DoD's $43.5M contract for engineering services awarded to ARINC Engineering Services, LLC, with Booz Allen Hamilton as a subcontractor
Contract Overview
Contract Amount: $43,519,525 ($43.5M)
Contractor: Booz Allen Hamilton Engineering Services, LLC
Awarding Agency: Department of Defense
Start Date: 2005-01-04
End Date: 2009-03-06
Contract Duration: 1,522 days
Daily Burn Rate: $28.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 14
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: 200507!025032!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB006 !A!N! !Y!0107 ! !20050104!20070130!075916762!075916762!101458586!N!ARINC ENGINEERING SERVICES, LL!2551 RIVA RD !ANNAPOLIS !MD!21401!01600!003!24!ANNAPOLIS !ANNE ARUNDEL !MARYLAND !+000008307879!Y!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !5!B!M! !A! !20200930!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 $43.5 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC for work described as: 200507!025032!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB006 !A!N! !Y!0107 ! !20050104!20070130!075916762!075916762!101458586!N!ARINC ENGINEERING SERVICES, LL!2551 RIVA RD !ANNAPOLIS !MD!21401!01600!003!24!ANNAPOLIS !ANNE… Key points: 1. The contract value of $43.5 million represents a significant investment in engineering services. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. The contract duration of 1522 days (over 4 years) suggests a long-term need for these services. 4. The primary service category is 'Systems Engineering Services', aligning with complex defense needs. 5. The contract was awarded to ARINC Engineering Services, LLC, with Booz Allen Hamilton as a major subcontractor. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services. 7. The contract was awarded in 2005, providing historical context for current spending.
Value Assessment
Rating: fair
The contract value of $43.5 million for engineering services over approximately four years appears substantial. Benchmarking against similar large-scale engineering services contracts within the Department of Defense is necessary for a precise value-for-money assessment. The 'Time and Materials' pricing structure can sometimes lead to cost overruns if not managed diligently, warranting scrutiny of the contractor's cost control measures. Without specific performance metrics or comparisons to industry standards for similar engineering tasks, it's difficult to definitively assess if this represents excellent value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a 'Full and Open Competition' scenario, indicating that all responsible sources were permitted to submit bids. The data shows 14 bids were received, suggesting a healthy level of competition for this requirement. A competitive bidding process generally leads to better price discovery and can incentivize contractors to offer more favorable terms and pricing to secure the award.
Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at a competitive market rate, preventing potential overpayment that might occur with less competitive solicitations.
Public Impact
The primary beneficiaries are likely the Department of the Army, receiving critical systems engineering support. The services delivered are essential for the development, integration, and maintenance of complex electronic and communication systems. The geographic impact is centered around the contractor's location in Annapolis, Maryland, and potentially extends to various Department of Defense installations where the systems are deployed. The contract supports a workforce skilled in systems engineering, electronics, and communication technologies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'Time and Materials' contract type can pose a risk of cost escalation if not closely monitored.
- The long duration of the contract (over 4 years) necessitates ongoing performance monitoring to ensure continued value.
- Reliance on a single prime contractor for such a critical function warrants contingency planning.
Positive Signals
- The 'Full and Open Competition' indicates a robust bidding process, likely leading to competitive pricing.
- The receipt of 14 bids suggests significant market interest and a competitive landscape.
- The award to established entities like ARINC Engineering Services and Booz Allen Hamilton suggests a degree of contractor capability and experience.
Sector Analysis
The contract falls within the 'Engineering Services' sector, specifically related to electronics and communication equipment. This sector is characterized by high technical expertise and often involves complex integration and development projects. The market size for defense-related engineering services is substantial, driven by the continuous need for technological advancement and system sustainment within the military. This contract represents a component of the broader federal spending on defense systems engineering and technical support.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small business participation through a set-aside. However, the prime contractor may still engage small businesses as subcontractors, but this is not a contractual requirement based on the information given.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS, though detailed performance data may be less accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Defense Systems Engineering Support
- Electronics and Communication Equipment Procurement
- Federal IT and Engineering Services
- Army Command and Control Systems
Risk Flags
- Potential for cost overruns due to Time and Materials pricing structure.
- Long contract duration requires sustained oversight.
- Dependence on prime contractor for critical engineering functions.
Tags
defense, department-of-defense, department-of-the-army, engineering-services, systems-engineering, time-and-materials, full-and-open-competition, maryland, arinc-engineering-services-llc, booz-allen-hamilton, electronics-and-communication-equipment, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.5 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC. 200507!025032!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB006 !A!N! !Y!0107 ! !20050104!20070130!075916762!075916762!101458586!N!ARINC ENGINEERING SERVICES, LL!2551 RIVA RD !ANNAPOLIS !MD!21401!01600!003!24!ANNAPOLIS !ANNE ARUNDEL !MARYLAND !+000008307879!Y!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541330!E! !5!B!M! !A! !202
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 $43.5 million.
What is the period of performance?
Start: 2005-01-04. End: 2009-03-06.
What is the track record of ARINC Engineering Services, LLC and Booz Allen Hamilton with the Department of Defense for similar engineering services?
ARINC Engineering Services, LLC, and its successor entities, have a long history of providing engineering and technical services to the Department of Defense and other federal agencies. Booz Allen Hamilton is a well-established government contractor with extensive experience across various defense and intelligence programs, including systems engineering, technology integration, and program management. Both entities have been involved in numerous large-scale contracts, demonstrating their capacity to handle complex requirements. Analyzing their past performance on similar contracts, including any past performance evaluations or disputes, would provide further insight into their reliability and effectiveness in delivering systems engineering services.
How does the awarded amount of $43.5 million compare to the estimated value or budget for similar systems engineering contracts within the DoD?
The awarded amount of $43.5 million for systems engineering services over approximately four years needs to be benchmarked against comparable contracts to assess its value. Without specific details on the scope of work, technical requirements, and duration, a direct comparison is challenging. However, large-scale engineering support contracts for defense systems can range from tens to hundreds of millions of dollars, depending on complexity and duration. The 'Time and Materials' pricing structure also means the final cost could vary. A detailed analysis would involve comparing this contract's cost per unit of service or cost per labor hour against industry benchmarks and similar DoD contracts awarded around the same period.
What are the primary risks associated with a 'Time and Materials' contract for systems engineering services, and how are they mitigated?
The primary risk with 'Time and Materials' (T&M) contracts is the potential for cost overruns, as the government pays for the actual labor hours and material costs incurred by the contractor. This can be exacerbated if the scope of work is not well-defined or if there is scope creep. Mitigation strategies typically include establishing labor hour ceilings, requiring detailed reporting of hours and costs, implementing robust oversight by government personnel to monitor progress and validate effort, and defining clear milestones. The contracting officer must actively manage the contract to ensure efficiency and prevent unnecessary expenditures. For this specific contract, the 14 bids received suggest a competitive environment that may help control costs, but diligent oversight remains crucial.
What is the expected impact of this contract on the development and sustainment of DoD's electronic and communication systems?
This contract is expected to significantly impact the development and sustainment of the Department of Defense's electronic and communication systems by providing essential systems engineering expertise. This includes crucial activities such as requirements definition, system design, integration, testing, and lifecycle support. By ensuring that these complex systems are engineered effectively, the contract contributes to enhanced operational capabilities, improved interoperability between different platforms and units, and greater overall mission readiness. The expertise provided by ARINC and Booz Allen Hamilton is vital for keeping pace with technological advancements and addressing evolving threats in the electronic warfare and communication domains.
How has federal spending on 'Engineering Services' (NAICS 541330) evolved over the years, and where does this contract fit within that trend?
Federal spending on 'Engineering Services' (NAICS 541330) has generally shown a consistent upward trend, particularly within the Department of Defense, reflecting the increasing complexity of military platforms and the need for advanced technological solutions. This contract, awarded in 2005 for $43.5 million, represents a significant but not extraordinary expenditure within this category during that period. The sustained demand for engineering services is driven by ongoing modernization efforts, research and development, and the sustainment of existing defense systems. Analyzing historical spending data for NAICS 541330 would reveal broader trends and allow for a contextual understanding of this specific contract's place within the overall federal investment in engineering capabilities.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
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: 2005-01-04
Current End Date: 2009-03-06
Potential End Date: 2009-03-06 00:00:00
Last Modified: 2015-03-13
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