Department of the Navy awards $12.78M contract for engineering services, with a 21-month duration
Contract Overview
Contract Amount: $12,780,521 ($12.8M)
Contractor: Booz Allen Hamilton Engineering Services, LLC
Awarding Agency: Department of Defense
Start Date: 2006-03-27
End Date: 2011-03-23
Contract Duration: 1,822 days
Daily Burn Rate: $7.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 21
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 200606!SS2602!1700!N61331!COASTAL SYSTEMS STATION DAHLGREN!N0017804D4016 !A!N! !Y!HR02 ! !20060327!20070323!075916762!075916762!101458586!N!ARINC ENGINEERING SERVICES, LL!2551 RIVA RD !ANNAPOLIS !MD!21401!54700!005!12!PANAMA CITY !BAY !FLORIDA !+000000305000!N!N!000000000000!B599!OTHER SPECIAL STUDIES & ANALYSES !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !5!B!M! !A!D!20090331!B! ! !A! !A!N!U!2!021!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! !1700!N61331!0001! !
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $12.8 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC for work described as: 200606!SS2602!1700!N61331!COASTAL SYSTEMS STATION DAHLGREN!N0017804D4016 !A!N! !Y!HR02 ! !20060327!20070323!075916762!075916762!101458586!N!ARINC ENGINEERING SERVICES, LL!2551 RIVA RD !ANNAPOLIS !MD!21401!54700!005!12!PANAMA CITY !BAY … Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The total value of the award is $12.78 million, with a duration of 1822 days. 3. The primary service category is 'Engineering Services', indicating a focus on technical and analytical support. 4. The contract was awarded by the Department of the Navy, a major component of the Department of Defense. 5. The contract was awarded as a Delivery Order, suggesting it is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The contract's performance period spans from March 2006 to March 2011, indicating a long-term engagement.
Value Assessment
Rating: good
The contract value of $12.78 million over approximately five years appears reasonable for specialized engineering services. Benchmarking against similar contracts for 'Engineering Services' (NAICS 541330) would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) pricing structure suggests that while costs are monitored, there's an incentive for the contractor to manage expenses to maximize their fixed fee.
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 a bid. The fact that it was competed openly suggests a healthy market for these engineering services. The number of bidders is not explicitly stated in the provided data, but open competition generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and encourages a wider range of innovative solutions.
Public Impact
The primary beneficiary is the Department of the Navy, receiving essential engineering and technical support. Services delivered likely include system design, analysis, testing, and integration for naval systems. The geographic impact is centered around the Department of the Navy's operational and research facilities, potentially including coastal systems stations. The contract supports a workforce skilled in engineering and technical analysis within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to cost overruns if not closely managed.
- The duration of the contract (over 5 years) requires sustained oversight to ensure continued value and performance.
- Specific performance metrics and deliverables are not detailed, making it harder to assess objective performance.
- The nature of 'Other Special Studies & Analyses' can be broad, requiring clear definition of scope to avoid scope creep.
Positive Signals
- Awarded under full and open competition, indicating a competitive market and potential for good pricing.
- The Department of the Navy is a sophisticated buyer with established oversight processes.
- The contract is for a defined period, allowing for performance evaluation at its conclusion.
- The contractor, ARINC Engineering Services, LLC, is likely experienced in providing these types of services to the government.
Sector Analysis
The engineering services sector, particularly within defense, is characterized by high technical expertise and significant government spending. NAICS code 541330 encompasses establishments primarily engaged in providing engineering services. This contract fits within the broader defense industrial base, supporting the development and maintenance of complex military systems. Comparable spending benchmarks would typically be found within the Department of Defense's overall R&D and professional services spending categories.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions for this contract. It was awarded under full and open competition. Therefore, the direct impact on small businesses as a prime contractor is likely minimal unless they were subcontractors. Further analysis of subcontracting plans would be needed to assess the broader impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily reside with the Department of the Navy contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and payment schedules tied to milestones. Transparency is facilitated through contract databases like FPDS-NG, which record award details. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Defense Research and Development Contracts
- Naval Sea Systems Command (NAVSEA) Contracts
- Engineering and Technical Support Services
- Defense Contract Management Agency (DCMA) Oversight
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Need for robust government oversight to manage performance and costs.
- Broad 'Other Special Studies & Analyses' classification requires clear SOW.
- Long contract duration necessitates sustained monitoring.
Tags
department-of-defense, department-of-the-navy, engineering-services, cost-plus-fixed-fee, full-and-open-competition, delivery-order, professional-services, research-and-development, maryland, defense-contracting, long-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $12.8 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC. 200606!SS2602!1700!N61331!COASTAL SYSTEMS STATION DAHLGREN!N0017804D4016 !A!N! !Y!HR02 ! !20060327!20070323!075916762!075916762!101458586!N!ARINC ENGINEERING SERVICES, LL!2551 RIVA RD !ANNAPOLIS !MD!21401!54700!005!12!PANAMA CITY !BAY !FLORIDA !+000000305000!N!N!000000000000!B599!OTHER SPECIAL STUDIES & ANALYSES !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !5!B!M! !A!D!200
Who is the contractor on this award?
The obligated recipient is BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $12.8 million.
What is the period of performance?
Start: 2006-03-27. End: 2011-03-23.
What is the track record of ARINC Engineering Services, LLC in performing similar Department of Defense contracts?
ARINC Engineering Services, LLC, has a history of performing contracts for the Department of Defense, often in areas related to engineering, technical support, and systems integration. Analyzing their past performance on similar contracts, including contract values, durations, and any reported performance issues or awards, would provide insight into their capabilities and reliability. Specific details on their performance on this particular contract (N0017804D4016) would require access to contract performance reports (CPARs) or other qualitative assessments. Generally, companies that secure multiple defense contracts demonstrate a certain level of established capability and compliance with federal acquisition regulations.
How does the $12.78 million award compare to other engineering services contracts awarded by the Department of the Navy in the same period?
The $12.78 million award for engineering services by the Department of the Navy falls within a common range for specialized technical support contracts. During the mid-2000s, the DoD awarded numerous contracts for engineering, research, and development services, with values often ranging from a few million to tens or even hundreds of millions of dollars, depending on the scope and duration. To provide a precise comparison, one would need to analyze the average contract value for NAICS code 541330 awarded by the Navy between 2006 and 2011, considering factors like contract type (e.g., CPFF, FFP) and specific service requirements. This contract's value appears moderate, suggesting a focused scope of work rather than a large-scale program support effort.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this nature?
The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is paid their actual allowable costs plus a fixed fee, there is less incentive for the contractor to control costs compared to a Firm-Fixed-Price (FFP) contract. If the contractor's costs exceed estimates, the government still pays those costs. This necessitates robust government oversight to monitor expenditures, ensure costs are reasonable and allocable, and prevent scope creep. The fixed fee, however, provides the contractor with a predictable profit margin, which can be an advantage in complex or uncertain projects. The government bears the risk of cost uncertainty.
What does the 'Other Special Studies & Analyses' classification imply about the services rendered?
The 'Other Special Studies & Analyses' classification (under PSC code B599) suggests that the services provided under this contract were not easily categorized into more specific engineering or technical service codes. This typically involves research, investigation, evaluation, and reporting on specific technical, operational, or policy issues. Examples could include feasibility studies, threat assessments, system performance analyses, or strategic planning support. The broad nature of this classification underscores the importance of clearly defined statements of work and deliverables within the contract to ensure the government receives the intended analytical products and to prevent ambiguity or scope creep.
How has federal spending on engineering services (NAICS 541330) evolved since this contract was awarded?
Federal spending on engineering services (NAICS 541330) has generally seen fluctuations but has remained a significant category within government procurement since the mid-2000s. Following the period when this contract was active (2006-2011), which included the height of conflicts in Iraq and Afghanistan, spending on defense-related engineering services remained robust. In subsequent years, while overall defense budgets have faced constraints, spending on specialized engineering, cybersecurity, and advanced technology development has continued. Non-defense sectors like transportation, energy, and healthcare also contribute to federal spending in this area. Analyzing trends would require examining aggregate data from sources like FPDS or the Census Bureau over the past decade and a half.
What is the significance of the contract being awarded as a 'Delivery Order'?
The designation of this award as a 'Delivery Order' (AW) implies that it was issued under a pre-existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract. IDIQ contracts establish terms and conditions for services over a period, allowing the government to issue specific orders (like this one) for defined quantities or tasks as needed. This approach provides flexibility for the agency to procure services incrementally. The base contract number (N0017804D4016) likely represents the parent IDIQ vehicle. Delivery Orders specify the exact scope, quantity, delivery schedule, and price for a particular task, making them distinct from task orders issued under other types of IDIQ vehicles.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 21
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)
Address: 2551 RIVA ROAD, ANNAPOLIS, MD, 21401
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: N0017804D4016
IDV Type: IDC
Timeline
Start Date: 2006-03-27
Current End Date: 2011-03-23
Potential End Date: 2011-03-23 00:00:00
Last Modified: 2018-02-02
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