Marine Corps awarded $22.2M engineering services contract to Booz Allen Hamilton Inc

Contract Overview

Contract Amount: $22,187,805 ($22.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2015-09-29

End Date: 2018-09-28

Contract Duration: 1,095 days

Daily Burn Rate: $20.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: UNITED STATES MARINE CORPS MARINE CORPS INSTALLATIONS COMMAND IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20350

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $22.2 million to BOOZ ALLEN HAMILTON INC for work described as: UNITED STATES MARINE CORPS MARINE CORPS INSTALLATIONS COMMAND IGF::OT::IGF Key points: 1. Contract value represents a significant investment in engineering support for Marine Corps installations. 2. Booz Allen Hamilton Inc. has a substantial presence in the federal contracting space. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The duration of the contract (1095 days) indicates a long-term need for these services. 5. Engineering services are critical for maintaining and upgrading military infrastructure. 6. The contract's focus on delivery orders suggests flexibility in tasking and resource allocation.

Value Assessment

Rating: good

The contract value of $22.2 million for engineering services over three years appears reasonable given the scope and the contractor's expertise. Benchmarking against similar large-scale engineering support contracts for military installations suggests this award falls within expected ranges. The pricing structure, based on labor hours, allows for flexibility but requires diligent oversight to ensure cost-effectiveness and prevent scope creep. Without specific task order details, a precise value-for-money assessment is challenging, but the competitive award process provides a degree of confidence.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. While the specific number of bidders is not provided, this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the Marine Corps sought the best possible solution from the widest range of qualified contractors.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it is intended to drive down costs and ensure the government receives optimal value for its investment in engineering services.

Public Impact

The primary beneficiaries are the United States Marine Corps, receiving essential engineering support for its installations. Services delivered likely include design, planning, and oversight for infrastructure projects and maintenance. The geographic impact is centered around Marine Corps installations, potentially across various regions. The contract supports a workforce of engineers and technical specialists, contributing to employment in the sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if labor hours are not managed effectively.
Risk of scope creep if task orders are not clearly defined and monitored.
Dependence on a single large contractor could limit future flexibility if not managed strategically.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Contractor (Booz Allen Hamilton) has extensive experience in federal contracting.
Long contract duration suggests a stable and predictable need for services.
Focus on engineering services supports critical military infrastructure.

Sector Analysis

This contract falls within the Engineering Services sector, a vital component of the broader professional services market supporting government operations. The federal government is a significant consumer of engineering services, particularly for defense, infrastructure, and research and development. Comparable spending benchmarks for large-scale military engineering support contracts often run into tens or hundreds of millions of dollars annually, depending on the scope and agency. This award represents a mid-tier investment within this category.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Booz Allen Hamilton Inc., is likely a large business. While there is no direct information on subcontracting plans, large prime contractors are often encouraged or required to subcontract portions of their work to small businesses to foster participation in the federal marketplace. The impact on the small business ecosystem would depend on the extent to which Booz Allen Hamilton engages small businesses as subcontractors for specialized services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the designated contract specialist or administrator within the Marine Corps Installations Command or the General Services Administration (GSA). Accountability measures are embedded in the contract terms, including performance standards, delivery schedules, and payment milestones tied to satisfactory performance. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction may apply if specific allegations of fraud, waste, or abuse arise.

Related Government Programs

Marine Corps Base Operations Support
Department of Defense Engineering Services
Military Construction Program
Federal Facilities Engineering Support
Professional Services Contracts

Risk Flags

Potential for cost overruns due to labor hour pricing
Need for diligent oversight of task orders and work performed
Ensuring competitive pricing within delivery orders over the contract life

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $22.2 million to BOOZ ALLEN HAMILTON INC. UNITED STATES MARINE CORPS MARINE CORPS INSTALLATIONS COMMAND IGF::OT::IGF

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 $22.2 million.

What is the period of performance?

Start: 2015-09-29. End: 2018-09-28.

What is Booz Allen Hamilton Inc.'s track record with the Marine Corps and other federal agencies for similar engineering services contracts?

Booz Allen Hamilton Inc. is a well-established government contractor with a significant history of providing professional and technical services across various federal agencies, including the Department of Defense. Their track record with the Marine Corps likely includes numerous contracts for support services, IT, and consulting. Analyzing their past performance on similar engineering services contracts would involve reviewing contract databases for awards, performance ratings (if available), and any documented issues or successes. Generally, their extensive experience suggests a capacity to handle complex engineering requirements, but specific performance on past Marine Corps contracts would offer a more precise indicator of reliability and effectiveness.

How does the awarded amount of $22.2 million compare to historical spending on engineering services by the Marine Corps Installations Command?

To accurately compare the $22.2 million award, historical spending data for engineering services by the Marine Corps Installations Command (MCIC) would need to be analyzed over several fiscal years. This would involve identifying similar contract vehicles and task orders for engineering support, facility management, and infrastructure development. Without direct access to MCIC's detailed historical procurement data, a precise benchmark is difficult. However, $22.2 million over three years represents an average annual spend of approximately $7.4 million. This figure should be contextualized against the overall budget of MCIC and the scale of its installation portfolio. If MCIC typically awards larger, multi-year contracts in the tens or hundreds of millions for comprehensive engineering support, this award might be considered moderate. Conversely, if their typical awards are smaller, this could represent a significant investment.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of this contract?

The success of this contract would likely be evaluated based on a set of Key Performance Indicators (KPIs) defined in the contract's Performance Work Statement (PWS). These typically include metrics related to timeliness of service delivery, quality of engineering designs and reports, adherence to budget constraints for specific tasks, compliance with safety and environmental regulations, and overall customer satisfaction. For example, KPIs might track the percentage of projects completed on or ahead of schedule, the number of design revisions required, or the successful resolution of engineering challenges. The contracting officer's representative (COR) would be responsible for monitoring these KPIs and providing regular performance feedback to the contractor, Booz Allen Hamilton Inc.

What is the potential risk associated with the 'delivery order' (aw: DELIVERY ORDER) contract type for this engineering services award?

The 'delivery order' contract type, often used within a larger indefinite-delivery/indefinite-quantity (IDIQ) or similar framework, allows the government to issue specific orders for services as needed over the contract period. For this $22.2 million award to Booz Allen Hamilton Inc., the primary risk associated with delivery orders is the potential for uneven workload distribution and the challenge of accurately forecasting future needs. If task orders are concentrated heavily in certain periods, it could strain resources or lead to inefficiencies. Conversely, if orders are sparse, the contractor might face underutilization. From a cost perspective, the risk lies in ensuring that the pricing for each delivery order remains competitive and reflects fair market value, especially if the government's negotiating position weakens over time or if the scope of work evolves significantly.

How does the 'labor hours' (pt: LABOR HOURS) pricing structure impact cost control and value for money for the Marine Corps?

The 'labor hours' pricing structure means that the government pays the contractor based on the actual hours worked by their personnel, multiplied by pre-negotiated hourly rates. This structure offers flexibility, allowing the Marine Corps to adjust the level of effort based on evolving project needs without being locked into fixed-price deliverables that might become obsolete or insufficient. However, it also introduces a significant risk for cost control. Without robust oversight, there's a potential for inflated hours, inefficient work practices, or scope creep, which can drive up the total cost beyond initial expectations. To ensure value for money, the Marine Corps must diligently monitor the hours charged, verify the necessity and efficiency of the work performed, and ensure that the hourly rates themselves are competitive and reflect fair market value for the skills provided.

What is the significance of the contract being awarded by the General Services Administration (GSA) on behalf of the Marine Corps Installations Command?

The fact that the General Services Administration (GSA) awarded this contract (ag: General Services Administration) on behalf of the Marine Corps Installations Command (MCIC) signifies the utilization of GSA's contracting vehicles and expertise. GSA often manages large, complex contracts for other federal agencies through its Federal Acquisition Service (FAS) or other specialized divisions. This arrangement allows agencies like the Marine Corps to leverage GSA's established procurement processes, pre-negotiated contract terms, and potentially access a wider pool of pre-qualified contractors. For taxpayers, this can lead to efficiencies and cost savings through economies of scale and standardized acquisition procedures, although it also means the Marine Corps relies on GSA's oversight and contract administration.

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: ID11150034

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

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: $39,896,684

Exercised Options: $22,187,805

Current Obligation: $22,187,805

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $2,442,496

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU108

IDV Type: IDC

Timeline