DoD's $43.8M contract for engineering services awarded to ARINC Engineering Services, LLC
Contract Overview
Contract Amount: $43,838,448 ($43.8M)
Contractor: Booz Allen Hamilton Engineering Services, LLC
Awarding Agency: Department of Defense
Start Date: 2006-09-28
End Date: 2010-06-30
Contract Duration: 1,371 days
Daily Burn Rate: $32.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 14
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: 200612!008954!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB006 !A!N! !Y!0192 ! !20060928!20110129!075916762!075916762!101458586!N!ARINC ENGINEERING SERVICES, LL!2551 RIVA RD !ANNAPOLIS !MD!21401!01600!003!24!ANNAPOLIS !ANNE ARUNDEL !MARYLAND !+000003200000!N!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, UNITED STATES OF AMERICA
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $43.8 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC for work described as: 200612!008954!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB006 !A!N! !Y!0192 ! !20060928!20110129!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 $43.8M over 4 years suggests a significant investment in specialized engineering support. 2. Full and open competition indicates a robust bidding process, potentially leading to better pricing. 3. The contract's duration and value may present performance risks if not managed effectively. 4. Engineering services are critical for maintaining complex defense systems, highlighting the contract's strategic importance. 5. This contract falls within the broader 'Engineering Services' sector, a key area for government support functions.
Value Assessment
Rating: fair
The contract value of $43.8M over approximately 4 years averages to about $10.9M annually. Benchmarking this against similar large-scale engineering services contracts for the Department of Defense is challenging without more specific service details. However, the duration and scope suggest a substantial commitment. The pricing structure, identified as Time and Materials, can sometimes lead to cost overruns if not closely monitored, which warrants a 'fair' assessment of value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit bids. The presence of 14 bids indicates a healthy level of competition for this requirement. This broad competition is generally favorable for price discovery and ensures the government receives offers from a wide range of qualified contractors.
Taxpayer Impact: A high number of bidders in a full and open competition typically drives down prices, meaning taxpayers likely benefited from a more competitive bidding environment and potentially lower overall costs.
Public Impact
The Department of the Army benefits from specialized engineering services to support its operations. Services delivered likely include systems engineering, technical support, and potentially program management assistance. The contract's geographic impact is centered in Maryland, where the contractor is located. The contract supports a workforce skilled in engineering and technical fields within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost escalation if not managed stringently.
- The significant contract value over a multi-year period requires robust oversight to ensure continued value.
- Performance metrics and deliverables need to be clearly defined and monitored to ensure successful outcomes.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- Multiple bidders (14) participated, suggesting a healthy market response.
- The contract supports critical engineering services for the Department of the Army.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS code 541330), which encompasses firms providing specialized engineering expertise. The federal government is a major consumer of these services, particularly within the Department of Defense, for complex system design, integration, and maintenance. Comparable spending in this sector often involves large, multi-year contracts supporting defense acquisition and sustainment programs.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and the contractor, ARINC Engineering Services, LLC, is likely a larger entity. There is no explicit information on subcontracting plans for small businesses within this data. Therefore, the direct impact on the small business ecosystem appears minimal unless subcontracting opportunities were pursued independently by the prime contractor.
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 tied to the contract's performance work statement and delivery schedules. Transparency is generally facilitated through contract award databases, though detailed performance reviews are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Engineering Services Contracts
- Army Systems Engineering Support
- Information Technology and Electronics Support Contracts
- Defense Acquisition Support Services
Risk Flags
- Time and Materials contract type requires close monitoring to control costs.
- Contract duration necessitates sustained performance management.
- Scope definition is critical for T&M contracts to prevent scope creep.
Tags
defense, department-of-defense, department-of-the-army, engineering-services, systems-engineering, time-and-materials, full-and-open-competition, maryland, large-contract, electronics-and-communication-equipment
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $43.8 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC. 200612!008954!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !DAAB0703DB006 !A!N! !Y!0192 ! !20060928!20110129!075916762!075916762!101458586!N!ARINC ENGINEERING SERVICES, LL!2551 RIVA RD !ANNAPOLIS !MD!21401!01600!003!24!ANNAPOLIS !ANNE ARUNDEL !MARYLAND !+000003200000!N!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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $43.8 million.
What is the period of performance?
Start: 2006-09-28. End: 2010-06-30.
What specific engineering services were provided under this contract?
The contract data indicates the primary service category as 'Systems Engineering Services' (PSC R414) and the NAICS code is 541330 for Engineering Services. While the specific tasks are not detailed in the provided data, 'Systems Engineering Services' typically involves the design, integration, and management of complex systems throughout their lifecycle. This could include activities such as requirements analysis, system architecture development, technical planning, risk management, and ensuring the interoperability and performance of various defense electronic and communication equipment.
How does the $43.8M contract value compare to similar engineering services contracts within the DoD?
The $43.8M contract value over approximately four years (September 2006 to June 2010) represents an average annual value of roughly $10.9M. This is a substantial amount, indicative of a significant engineering support requirement. However, without specific details on the scope, duration, and nature of services for comparable contracts, a direct comparison is difficult. Generally, large-scale engineering services for major defense programs can range from tens to hundreds of millions of dollars, making this contract moderately large within the DoD's engineering services portfolio.
What are the potential risks associated with a Time and Materials contract of this size and duration?
Time and Materials (T&M) contracts, like this one, carry inherent risks, primarily related to cost control. Since the contractor is reimbursed for direct labor hours at specified rates and for the cost of materials, there is less incentive for efficiency compared to fixed-price contracts. For a contract valued at $43.8M over nearly four years, the primary risk is cost escalation if labor hours are not diligently monitored or if rates are not competitive. Effective oversight, clear task definitions, and robust reporting are crucial to mitigate these risks and ensure the government receives good value.
What does the 'full and open competition' with 14 bidders signify for the Department of the Army?
The 'full and open competition' award with 14 bidders signifies a highly competitive environment for this engineering services requirement. For the Department of the Army, this suggests that the solicitation was broadly advertised, allowing numerous qualified companies to compete. A large number of bidders typically leads to more competitive pricing, a wider selection of technical approaches, and a greater likelihood of selecting a contractor that offers the best value. It also indicates that the market has sufficient capacity to meet the Army's needs for these specialized services.
What is the historical spending trend for engineering services by the Department of the Army?
Historical spending on engineering services by the Department of the Army is substantial, reflecting the complexity and scale of its operations and acquisition programs. While specific historical data for this exact contract is limited to its award period (2006-2010), the Army consistently procures significant engineering support across various domains, including systems engineering, research and development, logistics, and infrastructure. Spending in this category often fluctuates based on defense budgets, modernization priorities, and the lifecycle stage of major weapon systems. The trend generally shows a sustained demand for specialized engineering expertise.
Could the contractor, ARINC Engineering Services, LLC, have a significant track record with the DoD?
Given that ARINC Engineering Services, LLC (now part of The ARINC Group, which was acquired by Rockwell Collins, and subsequently by Raytheon Technologies) was awarded a substantial $43.8M contract by the Department of the Army, it is highly probable they possessed a significant track record with the DoD. Companies undertaking contracts of this magnitude typically have established relationships, past performance data, and demonstrated capabilities relevant to defense requirements. Their involvement in systems engineering and electronics communication equipment suggests a specialization aligned with military needs, further supporting the likelihood of prior DoD engagement.
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: NEGOTIATED PROPOSAL/QUOTE
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
Parent Contract
Parent Award PIID: DAAB0703DB006
IDV Type: IDC
Timeline
Start Date: 2006-09-28
Current End Date: 2010-06-30
Potential End Date: 2010-06-30 00:00:00
Last Modified: 2015-03-30
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