DoD's $73.9M contract for engineering services awarded to Booz Allen Hamilton Engineering Services, LLC
Contract Overview
Contract Amount: $73,885,511 ($73.9M)
Contractor: Booz Allen Hamilton Engineering Services, LLC
Awarding Agency: Department of Defense
Start Date: 2004-05-03
End Date: 2010-01-30
Contract Duration: 2,098 days
Daily Burn Rate: $35.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 14
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: 200408!004852!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB006 !A!N! !Y!0056 ! !20040503!20070130!075916762!075916762!101458586!N!ARINC ENGINEERING SERVICES, LL!2551 RIVA ROAD !ANNAPOLIS !MD!21401!01600!003!24!ANNAPOLIS !ANNE ARUNDEL !MARYLAND !+000014851485!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: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090, UNITED STATES OF AMERICA
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $73.9 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC for work described as: 200408!004852!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB006 !A!N! !Y!0056 ! !20040503!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 through full and open competition, suggesting a competitive bidding process. 2. The contract's duration of approximately 6 years indicates a long-term need for these services. 3. The use of Time and Materials pricing may lead to cost overruns if not carefully managed. 4. The specific Public Service Code (PSC) R414 points to specialized systems engineering support. 5. The contract was awarded to a single entity, Booz Allen Hamilton Engineering Services, LLC. 6. The contract value of $73.9M places it in the mid-to-large range for federal IT/engineering contracts.
Value Assessment
Rating: fair
The contract value of $73.9M over nearly 6 years averages to approximately $12.3M annually. Benchmarking this against similar large-scale engineering services contracts within the Department of Defense is challenging without more specific service details. However, the Time and Materials (T&M) pricing structure, while flexible, carries inherent risks of cost escalation compared to fixed-price contracts. The number of bids received (14) suggests some level of competition, but the final price relative to an independent government estimate is not provided, making a definitive value-for-money assessment difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. Fourteen bids were received, suggesting a reasonably competitive environment for this type of engineering service. The level of competition is a positive sign for price discovery, as multiple companies vied for the contract. However, without knowing the specific technical requirements and the number of technically acceptable proposals, it's difficult to ascertain if the competition was robust enough to drive the absolute lowest price.
Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it allows for a wider pool of potential contractors, increasing the likelihood of receiving competitive pricing and innovative solutions, ultimately aiming for better value.
Public Impact
The primary beneficiary is the Department of the Army, which receives critical engineering services. Services delivered likely include systems engineering, technical support, and potentially program management for electronic and communication equipment. The geographic impact is centered around the contractor's location in Annapolis, MD, and the Army units being supported. Workforce implications include employment opportunities for engineers and technical specialists at Booz Allen Hamilton.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored and managed.
- Limited information on specific performance metrics makes it difficult to assess the contractor's effectiveness.
- The contract's duration suggests a long-term commitment, which could be a risk if requirements change significantly.
Positive Signals
- Awarded under full and open competition, indicating a competitive bidding process.
- Received 14 bids, suggesting significant interest and a competitive market for these services.
- The contractor, Booz Allen Hamilton, is a well-established firm with a significant presence in government contracting.
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, covers establishments primarily engaged in providing engineering services. The federal government is a major consumer of these services, particularly within the Department of Defense, for complex system design, integration, and support. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by DoD agencies for similar technological domains.
Small Business Impact
There is no explicit indication of a small business set-aside for this contract, and the prime contractor, Booz Allen Hamilton Engineering Services, LLC, is a large business. Therefore, direct subcontracting opportunities for small businesses would depend on Booz Allen Hamilton's own subcontracting plan. Without specific details on their subcontracting goals, the direct impact on the small business ecosystem is unclear, though large prime contractors often utilize small businesses for specialized support.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Army. Performance monitoring, invoicing review, and compliance checks are standard oversight mechanisms. Transparency is generally facilitated through contract databases like FPDS, which provide basic award details. Inspector General jurisdiction would apply if allegations of fraud, waste, or abuse arise during the contract's performance.
Related Government Programs
- Department of Defense Information Technology Services
- Army Command, Control, Communications, Computers, and Intelligence (C4I) Systems
- Engineering and Technical Services Contracts
- Electronics and Communication Equipment Procurement
- Systems Engineering and Integration Services
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of detailed performance metrics in summary data.
- Scope definition for T&M contracts can be challenging to manage.
Tags
defense, department-of-defense, department-of-the-army, engineering-services, communications-electronics, time-and-materials, full-and-open-competition, maryland, booz-allen-hamilton, r414, 541330, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $73.9 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC. 200408!004852!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB006 !A!N! !Y!0056 ! !20040503!20070130!075916762!075916762!101458586!N!ARINC ENGINEERING SERVICES, LL!2551 RIVA ROAD !ANNAPOLIS !MD!21401!01600!003!24!ANNAPOLIS !ANNE ARUNDEL !MARYLAND !+000014851485!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 $73.9 million.
What is the period of performance?
Start: 2004-05-03. End: 2010-01-30.
What is the specific nature of the 'Systems Engineering Services' provided under this contract?
The data indicates the Public Service Code (PSC) is R414, which corresponds to 'Engineering and Technical Services'. The NAICS code is 541330, 'Engineering Services'. While the contract title mentions 'USA COMMUNICATIONS-ELECTRONICS', the specific deliverables for 'Systems Engineering Services' are not detailed in the provided data. Typically, such services for the DoD involve the design, integration, testing, and lifecycle support of complex electronic and communication systems. This could encompass areas like network architecture, signal processing, hardware/software integration, and ensuring interoperability of communication platforms. Without access to the contract's Statement of Work (SOW), the precise scope remains generalized.
How does the Time and Materials (T&M) pricing structure compare to other contract types for similar services?
Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change, allowing flexibility. However, they carry a higher risk of cost escalation for the government compared to fixed-price contracts, as the final cost is directly tied to the hours worked and materials used. For well-defined engineering services, fixed-price or cost-plus-fixed-fee contracts are generally preferred by the government to ensure better cost control and predictability. The use of T&M here suggests either a highly evolving requirement or a lack of detailed scope definition at the time of award. Effective oversight and strong management controls are crucial to mitigate the risks associated with T&M.
What is Booz Allen Hamilton Engineering Services, LLC's track record with similar DoD contracts?
Booz Allen Hamilton is a major government contractor with extensive experience serving the Department of Defense across various domains, including engineering, IT, and strategic consulting. While this specific award is for $73.9 million, the company has a history of managing significantly larger and more complex contracts with the DoD. Their track record generally includes providing a wide range of technical and management support services. However, like any large contractor, they have faced scrutiny and challenges on specific contracts. A detailed analysis would require examining their performance ratings on past DoD contracts, any past performance issues, and their overall success in delivering complex engineering solutions within budget and schedule.
What is the historical spending trend for 'Engineering Services' within the Department of the Army?
The provided data snippet focuses on a single contract award. To analyze historical spending trends for 'Engineering Services' within the Department of the Army, one would need access to broader contract databases (like FPDS or USASpending.gov) covering multiple fiscal years. This analysis would involve filtering contracts by agency (Department of the Army), NAICS code (e.g., 541330 for Engineering Services), and potentially by PSC codes related to engineering. Trends would be assessed by looking at the total dollar value of obligated funds year-over-year, the number of contracts awarded, and the types of services procured. Generally, spending on engineering services within the Army fluctuates based on modernization priorities, operational tempo, and budget allocations.
How does the number of bids (14) impact the perceived value for taxpayers?
Receiving 14 bids for a contract of this nature is generally a positive indicator for taxpayers. A higher number of bids suggests that the requirement was well-publicized and that multiple companies found the opportunity attractive and were capable of meeting the solicitation's requirements. This increased competition typically drives down prices as contractors vie to win the award. It also provides the government with a broader range of technical solutions and potentially more innovative approaches. While 14 bids don't guarantee the lowest possible price (as factors like the complexity of the requirement and the specific evaluation criteria play a role), it significantly increases the probability that the awarded price reflects fair market value compared to a situation with only one or two bidders.
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: Booz Allen Hamilton Holding Corporation (UEI: 964725688)
Address: 2551 RIVA ROAD, ANNAPOLIS, MD, 21401
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: 2004-05-03
Current End Date: 2010-01-30
Potential End Date: 2010-01-30 00:00:00
Last Modified: 2015-03-10
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