Booz Allen Hamilton's $90M DOE contract for ESPA Site Support shows mixed value and limited competition
Contract Overview
Contract Amount: $90,345,893 ($90.3M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Energy
Start Date: 2009-11-15
End Date: 2016-06-30
Contract Duration: 2,419 days
Daily Burn Rate: $37.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: ESPA SITE SUPPORT CONTRACT
Place of Performance
Location: MORGANTOWN, MONONGALIA County, WEST VIRGINIA, 26507
Plain-Language Summary
Department of Energy obligated $90.3 million to BOOZ ALLEN HAMILTON INC for work described as: ESPA SITE SUPPORT CONTRACT Key points: 1. The contract's value proposition is unclear due to the Cost Plus Award Fee structure, which can incentivize cost growth. 2. Limited competition, with only 4 bidders, may have impacted price discovery and potentially led to higher costs for taxpayers. 3. The contract duration of over 2000 days suggests a long-term need for these services, but also raises questions about adaptability. 4. Performance context is difficult to assess without specific award fee data and detailed performance metrics. 5. The contract falls within the R&D sector, specifically supporting physical, engineering, and life sciences research. 6. The lack of small business set-aside indicates a focus on large prime contractors for this type of support.
Value Assessment
Rating: fair
Benchmarking the value of this Cost Plus Award Fee (CPAF) contract is challenging without detailed performance and award fee data. CPAF contracts can sometimes lead to higher costs compared to fixed-price contracts if not managed rigorously. The total award value of $90.3 million over approximately 6.7 years suggests an average annual spend of around $13.5 million. Without comparable contracts for similar site support services at Department of Energy facilities, a precise value-for-money assessment is difficult. However, the extended duration and the nature of the services imply a significant, ongoing requirement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded under full and open competition, but only four bids were received. While 'full and open' implies a broad solicitation, the low number of bidders suggests that the market for this specific type of comprehensive site support may be limited, or that other factors discouraged broader participation. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions. With only four competitors, there is a moderate risk that the government did not achieve the most favorable pricing or the best possible technical approach.
Taxpayer Impact: A limited number of bidders can mean that taxpayers may have paid more than they would have in a more competitive environment. This could also indicate a lack of readily available, qualified contractors for such specialized support services.
Public Impact
The primary beneficiaries are the Department of Energy and the research initiatives it supports at the ESPA site. Services delivered likely include facility operations, maintenance, safety, security, and administrative support crucial for research activities. The geographic impact is concentrated in West Virginia, where the ESPA site is located. Workforce implications include employment opportunities for individuals with expertise in facility management, technical support, and administrative roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure can incentivize cost overruns if not closely monitored.
- Limited competition (4 bidders) may have resulted in suboptimal pricing for taxpayers.
- Long contract duration (2419 days) could lead to inertia and resistance to adopting newer, more efficient methods.
- Lack of specific performance metrics and award fee details makes independent value assessment difficult.
Positive Signals
- Awarded under 'full and open' competition, indicating an attempt to solicit broadly.
- Booz Allen Hamilton is a large, established contractor with significant experience in government support services.
- The contract addresses a critical need for site support at a Department of Energy facility, enabling research operations.
Sector Analysis
The Research and Development sector, particularly within physical, engineering, and life sciences, relies heavily on robust site support services to ensure the smooth operation of laboratories and facilities. This contract falls under NAICS code 541712. The market for such specialized support is often dominated by large, experienced federal contractors capable of managing complex operations and meeting stringent regulatory requirements. Comparable spending benchmarks are difficult to establish without detailed service scope, but large federal R&D support contracts can range from tens to hundreds of millions of dollars annually.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The prime contractor, Booz Allen Hamilton, is a large business. This suggests that the scope of work was likely deemed too large or specialized for small business set-asides, or that the government prioritized large, experienced prime contractors for this particular requirement. The absence of explicit small business subcontracting goals could limit opportunities for smaller firms to participate in this contract's execution.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of Energy contracting officers and program managers. The contract type (CPAF) necessitates close monitoring of performance against award criteria and cost expenditures. Inspector General jurisdiction would apply for investigations into fraud, waste, or abuse. Transparency is generally facilitated through contract award databases like FPDS, but detailed performance reports and cost breakdowns are often not publicly available.
Related Government Programs
- Department of Energy Facility Operations Contracts
- Research and Development Support Services
- Large Prime Contractor Support Services
- Cost-Plus Award Fee Contracts
Risk Flags
- Limited competition may lead to higher costs.
- Cost Plus Award Fee structure requires diligent oversight to ensure value.
- Long contract duration could reduce contractor incentive for innovation.
Tags
research-and-development, department-of-energy, west-virginia, definitive-contract, large-contract, full-and-open-competition, cost-plus-award-fee, site-support, booz-allen-hamilton
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $90.3 million to BOOZ ALLEN HAMILTON INC. ESPA SITE SUPPORT CONTRACT
Who is the contractor on this award?
The obligated recipient is BOOZ ALLEN HAMILTON INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $90.3 million.
What is the period of performance?
Start: 2009-11-15. End: 2016-06-30.
What was the specific performance of Booz Allen Hamilton under this contract, and how did it influence award fees?
Specific performance metrics and the resulting award fee determinations for Booz Allen Hamilton under the ESPA Site Support Contract are not publicly detailed in the provided data. Cost Plus Award Fee (CPAF) contracts are designed such that the contractor's performance against pre-defined criteria directly impacts the fee earned. Higher performance ratings should theoretically lead to higher fees, while subpar performance would result in reduced fees. Without access to the contract's performance work statement (PWS), the specific metrics used (e.g., safety compliance, operational efficiency, responsiveness), and the actual award fee amounts paid, it is impossible to definitively assess the contractor's performance or whether the fee structure effectively incentivized optimal value delivery. This lack of transparency limits a thorough evaluation of the contract's success.
How does the $90.3 million total award value compare to similar site support contracts at other DOE facilities?
Direct comparison of the $90.3 million total award value for the ESPA Site Support Contract to similar contracts at other Department of Energy (DOE) facilities is challenging without access to a comprehensive database of comparable contracts, including their scope of work, duration, and specific services rendered. The ESPA contract, awarded to Booz Allen Hamilton, spanned approximately 6.7 years (from November 2009 to June 2016), averaging about $13.5 million annually. The nature of 'site support' can vary significantly across DOE locations, encompassing everything from basic facility maintenance and security to highly specialized scientific support. To make a meaningful comparison, one would need to identify contracts with similar geographic scope, facility complexity, and service requirements, adjusting for inflation and differing contract types (e.g., CPAF vs. fixed-price). Without such granular data, the $90.3 million figure serves primarily as an indicator of the scale of investment for this specific contract.
What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude and duration?
The primary risks associated with a CPAF contract like the ESPA Site Support Contract, valued at $90.3 million over nearly seven years, revolve around cost control and potential for contractor inefficiency. CPAF contracts offer the contractor reimbursement for allowable costs plus a base fee, with the potential for an additional award fee based on performance. The risk is that the 'cost-plus' nature can reduce the contractor's incentive to control costs rigorously, as costs incurred are generally reimbursed. The 'award fee' component aims to mitigate this by incentivizing performance, but if the performance criteria are not well-defined, measurable, or aggressively monitored, the contractor may achieve higher fees without necessarily delivering exceptional value or efficiency. Furthermore, the long duration increases the risk of scope creep, evolving requirements not being adequately addressed, and potential complacency by the contractor over time.
Given only 4 bidders, what does this imply about the market for specialized site support services for federal R&D facilities?
The fact that only four bidders responded to the 'full and open' solicitation for the ESPA Site Support Contract suggests a potentially concentrated or specialized market for comprehensive site support services at federal Research and Development (R&D) facilities. This could indicate several factors: 1) High barriers to entry, such as significant capital investment, specialized expertise, security clearances, and established relationships required to compete effectively. 2) A limited number of companies possess the necessary scale and capabilities to manage such extensive operations. 3) The specific requirements of the contract, while broadly solicited, may have inadvertently favored a smaller pool of incumbent or highly specialized firms. This limited competition raises concerns about potential price inflation and reduced innovation compared to a market with more robust participation.
What is the historical spending trend for ESPA Site Support or similar services at the Department of Energy?
Analyzing the historical spending trend for ESPA Site Support or similar services at the Department of Energy requires access to historical contract data beyond the single award provided. The data indicates a single definitive contract valued at $90.3 million awarded to Booz Allen Hamilton from 2009 to 2016. To understand trends, one would need to examine: 1) Previous contracts for ESPA site support before 2009. 2) Subsequent contracts awarded after 2016 for the same or similar services at ESPA. 3) Spending patterns for comparable site support contracts across other DOE facilities. Without this broader context, it's impossible to determine if spending has increased, decreased, or remained stable over time. The provided data only captures one significant contract period, making trend analysis impossible.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: DE-SO26-08000664
Offers Received: 4
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Booz Allen Hamilton Holding Corporation
Address: 8283 GREENSBORO DR, MCLEAN, VA, 22102
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $95,996,389
Exercised Options: $95,996,389
Current Obligation: $90,345,893
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-11-15
Current End Date: 2016-06-30
Potential End Date: 2016-06-30 00:00:00
Last Modified: 2025-06-02
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