Booz Allen Hamilton awarded $22.9M for Navy renewable energy support, highlighting engineering services for GSA

Contract Overview

Contract Amount: $22,934,758 ($22.9M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2015-06-26

End Date: 2018-10-09

Contract Duration: 1,201 days

Daily Burn Rate: $19.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CL::IGF NAVY RENEWABLE ENERGY PROGRAM OFFICE SUPPORT SERVICES

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $22.9 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::CL::IGF NAVY RENEWABLE ENERGY PROGRAM OFFICE SUPPORT SERVICES Key points: 1. Contract value represents a significant investment in specialized engineering expertise. 2. Competition dynamics suggest a robust market for high-level consulting services. 3. Performance period indicates a long-term need for ongoing support. 4. Sector positioning places this contract within the growing renewable energy and defense support landscape. 5. The use of a Cost Plus Fixed Fee contract type warrants scrutiny for cost control.

Value Assessment

Rating: good

The contract value of $22.9 million over approximately 3.3 years for engineering services is within a reasonable range for specialized support to a federal agency like the Navy. Benchmarking against similar large-scale engineering support contracts for defense initiatives suggests that the overall award amount is competitive. The Cost Plus Fixed Fee (CPFF) pricing structure, while common for complex services, requires careful monitoring to ensure that costs remain aligned with the fixed fee and that value is maximized for the taxpayer.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of two bidders suggests a moderate level of competition for this specialized engineering support. While more bidders could potentially drive prices lower, full and open competition generally ensures a fair process and access to a broad range of capabilities.

Taxpayer Impact: Full and open competition, even with two bidders, is generally favorable for taxpayers as it allows for a wider selection of qualified contractors and encourages competitive pricing.

Public Impact

The U.S. Navy benefits from expert engineering support for its renewable energy initiatives. Services delivered include critical analysis and planning for sustainable energy solutions. Geographic impact is primarily within the District of Columbia, where the contracting agency is located. Workforce implications include the employment of highly skilled engineers and consultants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type can lead to cost overruns if not closely managed.
Limited competition (two bidders) might indicate barriers to entry or a niche market.

Positive Signals

Awarded under full and open competition, ensuring a fair process.
Booz Allen Hamilton is a well-established contractor with significant experience in government services.
The contract supports critical renewable energy initiatives, aligning with national sustainability goals.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the growing demand for renewable energy solutions within the federal government, particularly the Department of Defense. The market for specialized engineering consulting services supporting defense and energy initiatives is substantial, with significant government spending allocated annually. This contract represents a portion of that broader spending, focusing on strategic planning and implementation for the Navy's renewable energy programs.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary focus was on securing specialized expertise from large, established firms. The impact on the small business ecosystem is likely minimal for this specific award, though larger prime contractors often engage small businesses for specific components of their work.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA) and the U.S. Navy program office. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Navy Renewable Energy Program
GSA Federal Acquisition Service Contracts
Engineering Services for Defense

Risk Flags

Cost Plus Fixed Fee contract type requires close monitoring for cost control.
Limited number of bidders may indicate market concentration or high entry barriers.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $22.9 million to BOOZ ALLEN HAMILTON INC. IGF::CL::IGF NAVY RENEWABLE ENERGY PROGRAM OFFICE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $22.9 million.

What is the period of performance?

Start: 2015-06-26. End: 2018-10-09.

What is Booz Allen Hamilton's track record with similar government contracts, particularly in renewable energy and engineering services?

Booz Allen Hamilton is a major government contractor with extensive experience across various sectors, including defense, intelligence, and energy. They have a long history of supporting federal agencies with complex engineering, IT, and management consulting services. Their portfolio includes numerous contracts related to energy efficiency, renewable energy integration, and strategic planning for military installations. While specific data on all past renewable energy contracts is not detailed here, their established presence and broad capabilities suggest a strong track record in delivering services aligned with this contract's objectives. Their performance on previous contracts, often rated positively, indicates a capacity to meet the demands of such specialized work.

How does the awarded amount compare to the estimated value or typical costs for similar engineering support services for the Navy?

The awarded amount of $22.9 million for approximately 3.3 years of service represents an average annual value of roughly $7 million. This figure is within the expected range for large-scale, specialized engineering and consulting support for a major federal agency like the Navy, especially concerning strategic initiatives like renewable energy. Benchmarking against publicly available data for similar contracts indicates that this award is competitive. Factors influencing cost include the complexity of the renewable energy goals, the level of expertise required, and the duration of the support. The CPFF structure also means the final cost could vary, but the initial award suggests a well-defined scope and budget.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include potential cost overruns due to the Cost Plus Fixed Fee (CPFF) structure, which allows for reimbursement of costs plus a fixed fee. If not managed diligently, costs could exceed initial projections. Another risk is the potential for scope creep, where the project's objectives expand beyond the original agreement. Mitigation strategies typically involve robust oversight from the GSA and Navy program office, detailed performance metrics, regular progress reviews, and strict change control processes. Ensuring clear communication and adherence to the defined scope are crucial for managing these risks effectively and ensuring value for taxpayer money.

How effective is the chosen contract type (Cost Plus Fixed Fee) for achieving the Navy's renewable energy goals?

The Cost Plus Fixed Fee (CPFF) contract type is often chosen for complex service contracts where the scope of work is not precisely defined at the outset, or where innovation and flexibility are required. For the Navy's renewable energy goals, which can involve evolving technologies and strategic planning, CPFF allows contractors to incur necessary costs while providing a fixed profit margin. This can incentivize contractors to perform the work efficiently to maximize their fee. However, it also places a significant burden on the government to monitor costs closely to prevent overspending. Its effectiveness hinges on strong government oversight and clear performance standards to ensure that the fixed fee is earned through efficient and effective service delivery.

What is the historical spending trend for engineering services supporting the Navy's renewable energy initiatives?

Historical spending data for specific Navy renewable energy engineering support services is not directly available in this summary. However, federal spending on renewable energy and sustainability initiatives across all branches of the military, including the Navy, has generally trended upwards over the past decade. This reflects a broader national and global push towards cleaner energy sources and energy independence, coupled with Department of Defense directives to reduce reliance on fossil fuels and enhance energy security. Contracts for engineering services, strategic planning, and technology integration are key components of this spending.

What are the implications of having only two bidders for this contract in terms of market competition and pricing?

Having only two bidders for this contract suggests a potentially concentrated market for these highly specialized engineering services. While full and open competition was utilized, the limited number of participants could indicate high barriers to entry, such as stringent qualification requirements, specialized expertise, or the significant resources needed to compete effectively. From a pricing perspective, two bidders generally provide some level of competition, which is better than a sole-source award. However, it may not yield the same price discovery benefits as a larger pool of competitors. This situation warrants monitoring to ensure that the selected contractor provides optimal value and that the market remains accessible to other qualified firms in the future.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: RESEARCH AND DEVELOPMENT › Energy R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID03150010

Offers Received: 2

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: $23,376,885

Exercised Options: $22,934,758

Current Obligation: $22,934,758

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU108

IDV Type: IDC

Timeline