GSA awards $115M Army SETA contract to Booz Allen Hamilton for engineering and technical assistance

Contract Overview

Contract Amount: $115,195,720 ($115.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2020-01-01

End Date: 2024-12-31

Contract Duration: 1,826 days

Daily Burn Rate: $63.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THIS TASK ORDER WILL PROVIDE THE OFFICE OF THE U.S ARMY, PM TN, LOCATED AT ABERDEEN PROVING GROUND (APG), MD, ON NON-PERSONAL SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE (SETA) SERVICES.

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $115.2 million to BOOZ ALLEN HAMILTON INC for work described as: THIS TASK ORDER WILL PROVIDE THE OFFICE OF THE U.S ARMY, PM TN, LOCATED AT ABERDEEN PROVING GROUND (APG), MD, ON NON-PERSONAL SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE (SETA) SERVICES. Key points: 1. Contract provides essential systems engineering and technical assistance to the Army's Program Manager for Training Networks. 2. Services are critical for supporting Army training systems and infrastructure. 3. The contract duration spans nearly five years, indicating a long-term need for these services. 4. Booz Allen Hamilton, a large established contractor, holds this significant award. 5. The contract is structured as Time and Materials, which can present cost control challenges. 6. The award was made under full and open competition, suggesting a competitive process.

Value Assessment

Rating: good

The contract value of $115.2 million over approximately five years for specialized SETA services appears reasonable given the scope and duration. Benchmarking against similar large-scale engineering and technical assistance contracts for defense agencies suggests this pricing is within expected ranges. The Time and Materials (T&M) pricing structure, while common for evolving technical requirements, warrants close monitoring to ensure cost efficiency and prevent scope creep. Without specific per-unit labor rates or detailed service breakdowns, a precise value-for-money assessment is challenging, but the overall award size is consistent with the complexity of supporting Army training networks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 3 bids suggests a moderate level of competition for this significant requirement. A higher number of bidders might typically drive prices down further, but the existing competition level is sufficient to provide a basis for price discovery and ensure the government receives proposals from capable sources.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that encourages fair pricing and allows the government to select the best value solution.

Public Impact

The U.S. Army's Office of PM TN directly benefits from these critical systems engineering and technical assistance services. Services support the development, maintenance, and enhancement of Army training systems and networks. The contract's impact is primarily within the defense sector, supporting military readiness and training capabilities. Workforce implications include specialized engineering, technical, and management roles filled by Booz Allen Hamilton personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not managed diligently.
The duration of the contract (nearly 5 years) requires ongoing performance monitoring to ensure continued value.
Reliance on a single large contractor for critical SETA services may limit future flexibility or innovation.

Positive Signals

Awarded under full and open competition, ensuring a competitive process.
Booz Allen Hamilton is a well-established contractor with a proven track record in defense support.
The contract addresses a clear and ongoing need for specialized technical expertise within the Army.

Sector Analysis

This contract falls within the Management and Financial Consulting, Scientific and Technical Consulting and Services sector, specifically under Administrative Management and General Management Consulting Services (NAICS 541611). This sector is a significant component of federal contracting, particularly for defense agencies requiring specialized expertise in program management, systems engineering, and technical support. The market for SETA services is robust, with numerous large and small businesses competing for these types of contracts. The total federal spending in this category is substantial, reflecting the government's continuous need for advanced technical and management support across various departments.

Small Business Impact

This contract was not set aside for small businesses and was awarded to Booz Allen Hamilton, a large business. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award, although Booz Allen Hamilton may engage small businesses as subcontractors in their broader operations.

Oversight & Accountability

Oversight for this contract is likely managed by the General Services Administration (GSA) as the issuing agency and the U.S. Army (PM TN) as the requiring activity. The contract's Time and Materials nature necessitates robust oversight to track labor hours, costs, and ensure adherence to the scope of work. Performance reviews and regular reporting are standard accountability measures. Transparency is generally maintained through contract award databases, though detailed performance metrics are typically internal.

Related Government Programs

Army Training Systems Support
Defense Engineering Services
Program Management Support Contracts
General Services Administration IT and Management Services

Risk Flags

Potential for cost overruns due to T&M contract type.
Need for robust government oversight to manage performance and costs.
Contract duration requires sustained monitoring for continued value.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $115.2 million to BOOZ ALLEN HAMILTON INC. THIS TASK ORDER WILL PROVIDE THE OFFICE OF THE U.S ARMY, PM TN, LOCATED AT ABERDEEN PROVING GROUND (APG), MD, ON NON-PERSONAL SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE (SETA) SERVICES.

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $115.2 million.

What is the period of performance?

Start: 2020-01-01. End: 2024-12-31.

What is Booz Allen Hamilton's track record with similar SETA contracts for the Department of Defense?

Booz Allen Hamilton has an extensive and well-documented track record of providing Systems Engineering and Technical Assistance (SETA) services to the Department of Defense (DoD) and other federal agencies. They are a prime contractor on numerous large IDIQ vehicles and have held multiple direct awards for SETA support across various branches of the military, including the Army, Navy, and Air Force. Their experience typically spans areas such as program protection, systems integration, cybersecurity engineering, test and evaluation, and lifecycle management. This specific contract with the Army's PM TN aligns with their core competencies and historical contract awards, suggesting a high likelihood of successful performance based on their established capabilities and past performance.

How does the $115.2 million value compare to other Army SETA contracts?

The $115.2 million value for this five-year SETA contract is substantial but falls within the typical range for large-scale, long-term support services required by major Army program offices. Contracts for similar SETA functions, especially those involving complex training networks or weapon systems, can range from tens of millions to hundreds of millions of dollars over their lifecycle. For instance, other Army SETA contracts supporting major acquisition programs or enterprise-level IT infrastructure have often exceeded this value. The value is commensurate with the duration and the specialized, non-personal services being provided, indicating a significant but not outlier-sized investment for critical technical expertise.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude?

The primary risks associated with a Time and Materials (T&M) contract of this magnitude ($115.2 million over ~5 years) revolve around cost control and potential scope creep. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and materials used. This structure can lead to cost overruns if the scope of work is not clearly defined or if the contractor's efficiency is low. For the government, the risk is paying more than anticipated if requirements evolve or if oversight is insufficient to manage the effort effectively. Diligent monitoring of labor hours, rates, and deliverables by the contracting officer's representative (COR) is crucial to mitigate these risks and ensure the government receives fair value.

How effective is full and open competition in ensuring value for money on SETA contracts?

Full and open competition is generally considered the most effective method for ensuring value for money on SETA contracts. By allowing all responsible sources to submit bids, the government maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. This process drives down costs as contractors vie for the award. While the number of bidders (3 in this case) can influence the intensity of competition, the principle of full and open competition itself creates a strong incentive for contractors to offer their best pricing and technical approach to win the contract, ultimately benefiting taxpayers.

What is the historical spending trend for Administrative Management and General Management Consulting Services (NAICS 541611) by the Army?

Historical spending trends for NAICS 541611 by the Army, and the federal government broadly, show a consistent and significant demand for management and consulting services. This category encompasses a wide range of support, including program management, strategic planning, and technical assistance, which are critical for large organizations like the Army. Spending in this area has generally remained robust, often increasing during periods of modernization, technological advancement, or heightened operational tempo. While specific year-over-year figures fluctuate based on budget allocations and program priorities, the overall trend indicates a sustained reliance on external expertise to supplement internal capabilities for complex projects and operations.

What are the implications of this contract being non-personal services?

The designation of this contract as 'non-personal services' is a critical distinction. It means that Booz Allen Hamilton will provide services, but their personnel will not be considered government employees. This prevents any employer-employee relationship from forming between the contractor staff and the government. The government cannot direct the contractor's employees on how, when, or where to perform the work; instead, it defines the performance outcomes and objectives. This structure is standard for consulting and technical assistance contracts and ensures that the contractor retains control over its workforce management while delivering the required technical expertise to the Army.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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

Solicitation ID: ID02190014

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MC LEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $144,528,549

Exercised Options: $144,528,549

Current Obligation: $115,195,720

Actual Outlays: $-852

Subaward Activity

Number of Subawards: 35

Total Subaward Amount: $4,980,285

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F008DA

IDV Type: FSS

Timeline