Booz Allen Hamilton awarded $21.9M for SETA support to DHS Chem Bio Defense Group

Contract Overview

Contract Amount: $21,882,693 ($21.9M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Homeland Security

Start Date: 2011-03-01

End Date: 2014-09-30

Contract Duration: 1,309 days

Daily Burn Rate: $16.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SETA SUPPORT FOR CHEM BIO DEFENSE GROUP

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $21.9 million to BOOZ ALLEN HAMILTON INC for work described as: SETA SUPPORT FOR CHEM BIO DEFENSE GROUP Key points: 1. Contract awarded via a Best Practices Acquisition (BPA) Call, indicating a pre-competed framework. 2. The contract utilized a Time and Materials pricing structure, which can present cost control challenges. 3. The award was made under full and open competition, suggesting a broad market search. 4. The duration of the contract was over three years, allowing for sustained support. 5. The contractor, Booz Allen Hamilton, is a large, established firm with significant federal contracting experience. 6. The contract value is moderate within the context of large federal IT and engineering services contracts.

Value Assessment

Rating: fair

The contract value of $21.9 million over approximately 3.3 years suggests an average annual spend of around $6.6 million. Without specific deliverables or performance metrics, a direct value-for-money assessment is challenging. However, the use of Time and Materials pricing, while flexible, can lead to higher costs if not closely managed compared to fixed-price contracts. Benchmarking against similar SETA (Systems Engineering and Technical Assistance) contracts for defense or homeland security agencies would provide a clearer picture of whether the pricing is competitive for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which implies that the agency sought proposals from all responsible sources. This method generally fosters a competitive environment, potentially leading to better pricing and service offerings. The data indicates one award, but the nature of a BPA Call suggests that multiple entities may have been eligible under the parent BPA, and this specific call was competed among them. The level of competition for this specific call is not detailed, but the overall approach aims for broad market participation.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of bidders, which can drive down prices and improve the quality of services received.

Public Impact

The Department of Homeland Security (DHS) benefits from specialized technical and engineering support for its Chemical and Biological Defense Group. This contract supports critical national security functions related to preparedness and response to chemical and biological threats. The services provided likely enhance the operational capabilities and strategic planning of the Chem Bio Defense Group. The geographic impact is primarily national, given the nature of homeland security responsibilities, though specific operational areas may vary.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not diligently managed and monitored by the government.
The broad nature of SETA support can sometimes lead to scope creep if not clearly defined and controlled.
Reliance on a single large contractor for critical support functions may present risks if the contractor's performance falters.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
The contractor, Booz Allen Hamilton, has extensive experience in federal contracting and relevant technical domains.
The contract supports a critical national security mission within DHS, indicating strategic importance.

Sector Analysis

The contract falls within the Engineering Services sector (NAICS 541330), specifically supporting government agencies with technical and management expertise. This sector is crucial for national defense, homeland security, and infrastructure projects. Federal spending in engineering and technical services is substantial, often involving complex projects requiring specialized knowledge. Booz Allen Hamilton is a major player in this market, competing with other large defense and professional services contractors. This contract represents a portion of DHS's broader investment in safeguarding against chemical and biological threats.

Small Business Impact

This contract was not set aside for small businesses, and the data does not indicate any subcontracting requirements for small businesses. The award to a large prime contractor like Booz Allen Hamilton suggests that the primary focus was on leveraging established capabilities rather than specifically promoting small business participation through this particular award mechanism. Further analysis of the parent BPA or subsequent reporting would be needed to determine if small businesses were involved in the subcontracting chain.

Oversight & Accountability

Oversight for this contract would typically reside within the Department of Homeland Security's contracting and program management offices. As a Time and Materials contract awarded via a BPA Call, oversight would focus on monitoring labor hours, rates, and ensuring that the work performed aligns with the Statement of Work. The contract's duration and value suggest it would be subject to regular performance reviews. Inspector General involvement would be contingent on specific allegations of fraud, waste, or abuse.

Related Government Programs

Department of Homeland Security Chemical and Biological Defense Programs
Federal Support for National Security Programs
Engineering and Technical Services Contracts
Best Practices Acquisition (BPA) Call Contracts

Risk Flags

Time and Materials Pricing
Potential for Scope Creep
Large Contractor Reliance

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $21.9 million to BOOZ ALLEN HAMILTON INC. SETA SUPPORT FOR CHEM BIO DEFENSE GROUP

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $21.9 million.

What is the period of performance?

Start: 2011-03-01. End: 2014-09-30.

What is the track record of Booz Allen Hamilton in performing SETA support for DHS or similar agencies?

Booz Allen Hamilton has a long and extensive history of providing Systems Engineering and Technical Assistance (SETA) support to various U.S. government agencies, including the Department of Defense (DoD) and the Department of Homeland Security (DHS). Their expertise spans a wide range of technical and management disciplines relevant to complex government missions. For DHS specifically, they have supported numerous programs related to cybersecurity, intelligence analysis, emergency preparedness, and critical infrastructure protection. Their track record generally indicates a capacity to handle large, complex contracts and deliver specialized expertise. However, like any large contractor, they have faced scrutiny and reviews regarding specific contract performance and pricing in the past. A detailed review of past performance evaluations and any contract disputes related to similar SETA contracts would provide a more granular understanding of their specific performance on this type of work.

How does the $21.9 million contract value compare to similar SETA contracts for chemical and biological defense support?

Assessing the $21.9 million value requires context regarding the contract's duration (approximately 3.3 years) and the specific scope of SETA support provided. The average annual value is around $6.6 million. SETA contracts for defense and homeland security can vary significantly in cost, influenced by factors such as the level of technical expertise required, the criticality of the mission, the number of personnel involved, and the specific services (e.g., research, analysis, program management, testing). Contracts supporting specialized areas like chemical and biological defense often demand highly skilled personnel and rigorous quality assurance, which can command higher prices. Without detailed scope information, direct comparison is difficult, but this value appears moderate for sustained, specialized support to a federal program of this nature. Benchmarking against publicly available data for similar DHS or DoD SETA contracts would be necessary for a precise comparison.

What are the primary risks associated with this contract, particularly given the Time and Materials (T&M) pricing structure?

The primary risks associated with this contract stem from its Time and Materials (T&M) pricing structure and the nature of SETA support. T&M contracts, by definition, reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. This structure offers flexibility but carries a significant risk of cost overruns if the government does not implement robust oversight. Without strict controls on labor hours, task definitions, and material procurement, costs can escalate beyond initial expectations. Additionally, the broad scope often associated with SETA support can lead to scope creep, where tasks expand beyond the original intent, further driving up costs. Effective risk mitigation requires diligent government monitoring of contractor effort, clear task authorizations, and regular performance reviews to ensure the work remains focused and efficient.

How effective is the 'full and open competition' approach likely to be in ensuring value for money for this specific contract?

The 'full and open competition' approach is designed to maximize value for money by encouraging a wide range of potential bidders to submit proposals. This broad competition can lead to more competitive pricing, innovative solutions, and higher quality services as contractors vie for the award. For SETA support, this means the agency likely received proposals from multiple qualified firms, allowing for a comparison of technical approaches, past performance, and cost. However, the ultimate effectiveness in ensuring value for money also depends on the clarity of the solicitation's requirements, the evaluation criteria used, and the government's ability to negotiate favorable terms. While the competition method itself is sound, the specific outcomes are contingent on the execution of the procurement process and the subsequent contract management.

What are the potential implications of this contract on the broader chemical and biological defense sector within the federal government?

This contract signifies continued federal investment in capabilities to counter chemical and biological threats, underscoring the ongoing importance of this mission area. By awarding this support to Booz Allen Hamilton, the DHS leverages established expertise, potentially ensuring continuity and stability in critical program functions. The contract's existence may also influence market dynamics, signaling demand for specialized SETA services in this niche. It could encourage other firms to develop or highlight their capabilities in chemical and biological defense support. Furthermore, the insights and recommendations generated through this contract could inform broader federal strategies and resource allocation related to preparedness, response, and mitigation efforts across different agencies involved in national security.

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

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)

Address: 8283 GREENSBORO DR, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,770,587

Exercised Options: $21,882,693

Current Obligation: $21,882,693

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $23,124,911

Parent Contract

Parent Award PIID: HSHQPA05A00058

IDV Type: BPA

Timeline