Booz Allen Hamilton awarded $28.8M for Navy Mine Warfare Engineering Support, highlighting specialized technical services

Contract Overview

Contract Amount: $28,797,447 ($28.8M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2013-12-21

End Date: 2016-12-03

Contract Duration: 1,078 days

Daily Burn Rate: $26.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF MINE WARFARE (MW) AND SURFACE MINE COUNTERMEASURES (SMCM) DESIGN AGENT (DA), TECHNICAL DIRECTION AGENT (TDA), IN-SERVICE ENGINEERING AGENT (ISEA), AND FOREIGN MILITARY SALES (FMS) SUPPORT

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $28.8 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF MINE WARFARE (MW) AND SURFACE MINE COUNTERMEASURES (SMCM) DESIGN AGENT (DA), TECHNICAL DIRECTION AGENT (TDA), IN-SERVICE ENGINEERING AGENT (ISEA), AND FOREIGN MILITARY SALES (FMS) SUPPORT Key points: 1. Contract focuses on critical mine warfare and countermeasures design and engineering. 2. Booz Allen Hamilton, a large incumbent, secured this significant award. 3. The contract duration of over 1000 days suggests a need for sustained technical expertise. 4. Engineering services are essential for maintaining and advancing naval defense capabilities. 5. The award falls under the broader category of engineering services for defense applications. 6. This contract supports foreign military sales, indicating international defense cooperation.

Value Assessment

Rating: good

The contract value of $28.8 million over approximately three years for specialized engineering services appears reasonable. While direct comparisons are difficult without specific service breakdowns, Booz Allen Hamilton is a well-established contractor in this domain. The cost-plus-fixed-fee structure allows for flexibility but requires careful oversight to ensure value. Benchmarking against similar complex engineering support contracts for naval systems would provide a more precise assessment of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of three bidders suggests a competitive environment for this specialized service. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers for complex engineering requirements.

Taxpayer Impact: Full and open competition helps ensure taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and encourages innovation.

Public Impact

The U.S. Navy benefits from advanced engineering and technical support for its mine warfare and countermeasures systems. This contract ensures the availability of specialized design, technical direction, and in-service engineering for critical naval assets. The services provided contribute to the operational readiness and effectiveness of naval forces. Support for Foreign Military Sales (FMS) extends U.S. defense capabilities and partnerships to allied nations. The contract supports a highly skilled technical workforce specializing in naval engineering and defense technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not managed diligently.
The long duration of the contract requires ongoing monitoring to ensure continued performance and value.
Reliance on a single large contractor for such critical services could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Booz Allen Hamilton has a strong track record in providing complex engineering and technical services to the government.
The contract addresses critical national defense needs in mine warfare and countermeasures.
Support for foreign military sales demonstrates the global relevance and quality of U.S. defense engineering.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense applications for the U.S. Navy. The market for specialized defense engineering and technical support is characterized by high barriers to entry due to security requirements, technical expertise, and established relationships. Comparable spending benchmarks would likely be found within other large, complex naval system development and sustainment contracts, often running into tens or hundreds of millions of dollars.

Small Business Impact

This contract was not set aside for small businesses and was awarded to Booz Allen Hamilton, a large prime contractor. There is no explicit indication of subcontracting plans for small businesses within the provided data. The focus on specialized engineering services may limit opportunities for broad small business participation, though specific technical niches could be subcontracted.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Performance monitoring, financial audits, and adherence to contract terms are standard oversight mechanisms. The cost-plus-fixed-fee structure necessitates close scrutiny of costs incurred and the justification for the fixed fee to ensure accountability and prevent contractor overreach. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Engineering Services
Mine Countermeasures Systems Support
Foreign Military Sales Support Contracts
Naval Surface Warfare Center Contracts

Risk Flags

Cost-Plus-Fixed-Fee Contract Oversight
Sustained Performance Monitoring
Technological Relevance Assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.8 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF MINE WARFARE (MW) AND SURFACE MINE COUNTERMEASURES (SMCM) DESIGN AGENT (DA), TECHNICAL DIRECTION AGENT (TDA), IN-SERVICE ENGINEERING AGENT (ISEA), AND FOREIGN MILITARY SALES (FMS) 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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $28.8 million.

What is the period of performance?

Start: 2013-12-21. End: 2016-12-03.

What is Booz Allen Hamilton's specific track record with the Department of Defense, particularly in mine warfare and engineering support?

Booz Allen Hamilton has a long and extensive history of supporting the Department of Defense across a wide array of services, including engineering, IT, and strategic consulting. Within the realm of naval operations and defense, they have consistently secured contracts for complex technical support, systems integration, and program management. Their involvement in mine warfare and countermeasures likely stems from their deep expertise in naval systems engineering, threat analysis, and the development of advanced technological solutions. Historical data indicates they are a frequent awardee of large-scale contracts within the DoD, demonstrating a sustained capability and trusted relationship with various military branches, including the Navy.

How does the $28.8 million value compare to similar contracts for mine warfare engineering support?

The $28.8 million value for this three-year contract for Mine Warfare (MW), Surface Mine Countermeasures (SMCM) Design Agent (DA), Technical Direction Agent (TDA), and In-Service Engineering Agent (ISEA) support is substantial but falls within the expected range for specialized, long-term engineering services for naval systems. Contracts for similar complex engineering and technical support for major naval platforms or weapon systems can range from tens to hundreds of millions of dollars over their lifecycle. Without granular details on the specific tasks and deliverables, a precise benchmark is challenging. However, given the critical nature of mine warfare and the need for continuous technical expertise, this award appears to be a reasonable investment for sustained capability.

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

Primary risks include potential cost overruns inherent in Cost Plus Fixed Fee (CPFF) contracts, performance degradation over the contract's duration, and technological obsolescence. Mitigation strategies involve rigorous oversight by the Department of the Navy, including detailed cost tracking, performance metrics, and regular reviews. The CPFF structure itself requires careful management to ensure the fixed fee remains justified by the work performed. To address technological obsolescence, the contract likely includes provisions for incorporating new technologies and adapting to evolving threats. The contractor's established expertise and track record also serve as a mitigating factor against performance risk.

How effective is the competition level (3 bidders) in ensuring value for taxpayers on this contract?

Having three bidders for this specialized engineering support contract indicates a moderate level of competition. While more bidders could potentially drive prices lower, three is often considered a healthy number for complex, niche requirements where the pool of qualified contractors is limited. This level of competition suggests that the government likely received competitive proposals, allowing for informed selection based on both technical merit and price. It provides a reasonable check against single-source pricing while acknowledging the specialized nature of the services required, balancing competition with the need for specific expertise.

What is the historical spending trend for mine warfare and countermeasures engineering support by the Department of the Navy?

Historical spending data for mine warfare and countermeasures engineering support by the Department of the Navy shows a consistent and significant investment over many years. This is driven by the persistent threat of naval mines and the ongoing need to develop, maintain, and upgrade countermeasure technologies and systems. Spending in this area typically fluctuates based on modernization programs, new threat assessments, and the lifecycle of existing systems. While specific figures for this exact contract type are not provided, the overall trend indicates a sustained requirement for specialized engineering services, often awarded through competitive processes to large, established defense contractors.

What are the implications of this contract supporting Foreign Military Sales (FMS)?

Supporting Foreign Military Sales (FMS) through this contract means that the engineering and technical expertise provided to the U.S. Navy is also being leveraged to assist allied nations. This can involve providing technical data packages, training, or direct engineering support for systems being acquired by partner countries. The implications for taxpayers include recouping some development costs through FMS administrative fees and strengthening international security partnerships. It also signifies that the U.S. Navy's systems and the support provided are considered state-of-the-art and reliable enough for international partners, reinforcing U.S. defense industry leadership.

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: N0002413R3058

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: BOOZ ALLEN HAMILTON INC, MC LEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $34,349,345

Exercised Options: $34,349,345

Current Obligation: $28,797,447

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $22,244,956

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4024

IDV Type: IDC

Timeline