DoD's $16.8M I&E IT and BRAC Support contract awarded to Booz Allen Hamilton Inc. for engineering services

Contract Overview

Contract Amount: $16,833,213 ($16.8M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2007-09-21

End Date: 2012-09-20

Contract Duration: 1,826 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: I&E IT AND BRAC SUPPORT

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.8 million to BOOZ ALLEN HAMILTON INC for work described as: I&E IT AND BRAC SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1826 days indicates a long-term need for these services. 3. Booz Allen Hamilton Inc., a large established contractor, is the awardee. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 5. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery contract. 6. The contract is for Engineering Services, aligning with NAICS code 541330.

Value Assessment

Rating: fair

Benchmarking the value of this $16.8 million contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk for cost control, as the contractor is reimbursed for allowable costs plus a fixed fee. While CPFF can be appropriate for research and development or uncertain scope projects, it requires robust oversight to ensure cost efficiency. Without detailed breakdowns of the fixed fee or performance against objectives, it's difficult to definitively assess value for money compared to other engineering service contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This 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 specific award. While full and open competition is generally preferred for maximizing price discovery and ensuring fair access to government contracts, the limited number of bidders (two) might suggest specific market conditions or specialized requirements that narrowed the field.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through a competitive bidding process. Even with two bidders, the process ensures that the government receives offers from multiple qualified companies, fostering a more cost-effective outcome than a sole-source or limited competition scenario.

Public Impact

The Department of Defense benefits from specialized engineering and IT support for its Installation and Environment (I&E) and Base Realignment and Closure (BRAC) initiatives. This contract supports critical infrastructure planning, management, and IT integration within the DoD. The services delivered likely contribute to the efficient operation and modernization of military bases. The geographic impact is primarily within Virginia, where the contract was awarded and likely performed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher spending if not rigorously managed.
Limited competition (2 bidders) may have reduced the potential for optimal price negotiation.
Long contract duration (5 years) increases exposure to potential scope creep or changing requirements.

Positive Signals

Awarded through full and open competition, ensuring a broad base of potential bidders.
Booz Allen Hamilton is a well-established contractor with a significant track record in government services.
The contract addresses specific needs within DoD's I&E and BRAC programs, indicating strategic alignment.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting government IT and infrastructure initiatives. The market for government engineering and IT support services is substantial, with numerous large and small firms competing for contracts. This award to Booz Allen Hamilton, a major player in the government contracting space, is consistent with industry trends where large, experienced firms often secure complex, long-term engagements. Comparable spending benchmarks would typically involve analyzing other large-scale IT and engineering support contracts awarded by the DoD or other federal agencies.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, Booz Allen Hamilton Inc., is a large business. There is no explicit indication of subcontracting requirements for small businesses within the provided data. Therefore, this contract is unlikely to directly benefit the small business ecosystem through set-asides or mandated subcontracting goals, although the prime contractor may voluntarily engage small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is listed as the 'Supervising Agency'. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense IT Support Services
Base Realignment and Closure (BRAC) Program Support
Engineering and Technical Services Contracts
Cost Plus Fixed Fee Contracts
Indefinite Delivery/Indefinite Quantity (IDIQ) Contract Vehicles

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Limited competition (2 bidders) may have resulted in a suboptimal price.
Long contract duration increases risk of scope creep and technological obsolescence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.8 million to BOOZ ALLEN HAMILTON INC. I&E IT AND BRAC SUPPORT

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $16.8 million.

What is the period of performance?

Start: 2007-09-21. End: 2012-09-20.

What is Booz Allen Hamilton's track record with similar DoD contracts?

Booz Allen Hamilton Inc. has an extensive history of securing and performing large-scale contracts with the Department of Defense across various service areas, including IT, engineering, and strategic consulting. Their portfolio often includes complex programs requiring deep technical expertise and program management capabilities. Analyzing their past performance on similar I&E or BRAC-related contracts, particularly those involving IT integration and infrastructure support, would provide insight into their reliability and effectiveness. Historical data suggests they are a frequent awardee for high-value, long-term government engagements, indicating a strong existing relationship and perceived capability within the DoD.

How does the Cost Plus Fixed Fee (CPFF) structure impact cost control for this contract?

The CPFF structure reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. While the fee is fixed, the total cost is variable. This structure can incentivize contractors to incur costs, as they are reimbursed for them, potentially leading to budget overruns if not managed with stringent oversight. For taxpayers, this means the final cost can exceed initial estimates if costs escalate. Effective management requires robust auditing of allowable costs and close monitoring of project progress to ensure efficiency and prevent unnecessary expenditures. The fixed fee itself should be a reasonable percentage of the estimated cost.

What are the risks associated with a 5-year contract duration for engineering services?

A 5-year contract duration for engineering services presents several risks. Firstly, technology and requirements can rapidly evolve over such a long period, potentially rendering the initial scope of work obsolete or inefficient. This necessitates flexibility and robust change management processes within the contract. Secondly, long-term contracts can lead to contractor complacency or a reduced incentive to innovate if not actively managed. Thirdly, the government locks in pricing for an extended period, potentially missing out on market rate reductions or more competitive offerings that might emerge. Finally, the longer the contract, the greater the potential for cost growth if cost-reimbursable elements are involved and oversight is not consistently rigorous.

How does the limited number of bidders (2) affect price discovery and value for money?

When only two bidders participate in a full and open competition, the price discovery mechanism is less robust than with a larger pool of competitors. While competition still exists, the potential for collusion or strategic bidding increases, and the government may not achieve the lowest possible price. The limited number of bidders could indicate high barriers to entry, specialized requirements, or that only a few firms possess the necessary qualifications. This situation warrants careful scrutiny of the awarded price to ensure it represents fair market value, as the government has fewer alternative offers to benchmark against. It suggests that the government should analyze why competition was limited to inform future procurement strategies.

What is the typical cost range for similar DoD IT and BRAC support contracts?

The cost range for similar DoD IT and BRAC support contracts can vary significantly based on scope, duration, complexity, and the specific services required. Contracts can range from a few million dollars for specialized, short-term support to hundreds of millions or even billions for large-scale, multi-year programs involving extensive infrastructure modernization, cybersecurity, and system integration. This $16.8 million contract for a 5-year period appears to be a mid-range award for focused engineering and IT support within specific DoD initiatives like I&E and BRAC. Benchmarking against other contracts with similar NAICS codes (e.g., 541330) and contract types (CPFF) awarded by DoD agencies would provide a more precise comparison.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002407R3337

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: BOOZ ALLEN HAMILTON INC, MC LEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $72,526,200

Exercised Options: $30,371,190

Current Obligation: $16,833,213

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4024

IDV Type: IDC

Timeline