DoD's $101.5M Engineering Services Contract Awarded to Booz Allen Hamilton for Electronics and Communication Equipment
Contract Overview
Contract Amount: $102,050,045 ($102.1M)
Contractor: Booz Allen Hamilton Engineering Services, LLC
Awarding Agency: Department of Defense
Start Date: 2004-08-04
End Date: 2009-03-15
Contract Duration: 1,684 days
Daily Burn Rate: $60.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 14
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: 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! !
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 $102.1 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC for work described as: 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… Key points: 1. Contract awarded for systems engineering services related to electronics and communication equipment. 2. Significant contract value suggests a critical role in defense systems. 3. Competition level indicates a potentially competitive bidding process. 4. Contract duration of over 4 years points to long-term support needs. 5. Awarded to a large, established contractor with significant federal experience. 6. Geographic focus on Maryland suggests a concentration of defense operations.
Value Assessment
Rating: good
The contract value of $101.5 million over approximately 4.5 years for engineering services appears reasonable given the scope and duration. Benchmarking against similar large-scale defense engineering contracts would provide a more precise value-for-money assessment. The specific services rendered under 'Systems Engineering Services' and 'Electronics and Communication Equipment' are broad, making direct per-unit cost comparisons difficult without further detail on deliverables.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple bidders were likely considered. The presence of 14 bids indicates a robust competitive environment, which generally benefits the government by driving down prices and encouraging innovation. The specific details of the bidding process and the number of proposals received would further clarify the extent of competition.
Taxpayer Impact: A full and open competition with 14 bidders suggests that taxpayer dollars were likely used efficiently, as the government had multiple options to choose from, fostering a price-competitive environment.
Public Impact
Benefits the Department of Defense, specifically the Department of the Army, by providing essential engineering services. Supports the development, maintenance, or enhancement of critical electronics and communication equipment for military operations. Primarily impacts the defense sector workforce, potentially involving highly skilled engineers and technical specialists. Geographic impact is concentrated in Maryland, a hub for defense contracting and federal agencies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope creep occurs in complex engineering projects.
- Reliance on a single large contractor could limit future flexibility or innovation if not managed carefully.
- The broad nature of 'Systems Engineering Services' may obscure specific performance metrics and accountability.
Positive Signals
- Awarded through full and open competition, indicating a competitive process that likely secured fair pricing.
- Contract duration suggests a stable, long-term need being met, implying strategic importance.
- The contractor, Booz Allen Hamilton, is a well-established entity with a proven track record in federal contracting.
Sector Analysis
This contract falls within the Systems Engineering Services sector, a critical component of the broader IT and Defense industries. The market for such services is substantial, driven by the continuous need for advanced technological solutions in government and private sectors. Booz Allen Hamilton is a major player in this space, competing with other large defense contractors. Spending benchmarks for similar engineering services contracts within the Department of Defense can vary widely based on complexity and duration, but this award represents a significant investment.
Small Business Impact
The data indicates this contract was not set aside for small businesses (sb: false). As a large contract awarded to a major prime contractor, there may be opportunities for small businesses to participate as subcontractors. However, the extent of small business subcontracting is not detailed in the provided data and would require further investigation to assess its impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be defined in the contract's terms and conditions, likely including performance metrics, reporting requirements, and payment schedules. Transparency is generally facilitated through contract award databases, but detailed performance data and specific oversight activities may not be publicly available.
Related Government Programs
- Department of Defense IT Services
- Army Systems Engineering Support
- Defense Communications Infrastructure
- Federal Engineering Services Contracts
- Electronics and Communication Equipment Procurement
Risk Flags
- Potential for scope creep in complex engineering projects.
- Contract performance risk if deliverables are not met.
- Risk of technical obsolescence in rapidly evolving electronics.
- Long-term reliance on a single contractor.
Tags
defense, department-of-defense, department-of-the-army, systems-engineering-services, electronics-and-communication-equipment, full-and-open-competition, time-and-materials, maryland, large-contract, booz-allen-hamilton
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $102.1 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC. 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! !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 $102.1 million.
What is the period of performance?
Start: 2004-08-04. End: 2009-03-15.
What is the specific nature of the 'Systems Engineering Services' provided under this contract, and how do they relate to 'Electronics and Communication Equipment'?
The contract specifies 'Systems Engineering Services' (NAICS 541330) and relates to 'Electronics and Communication Equipment'. This typically involves the design, integration, testing, and lifecycle management of complex electronic and communication systems used by the military. Services could include requirements analysis, system architecture development, technical support, performance analysis, and ensuring interoperability of various communication platforms and electronic hardware. The exact deliverables would be detailed in the contract's Statement of Work (SOW), outlining the specific engineering tasks and technical expertise required to support the Army's needs in this domain.
How does the awarded amount of approximately $101.5 million compare to similar engineering services contracts within the Department of Defense?
The $101.5 million award for engineering services over roughly 4.5 years is a substantial sum, indicative of a significant program requirement. To benchmark this value, one would compare it to other large-scale systems engineering or technical support contracts awarded by the DoD, particularly within the Army or related branches, for similar durations and scopes. Factors like the specific technologies involved (e.g., advanced communications, C4ISR systems), the level of security clearance required, and the contractor's overhead rates influence pricing. Without access to a broader dataset of comparable contracts, it's challenging to definitively state if this represents excellent or fair value, but it aligns with the scale of major defense system support contracts.
What is Booz Allen Hamilton's track record with similar Department of Defense contracts, particularly in systems engineering and electronics?
Booz Allen Hamilton is a major government contractor with extensive experience serving the Department of Defense across various domains, including systems engineering, IT, and defense modernization. They have a long history of managing large, complex contracts for the Army and other military branches. Their track record typically involves providing strategic consulting, technical expertise, and program management support for critical defense systems. While specific performance details for individual contracts are often not public, their continued success in winning significant DoD awards suggests a generally positive performance history and strong capabilities in areas relevant to this contract.
Given the 'full and open competition' and 14 bids, what does this imply about the potential for cost savings or innovation?
The fact that this contract was awarded under 'full and open competition' with 14 bids is a strong positive signal for taxpayers. It indicates that the government actively sought proposals from a wide range of qualified vendors, fostering a competitive environment. A higher number of bids generally leads to better price discovery, as contractors are incentivized to offer competitive pricing and innovative solutions to win the contract. This competitive pressure can result in significant cost savings compared to sole-source or limited-competition awards, and it encourages contractors to bring their best ideas and technologies to the table.
What are the potential risks associated with a contract of this size and duration for systems engineering services?
Contracts of this magnitude and duration carry inherent risks. One primary risk is scope creep, where the project's requirements expand beyond the original agreement, leading to cost overruns and schedule delays. Another risk involves contractor performance; if Booz Allen Hamilton fails to meet key performance indicators or deliver the expected quality of service, it could impact critical defense capabilities. Technical obsolescence is also a concern in the fast-evolving electronics and communication sector; the systems being engineered might become outdated before the contract concludes. Furthermore, over-reliance on a single large contractor can sometimes stifle innovation or create vendor lock-in, making future transitions more complex and costly.
How does this contract fit into the broader landscape of federal spending on engineering and technical services?
This $101.5 million contract represents a significant portion of federal spending within the engineering and technical services category, specifically for the Department of Defense. Federal agencies, particularly the DoD, rely heavily on contractors for specialized expertise in areas like systems engineering, research and development, and IT support, which are often beyond the scope of in-house capabilities. Spending in this sector is driven by national security requirements, technological advancements, and the need to maintain and modernize complex defense systems. This contract aligns with a broader trend of outsourcing specialized technical functions to large, experienced firms like Booz Allen Hamilton.
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: 2004-08-04
Current End Date: 2009-03-15
Potential End Date: 2009-03-15 00:00:00
Last Modified: 2015-03-11
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