Booz Allen Hamilton awarded $16.6M for advisory and assistance services to the Department of the Navy
Contract Overview
Contract Amount: $16,632,744 ($16.6M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2009-04-29
End Date: 2014-05-29
Contract Duration: 1,856 days
Daily Burn Rate: $9.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: CONTRACT MANNING, ADVISORY AND ASSISTANCE SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20318
Plain-Language Summary
Department of Defense obligated $16.6 million to BOOZ ALLEN HAMILTON INC for work described as: CONTRACT MANNING, ADVISORY AND ASSISTANCE SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Services provided under this contract fall under Engineering Services, a broad category. 3. The contract duration of 1856 days indicates a long-term engagement. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 5. The award was made to a single contractor, Booz Allen Hamilton Inc. 6. The contract was a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.
Value Assessment
Rating: fair
Benchmarking the value of this $16.6 million contract is challenging without specific performance metrics or comparable contracts. The Cost Plus Fixed Fee (CPFF) structure means the final cost could vary, but the fixed fee provides some predictability. Comparing the per-diem rates or overall cost to similar advisory and assistance contracts within the Department of Defense would be necessary for a more precise value assessment. The absence of detailed performance data makes it difficult to definitively assess value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data shows two bids were received. While two bidders is more than a sole-source award, it may suggest limited competition depending on the scope and market for these specific advisory and assistance services.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and service quality.
Public Impact
The Department of the Navy benefits from specialized advisory and assistance services. Services likely support strategic planning, program management, or technical consulting within the Navy. The contract's impact is primarily within the Department of Defense's operational and administrative functions. Workforce implications are likely related to the contractor's personnel supporting Navy initiatives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
- Limited competition (2 bidders) may not have driven the most aggressive pricing.
- The broad nature of 'Engineering Services' could obscure specific performance issues.
Positive Signals
- Awarded through full and open competition, indicating a fair process.
- Booz Allen Hamilton is a well-established contractor with significant experience in government services.
- The contract duration suggests a stable, ongoing need for these services.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically engineering services. The federal government is a major consumer of such services, with significant annual spending on advisory, assistance, and engineering support across various agencies. This contract represents a portion of the Department of Defense's broader investment in specialized expertise to support its complex missions.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, Booz Allen Hamilton, may engage small businesses as subcontractors, depending on their internal subcontracting plans and the specific needs of the services rendered.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Navy. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is generally maintained through contract databases like FPDS-NG, though specific performance details may be less public.
Related Government Programs
- Department of Defense Advisory and Assistance Services
- Engineering Services Contracts
- Professional, Scientific, and Technical Services
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Limited competition (2 bidders) may impact price optimization.
- Broad 'Engineering Services' category could obscure specific performance issues.
Tags
department-of-defense, department-of-the-navy, engineering-services, advisory-and-assistance, cost-plus-fixed-fee, full-and-open-competition, delivery-order, booz-allen-hamilton, district-of-columbia, professional-scientific-and-technical-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.6 million to BOOZ ALLEN HAMILTON INC. CONTRACT MANNING, ADVISORY AND ASSISTANCE SERVICES
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 Navy).
What is the total obligated amount?
The obligated amount is $16.6 million.
What is the period of performance?
Start: 2009-04-29. End: 2014-05-29.
What is the typical cost structure for advisory and assistance services contracts awarded by the Department of Defense?
Advisory and Assistance (A&A) services contracts within the Department of Defense (DoD) can utilize various cost structures, including Cost Plus Fixed Fee (CPFF), Cost Plus Incentive Fee (CPIF), Time and Materials (T&M), and Firm-Fixed-Price (FFP). CPFF, as seen in this contract, is common for services where the scope is not precisely defined at the outset, allowing for flexibility while providing a fixed fee to the contractor. CPIF adds performance incentives. T&M is used when the level of effort is uncertain. FFP is preferred when the scope is well-defined to ensure price certainty. The choice of contract type depends on the level of risk, the clarity of the statement of work, and the desired flexibility for both the government and the contractor. Each type has implications for cost control, contractor profit, and government oversight.
How does the competition level of two bidders compare to similar engineering services contracts?
A competition level of two bidders for an engineering services contract, especially one valued at $16.6 million over five years, is on the lower side of ideal for full and open competition. While it signifies that the contract was not sole-sourced, it raises questions about market saturation and the effectiveness of outreach efforts. Ideally, full and open competition aims to attract a larger pool of qualified bidders to foster robust price discovery and ensure the government receives the best value. A low number of bids could indicate high barriers to entry, specialized requirements, or insufficient market research. Further analysis would involve examining the number of bids received on comparable engineering services contracts within the Department of the Navy or DoD to establish a benchmark.
What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract for advisory services?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the government may end up paying more than necessary if the contractor does not diligently manage costs. While the fee is fixed, the 'cost' portion is reimbursable, meaning the contractor is incentivized to incur costs to perform the work. If the contractor is inefficient or if the scope expands without adequate adjustments, costs can escalate. The government bears the risk of cost overruns. Effective oversight, detailed cost reporting, and clear performance metrics are crucial to mitigate these risks and ensure the contractor remains focused on efficient service delivery within the estimated cost parameters.
What is Booz Allen Hamilton's track record with Department of Defense contracts?
Booz Allen Hamilton Inc. is a major government contractor with an extensive history of serving the Department of Defense (DoD). They have been awarded numerous contracts across various service categories, including IT, management consulting, engineering, and intelligence analysis. Their track record with the DoD is generally characterized by a large volume of work and significant contract values. While specific performance details for individual contracts are often not publicly detailed, their sustained presence and substantial awards suggest a strong capability to meet DoD requirements. As with any large contractor, there may be instances of contract disputes or performance issues, but their overall engagement with the DoD is extensive and long-standing.
How does the $16.6 million contract value compare to overall federal spending on engineering services?
The $16.6 million contract value for engineering services awarded to Booz Allen Hamilton by the Department of the Navy is a significant sum for a single contract. However, when viewed against the backdrop of total federal spending on engineering services, it represents a relatively small fraction. The U.S. government, particularly the Department of Defense, spends billions of dollars annually on engineering, research, development, and technical support services. This contract is one of many contributing to the vast ecosystem of support required by federal agencies. Benchmarking this specific award against the total federal outlays for NAICS code 541330 (Engineering Services) would place it within the context of broader government procurement trends in this sector.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002409R3202
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)
Address: BOOZ ALLEN HAMILTON INC, MC LEAN, VA, 22102
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $18,660,785
Exercised Options: $18,660,785
Current Obligation: $16,632,744
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4024
IDV Type: IDC
Timeline
Start Date: 2009-04-29
Current End Date: 2014-05-29
Potential End Date: 2014-05-29 00:00:00
Last Modified: 2017-06-28
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