Marine Corps awards $37.6M engineering services contract to Booz Allen Hamilton for professional support

Contract Overview

Contract Amount: $37,594,797 ($37.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2023-07-28

End Date: 2025-04-30

Contract Duration: 642 days

Daily Burn Rate: $58.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MARINE CORPS INSTALLATIONS COMMAND (MCICOM) PROFESSIONAL SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $37.6 million to BOOZ ALLEN HAMILTON INC for work described as: MARINE CORPS INSTALLATIONS COMMAND (MCICOM) PROFESSIONAL SERVICES Key points: 1. Contract value represents a significant investment in professional services for Marine Corps installations. 2. Booz Allen Hamilton, a large, established contractor, secured this award. 3. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, suggesting potential for future task orders. 4. The firm-fixed-price contract type shifts cost risk to the contractor. 5. The engineering services sector is critical for infrastructure and operational support. 6. The duration of the contract is over two years, indicating a need for sustained support.

Value Assessment

Rating: good

The contract value of $37.6 million for engineering services over approximately two years appears reasonable given the scope of support typically required by a major military command like MCICOM. Benchmarking against similar large-scale engineering support contracts for military installations suggests this award falls within expected spending ranges. The firm-fixed-price structure implies that the contractor has committed to delivering services within a set budget, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. This approach maximizes the pool of potential contractors and ensures a broad range of capabilities are considered.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it promotes a level playing field, encourages innovation, and drives down costs through market forces, ensuring the government receives the best value.

Public Impact

The Marine Corps Installations Command (MCICOM) is the primary beneficiary, receiving essential professional engineering services. Services delivered likely encompass a range of engineering disciplines supporting the maintenance, development, and operation of Marine Corps installations. The geographic impact is likely nationwide, covering various Marine Corps bases and facilities managed by MCICOM. The contract supports a professional workforce, potentially including engineers, project managers, and technical specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly, given the nature of professional services.
Reliance on a single large contractor could limit future flexibility or innovation if not actively managed.

Positive Signals

Award to a well-established contractor with a proven track record in government services.
Firm-fixed-price contract type provides cost certainty for the government.
Full and open competition suggests a robust selection process and potential for competitive pricing.

Sector Analysis

The engineering services sector is a vital component of the federal procurement landscape, supporting a wide array of government functions from infrastructure development to complex technical projects. This contract falls within the broader professional services category, which consistently represents a significant portion of federal spending. Comparable spending benchmarks for engineering services supporting large military commands indicate that this award is in line with typical investments for such critical support functions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct recipients of this prime contract. However, the prime contractor, Booz Allen Hamilton, may engage small businesses as subcontractors to fulfill specific aspects of the contract, depending on their subcontracting plans and the nature of the services required. The absence of a small business set-aside means opportunities for direct prime contracting were likely pursued by larger, established firms.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officers and program managers within the Marine Corps Installations Command (MCICOM) and the Department of the Navy. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services within budget. Transparency is facilitated through federal procurement databases where contract awards are reported. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse.

Related Government Programs

Marine Corps Base Operations Support
Department of Defense Engineering Services
Professional Services Contracts
Installation Management Contracts

Risk Flags

Potential for cost overruns if scope is not managed
Performance quality risk
Contractor dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.6 million to BOOZ ALLEN HAMILTON INC. MARINE CORPS INSTALLATIONS COMMAND (MCICOM) 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 $37.6 million.

What is the period of performance?

Start: 2023-07-28. End: 2025-04-30.

What is Booz Allen Hamilton's track record with the Department of Defense and specifically with engineering services contracts?

Booz Allen Hamilton is a well-established government contractor with extensive experience serving the Department of Defense (DoD) across various service areas, including engineering, IT, and management consulting. They have a long history of securing and performing on large-scale contracts for military branches. Their track record with engineering services specifically involves supporting infrastructure development, operational planning, and technical solutions for defense agencies. While specific performance metrics for this exact contract are not yet available due to its recent award, their historical performance with the DoD generally indicates a capacity to manage complex projects and deliver required services. Past performance evaluations, often a key component of contract awards, would have been assessed by the awarding agency.

How does the $37.6 million value compare to similar engineering services contracts for military installations?

The $37.6 million contract value for engineering services awarded to Booz Allen Hamilton by MCICOM is substantial, reflecting the broad scope and duration of support required. When compared to similar contracts for large-scale military installation support, this figure appears to be within a reasonable range. For instance, other major commands or branches often award contracts in the tens of millions for comprehensive engineering, facilities management, and technical support services over multi-year periods. Factors influencing the value include the number of installations supported, the complexity of the engineering challenges, the required expertise, and the contract duration (642 days in this case). Without specific details on the exact deliverables, a precise benchmark is difficult, but the amount is consistent with significant federal engineering support requirements.

What are the primary risks associated with this type of professional services contract for the Marine Corps?

The primary risks associated with this professional services contract for the Marine Corps include potential scope creep, where the requirements may expand beyond the initial agreement, leading to cost overruns or schedule delays if not managed effectively. Another risk is the contractor's performance quality; if Booz Allen Hamilton fails to deliver the expected level of expertise or service, it could impact the operational readiness and maintenance of Marine Corps installations. Contractor dependency is also a concern; relying heavily on a single entity for critical engineering support might reduce flexibility. Furthermore, ensuring the contractor maintains adequate cybersecurity measures to protect sensitive installation data is crucial. Finally, the firm-fixed-price nature, while beneficial for cost control, could incentivize the contractor to cut corners on quality if not rigorously overseen.

What is the expected impact of this contract on the efficiency and effectiveness of Marine Corps installations?

This contract is expected to enhance the efficiency and effectiveness of Marine Corps installations by providing specialized professional engineering services. These services are crucial for maintaining and upgrading infrastructure, ensuring facilities are operational, safe, and meet the evolving needs of the Marine Corps. By outsourcing these functions to an experienced contractor like Booz Allen Hamilton, MCICOM can leverage external expertise, potentially leading to more streamlined project execution, improved facility management, and the implementation of modern engineering solutions. This allows military personnel to focus on core mission activities rather than complex engineering and maintenance tasks. Ultimately, the contract aims to ensure that installations are well-supported, contributing to the overall readiness and operational capability of the Marine Corps.

How has federal spending on engineering services for installation support evolved over the past five years?

Federal spending on engineering services for installation support has remained a significant and relatively stable component of the overall defense budget over the past five years. While specific figures fluctuate annually based on infrastructure needs, modernization efforts, and geopolitical priorities, the demand for these services is consistently high. Agencies like the Department of Defense (DoD), which oversees entities like the Marine Corps Installations Command, rely heavily on engineering expertise for base construction, renovation, environmental compliance, and operational resilience. Trends indicate a continued focus on upgrading aging infrastructure, incorporating sustainable practices, and enhancing cybersecurity for physical installations. Spending in this category is generally driven by long-term capital investment plans and the ongoing operational requirements of maintaining a global military presence.

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: 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: $37,594,797

Exercised Options: $37,594,797

Current Obligation: $37,594,797

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