Booz Allen Hamilton awarded $42.5M contract for technical, analytical, and managerial support services to the Department of the Navy

Contract Overview

Contract Amount: $42,544,579 ($42.5M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2016-08-08

End Date: 2023-02-07

Contract Duration: 2,374 days

Daily Burn Rate: $17.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF TECHNICAL, ANALYTICAL, AND MANAGERIAL SUPPORT SERVICES.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $42.5 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF TECHNICAL, ANALYTICAL, AND MANAGERIAL SUPPORT SERVICES. Key points: 1. Contract provides essential support services for complex defense operations. 2. Competition was full and open, suggesting a competitive bidding process. 3. Contract duration of nearly 7 years indicates a long-term need for these services. 4. Services are categorized under 'Other Accounting Services', potentially encompassing a broad range of analytical and managerial functions. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 6. The awardee, Booz Allen Hamilton, is a large, established government contractor with extensive experience.

Value Assessment

Rating: good

The contract value of $42.5 million over approximately 7 years averages to about $6 million annually. Benchmarking this against similar large-scale support contracts for defense agencies is challenging without more specific service details. However, Booz Allen Hamilton's extensive experience in this domain suggests a potentially fair price for the breadth and depth of services provided. The Cost Plus Fixed Fee structure requires diligent monitoring to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this significant contract. While not a large number of bidders, full and open competition generally provides a better opportunity for price discovery and ensures that the government receives offers from qualified entities.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing due to the full and open competition, which aims to secure the best value for the government.

Public Impact

The Department of the Navy benefits from critical technical, analytical, and managerial support, enhancing operational effectiveness. Services likely contribute to strategic planning, financial management, and program execution within naval operations. The geographic impact is primarily within the Department of the Navy's operational areas, potentially worldwide. Workforce implications include the employment of skilled professionals in analytical, technical, and managerial roles by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed tightly.
The broad nature of 'technical, analytical, and managerial support' could lead to scope creep if not clearly defined.
Reliance on a single large contractor for critical support functions may pose a risk if performance issues arise.

Positive Signals

Award to a well-established contractor with a proven track record in government services.
Full and open competition suggests a structured procurement process that sought multiple qualified bidders.
Long contract duration indicates a stable, ongoing requirement and potential for consistent service delivery.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, a significant area of federal spending. The market for these services is large and competitive, with major players like Booz Allen Hamilton dominating large-scale government contracts. This specific award supports defense intelligence and operational analysis, a critical sub-sector within the broader federal IT and professional services landscape. Comparable spending benchmarks would typically be found within the broader 'Management and Financial Consulting, Acquisition and Public Relations Services' (NAICS 5416) or 'Other Accounting Services' (NAICS 5412) categories.

Small Business Impact

This contract was not set aside for small businesses, and there is no explicit indication of small business subcontracting requirements in the provided data. The award to a large prime contractor like Booz Allen Hamilton suggests that the primary focus was on securing specialized expertise, potentially limiting direct opportunities for small businesses as prime contractors on this specific award. However, large contractors often utilize small business subcontractors, so indirect opportunities may exist.

Oversight & Accountability

The Cost Plus Fixed Fee contract type necessitates robust oversight to manage costs and ensure the fixed fee is justified by performance. The Department of the Navy's contracting officers and program managers are responsible for monitoring contractor performance, expenditures, and adherence to contract terms. Transparency is typically managed through contract reporting mechanisms and potential audits by the Inspector General, although specific IG jurisdiction for this contract isn't detailed here.

Related Government Programs

Department of Defense IT Support Services
Naval Intelligence Support Contracts
Government Management Consulting Services
Federal Financial Management Support

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Broad service description may lead to scope creep if not clearly defined.
Potential for contractor to not aggressively pursue cost savings due to fee structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.5 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF TECHNICAL, ANALYTICAL, AND MANAGERIAL SUPPORT SERVICES.

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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $42.5 million.

What is the period of performance?

Start: 2016-08-08. End: 2023-02-07.

What is the specific nature of the 'technical, analytical, and managerial support services' provided under this contract?

The provided data categorizes this contract under NAICS code 541219, 'Other Accounting Services,' and describes it as 'IGF::OT::IGF TECHNICAL, ANALYTICAL, AND MANAGERIAL SUPPORT SERVICES.' While the NAICS code suggests accounting-related functions, the description implies a broader scope. This could encompass a wide range of activities including financial analysis, strategic planning support, program management assistance, data analytics, operational efficiency studies, and potentially IT-related technical support integral to these functions. Without further details on the specific Statement of Work (SOW), it's difficult to pinpoint the exact services, but it likely involves high-level advisory and support functions critical to the Department of the Navy's operations.

How does the $42.5 million contract value compare to similar support contracts awarded by the Department of the Navy?

The $42.5 million contract value over its nearly 7-year duration (approximately $6 million per year) places it in the mid-to-large range for professional services contracts within the Department of the Navy. Benchmarking requires comparing it to contracts with similar scope (e.g., technical, analytical, managerial support) and duration. Large defense agencies frequently award contracts in the tens to hundreds of millions for comprehensive support services. While this specific value is substantial, it is not exceptionally high compared to major system integration or large-scale operational support contracts. The value appears reasonable for a long-term engagement with a prime contractor like Booz Allen Hamilton, known for handling complex government requirements.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?

The primary risks with a CPFF contract of this magnitude ($42.5 million) revolve around cost control and contractor incentive. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' element means the government bears the actual costs incurred. If costs escalate beyond initial projections, the government pays more, potentially exceeding the anticipated value. Risks include potential for the contractor to not aggressively pursue cost savings if profit is guaranteed, and the government's burden to meticulously audit and verify all claimed costs. Effective oversight, clear performance metrics, and strong program management are crucial to mitigate these risks and ensure the government receives good value.

What is Booz Allen Hamilton's track record with the Department of the Navy and similar federal contracts?

Booz Allen Hamilton has a long and extensive track record of serving the Department of Defense and the Department of the Navy, as well as other federal agencies. They are a major incumbent contractor across numerous defense and civilian programs, providing a wide array of services including IT, cybersecurity, intelligence analysis, management consulting, and engineering support. Their history includes numerous large-scale, multi-year contracts. While specific performance details for every contract are not publicly available, their continued success in winning significant federal awards indicates a generally positive track record and strong past performance evaluations from government clients. This specific contract award aligns with their core competencies.

How has federal spending in 'Other Accounting Services' (NAICS 541219) trended over the past five years?

Federal spending within the 'Other Accounting Services' (NAICS 541219) category has generally seen a steady increase over the past five years, driven by the ongoing need for specialized financial, analytical, and management support across various government agencies, particularly within the Department of Defense. While this specific NAICS code might not capture all complex analytical or managerial support, it reflects a segment of the professional services market that supports government financial operations, auditing, and advisory functions. Factors contributing to this trend include increased regulatory compliance requirements, complex budget management, and the demand for data analytics to inform decision-making. The overall trend indicates a sustained and significant federal investment in these types of professional services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: M0026416R0001

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: 8283 GREENSBORO DR, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $48,633,707

Exercised Options: $48,633,707

Current Obligation: $42,544,579

Actual Outlays: $5,647,254

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $2,963,954

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline