Booz Allen Hamilton awarded $16.4M for logistics consulting, with a significant portion spent on time and materials

Contract Overview

Contract Amount: $16,446,469 ($16.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2010-09-30

End Date: 2016-03-29

Contract Duration: 2,007 days

Daily Burn Rate: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: LOGISTICS SUSTAINMENT INITIATIVES

Place of Performance

Location: FORT MONMOUTH, MONMOUTH County, NEW JERSEY, 07703

State: New Jersey Government Spending

Plain-Language Summary

General Services Administration obligated $16.4 million to BOOZ ALLEN HAMILTON INC for work described as: LOGISTICS SUSTAINMENT INITIATIVES Key points: 1. Contract value of $16.4M over its period of performance. 2. Services provided fall under Process, Physical Distribution, and Logistics Consulting. 3. Awarded by the General Services Administration, Federal Acquisition Service. 4. Contract type is Time and Materials, indicating potential for cost overruns. 5. Competition was Full and Open, suggesting a robust bidding process. 6. The contract duration was approximately 5.5 years, from late 2010 to early 2016. 7. The North American Industry Classification System (NAICS) code is 541614.

Value Assessment

Rating: fair

The contract's value of $16.4M over nearly six years averages to roughly $2.7M annually. Without specific deliverables or performance metrics, it's challenging to benchmark the value for money. The use of Time and Materials pricing, especially for consulting services, can lead to higher costs if not closely managed, as it incentivizes longer engagement rather than efficient solutions. Further analysis would require understanding the specific outcomes achieved and comparing them to industry standards for similar logistics consulting engagements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. With 3 bids received, the level of competition appears moderate. While full and open competition is generally favorable for price discovery, the specific number of bidders can influence the final price. A higher number of bidders typically leads to more competitive pricing.

Taxpayer Impact: Taxpayers likely benefited from a competitive bidding process, which should have driven down costs compared to a sole-source award. However, the moderate number of bidders means the full potential for cost savings might not have been realized.

Public Impact

Federal agencies requiring logistics and distribution process improvements are the primary beneficiaries. Services delivered likely focused on optimizing supply chains, transportation, and warehousing operations. The geographic impact is likely nationwide, supporting federal logistics across various locations. Workforce implications could include the need for internal staff to manage and implement recommendations from the consultants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to uncontrolled costs if not managed diligently.
Lack of specific performance metrics makes it difficult to assess the true value delivered.
Consulting services can sometimes be open-ended, potentially extending contract duration and cost.

Positive Signals

Awarded through full and open competition, ensuring a broad range of potential providers.
Moderate number of bids suggests a reasonable level of market interest and potential for competitive pricing.
The contract addresses critical logistics functions for federal agencies.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on logistics consulting. The market for such services is substantial, with numerous firms offering expertise in supply chain management, process optimization, and distribution. Federal spending in this area is crucial for ensuring efficient government operations. Comparable spending benchmarks would depend on the specific scope of services, but large consulting engagements for federal agencies often run into millions of dollars.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and opportunities for small businesses would likely be through subcontracting if initiated by the prime contractor, Booz Allen Hamilton.

Oversight & Accountability

Oversight would typically be managed by the contracting officers and program managers within the General Services Administration. Accountability measures would be tied to the contract's performance clauses and deliverables, if any were specified. Transparency is facilitated by the public nature of federal contract awards, but detailed performance data may not be readily available.

Related Government Programs

Logistics Management Services
Supply Chain Management Consulting
Transportation Consulting Services
Federal Supply Chain Initiatives
Government Logistics Modernization Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of specific performance metrics makes value assessment difficult.
Moderate competition level might not have yielded the lowest possible price.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $16.4 million to BOOZ ALLEN HAMILTON INC. LOGISTICS SUSTAINMENT INITIATIVES

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 $16.4 million.

What is the period of performance?

Start: 2010-09-30. End: 2016-03-29.

What specific logistics challenges did the General Services Administration aim to address with this contract?

The provided data indicates the contract was for 'LOGISTICS SUSTAINMENT INITIATIVES' under NAICS code 541614 (Process, Physical Distribution, and Logistics Consulting Services). This suggests the GSA sought to improve the efficiency, effectiveness, and potentially the cost-management of its logistics operations. This could encompass a wide range of areas, such as optimizing warehousing, improving transportation networks, streamlining inventory management, enhancing distribution processes, or developing new strategies for supply chain resilience. Without access to the specific Statement of Work (SOW) or task orders issued under this contract, the precise challenges remain undefined, but the broad category points towards systemic improvements in federal logistics.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar logistics consulting services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to evolve. For consulting services, T&M can be advantageous for the contractor as it guarantees payment for hours worked and materials used, regardless of the final outcome. However, for the government, T&M carries a higher risk of cost overruns because it lacks a fixed ceiling on total expenditure and can incentivize longer project durations. More favorable contract types for the government, when scope is well-defined, include Firm-Fixed-Price (FFP) or Cost-Plus-Fixed-Fee (CPFF), which provide greater cost certainty and align contractor incentives with efficient delivery of specific outcomes rather than simply time spent.

What was the typical hourly rate or cost structure for Booz Allen Hamilton under this Time and Materials contract?

The provided data does not include specific details on the hourly rates or cost structure for Booz Allen Hamilton under this Time and Materials contract. T&M contracts typically involve agreed-upon hourly rates for different labor categories (e.g., senior consultant, analyst) and a ceiling for materials. To determine the typical rates, one would need to access the contract's pricing details or task orders. These rates can vary significantly based on the experience level of the personnel, the complexity of the work, and prevailing market rates for consulting services. Without this granular data, a precise assessment of the hourly cost is not possible.

Given the $16.4M total award, what was the average annual spending on this contract?

The contract had a period of performance from September 30, 2010, to March 29, 2016. This spans approximately 5 years and 6 months, or roughly 5.5 years. Dividing the total award of $16,446,469.19 by 5.5 years yields an average annual spending of approximately $2,980,000. This figure represents the average rate at which funds were utilized over the contract's lifespan. It's important to note that actual spending could have varied significantly year-to-year, with potential peaks and troughs depending on the intensity of the consulting work being performed.

How does the number of bids (3) compare to the average number of bids for GSA Federal Acquisition Service contracts in the logistics consulting domain?

The data indicates 3 bids were received for this contract. Benchmarking this against the average number of bids for similar contracts awarded by the GSA's Federal Acquisition Service (FAS) in the logistics consulting domain (NAICS 541614) would require access to historical GSA procurement data. Generally, for full and open competition, a higher number of bids suggests more robust market interest and potentially better price competition. Three bids can be considered moderate; some competitive solicitations may receive significantly more, while others, particularly for highly specialized services, might receive fewer. Without comparative data, it's difficult to definitively state if 3 bids were high or low for this specific service category and agency.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting 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: 02FM21100509

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)

Address: 8283 GREENSBORO DR, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,967,003

Exercised Options: $19,662,000

Current Obligation: $16,446,469

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $696,083

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS10F0330L

IDV Type: FSS

Timeline