DoD's $31.75M contract for JPALS/N-UCAS engineering support awarded to Booz Allen Hamilton

Contract Overview

Contract Amount: $31,753,783 ($31.8M)

Contractor: Booz Allen Hamilton Engineering Services, LLC

Awarding Agency: Department of Defense

Start Date: 2006-11-02

End Date: 2011-04-30

Contract Duration: 1,640 days

Daily Burn Rate: $19.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Defense

Official Description: REQUIREMENTS DEFINITION AND ENGINEERING SUPPORT FOR THE JPALS AND N-UCAS PROGRAM

Place of Performance

Location: LINTHICUM HEIGHTS, ANNE ARUNDEL County, MARYLAND, 21090

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $31.8 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC for work described as: REQUIREMENTS DEFINITION AND ENGINEERING SUPPORT FOR THE JPALS AND N-UCAS PROGRAM Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is a delivery order, indicating it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 3. The duration of over 4 years suggests a significant, long-term need for these engineering services. 4. The contract's focus on engineering services for specific programs (JPALS and N-UCAS) highlights specialized technical requirements. 5. The absence of small business set-aside indicates the primary award was not specifically targeted to small businesses. 6. The contract value of $31.75M falls within a moderate spending range for complex engineering support services.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the parent IDIQ contract's ceiling and the specific services rendered. However, the total value of $31.75 million over approximately 4.5 years for specialized engineering support for defense programs is within a reasonable range for such complex work. Without access to the parent IDIQ or comparable delivery orders, a precise value-for-money assessment is difficult, but the pricing structure (Cost No Fee) suggests the government is bearing the cost risk while the contractor is incentivized to manage expenses.

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 offers. The fact that it is a delivery order suggests the competition likely occurred at the IDIQ contract level, with this order being placed against that established contract. The number of bidders for the original IDIQ would be a key indicator of the level of competition, but that information is not provided here. Full and open competition generally promotes price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and ensures a broad range of qualified contractors can compete for government work.

Public Impact

The primary beneficiaries are the Department of the Navy and the Department of Defense, who will receive engineering support for critical programs like JPALS (Joint Precision Approach and Landing System) and N-UCAS (Naval Unmanned Combat Air System). This contract delivers essential engineering services, likely including design, development, testing, and integration support for these advanced defense systems. The geographic impact is primarily within the defense sector, potentially supporting naval aviation and related command and control infrastructure. Workforce implications include the employment of highly skilled engineers and technical professionals by Booz Allen Hamilton and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the 'Cost No Fee' structure is not tightly managed.
Dependence on a single contractor for critical engineering support could pose a risk if performance issues arise.
The complexity of JPALS and N-UCAS systems may lead to unforeseen technical challenges and schedule delays.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Booz Allen Hamilton is a well-established contractor with significant experience in defense engineering.
The contract supports critical defense modernization programs, aligning with national security objectives.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related technology development. The market for defense engineering services is substantial, driven by the continuous need for modernization and upgrades of military systems. Booz Allen Hamilton operates in a competitive landscape with other large defense contractors and specialized engineering firms. Spending benchmarks for similar large-scale engineering support contracts within the Department of Defense can range from tens to hundreds of millions of dollars, depending on the scope and duration.

Small Business Impact

This contract does not appear to have been awarded as a small business set-aside, as indicated by 'sb': false. While Booz Allen Hamilton is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on the prime contractor's subcontracting plan and the specific needs of the engineering services required for JPALS and N-UCAS.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program executive office within the Department of the Navy. Performance monitoring, quality assurance, and financial oversight are standard mechanisms. 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

JPALS Program
N-UCAS Program
Naval Aviation Systems Engineering
Defense Engineering Services
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts

Risk Flags

Contract Duration
Contract Value
Program Complexity
Pricing Structure (Cost No Fee)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.8 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC. REQUIREMENTS DEFINITION AND ENGINEERING SUPPORT FOR THE JPALS AND N-UCAS PROGRAM

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 $31.8 million.

What is the period of performance?

Start: 2006-11-02. End: 2011-04-30.

What is the historical spending trend for engineering services related to the JPALS and N-UCAS programs?

Analyzing historical spending for JPALS and N-UCAS requires accessing detailed contract data beyond this single delivery order. However, the existence of a $31.75 million delivery order awarded in 2006 suggests a sustained investment in these programs. Typically, complex defense systems like these undergo multiple development, sustainment, and upgrade phases, each potentially involving significant engineering support contracts. Examining prior awards under the parent IDIQ or related contracts would reveal trends in funding allocation, contractor selection, and the evolution of program requirements over time. Without that broader dataset, this single award provides a snapshot of investment during a specific period.

How does the 'Cost No Fee' (Cost-Plus-Fixed-Fee) pricing structure impact value for money in this contract?

The 'Cost No Fee' (CNF) pricing structure, often a variation of Cost-Plus-Fixed-Fee (CPFF), means the government reimburses the contractor for allowable costs plus a fixed fee representing profit. In this specific case, 'Cost No Fee' might imply that the fee is zero or incorporated into the cost structure, which is unusual and warrants clarification. If it's a standard CPFF, the government bears the cost risk, and the contractor is incentivized to control costs to maximize their fixed fee. For value for money, it's crucial that the government has robust oversight to ensure costs are reasonable and allocable to the contract. If the fee is indeed zero, it could indicate a unique arrangement, perhaps related to internal government work or a specific type of support where profit is not the primary driver, or it could be a misinterpretation of the contract type. Assuming it's a standard CPFF, effective oversight is key to ensuring value.

What is Booz Allen Hamilton's track record with similar large-scale defense engineering contracts?

Booz Allen Hamilton has an extensive track record of performing large-scale engineering and technical support services for the Department of Defense and other federal agencies. They are a prime contractor on numerous complex programs across various military branches, including significant work in areas like C4ISR, cybersecurity, systems engineering, and advanced technology development. Their history includes managing multi-billion dollar contracts and delivering critical capabilities. For programs like JPALS and N-UCAS, their experience would likely encompass systems integration, software development, testing, and lifecycle support. A review of their past performance ratings and any past performance issues on similar contracts would provide further insight into their reliability and capability for this specific award.

What are the potential risks associated with the engineering complexity of JPALS and N-UCAS?

The JPALS (Joint Precision Approach and Landing System) and N-UCAS (Naval Unmanned Combat Air System) programs involve highly complex, cutting-edge technologies. Risks associated with this complexity include significant technical challenges in development and integration, potential for schedule delays due to unforeseen issues, and the possibility of cost overruns if development proves more difficult than anticipated. Ensuring interoperability between different systems, meeting stringent performance requirements, and adapting to evolving threats and technological advancements are ongoing challenges. Effective risk management, rigorous testing, and strong program oversight are critical to mitigating these inherent complexities and ensuring successful program outcomes.

How does the 'Delivery Order' contract type affect the overall program management and cost?

A 'Delivery Order' is issued under an existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract. This structure allows the government to procure services or supplies incrementally as needed, up to a predetermined ceiling amount specified in the base IDIQ contract. For program management, it provides flexibility, enabling the government to adapt to changing requirements and procurements without needing to establish entirely new contracts each time. From a cost perspective, it can lead to better pricing through pre-negotiated rates in the IDIQ. However, the total cost is capped by the IDIQ ceiling, and the government must carefully manage task orders to stay within budget and ensure fair and reasonable pricing for each order. This specific $31.75M order represents a portion of the total potential value of the parent IDIQ.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002406R3411

Offers Received: 1

Pricing Type: COST NO FEE (S)

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: $481,985,165

Exercised Options: $139,505,317

Current Obligation: $31,753,783

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4016

IDV Type: IDC

Timeline