DoD's $91.7M engineering services contract to Booz Allen Hamilton shows strong competition and long performance period

Contract Overview

Contract Amount: $91,734,146 ($91.7M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2018-08-30

End Date: 2023-08-31

Contract Duration: 1,827 days

Daily Burn Rate: $50.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MCICOM HQ DIRECTORATE WIDE PROFESSIONAL SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20350

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $91.7 million to BOOZ ALLEN HAMILTON INC for work described as: MCICOM HQ DIRECTORATE WIDE PROFESSIONAL SERVICES Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Long contract duration of 1827 days suggests a need for sustained engineering support. 3. Firm Fixed Price contract type helps manage cost certainty for the government. 4. High value suggests significant scope and importance of the services provided. 5. Contractor Booz Allen Hamilton is a well-established entity in federal contracting. 6. Services are categorized under Engineering Services, a critical support function.

Value Assessment

Rating: good

The contract's value of approximately $91.7 million over five years suggests a substantial investment in engineering services. Benchmarking against similar large-scale engineering support contracts within the Department of Defense is necessary for a precise value-for-money assessment. However, the firm-fixed-price nature of the contract provides a degree of cost control. The specific services rendered and their impact on mission objectives would further inform the overall value assessment.

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 a bid. The presence of 3 bidders indicates a competitive environment, which typically drives better pricing and service offerings. This level of competition suggests that the government likely received a fair market price for the engineering services required.

Taxpayer Impact: Taxpayers benefit from a competitive award process that aims to secure the best value and prevent inflated pricing. The multiple bids received suggest that public funds are being used efficiently by fostering a market-driven price discovery.

Public Impact

The primary beneficiaries are the MCICOM HQ Directorate, receiving essential professional and engineering services. Services delivered include critical engineering support vital for command operations and infrastructure. The contract's impact is concentrated in the District of Columbia, where MCICOM HQ is located. The contract supports a workforce of professionals skilled in engineering and related technical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to potential complacency or reduced agility if not managed effectively.
High contract value may attract significant contractor overhead, impacting true value for money.
Dependence on a single contractor for extended periods can create vendor lock-in risks.

Positive Signals

Awarded via full and open competition, ensuring a broad range of potential providers.
Firm Fixed Price contract type offers cost predictability and reduces financial risk for the government.
Experienced contractor, Booz Allen Hamilton, likely brings established expertise and reliable performance.
The contract's duration suggests a stable, long-term need for these critical services.

Sector Analysis

This contract falls within the Engineering Services sector, a broad category encompassing design, consulting, and technical support for various projects. The federal government is a significant consumer of these services, particularly within defense and infrastructure. The market for engineering services is competitive, with numerous firms ranging from large corporations to specialized small businesses. This contract's value places it in the mid-to-large tier for individual federal service awards.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting requirements for small businesses mandated by this specific award. The primary contractor, Booz Allen Hamilton, is a large business, and its engagement does not inherently create opportunities for small business set-asides within this contract's structure. However, large prime contractors often engage small businesses as subcontractors on projects of this scale, though it is not explicitly detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy contracting officers and program managers within MCICOM HQ. The firm-fixed-price nature provides some inherent cost control. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Performance reviews and regular reporting requirements are standard oversight mechanisms.

Related Government Programs

Department of Defense Professional Services Contracts
Engineering and Technical Support Services
MCICOM Directorate Support Contracts
Large Value Federal Service Contracts
Defense Agency Support Services

Risk Flags

Long contract duration may increase risk of requirement changes or obsolescence.
High contract value necessitates robust oversight to ensure value for money.
Potential for vendor lock-in due to extended performance period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $91.7 million to BOOZ ALLEN HAMILTON INC. MCICOM HQ DIRECTORATE WIDE PROFESSIONAL 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 $91.7 million.

What is the period of performance?

Start: 2018-08-30. End: 2023-08-31.

What is the historical spending pattern for engineering services at MCICOM HQ?

Analyzing historical spending for engineering services at MCICOM HQ requires accessing detailed procurement data over multiple fiscal years. While this specific contract represents a significant outlay of $91.7 million from FY2018 to FY2023, understanding the broader trend involves looking at prior contracts for similar services. Factors such as changes in mission requirements, technological advancements, and budget allocations influence these patterns. A comprehensive review would identify whether spending has been consistent, increasing, or decreasing, and whether this contract represents a typical or exceptional investment for the directorate. Without access to a broader dataset, it's difficult to establish a definitive historical pattern beyond this single award's duration and value.

How does the per-unit cost of services compare to industry benchmarks for similar engineering support?

Determining the precise per-unit cost for this contract is challenging without a detailed breakdown of the services rendered and their associated quantities or labor hours. The contract is a Firm Fixed Price (FFP) award, meaning the total price is set, and the contractor assumes the risk of cost overruns. Benchmarking would involve comparing the average loaded labor rates or task-specific pricing against industry standards for comparable engineering services, considering factors like geographic location (District of Columbia), security clearances required, and the complexity of the tasks. Given Booz Allen Hamilton's established presence and the competitive bidding process, it's plausible the pricing is market-aligned, but a definitive comparison requires granular data not present in the summary.

What are the key performance indicators (KPIs) used to evaluate Booz Allen Hamilton's performance on this contract?

Key Performance Indicators (KPIs) for a contract of this nature typically focus on technical execution, timeliness, cost control (within the FFP framework), and customer satisfaction. For engineering services, KPIs might include adherence to design specifications, successful completion of project milestones, quality of deliverables (reports, analyses, designs), responsiveness to requests, and overall impact on the MCICOM HQ Directorate's mission objectives. The government would likely have a Performance Work Statement (PWS) outlining specific deliverables and standards. Regular performance reviews and feedback mechanisms would be in place to monitor adherence to these KPIs throughout the contract's five-year duration.

What is the risk profile associated with this contract, considering its duration and value?

The risk profile for this $91.7 million contract, spanning over 1800 days, involves several considerations. A primary risk is potential scope creep or requirement changes over the long performance period, which could necessitate contract modifications. Contractor performance risk exists, although mitigated by Booz Allen Hamilton's experience and the FFP structure. There's also a risk of vendor lock-in, making it difficult to switch providers if performance degrades. Furthermore, the concentration of services in one directorate could pose an operational risk if the contractor fails to deliver. However, the full and open competition and FFP terms help mitigate financial and pricing risks.

How has Booz Allen Hamilton's past performance on similar federal contracts influenced this award?

Booz Allen Hamilton is a large, established federal contractor with a long history of performance across numerous agencies, including the Department of Defense. Their past performance is a critical evaluation factor in federal procurements. For this contract, it's highly probable that their track record of successfully delivering complex engineering and professional services, managing large budgets, and meeting performance requirements on previous contracts significantly contributed to their winning bid. Agencies typically review past performance data, including customer satisfaction surveys and documented performance history, to assess a contractor's reliability and capability before awarding substantial contracts.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MC LEAN, 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: $94,789,065

Exercised Options: $94,789,065

Current Obligation: $91,734,146

Actual Outlays: $43,287,734

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $1,735,421

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU108

IDV Type: IDC

Timeline