DoD's $46.4M contract for engineering services awarded to Booz Allen Hamilton, spanning over 4 years
Contract Overview
Contract Amount: $46,373,269 ($46.4M)
Contractor: Booz Allen Hamilton Engineering Services, LLC
Awarding Agency: Department of Defense
Start Date: 2004-09-22
End Date: 2009-05-31
Contract Duration: 1,712 days
Daily Burn Rate: $27.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 14
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: 200412!009152!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB006 !A!N! !Y!0090 ! !20040922!20070130!075916762!075916762!101458586!N!ARINC ENGINEERING SERVICES, LL!2551 RIVA ROAD !ANNAPOLIS !MD!21401!01600!003!24!ANNAPOLIS !ANNE ARUNDEL !MARYLAND !+000000110000!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 $46.4 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC for work described as: 200412!009152!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB006 !A!N! !Y!0090 ! !20040922!20070130!075916762!075916762!101458586!N!ARINC ENGINEERING SERVICES, LL!2551 RIVA ROAD !ANNAPOLIS !MD!21401!01600!003!24!ANNAPOLIS !ANNE… Key points: 1. Value-for-money assessment is difficult due to lack of detailed cost breakdowns and performance metrics. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with contract type (Time and Materials) posing potential for cost overruns if not managed closely. 4. Performance context is limited, with specific deliverables and outcomes not detailed in the provided data. 5. Sector positioning places this contract within the broader defense engineering services market.
Value Assessment
Rating: fair
The total award amount of $46.4 million for engineering services over approximately 4 years presents a significant investment. Benchmarking this against similar large-scale defense engineering contracts is challenging without more granular data on the specific services rendered and their complexity. The Time and Materials contract type, while flexible, can sometimes lead to higher costs if not meticulously managed and monitored for efficiency. Without clear performance metrics or a detailed breakdown of labor categories and rates, a definitive value-for-money assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The data shows 14 bids were received, suggesting a healthy level of interest and competition for this requirement. A robust competitive process generally aids in price discovery and can lead to more favorable pricing for the government.
Taxpayer Impact: The full and open competition for this contract is beneficial for taxpayers as it likely resulted in a more competitive price than a sole-source or limited competition award. The presence of numerous bidders helps ensure that the government is not overpaying for the required engineering services.
Public Impact
The primary beneficiaries are the Department of the Army and potentially other Department of Defense entities requiring advanced engineering and systems integration support. Services delivered likely encompass systems engineering, technical support, and potentially research and development related to electronics and communication equipment. The geographic impact is primarily within the United States, supporting defense operations and technological advancement. Workforce implications include the employment of skilled engineers and technical professionals by the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost escalation if not closely monitored.
- Lack of detailed performance metrics makes it difficult to assess the true value and effectiveness of the services.
- The broad nature of 'Engineering Services' could lead to scope creep if not clearly defined and managed.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- Multiple bids received (14), suggesting significant market interest and potential for competitive pricing.
- Contract duration of over 4 years allows for sustained support and project continuity.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader defense industrial base. The market for defense engineering services is substantial, driven by the continuous need for modernization, research, and development of complex military systems. Companies like Booz Allen Hamilton are key players in this space, providing specialized expertise. Comparable spending benchmarks would involve looking at other large-scale engineering support contracts awarded by the DoD for similar types of systems.
Small Business Impact
The provided data indicates that this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. The contractor, Booz Allen Hamilton, is a large business. Therefore, the direct impact on the small business ecosystem through this specific award appears limited, though large prime contractors often engage small businesses for specialized support in their subcontracting plans.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer within the Department of the Army. Accountability measures would be tied to the performance requirements outlined in the contract statement of work. Transparency is generally facilitated through contract award databases like FPDS, although detailed performance reports are often not publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Defense Engineering Services
- Systems Engineering
- Electronics and Communication Equipment Support
- Department of Defense IT and Technical Services
- Large Prime Contracting
Risk Flags
- Potential for cost overruns due to Time and Materials contract type.
- Lack of detailed performance metrics hinders value assessment.
- Broad service description could lead to scope creep.
- Contract duration requires sustained oversight.
Tags
defense, department-of-defense, department-of-the-army, engineering-services, systems-engineering, time-and-materials, full-and-open-competition, large-contract, maryland, booz-allen-hamilton, electronics-and-communication-equipment, 2004-award
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.4 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC. 200412!009152!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB006 !A!N! !Y!0090 ! !20040922!20070130!075916762!075916762!101458586!N!ARINC ENGINEERING SERVICES, LL!2551 RIVA ROAD !ANNAPOLIS !MD!21401!01600!003!24!ANNAPOLIS !ANNE ARUNDEL !MARYLAND !+000000110000!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 $46.4 million.
What is the period of performance?
Start: 2004-09-22. End: 2009-05-31.
What specific engineering services were provided under this contract, and how do they align with the stated NAICS code (541330 - Engineering Services)?
The NAICS code 541330 broadly covers establishments primarily engaged in providing architectural, engineering, and related services. For this specific contract, the description 'SYSTEMS ENGINEERING SERVICES' suggests a focus on the design, integration, and management of complex systems, likely within the defense sector. This could encompass activities such as requirements analysis, system design, integration, testing, and lifecycle support for electronic and communication equipment. Without a detailed Statement of Work (SOW), it's difficult to pinpoint the exact services, but they would fall under the umbrella of applying engineering principles to develop and maintain sophisticated defense capabilities.
How does the awarded amount of $46.4 million compare to similar engineering services contracts awarded by the Department of the Army or DoD in the years surrounding this contract's award (2004-2009)?
The $46.4 million award for Booz Allen Hamilton's engineering services falls within a typical range for large-scale, multi-year defense support contracts during the mid-2000s. This period saw significant defense spending, particularly related to ongoing military operations and modernization efforts. Contracts for systems engineering and technical assistance (SETA) often reached tens of millions of dollars, reflecting the complexity and duration of the support required. To provide a precise comparison, one would need to analyze the scope, duration, and specific services of other contracts awarded by the Army and DoD for similar engineering support during that timeframe, looking at both fixed-price and cost-reimbursement vehicles.
What are the potential risks associated with a Time and Materials (T&M) contract type for engineering services, and how might they have been mitigated?
Time and Materials contracts carry inherent risks for the government, primarily the potential for cost overruns if the level of effort is not well-defined or if efficiencies are not maintained by the contractor. Unlike fixed-price contracts, the government pays for the actual labor hours and materials used, plus a fixed fee or நிர்ணயிக்கப்பட்ட rate. For engineering services, this risk is amplified if the scope is not tightly controlled, leading to scope creep. Mitigation strategies employed by the government typically include establishing labor hour ceilings, requiring detailed reporting of hours and materials, implementing strong project management oversight, and defining clear milestones and deliverables. The contracting officer and technical monitors play a crucial role in managing the T&M aspects to ensure value.
Given the 'full and open competition' and 14 bids, what does this suggest about the market for defense engineering services at the time?
The fact that this contract received 14 bids under full and open competition indicates a robust and competitive market for defense engineering services around 2004. This suggests that multiple companies possessed the necessary capabilities and were actively seeking opportunities within the Department of Defense. A healthy number of bidders generally benefits the government by increasing the likelihood of receiving competitive pricing and innovative solutions. It also implies that the barriers to entry for qualified firms were not prohibitively high, allowing a diverse range of contractors to participate in the bidding process for significant defense contracts.
What is the historical spending pattern for 'Engineering Services' (NAICS 541330) within the Department of the Army, and how does this contract fit into that pattern?
The Department of the Army historically spends billions of dollars annually on engineering services, encompassing a wide array of support functions from research and development to sustainment and modernization. NAICS code 541330 captures a significant portion of this spending. This $46.4 million contract, awarded in 2004, represents a moderately large single award within the broader context of the Army's total engineering services budget for that year. It fits the pattern of the Army outsourcing specialized engineering expertise to support its complex weapon systems, infrastructure projects, and technological advancements, particularly during periods of heightened defense activity.
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: 2004-09-22
Current End Date: 2009-05-31
Potential End Date: 2009-05-31 00:00:00
Last Modified: 2015-03-27
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