DoD's $48.7M Test & Evaluation Contract Awarded to Booz Allen Hamilton Faces Scrutiny
Contract Overview
Contract Amount: $48,720,991 ($48.7M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2010-09-30
End Date: 2014-12-31
Contract Duration: 1,553 days
Daily Burn Rate: $31.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Engineering Services
Official Description: TEST AND EVALUATION SUPPORT
Place of Performance
Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $48.7 million to BOOZ ALLEN HAMILTON INC for work described as: TEST AND EVALUATION SUPPORT Key points: 1. Significant contract value of $48.7 million for engineering services. 2. Booz Allen Hamilton, a large established contractor, secured the award. 3. Potential risks include cost overruns given the Cost Plus Fixed Fee structure. 4. The IT/Engineering Services sector sees substantial government spending.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not managed tightly. Without specific benchmarks for similar T&E support contracts, assessing the overall value is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific pricing discovery mechanisms within the CPFF structure warrant review to ensure cost-effectiveness.
Taxpayer Impact: Taxpayer funds are utilized for this contract. The effectiveness of the competition and the CPFF structure will determine the ultimate impact on taxpayer value.
Public Impact
Ensures critical test and evaluation capabilities for defense programs. Supports national security objectives through robust engineering services. Potential for knowledge transfer and capability building within the DoD.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type can incentivize cost escalation.
- Lack of specific unit cost benchmarks makes value assessment difficult.
- Long contract duration (over 4 years) increases risk exposure.
Positive Signals
- Awarded through full and open competition.
- Booz Allen Hamilton is a reputable contractor.
- Supports critical defense testing and evaluation.
Sector Analysis
This contract falls within the Engineering Services sector, which is a significant area of government spending, particularly within the Department of Defense. Benchmarks for similar T&E support contracts are essential for a comprehensive value assessment.
Small Business Impact
The contract was awarded to Booz Allen Hamilton, a large business. There is no indication of specific set-asides or participation goals for small businesses in the provided data.
Oversight & Accountability
Oversight is crucial for CPFF contracts to ensure costs remain reasonable and aligned with the fixed fee. The Defense Contract Management Agency's role is vital in monitoring performance and expenditures.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Lack of specific unit cost benchmarks.
- Long contract duration.
- Potential for cost escalation without stringent oversight.
Tags
engineering-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.7 million to BOOZ ALLEN HAMILTON INC. TEST AND EVALUATION 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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $48.7 million.
What is the period of performance?
Start: 2010-09-30. End: 2014-12-31.
What specific metrics were used to evaluate the cost-effectiveness of the bids under the Cost Plus Fixed Fee structure?
The provided data does not detail the specific metrics used for cost-effectiveness evaluation during the bidding process for this CPFF contract. Typically, agencies consider factors like proposed labor rates, indirect cost pools, and the reasonableness of the fixed fee relative to the anticipated effort and risk. Further analysis would require access to the source selection documentation.
How does the risk of cost overruns in this CPFF contract compare to other similar T&E support contracts awarded by the DoD?
CPFF contracts inherently carry a higher risk of cost overruns compared to fixed-price contracts, as the government assumes most of the cost risk. Without comparative data on cost performance for similar T&E contracts, it's difficult to definitively state if this contract's risk is higher or lower. Effective oversight and robust cost controls are paramount to mitigating this risk.
What is the measurable impact of this contract on the DoD's testing and evaluation capabilities and overall mission effectiveness?
The contract aims to provide essential test and evaluation support, directly contributing to the effectiveness of defense programs. Quantifying the precise impact requires analyzing program milestones achieved, system readiness improvements, and the successful validation of defense technologies enabled by this support. Performance metrics within the contract would offer insights into its contribution.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002410R3074
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Booz Allen Hamilton Holding Corporation
Address: 8283 GREENSBORO DR, MC LEAN, VA, 22102
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $49,244,630
Exercised Options: $49,244,630
Current Obligation: $48,720,991
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $817,953
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4016
IDV Type: IDC
Timeline
Start Date: 2010-09-30
Current End Date: 2014-12-31
Potential End Date: 2014-12-31 00:00:00
Last Modified: 2025-08-22
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