Defense awards $66.4M contract for Pakistan TST services to Booz Allen Hamilton

Contract Overview

Contract Amount: $66,442,917 ($66.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2021-10-19

End Date: 2025-05-18

Contract Duration: 1,307 days

Daily Burn Rate: $50.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: EO14042- PAKISTAN TST

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $66.4 million to BOOZ ALLEN HAMILTON INC for work described as: EO14042- PAKISTAN TST Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, indicating potential for cost overruns. 2. The contract duration of 1307 days suggests a long-term need for these services. 3. Awarded by the Department of the Air Force, highlighting a specific military support requirement. 4. The North American Industry Classification System (NAICS) code 561990 points to 'All Other Support Services'. 5. The contract's value is substantial, requiring careful monitoring of performance and costs. 6. No small business set-aside was indicated, suggesting a focus on large prime contractors.

Value Assessment

Rating: fair

The contract value of $66.4 million over approximately 3.5 years averages to about $19 million annually. Without specific benchmarks for 'Pakistan TST' services, a direct value-for-money assessment is challenging. However, the cost-plus-fixed-fee structure necessitates close oversight to ensure costs remain reasonable and do not escalate beyond the fixed fee. Comparing this to similar support services contracts for overseas operations would provide better context for pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This limits the opportunity for price discovery through competitive bidding and may result in higher costs for the government. The rationale for a sole-source award, such as unique capabilities or urgent need, would need to be thoroughly documented and justified to ensure taxpayer funds are used efficiently.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is no competitive pressure to drive down costs. This necessitates robust government oversight to ensure fair pricing.

Public Impact

The primary beneficiaries are likely the Department of the Air Force and potentially other branches of the U.S. military operating in or concerned with Pakistan. The services delivered are broadly categorized as 'All Other Support Services', which could encompass a wide range of logistical, administrative, or technical support. The geographic impact is focused on Pakistan, indicating a role in supporting U.S. interests or operations within that region. Workforce implications may include the deployment of personnel, both military and civilian, to support the contract's objectives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and potentially increases costs.
Cost-plus-fixed-fee contract type can incentivize cost overruns if not managed tightly.
Lack of specific service details makes it difficult to assess performance metrics and value.
Long contract duration requires sustained oversight to ensure continued relevance and efficiency.

Positive Signals

Award to a known contractor like Booz Allen Hamilton suggests a level of trust in their capabilities.
The contract is for a defined period, allowing for reassessment at its conclusion.
The fixed-fee component provides some cost control compared to pure cost-reimbursement contracts.

Sector Analysis

The defense support services sector is a significant market within the broader professional services industry. Contracts like this, often involving complex geopolitical regions, require specialized expertise in logistics, security, and cultural understanding. Booz Allen Hamilton is a major player in this space, competing with other large government contractors. Spending in this area is driven by national security objectives and the need for operational support in diverse environments.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This suggests that the primary contractor, Booz Allen Hamilton, will likely perform the majority of the work. This could limit opportunities for small businesses to participate in this specific contract, although they may be involved in the broader defense contracting ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency may be limited due to the sole-source nature and the sensitive geopolitical context. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Defense Support Services
International Operations Support
Logistics and Technical Support Contracts
Geopolitical Support Services

Risk Flags

Sole-source award may indicate a lack of competition, potentially leading to higher costs.
Cost-plus-fixed-fee contract type requires diligent oversight to manage costs.
Ambiguity in service description ('TST') hinders full assessment of value and performance.
Geopolitical context of Pakistan presents inherent security and operational risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $66.4 million to BOOZ ALLEN HAMILTON INC. EO14042- PAKISTAN TST

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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $66.4 million.

What is the period of performance?

Start: 2021-10-19. End: 2025-05-18.

What specific services fall under 'Pakistan TST'?

The abbreviation 'TST' in the context of 'Pakistan TST' is not explicitly defined in the provided data. However, given the awarding agency (Department of the Air Force) and the contractor (Booz Allen Hamilton), it likely refers to a specialized support service related to operations, intelligence, or technical systems within Pakistan. This could encompass a wide range of activities, from logistical support and base operations to intelligence analysis, training, or technical maintenance of equipment. Without further clarification from the contracting agency, the precise nature of these services remains ambiguous, making it difficult to fully assess their necessity and effectiveness.

What is the justification for the sole-source award?

The provided data states the contract was awarded 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this sole-source designation is not included. Typically, sole-source awards are granted when only one responsible source can provide the required supplies or services, often due to unique capabilities, proprietary technology, urgent and compelling needs, or specific follow-on requirements. For a contract of this magnitude ($66.4 million), a detailed justification justifying the lack of competition would be expected and is crucial for ensuring fair and transparent use of government funds.

How does the cost-plus-fixed-fee structure impact potential cost overruns?

A Cost-Plus-Fixed-Fee (CPFF) contract structure means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While the fixed fee provides some cost certainty for the government compared to a pure cost-reimbursement contract, it can still lead to cost overruns if the estimated costs are inaccurate or if the contractor does not manage expenses efficiently. The government bears the risk of cost increases above the estimate, as long as the costs are allowable. Effective oversight is critical to scrutinize incurred costs and ensure they align with the contract's objectives and the fixed fee.

What is Booz Allen Hamilton's track record with similar contracts?

Booz Allen Hamilton is a large, well-established government contractor with extensive experience in providing a wide array of professional and technical services to various federal agencies, including the Department of Defense. They have a significant history of performing complex support services, particularly in areas related to intelligence, defense, and international operations. While specific details on their past performance related to 'Pakistan TST' are not provided, their general profile suggests they possess the organizational capacity and expertise to manage large, complex contracts. A review of their past performance evaluations and any relevant contract disputes would offer a more granular assessment.

Are there any comparable contracts for similar services in the region?

Determining comparable contracts for 'Pakistan TST' services is challenging without a precise definition of 'TST'. However, the Department of Defense and other agencies frequently award contracts for support services in regions like Pakistan, encompassing logistics, security, base operations, and intelligence support. These contracts can range significantly in value and scope. Benchmarking this $66.4 million contract against other DoD support contracts in similar geopolitical environments would be necessary to assess if the pricing and terms are competitive. The sole-source nature of this award makes direct price comparison difficult.

What are the potential risks associated with performing services in Pakistan?

Performing services in Pakistan carries inherent risks, including geopolitical instability, security threats to personnel and assets, and complex logistical challenges. Depending on the nature of the 'TST' services, these risks could range from operational disruptions due to local conditions to direct security incidents. The contract's duration (over 3.5 years) means these risks must be continuously managed and mitigated throughout the performance period. The government and contractor would need robust security protocols, contingency plans, and potentially hazard pay or insurance considerations for deployed personnel.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Other Support Services › All Other Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA863021R5001

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $68,763,023

Exercised Options: $68,696,990

Current Obligation: $66,442,917

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,050,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline