FAA Awards $6.36M SEIM Support Contract to Booz Allen Hamilton Under Full and Open Competition

Contract Overview

Contract Amount: $6,356,730 ($6.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Transportation

Start Date: 2023-07-13

End Date: 2026-08-17

Contract Duration: 1,131 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Engineering Services

Official Description: TORFP 2213 NAS SYSTEMS ENGINEERING INFORMATION MANAGEMENT (SEIM) SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $6.4 million to BOOZ ALLEN HAMILTON INC for work described as: TORFP 2213 NAS SYSTEMS ENGINEERING INFORMATION MANAGEMENT (SEIM) SUPPORT Key points: 1. Contract value of $6.36M for engineering services. 2. Booz Allen Hamilton Inc. is the sole awardee. 3. Competition method was full and open, suggesting broad market engagement. 4. The contract is for Time and Materials pricing. 5. Sector is Engineering Services, with a PSC code of 541330.

Value Assessment

Rating: fair

The contract uses a Time and Materials pricing structure, which can lead to cost overruns if not closely managed. Benchmarking against similar engineering support contracts is necessary to assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it encourages competitive pricing. However, the Time and Materials pricing structure requires diligent oversight to ensure cost efficiency.

Public Impact

Supports critical Federal Aviation Administration (FAA) systems engineering and information management. Contract duration extends over three years, ensuring continuity of essential services. Award to a large, established contractor like Booz Allen Hamilton.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can inflate costs without strict controls.
Lack of specific performance metrics in provided data.
Small business participation not indicated.

Positive Signals

Awarded under full and open competition.
Contract supports essential FAA operations.
Long-term contract provides stability.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting information management and systems engineering for the FAA. Benchmarks for similar contracts would typically consider the complexity of the systems supported and the level of expertise required.

Small Business Impact

The provided data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if opportunities for small businesses were overlooked or if the nature of the work precluded their involvement.

Oversight & Accountability

The Time and Materials pricing model necessitates robust oversight from the FAA to monitor labor hours, material costs, and ensure that the contractor is delivering services efficiently and within budget expectations.

Related Government Programs

Engineering Services
Department of Transportation Contracting
Federal Aviation Administration Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of explicit small business participation.
Limited detail on specific performance metrics.
Contract duration extends to August 2026, requiring long-term monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $6.4 million to BOOZ ALLEN HAMILTON INC. TORFP 2213 NAS SYSTEMS ENGINEERING INFORMATION MANAGEMENT (SEIM) SUPPORT

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $6.4 million.

What is the period of performance?

Start: 2023-07-13. End: 2026-08-17.

What specific systems and information management functions does this contract cover, and how critical are they to FAA operations?

This contract, TORFP 2213, covers Systems Engineering and Information Management (SEIM) Support for the Federal Aviation Administration. While specific details are not provided, SEIM functions are generally critical for the operation, maintenance, and modernization of air traffic control systems, flight data processing, and related IT infrastructure, ensuring the safety and efficiency of the national airspace.

How does the Time and Materials pricing structure compare to fixed-price or cost-plus-incentive-fee contracts for similar engineering support services?

Time and Materials (T&M) contracts offer flexibility but carry higher risk for cost overruns as the final price is not fixed. Fixed-price contracts provide cost certainty but may lack flexibility for evolving requirements. Cost-plus contracts allow for flexibility and cover costs plus a fee, but require significant oversight to manage profit margins and prevent cost escalation, making T&M potentially less cost-effective without stringent controls.

What mechanisms are in place to ensure effective performance and accountability given the T&M pricing structure?

Effective oversight for T&M contracts typically involves detailed tracking of labor hours, rates, and material costs, often requiring regular reporting and audits. The FAA likely employs contract officers and technical representatives to monitor progress, validate invoices, and ensure that the work performed aligns with the contract's objectives and the estimated value. Performance metrics and clear deliverables are crucial for accountability.

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

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: $19,723,873

Exercised Options: $7,256,730

Current Obligation: $6,356,730

Actual Outlays: $5,719,046

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,974,077

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 693KA822D00029

IDV Type: IDC

Timeline