Navy awards $11M+ for engineering services, with a 5-year period of performance

Contract Overview

Contract Amount: $11,038,971 ($11.0M)

Contractor: Booz Allen Hamilton Engineering Services, LLC

Awarding Agency: Department of Defense

Start Date: 2006-05-05

End Date: 2011-04-22

Contract Duration: 1,813 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: 200608!SS3079!1700!N61331!COASTAL SYSTEMS STATION DAHLGREN!N0017804D4016 !A!N! !Y!HR03 ! !20060505!20070414!075916762!075916762!101458586!N!ARINC ENGINEERING SERVICES, LL!2551 RIVA RD !ANNAPOLIS !MD!21401!54700!005!12!PANAMA CITY !BAY !FLORIDA !+000001083591!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !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!N00024!0001! !

Place of Performance

Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $11.0 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC for work described as: 200608!SS3079!1700!N61331!COASTAL SYSTEMS STATION DAHLGREN!N0017804D4016 !A!N! !Y!HR03 ! !20060505!20070414!075916762!075916762!101458586!N!ARINC ENGINEERING SERVICES, LL!2551 RIVA RD !ANNAPOLIS !MD!21401!54700!005!12!PANAMA CITY !BAY !FLORIDA !+000001083591!N!N!000000000000!R425… Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The period of performance spans over 5 years, suggesting a long-term need for these services. 4. The contractor, Booz Allen Hamilton Engineering Services, LLC, has a significant presence in federal contracting. 5. The North American Industry Classification System (NAICS) code 541330 points to specialized engineering services. 6. The contract was awarded by the Department of the Navy, a major component of the Department of Defense.

Value Assessment

Rating: good

The awarded amount of $11,038,970.71 for engineering services appears reasonable given the 5-year duration and the nature of the services. Benchmarking against similar contracts for specialized engineering support within the Department of Defense would provide a more precise value-for-money assessment. However, the competitive nature of the award suggests that pricing was scrutinized.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The data indicates 21 bids were received, suggesting a healthy level of competition for this requirement. A high number of bidders generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured the government received competitive offers for the engineering services.

Public Impact

The Department of the Navy benefits from specialized engineering and technical support, crucial for its operations and readiness. Services delivered likely include design, analysis, testing, and integration of complex systems. The geographic impact is primarily centered around the contractor's location in Annapolis, MD, and potentially Navy facilities nationwide. The contract supports a workforce skilled in engineering and technical disciplines.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contracts require diligent oversight to manage costs and prevent scope creep.
  • Long-term contracts can sometimes lead to complacency if performance is not continuously monitored.
  • Reliance on a single large contractor for critical services can pose a risk if contractor performance degrades.

Positive Signals

  • Awarded through full and open competition, ensuring a wide range of potential providers were considered.
  • The Department of the Navy, a significant agency, is the awarding body, suggesting a critical need for these services.
  • The contractor, Booz Allen Hamilton, is a well-established entity in the federal contracting space.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector supports various government functions, including defense, infrastructure, and research. Spending in this area is often driven by complex project requirements and the need for specialized expertise that government agencies may not possess internally. Comparable spending benchmarks would typically be found within the Department of Defense's overall procurement of engineering support services.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As it was awarded under full and open competition, it is unlikely that subcontracting opportunities for small businesses were mandated as part of the award, though they may arise at the contractor's discretion.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and managing payments. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

  • Defense Engineering Services
  • Naval Systems Engineering Support
  • Professional, Scientific, and Technical Services
  • Department of Defense IT and Engineering Support
  • Cost Plus Fixed Fee Contracts

Risk Flags

  • Cost Plus Fixed Fee contract type requires careful monitoring to control costs.
  • Long period of performance necessitates ongoing performance evaluation.
  • Contractor performance history should be continuously reviewed.

Tags

department-of-defense, department-of-the-navy, engineering-services, cost-plus-fixed-fee, full-and-open-competition, professional-scientific-and-technical-services, maryland, defense-contracting, long-term-contract, naics-541330

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.0 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC. 200608!SS3079!1700!N61331!COASTAL SYSTEMS STATION DAHLGREN!N0017804D4016 !A!N! !Y!HR03 ! !20060505!20070414!075916762!075916762!101458586!N!ARINC ENGINEERING SERVICES, LL!2551 RIVA RD !ANNAPOLIS !MD!21401!54700!005!12!PANAMA CITY !BAY !FLORIDA !+000001083591!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !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!N00024!0001! !

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 $11.0 million.

What is the period of performance?

Start: 2006-05-05. End: 2011-04-22.

What is the historical spending pattern for engineering services by the Department of the Navy?

The Department of the Navy, as a major component of the Department of Defense, consistently procures significant amounts of engineering services annually. Historical data indicates a steady demand for specialized technical support across various platforms, including naval vessels, aircraft, and shore-based infrastructure. Spending fluctuates based on modernization programs, new platform development, and sustainment requirements. For instance, in fiscal years preceding this award, the Navy allocated billions to engineering and technical services, reflecting its complex operational needs and ongoing research and development efforts. This specific contract, valued at over $11 million over its performance period, represents a fraction of the Navy's total engineering services expenditure but highlights a specific need for services categorized under NAICS code 541330.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types in terms of risk and value?

Cost Plus Fixed Fee (CPFF) contracts are utilized when the scope of work is not precisely defined, or when innovation and flexibility are paramount, such as in research and development or complex engineering projects. The government agrees to pay the contractor's actual costs plus a predetermined fixed fee representing profit. This structure shifts some cost risk to the government, as the final price is not fixed upfront. Compared to Firm-Fixed-Price (FFP) contracts, where the price is set regardless of actual costs, CPFF offers more flexibility but carries a higher risk of cost overruns if not managed diligently. Best-value trade-off procurements often weigh technical approach and past performance alongside price, but the inherent cost uncertainty in CPFF requires robust government oversight to ensure fair value is obtained.

What is Booz Allen Hamilton Engineering Services, LLC's track record with the Department of Defense?

Booz Allen Hamilton Engineering Services, LLC, and its parent entities, have a long-standing and extensive track record of providing services to the Department of Defense (DoD) and its various branches, including the Navy. They are a major federal contractor with a broad portfolio encompassing engineering, IT, cybersecurity, and management consulting. Their history with the DoD includes numerous contracts, ranging in value and complexity, across different defense agencies. While specific performance details for every contract are not publicly available, their continued success in winning competitive bids and securing follow-on work suggests a generally positive performance record and a strong understanding of defense requirements. However, like any large contractor, they may have faced scrutiny or performance issues on specific engagements, which would typically be managed through contract administration processes.

What are the potential implications of a 5-year period of performance for this contract?

A 5-year period of performance (PoP) for engineering services indicates a long-term, sustained need for the contractor's expertise by the Department of the Navy. This extended duration allows for the development of deeper institutional knowledge and a more integrated working relationship between the contractor and the government. For the government, it provides stability and continuity in critical support functions. For the contractor, it offers revenue predictability. However, a long PoP also necessitates continuous performance monitoring to ensure the contractor remains responsive to evolving requirements and maintains high standards. It also means that the government is committed to this specific solution for an extended period, potentially limiting flexibility to adapt to unforeseen technological changes or alternative approaches without incurring modification costs or termination penalties.

How does the NAICS code 541330 (Engineering Services) typically align with Department of Defense procurement needs?

The NAICS code 541330, 'Engineering Services,' is highly relevant to the Department of Defense (DoD) as it encompasses a wide array of specialized technical expertise essential for military operations, research, development, and sustainment. This includes services such as aerospace engineering, naval architecture, systems engineering, mechanical engineering, and civil engineering, all critical for designing, building, maintaining, and modernizing defense platforms and infrastructure. The DoD is one of the largest consumers of engineering services, procuring them for everything from advanced weapons systems development and cybersecurity solutions to base construction and environmental compliance. Contracts under this code often involve complex problem-solving, high levels of technical proficiency, and adherence to stringent military specifications and standards.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

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

Parent Contract

Parent Award PIID: N0017804D4016

IDV Type: IDC

Timeline

Start Date: 2006-05-05

Current End Date: 2011-04-22

Potential End Date: 2011-04-22 00:00:00

Last Modified: 2016-10-05

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