Booz Allen Hamilton awarded $47.5M for Mine Warfare Engineering Support, facing limited competition
Contract Overview
Contract Amount: $47,466,311 ($47.5M)
Contractor: Booz Allen Hamilton Engineering Services, LLC
Awarding Agency: Department of Defense
Start Date: 2008-12-22
End Date: 2013-12-21
Contract Duration: 1,825 days
Daily Burn Rate: $26.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: MINE WARFARE AND SURFACE MINE COUNTERMEASURES ENGINEERING AND PROGRAM SUPPORT
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 $47.5 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC for work described as: MINE WARFARE AND SURFACE MINE COUNTERMEASURES ENGINEERING AND PROGRAM SUPPORT Key points: 1. Contract value represents a significant investment in specialized naval engineering capabilities. 2. The limited competition suggests a niche market with few qualified providers. 3. Performance period of five years indicates a long-term need for these services. 4. The cost-plus-fixed-fee structure may incentivize cost management by the contractor. 5. This contract supports critical defense capabilities in mine warfare and countermeasures. 6. Geographic focus on Maryland aligns with major naval commands and research centers.
Value Assessment
Rating: fair
The contract value of $47.5 million over five years averages to approximately $9.5 million annually. Benchmarking this against similar large-scale engineering support contracts for specialized defense systems is challenging without more granular data on the specific services provided. However, the cost-plus-fixed-fee (CPFF) contract type, while common for R&D and complex services, can sometimes lead to higher overall costs if not closely managed, as contractor incentives are geared towards completing the work rather than minimizing costs. The fixed fee component provides some predictability for the government.
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 solicited. However, the data indicates only two bids were received. This suggests that while the process was open, the specialized nature of mine warfare and countermeasures engineering may limit the pool of highly qualified and capable contractors, leading to a less robust competitive landscape than might be seen in broader engineering services.
Taxpayer Impact: While full and open competition was utilized, the low number of bids received could mean that taxpayers did not benefit from the most aggressive pricing possible. The government secured a qualified provider, but the potential for cost savings through broader competition appears limited.
Public Impact
Naval forces benefit from enhanced engineering and program support for critical mine warfare and countermeasure systems. Services delivered include specialized engineering, technical analysis, and program management crucial for maintaining and advancing naval defense capabilities. The primary geographic impact is centered around naval commands and research facilities in Maryland. The contract supports a highly specialized workforce of engineers and technical experts within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited number of bidders (2) for a full and open competition may indicate barriers to entry or a concentrated market, potentially impacting future price competition.
- Cost-plus-fixed-fee contract type requires diligent oversight to ensure cost efficiency and prevent scope creep.
- The specialized nature of the services could lead to contractor lock-in if alternative solutions are not actively explored.
Positive Signals
- Awarded under full and open competition, ensuring a fair process for potential bidders.
- Contract duration of five years suggests a stable, long-term requirement and commitment from the government.
- The contractor, Booz Allen Hamilton, is a well-established entity with significant experience in government contracting and engineering services.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader defense industrial base. The market for specialized naval engineering, particularly in areas like mine warfare and countermeasures, is relatively niche. It requires deep technical expertise and often involves classified or sensitive technologies. Spending in this area is driven by evolving threats and the need for technological superiority in naval operations. Comparable spending benchmarks would typically involve other large, complex engineering support contracts for naval systems or advanced technology development.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized and complex nature of mine warfare engineering, it is unlikely that significant subcontracting opportunities for small businesses would be mandated or readily available, unless specific components or niche technical support were required. The primary focus is on securing the specialized expertise of a large, established contractor.
Oversight & Accountability
Oversight for this contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance, compliance, and proper administration. The cost-plus-fixed-fee structure necessitates robust financial oversight to monitor costs and ensure the fixed fee is earned appropriately. Transparency is generally maintained through contract reporting mechanisms, though specific technical details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Naval Sea Systems Command (NAVSEA) Contracts
- Mine Countermeasures Programs
- Naval Warfare Systems Engineering
- Defense Engineering Services Contracts
- Cost-Plus-Fixed-Fee Contracts
Risk Flags
- Limited competition despite full and open award.
- Potential for cost overruns inherent in CPFF structure.
- Specialized niche may limit future contractor alternatives.
Tags
defense, engineering-services, mine-warfare, countermeasures, naval, department-of-defense, booz-allen-hamilton, cost-plus-fixed-fee, full-and-open-competition, maryland, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $47.5 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC. MINE WARFARE AND SURFACE MINE COUNTERMEASURES ENGINEERING AND PROGRAM SUPPORT
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $47.5 million.
What is the period of performance?
Start: 2008-12-22. End: 2013-12-21.
What is Booz Allen Hamilton's track record with similar Department of Defense engineering contracts?
Booz Allen Hamilton Engineering Services, LLC has a substantial track record with the Department of Defense, frequently securing contracts for complex engineering, research, and program support. Their history includes numerous awards across various defense agencies and branches, often involving advanced technology, systems integration, and strategic consulting. While specific performance metrics for past mine warfare contracts are not detailed here, their consistent presence and significant contract values suggest a generally positive standing and capability in delivering services aligned with defense requirements. However, like any large contractor, past performance reviews and any associated issues would require deeper investigation into specific contract histories and CPARS (Contractor Performance Assessment Reporting System) data.
How does the $47.5 million contract value compare to other mine warfare and countermeasures engineering support contracts?
Direct comparison of the $47.5 million value is difficult without access to a comprehensive database of all mine warfare and countermeasures engineering support contracts, including their duration and scope. However, this figure represents a significant, multi-year investment. Contracts of this magnitude typically cover extensive research and development, system design, integration, testing, and long-term program management for complex defense systems. It suggests a substantial and ongoing requirement for specialized engineering expertise within the Navy's mine warfare domain. Smaller, more focused contracts might exist for specific component development or localized support, while larger platform-specific engineering efforts could potentially exceed this value.
What are the primary risks associated with this type of specialized engineering support contract?
Key risks include technical challenges in developing or maintaining advanced mine warfare and countermeasures technology, where breakthroughs or unforeseen obstacles can delay progress and increase costs. Contractor performance risk is also present; ensuring Booz Allen Hamilton maintains the required expertise and delivers on schedule and to specification is crucial. Given the cost-plus-fixed-fee structure, there's a risk of cost overruns if not managed diligently by the government contracting officer and DCMA. Furthermore, the specialized nature of the work could lead to a limited pool of alternative contractors, potentially impacting future competition and pricing if the current contractor underperforms or seeks to exit the contract.
How effective is the cost-plus-fixed-fee (CPFF) structure for managing costs in this context?
The CPFF structure is often used for research and development or complex services where the scope of work is not fully defined at the outset, or where innovation is a key objective. For mine warfare engineering, where technological advancements and evolving threats necessitate flexibility, CPFF can be appropriate. The 'cost-plus' element allows the contractor to recover allowable costs, while the 'fixed-fee' provides a predetermined profit margin. This structure incentivizes the contractor to complete the work but does not inherently incentivize cost reduction as strongly as fixed-price contracts. Effective cost management under CPFF relies heavily on robust government oversight, clear definition of allowable costs, and diligent monitoring of expenditures to prevent inefficiencies.
What is the historical spending trend for mine warfare and countermeasures engineering support within the Department of Defense?
Analyzing historical spending trends for this specific niche requires access to detailed budget data over multiple fiscal years. However, spending on mine warfare and countermeasures is generally driven by geopolitical factors, naval modernization priorities, and the perceived threat landscape. Investments in this area tend to be consistent, reflecting the enduring need for naval security and the continuous evolution of both threats and defensive technologies. Significant budget allocations are typically seen during periods of increased naval presence, new platform development, or heightened international tensions. Without specific historical data, it's presumed that spending fluctuates based on these strategic drivers and program lifecycle stages.
What are the implications of awarding this contract to a single, large incumbent like Booz Allen Hamilton?
Awarding a significant contract like this to a large, established contractor like Booz Allen Hamilton can offer benefits such as proven expertise, established processes, and continuity of operations. Their extensive experience in defense contracting suggests a lower risk of initial performance issues. However, it can also raise concerns about market concentration and potential future competition. If this contract represents a substantial portion of the available work in this niche, it might deter smaller, innovative firms from entering the market or make it difficult for them to gain a foothold. This could lead to reduced competitive pressure on pricing and innovation in subsequent contract awards.
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: N0002408R3156
Offers Received: 2
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
Financial Breakdown
Contract Ceiling: $49,998,318
Exercised Options: $49,998,318
Current Obligation: $47,466,311
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4016
IDV Type: IDC
Timeline
Start Date: 2008-12-22
Current End Date: 2013-12-21
Potential End Date: 2013-12-21 00:00:00
Last Modified: 2016-10-05
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