contract is for 'SYSTEMS ENGINEERING SERVICES' under the Product Service Code (PSC) R414 and relates to 'ELECTRONICS AND COMMUNICATION EQUIP'. However, the specific systems or equipment are not detailed. This could range from communication networks, radar systems, avionics, or other electronic hardware used by the Department of the Army. A deeper dive into the contract's Statement of Work (SOW) would be necessary to identify the precise systems involved.
How does the awarded amount of $61.7 million compare to typical federal spending on similar engineering services?
Without more granular data on the specific type and duration of engineering services, a direct comparison is difficult. However, $61.7 million for a contract lasting just under two years (731 days) suggests a substantial project. Federal spending on engineering services is vast, covering everything from R&D to infrastructure design. This award appears to be a significant, but not exceptionally outlier, amount for specialized defense-related engineering support, especially considering the 'Time and Materials' nature which can inflate costs compared to fixed-price contracts for well-defined scopes.
What are the potential risks associated with a 'Time and Materials' contract for engineering services?
The primary risk with 'Time and Materials' (T&M) contracts is cost control. Unlike fixed-price contracts, the government pays for the actual labor hours and material costs incurred by the contractor, plus a negotiated fee or profit. If the scope of work is not well-defined, or if the contractor's efficiency is low, costs can escalate significantly beyond initial estimates. This necessitates robust government oversight to monitor hours, justify expenses, and ensure efficient performance to mitigate potential overspending and ensure value for taxpayer money.
What was the historical spending pattern for this type of service by the Department of the Army prior to this contract?
The provided data snippet focuses on a single contract award from 2004-2007. To understand historical spending patterns, one would need to analyze a broader dataset of Department of the Army contracts for 'Engineering Services' (NAICS 541330) or related PSCs (like R414) over multiple fiscal years. This would involve querying federal procurement databases (e.g., FPDS-NG, USASpending.gov) for similar contracts awarded before and after this period to identify trends in volume, value, and awarded contractors.
What is ARINC Engineering Services, LLC's track record with federal contracts, particularly with the Department of Defense?
ARINC Engineering Services, LLC (and its parent/related entities like ARINC Incorporated) has a significant history of federal contracting, particularly with the Department of Defense. While this specific data point shows a $61.7 million award, a comprehensive analysis would involve examining their entire contract portfolio. This includes looking at the number of awards, total value, types of services rendered, past performance ratings, and any instances of contract disputes or performance issues across various agencies to assess their overall reliability and capability.
How effective was the competition in driving down costs for this specific engineering services contract?
The contract was awarded under 'full and open competition' with 14 bidders, which is a strong indicator of a competitive environment. In theory, this level of competition should drive down prices. However, the 'Time and Materials' pricing structure makes it harder to definitively assess cost savings compared to a fixed-price bid. While competition likely prevented excessively high rates, the ultimate 'value for money' depends on the efficiency of the work performed and the necessity of the hours billed, which requires detailed performance monitoring beyond the award data.
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
Offers Received: 14
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Carlyle Partners IV, L.P. (UEI: 806367616)
Address: 2551 RIVA ROAD, ANNAPOLIS, MD, 03
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAB0703DB006
IDV Type: IDC
Timeline
Start Date: 2004-03-02
Current End Date: 2006-03-03
Potential End Date: 2011-01-30 00:00:00
Last Modified: 2015-03-06
More Contracts from Booz Allen Hamilton Engineering Services, LLC
- Avionics IT Based Software Support — $246.8M (General Services Administration)
- - Option Years 3 and 4 for Avionics Gst0810bp0059 001 — $188.9M (General Services Administration)
- 200112!000181!5700!GZ04 !smc/Pkr Contract Mgmt Office !gs35f4825g !c!n!*!n!f0470101f7014 !20010416!20020331!101458586!101458586!101458586!n!arinc, Incorporated !2551 Riva Road !annapolis !md!21401!01600!003!24!annapolis !anne Arundel !maryland !+000018932050!n!n!000000000000!7030!adp Software !A2 !missile and Space Systems !3000!NOT Discernable or Classified !541710!*!*!6! ! ! !*!*!*!B!*!*! ! !A ! ! ! !000! ! ! ! ! ! ! ! !C!N! ! ! ! ! ! ! !* ! ! ! ! ! ! ! ! ! !0001! — $186.5M (Department of Defense)
- 200411!007888!2100!w15p7t!usa Communications-Electronics !daab0703db006 !A!N! !Y!0079 ! !20040804!20070130!075916762!075916762!101458586!n!arinc Engineering Services, LL!2551 Riva Road !annapolis !md!21401!01600!003!24!annapolis !anne Arundel !maryland !+000005940000!n!n!000000000000!r414!systems Engineering Services !A7 !electronics and Communication Equip !000 !* !541330!E! !5!B!M! !A! !99990909!B! ! !A! !a!n!y!2!014!b! !C!N!Z! ! !N!C!N! ! ! !c!z!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $102.1M (Department of Defense)
- 200411!007677!2100!w15p7t!usa Communications-Electronics !daab0703db006 !A!N! !Y!0076 ! !20040802!20050130!075916762!075916762!101458586!n!arinc Engineering Services, LL!2551 Riva Road !annapolis !md!21401!01600!003!24!annapolis !anne Arundel !maryland !+000006336000!n!n!000000000000!r414!systems Engineering Services !A7 !electronics and Communication Equip !000 !* !541330!E! !5!B!M! !A! !99990909!B! ! !A! !a!n!y!2!014!b! !C!N!Z! ! !N!C!N! ! ! !c!z!a!a!000!a!c!n! ! ! ! ! ! !0001! ! — $76.4M (Department of Defense)
View all Booz Allen Hamilton Engineering Services, LLC federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)