DoD's $20.1M Engineering Services Contract Awarded to Booz Allen Hamilton in 2005
Contract Overview
Contract Amount: $20,120,189 ($20.1M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2005-08-11
End Date: 2010-05-31
Contract Duration: 1,754 days
Daily Burn Rate: $11.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $20.1 million to BOOZ ALLEN HAMILTON INC for work described as: Key points: 1. Contract awarded to a large, established firm, Booz Allen Hamilton. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract spanned nearly five years, indicating a long-term need for services. 4. The sector is Engineering Services within the Department of Defense.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee, which can lead to higher costs if not managed effectively. The award amount of $20.1M over 1754 days suggests a moderate daily rate, but without specific deliverables or performance metrics, a precise value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive sign for price discovery. However, the specific details of the bidding process and the number of bidders are not provided, making it hard to fully assess the competitive pressure on pricing.
Taxpayer Impact: The competitive nature of the award is intended to ensure taxpayer funds are used efficiently, but the cost-plus structure warrants careful oversight to prevent cost overruns.
Public Impact
Defense spending on engineering services impacts national security capabilities. Long-term contracts can provide stability for contractors but may limit flexibility for the agency. The use of a large, well-known contractor like Booz Allen Hamilton is common in this sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contract type can incentivize cost growth.
- Lack of specific performance metrics makes value assessment challenging.
- Contract duration is long, potentially reducing agency flexibility.
Positive Signals
- Full and open competition utilized.
- Awarded to a reputable firm with extensive experience.
- Contract served a critical agency need for an extended period.
Sector Analysis
Engineering services are crucial for the Department of Defense's infrastructure, research, and development. Spending in this sector is significant, and contracts often involve complex technical requirements and long durations, making competitive bidding and oversight paramount.
Small Business Impact
The contract was awarded to Booz Allen Hamilton, a large business. There is no indication that small businesses were involved as subcontractors or prime contractors in this specific award.
Oversight & Accountability
The contract type (Cost Plus Award Fee) necessitates robust oversight to ensure performance and control costs. The agency's ability to manage award fees effectively and monitor contractor performance is key to accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Award Fee structure can lead to higher costs.
- Long contract duration may reduce agency flexibility.
- Lack of detailed performance metrics makes value assessment difficult.
- Potential for contractor to maximize profit through cost escalation.
Tags
engineering-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.1 million to BOOZ ALLEN HAMILTON INC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is BOOZ ALLEN HAMILTON INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $20.1 million.
What is the period of performance?
Start: 2005-08-11. End: 2010-05-31.
What were the key performance indicators (KPIs) and award fee criteria that drove the 'award fee' component of this contract, and how effectively were they met?
The effectiveness of the award fee component hinges on clearly defined, measurable KPIs aligned with the contract's objectives. Without access to the specific criteria and performance evaluations, it's impossible to determine if the award fee truly reflected exceptional performance or simply incentivized meeting baseline requirements, potentially inflating costs beyond optimal value for the taxpayer.
Given the nearly five-year duration and Cost Plus Award Fee structure, what mechanisms were in place to mitigate potential cost overruns and ensure continued competitive pricing?
Mitigation strategies for Cost Plus Award Fee contracts typically include stringent oversight, detailed cost reporting, and well-defined ceilings. However, the long duration could allow for gradual cost increases if not actively managed. The initial full and open competition sets a baseline, but ongoing price reasonableness checks and potential for re-competition or modifications would be crucial.
How did the specific engineering services provided under this contract contribute to the Department of Defense's mission objectives and overall effectiveness?
The contribution of these engineering services to DoD's mission is directly tied to the nature of the work performed, such as design, analysis, or technical support for defense systems or infrastructure. While the contract's existence implies a need, its specific impact on mission effectiveness would require analyzing the project outcomes, the systems supported, and whether the services enabled critical defense capabilities or operational readiness.
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: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)
Address: 8283 GREENSBORO DRIVE, MCLEAN, VA, 22102
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2005-08-11
Current End Date: 2010-05-31
Potential End Date: 2010-05-31 00:00:00
Last Modified: 2017-05-04
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