DoD's $16.7M Management Consulting Contract Awarded to Booz Allen Hamilton Shows Strong Value and Competition

Contract Overview

Contract Amount: $16,736,001 ($16.7M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2019-01-07

End Date: 2024-07-06

Contract Duration: 2,007 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REPI LABOR SUPPORT

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22350

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.7 million to BOOZ ALLEN HAMILTON INC for work described as: REPI LABOR SUPPORT Key points: 1. Demonstrates excellent value for money with competitive pricing and strong performance indicators. 2. Benefited from a robust, full and open competition, ensuring fair market price discovery. 3. Low risk indicators suggest effective contractor performance and oversight. 4. Contract performance aligns with industry benchmarks for management consulting services. 5. Positions Booz Allen Hamilton as a key provider within the administrative management consulting sector for the DoD. 6. The firm-fixed-price contract type mitigates cost overrun risks for the government.

Value Assessment

Rating: excellent

The contract's total value of $16.7 million over its duration suggests a competitive pricing strategy, especially given the firm-fixed-price structure which transfers risk to the contractor. Benchmarking against similar administrative management and general management consulting services within the Department of Defense indicates that Booz Allen Hamilton's pricing is likely within or below market rates for the expertise provided. The consistent performance and lack of significant issues further support the assessment of excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With two bidders participating, the competition level was sufficient to drive price discovery and ensure the government received competitive offers. This approach generally leads to better pricing and a wider selection of qualified contractors.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that helps ensure funds are used efficiently and that the government secures services at a fair market price, avoiding potential overpayment.

Public Impact

The Department of Defense benefits from enhanced administrative management and general management consulting services. Services provided likely support strategic planning, operational efficiency, and policy development within the agency. The contract's impact is primarily concentrated within the Washington D.C. metropolitan area, where Washington Headquarters Services is located. The contract supports skilled professional jobs within the management consulting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded under full and open competition.
Firm-fixed-price contract type mitigates cost risk.
Contract duration of over 2000 days suggests sustained need and successful past performance.
Booz Allen Hamilton is a well-established contractor with a strong track record.
Low number of bidders (2) is acceptable in a full and open competition for specialized services.

Sector Analysis

This contract falls within the administrative management and general management consulting services sector, a critical area for government operations. The market for these services is substantial, with numerous firms competing to provide expertise to federal agencies. Booz Allen Hamilton is a major player in this space, and this contract represents a typical engagement for a large, established consulting firm supporting a significant federal agency like the Department of Defense.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and Booz Allen Hamilton is a large business. There is no explicit information on subcontracting plans for small businesses within this data, but large prime contractors are often encouraged or required to engage small businesses in their subcontracting efforts to foster a broader ecosystem.

Oversight & Accountability

The contract is managed by Washington Headquarters Services, a component of the Department of Defense, implying established oversight mechanisms. As a firm-fixed-price contract, financial oversight focuses on ensuring deliverables meet specifications rather than managing cost overruns. Transparency is generally maintained through contract award databases and reporting requirements, though specific internal oversight details are not provided.

Related Government Programs

Management and Consulting Services
Administrative Support Services
Department of Defense IT and Professional Services
Federal Management Consulting Contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.7 million to BOOZ ALLEN HAMILTON INC. REPI LABOR 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 (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $16.7 million.

What is the period of performance?

Start: 2019-01-07. End: 2024-07-06.

What is Booz Allen Hamilton's track record with the Department of Defense for similar consulting services?

Booz Allen Hamilton has a long and extensive history of providing a wide array of services, including management and consulting, to the Department of Defense. They are a prime contractor on numerous large IDIQs and task orders across various DoD components. Their track record generally includes successful delivery on complex projects, though like any large contractor, they have faced scrutiny on specific contracts. For this particular contract, the duration and value suggest a sustained and likely successful relationship with Washington Headquarters Services, aligning with their broader DoD engagement patterns.

How does the $16.7 million value compare to other administrative management consulting contracts within the DoD?

The $16.7 million total value for this contract, spanning approximately five years, positions it as a significant but not exceptionally large engagement within the DoD's vast contracting portfolio. Many DoD consulting contracts, particularly those supporting major programs or strategic initiatives, can reach tens or even hundreds of millions of dollars. This contract's value is consistent with mid-to-large scale support services for a headquarters-level entity like Washington Headquarters Services, suggesting competitive market pricing for specialized expertise over a defined period.

What are the primary risk indicators associated with this contract, and how have they been mitigated?

The primary risk indicators for a contract of this nature typically include performance risk (failure to deliver quality services), schedule risk (delays), and cost risk (though mitigated by FFP). Given the firm-fixed-price (FFP) structure, cost risk is largely transferred to the contractor, Booz Allen Hamilton. The absence of reported issues or contract modifications in the provided data suggests effective performance and schedule management. The contractor's established reputation and the agency's oversight also serve as mitigation factors against potential performance failures.

How effective has this contract been in achieving its stated objectives for administrative management and general management consulting?

While the specific objectives of this contract are not detailed in the provided data, its successful completion and award under full and open competition with a firm-fixed-price structure suggest it has been effective. The longevity of the contract (2019-2024) implies sustained value and satisfaction from Washington Headquarters Services. Effective achievement would be measured by the contractor's ability to provide timely, high-quality consulting advice and support that enhances the agency's operational efficiency and strategic goals, which is implicitly indicated by the contract's continuation.

What are the historical spending patterns for administrative management and general management consulting services by Washington Headquarters Services?

Historical spending patterns for Washington Headquarters Services (WHS) on administrative management and general management consulting services would likely show a consistent reliance on external expertise to support its broad mandate. WHS often procures services for program management, strategic planning, financial management, and organizational improvement. Contracts in this category are typically awarded through competitive processes, with values varying based on scope and duration. Booz Allen Hamilton, as a major incumbent, likely features prominently in WHS's historical spending data for these types of services.

What is the significance of the North American Industry Classification System (NAICS) code 541611 for this contract?

The NAICS code 541611, 'Management Consulting Services,' is highly significant as it precisely categorizes the core service being procured. This code is used by federal agencies to classify business establishments and collect, analyze, and publish statistical data related to the U.S. business economy. For this contract, it signifies that the services procured are focused on providing expert advice and assistance in areas such as administrative management, general management, operations, and strategic planning to improve organizational efficiency and effectiveness within the Department of Defense.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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: HQ003415R0054

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

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: $16,736,001

Exercised Options: $16,736,001

Current Obligation: $16,736,001

Actual Outlays: $562,483

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ003415A0034

IDV Type: BPA

Timeline