DoD's $211M A&AS Contract with Booz Allen Hamilton Faces Scrutiny for Value and Competition
Contract Overview
Contract Amount: $211,064,049 ($211.1M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2016-05-26
End Date: 2021-12-31
Contract Duration: 2,045 days
Daily Burn Rate: $103.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Official Description: IGF::CL::IGF BASE YEAR A&AS SERVICES
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $211.1 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::CL::IGF BASE YEAR A&AS SERVICES Key points: 1. Significant contract value of $211M awarded to a single large business. 2. Competition method was 'Full and Open', but contract type 'Cost Plus Award Fee' warrants further review. 3. Potential risks include cost overruns and lack of clear performance metrics. 4. Services fall under 'All Other Professional, Scientific, and Technical Services', a broad category.
Value Assessment
Rating: questionable
The Cost Plus Award Fee structure can incentivize cost growth. Benchmarking against similar A&AS contracts is needed to assess if the $211M award represents fair value for the services rendered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While the contract was awarded under full and open competition, the Cost Plus Award Fee (CPA) pricing structure may not have driven the most cost-effective outcome. The impact on price discovery is moderate, as competition was present but the contract type allows for flexibility.
Taxpayer Impact: Taxpayers may be impacted if the award fee structure leads to costs exceeding what could have been achieved through a more fixed-price or performance-based contract.
Public Impact
Defense Threat Reduction Agency relies on these services for critical operations. The broad nature of 'All Other Professional, Scientific, and Technical Services' could encompass a wide range of activities. Transparency in award fee determination is crucial for public trust. Contract duration of over 5 years suggests a long-term reliance on these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure
- Broad service category
- No small business participation noted
Positive Signals
- Full and open competition utilized
- Established contractor with relevant experience
Sector Analysis
This contract falls under professional, scientific, and technical services, a sector often characterized by high value and specialized expertise. Benchmarks for similar A&AS contracts can vary widely based on scope and complexity.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
Oversight is critical for Cost Plus Award Fee contracts to ensure the government receives the best value and that award fees are justified by performance. The Defense Contract Audit Agency (DCAA) and the agency's contracting officers play key roles.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Defense Contracting
- Defense Threat Reduction Agency Programs
Risk Flags
- Potential for cost overruns due to CPA structure
- Lack of small business participation
- Broad service category may lack specificity
- Award fee justification requires scrutiny
Tags
all-other-professional-scientific-and-te, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $211.1 million to BOOZ ALLEN HAMILTON INC. IGF::CL::IGF BASE YEAR A&AS 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 (Defense Threat Reduction Agency).
What is the total obligated amount?
The obligated amount is $211.1 million.
What is the period of performance?
Start: 2016-05-26. End: 2021-12-31.
What specific metrics were used to determine the award fees, and how were they aligned with the agency's mission objectives?
The effectiveness of award fees hinges on clearly defined, measurable, and achievable metrics directly tied to the Defense Threat Reduction Agency's mission. Without insight into these specific metrics, it's difficult to ascertain if the award fees truly reflect exceptional performance or simply met baseline expectations, potentially leading to suboptimal value for taxpayer funds.
How does the 'Cost Plus Award Fee' structure compare to alternative contract types in managing risk for this specific service category?
The 'Cost Plus Award Fee' (CPA) structure transfers significant cost risk to the government, unlike fixed-price contracts. While it allows for flexibility and incentivizes performance through award fees, it can also lead to cost overruns if not rigorously overseen. Alternative structures like Firm-Fixed-Price (FFP) or Performance-Based Contracts (PBCs) might offer better cost certainty and risk mitigation for well-defined services.
What is the estimated cost per unit or per hour for the services provided under this contract, and how does it benchmark against industry standards?
The provided data does not include specific per-unit or per-hour cost information, making direct benchmarking difficult. The total contract value of $211M over approximately 5.5 years suggests a substantial investment. A detailed cost analysis comparing the contractor's rates and overhead to industry averages for similar A&AS services would be necessary to assess cost-effectiveness.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HDTRA115R0005
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
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: $225,177,234
Exercised Options: $225,177,234
Current Obligation: $211,064,049
Actual Outlays: $19,342,746
Subaward Activity
Number of Subawards: 18
Total Subaward Amount: $3,658,983
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2016-05-26
Current End Date: 2021-12-31
Potential End Date: 2021-12-31 00:00:00
Last Modified: 2023-03-28
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