DoD's $42.3M contract for engineering services awarded to Booz Allen Hamilton, spanning over 4 years
Contract Overview
Contract Amount: $42,298,814 ($42.3M)
Contractor: Booz Allen Hamilton Engineering Services, LLC
Awarding Agency: Department of Defense
Start Date: 2006-09-06
End Date: 2011-01-30
Contract Duration: 1,607 days
Daily Burn Rate: $26.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 14
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: 200612!025090!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB006 !A!N! !Y!0179 ! !20060906!20090130!075916762!075916762!101458586!N!ARINC ENGINEERING SERVICES, LL!2551 RIVA RD !ANNAPOLIS !MD!21401!01600!003!24!ANNAPOLIS !ANNE ARUNDEL !MARYLAND !+000000535849!Y!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !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
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $42.3 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC for work described as: 200612!025090!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB006 !A!N! !Y!0179 ! !20060906!20090130!075916762!075916762!101458586!N!ARINC ENGINEERING SERVICES, LL!2551 RIVA RD !ANNAPOLIS !MD!21401!01600!003!24!ANNAPOLIS !ANNE… Key points: 1. Contract value of $42.3 million for engineering services represents a significant investment in specialized technical support. 2. The award to Booz Allen Hamilton suggests a focus on established contractors with demonstrated expertise in defense systems. 3. The 'Time and Materials' pricing structure introduces potential for cost escalation if not closely managed. 4. The contract duration of over 4 years indicates a long-term need for the services provided. 5. The 'Engineering Services' category is broad, encompassing a range of technical and analytical support functions. 6. The contract was awarded under 'Full and Open Competition', implying a robust bidding process.
Value Assessment
Rating: fair
The contract value of $42.3 million for engineering services over 1607 days (approximately 4.4 years) averages to about $9.6 million per year. Benchmarking this against similar large-scale engineering support contracts within the Department of Defense is challenging without more specific service details. However, the 'Time and Materials' pricing model, while flexible, can lead to higher costs if not managed diligently, potentially impacting overall value for money. The absence of a fixed price or cost-plus-fixed-fee structure warrants closer scrutiny of cost controls.
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. The data shows 14 bids were received, suggesting a competitive environment. A higher number of bids generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie for the award. The presence of multiple bidders implies that the market for these engineering services is robust.
Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it fosters a competitive environment, driving down prices and ensuring the government receives the best possible value for its investment in engineering services.
Public Impact
The primary beneficiaries are the Department of Defense agencies requiring advanced engineering and technical support for complex systems. Services delivered likely include systems engineering, technical analysis, and potentially program management support. The geographic impact is primarily within the United States, supporting defense operations and readiness. The contract supports a skilled workforce of engineers and technical specialists, contributing to the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The 'Time and Materials' pricing structure carries inherent risk of cost overruns if not meticulously monitored and controlled.
- The broad scope of 'Engineering Services' could lead to scope creep if not clearly defined and managed.
- Long-term contracts can sometimes reduce agility in adapting to rapidly changing technological landscapes.
- Reliance on a single large contractor for critical engineering functions may present a single point of failure risk.
Positive Signals
- Awarded through 'Full and Open Competition' with 14 bids received, indicating a healthy and competitive market.
- The contractor, Booz Allen Hamilton, is a well-established entity with a significant track record in government contracting.
- The contract duration suggests a stable and predictable need for these essential engineering services.
- The contract supports critical defense capabilities, contributing to national security objectives.
Sector Analysis
The contract falls within the 'Engineering Services' sector (NAICS code 541330), a critical component of the professional, scientific, and technical services industry. This sector is characterized by high demand from government agencies, particularly in defense, aerospace, and infrastructure development. The market size for engineering services supporting the federal government is substantial, with significant annual outlays. This specific contract aligns with broader trends of outsourcing specialized technical functions to experienced private sector firms to leverage expertise and manage workload.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss=false, 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. Without specific subcontracting plans or reporting, the direct impact on the small business ecosystem remains unclear, though large prime contracts often necessitate some level of subcontracting.
Oversight & Accountability
Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Defense Systems Engineering Support
- Technical Services Contracts
- Professional Services - Engineering
- Information Technology Support Services
- Aerospace Engineering Services
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Scope creep risk in broad 'Engineering Services' category.
- Long-term commitment may reduce flexibility for future technological shifts.
- Dependence on a single large contractor for critical functions.
Tags
department-of-defense, engineering-services, booz-allen-hamilton, time-and-materials, full-and-open-competition, maryland, defense-contract-management-agency, systems-engineering, electronics-and-communication-equipment, large-contract, multi-year
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.3 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC. 200612!025090!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB006 !A!N! !Y!0179 ! !20060906!20090130!075916762!075916762!101458586!N!ARINC ENGINEERING SERVICES, LL!2551 RIVA RD !ANNAPOLIS !MD!21401!01600!003!24!ANNAPOLIS !ANNE ARUNDEL !MARYLAND !+000000535849!Y!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !NOT DISCERNABLE !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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $42.3 million.
What is the period of performance?
Start: 2006-09-06. End: 2011-01-30.
What is Booz Allen Hamilton's track record with similar Department of Defense engineering contracts?
Booz Allen Hamilton is a major government contractor with extensive experience providing engineering and technical services to the Department of Defense and other federal agencies. They have a long history of supporting complex defense programs, including systems engineering, cybersecurity, and IT modernization. Their track record includes numerous large-scale contracts, often involving advanced technological solutions and strategic consulting. While specific performance metrics for past contracts are not detailed here, their continued success in winning significant DoD awards suggests a generally positive performance history and strong client relationships. However, like any large contractor, they have faced scrutiny and occasional contract disputes on specific projects, underscoring the importance of ongoing performance monitoring.
How does the $42.3 million contract value compare to other engineering services contracts awarded by the DoD?
The $42.3 million contract value for engineering services is a substantial award, but it falls within the typical range for large, multi-year support contracts within the Department of Defense. The DoD procures billions of dollars worth of engineering and technical services annually across various domains, including weapon systems development, IT infrastructure, and research and development. Contracts of this magnitude are common for providing specialized expertise over extended periods. To provide a precise comparison, one would need to benchmark against contracts with similar scope, duration, and specific service requirements (e.g., systems engineering vs. software development). However, it is indicative of a significant, long-term requirement for the services rendered.
What are the primary risks associated with the 'Time and Materials' pricing structure used in this contract?
The primary risk associated with a 'Time and Materials' (T&M) pricing structure is the potential for cost escalation. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual labor hours and material costs incurred, plus a fixed fee or labor rate. This can lead to higher overall costs for the government if the project scope expands, if labor hours are not efficiently managed, or if material costs increase unexpectedly. Without strict oversight and well-defined task orders, contractors may have less incentive to control costs, as their profit is directly tied to the amount of time and resources expended. This necessitates robust government oversight to ensure fair pricing and prevent overruns.
How effective is 'Full and Open Competition' in ensuring value for money for taxpayers in engineering services contracts?
'Full and Open Competition' is generally considered the most effective method for ensuring value for money for taxpayers when procuring goods and services. By allowing all responsible sources to compete, it maximizes the pool of potential bidders, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. The presence of multiple bidders drives down prices as companies vie for the contract award. In this specific case, with 14 bids received for the engineering services contract, the competitive environment likely contributed to achieving a reasonable price point. However, the effectiveness also depends on the clarity of the solicitation, the evaluation criteria, and the government's ability to accurately assess technical merit alongside price.
What is the historical spending trend for 'Engineering Services' within the Department of Defense?
Historical spending trends for 'Engineering Services' within the Department of Defense show a consistent and significant demand over the years. The DoD relies heavily on external expertise for the design, development, testing, and sustainment of complex military systems and technologies. Spending in this category typically fluctuates based on defense budgets, modernization priorities, and the lifecycle stage of major defense programs. While specific year-over-year data requires access to detailed historical procurement databases, it is well-established that engineering services represent a multi-billion dollar annual expenditure for the DoD. Factors such as geopolitical events, technological advancements, and strategic shifts influence the volume and nature of these contracts.
What are the implications of the contract duration (1607 days) on program stability and contractor performance?
A contract duration of 1607 days (approximately 4.4 years) provides significant program stability for both the government and the contractor. For the government, it ensures continuity of essential engineering services without the frequent need for re-procurement, allowing for long-term planning and project execution. For the contractor, it offers a predictable revenue stream and the opportunity to build deep expertise within the specific program or system being supported. This extended period can foster stronger working relationships and allow the contractor to invest in specialized resources. However, it also means the government is committed for a longer term, making it crucial that performance expectations are clearly defined and rigorously monitored throughout the contract's life to mitigate risks of complacency or declining performance.
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
Financial Breakdown
Contract Ceiling: $18,943,578
Exercised Options: $18,943,578
Current Obligation: $42,298,814
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAB0703DB006
IDV Type: IDC
Timeline
Start Date: 2006-09-06
Current End Date: 2011-01-30
Potential End Date: 2011-01-30 00:00:00
Last Modified: 2015-10-26
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