DoD's $39M Logistics, Technical, Engineering Support Contract Awarded to Booz Allen Hamilton
Contract Overview
Contract Amount: $39,084,049 ($39.1M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2009-09-18
End Date: 2015-03-17
Contract Duration: 2,006 days
Daily Burn Rate: $19.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: COST NO FEE
Sector: Other
Official Description: LOGISTICS, TECHNICAL, ENGINEERING, AND TRAINING SUPPORT
Place of Performance
Location: INDIAN HEAD, CHARLES County, MARYLAND, 20640, UNITED STATES OF AMERICA
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $39.1 million to BOOZ ALLEN HAMILTON INC for work described as: LOGISTICS, TECHNICAL, ENGINEERING, AND TRAINING SUPPORT Key points: 1. Contract awarded to a single, large incumbent provider. 2. Significant contract value over its duration. 3. Focus on engineering and technical services suggests specialized needs. 4. Limited information on specific performance metrics or outcomes.
Value Assessment
Rating: fair
The contract's Cost No Fee (CNF) pricing structure makes direct value assessment difficult without detailed cost breakdowns. Benchmarking against similar large-scale logistics and engineering support contracts is challenging due to the unique nature of CNF and the specific services provided.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. However, the award to a single entity suggests Booz Allen Hamilton was the most competitive bidder for the specific requirements.
Taxpayer Impact: Taxpayer impact is difficult to quantify precisely due to the CNF structure, but competition aims to ensure reasonable pricing for the services rendered.
Public Impact
Ensures continued operational readiness and technical expertise for naval operations. Supports critical logistics and engineering functions for the Department of the Navy. Potential for knowledge transfer and capacity building within the DoD.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost No Fee structure limits transparency on actual costs.
- Lack of detailed performance metrics makes outcome assessment difficult.
- Long contract duration could lead to vendor lock-in.
Positive Signals
- Awarded through full and open competition.
- Provides essential support services to a major government agency.
- Incumbent provider likely possesses deep institutional knowledge.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically engineering services. Spending in this area is substantial across the federal government, supporting complex military and civilian operations. Benchmarks vary widely based on service type and duration.
Small Business Impact
The contract data indicates no specific set-aside for small businesses. Given the large contract value and specialized nature of the services, it is likely that large businesses dominated the bidding and execution.
Oversight & Accountability
Oversight would typically be managed by the Department of the Navy contracting officers and program managers. The Cost No Fee structure requires diligent monitoring to ensure contractor performance meets contract requirements without direct cost reimbursement.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost No Fee structure lacks cost transparency.
- Long contract duration may limit future competition.
- Limited public data on specific performance outcomes.
- No explicit small business participation noted.
Tags
engineering-services, department-of-defense, md, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.1 million to BOOZ ALLEN HAMILTON INC. LOGISTICS, TECHNICAL, ENGINEERING, AND TRAINING 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 Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $39.1 million.
What is the period of performance?
Start: 2009-09-18. End: 2015-03-17.
What was the rationale for selecting a Cost No Fee (CNF) pricing structure for this significant engineering and logistics support contract?
The Cost No Fee (CNF) structure is often employed when the government has a high degree of confidence in the contractor's ability to manage costs effectively or when the services are highly specialized and difficult to pre-price. It shifts the cost risk to the contractor, incentivizing efficiency. However, it can reduce transparency for the government regarding the contractor's actual expenditures and profit margins.
How does the government ensure effective performance and value for money under a CNF contract, especially for long-duration, high-value awards?
Effective performance and value under CNF contracts rely heavily on robust contract oversight, clear performance metrics, and strong relationship management. The government must meticulously track deliverables, milestones, and adherence to technical specifications. Regular performance reviews and feedback mechanisms are crucial to ensure the contractor is meeting expectations and providing value, even without direct cost auditing.
What are the potential long-term implications of awarding such a comprehensive support contract to a single entity for an extended period?
Awarding a comprehensive support contract to a single entity for an extended period can lead to deep institutional knowledge and streamlined operations. However, it also carries risks such as potential vendor lock-in, reduced incentive for innovation if competition is stifled, and a greater impact if the contractor underperforms or faces financial instability. Periodic reviews and market research are important to mitigate these risks.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002409R3188
Offers Received: 7
Pricing Type: COST NO FEE (S)
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: $39,573,453
Exercised Options: $39,573,453
Current Obligation: $39,084,049
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4024
IDV Type: IDC
Timeline
Start Date: 2009-09-18
Current End Date: 2015-03-17
Potential End Date: 2015-03-17 00:00:00
Last Modified: 2014-12-19
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