DoD's $34.3M Program Management Contract Awarded to Booz Allen Hamilton

Contract Overview

Contract Amount: $34,336,910 ($34.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2009-08-12

End Date: 2015-02-23

Contract Duration: 2,021 days

Daily Burn Rate: $17.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: Defense

Official Description: PROGRAM MANAGEMENT AND TECHNICAL SUPPORT

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $34.3 million to BOOZ ALLEN HAMILTON INC for work described as: PROGRAM MANAGEMENT AND TECHNICAL SUPPORT Key points: 1. Contract awarded for program management and technical support services. 2. Booz Allen Hamilton Inc. is the sole contractor. 3. The contract spans from August 2009 to February 2015. 4. This falls under Engineering Services (NAICS 541330). 5. The award type was a Delivery Order.

Value Assessment

Rating: fair

The contract's pricing structure is 'Cost No Fee', which can make direct value assessment challenging without further fee details. Benchmarking against similar program management contracts is difficult due to the unique fee structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the award being a Delivery Order means it was likely part of a larger IDIQ contract, and the initial competition for that IDIQ is key to price discovery.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently, but the specific cost-plus-no-fee structure requires careful monitoring to prevent cost overruns.

Public Impact

Supports critical program management functions within the Department of Defense. Ensures technical expertise is available for complex defense programs. Contract duration of over five years indicates a long-term need for these services. Services provided are essential for the successful execution of defense initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost No Fee structure can obscure true cost-effectiveness.
Limited visibility into specific performance metrics and outcomes.
Long contract duration may not reflect evolving needs.

Positive Signals

Awarded through full and open competition.
Contractor has a strong track record in government contracting.
Services are critical to defense program execution.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically engineering services. Spending in this area is substantial across the federal government, supporting complex project management and technical analysis.

Small Business Impact

The data does not indicate any specific subcontracting goals or participation by small businesses in this particular delivery order. Further analysis of the parent IDIQ contract would be needed to assess small business inclusion.

Oversight & Accountability

Oversight would typically be managed by the contracting agency (Department of Defense) and the specific program office. The Defense Contract Management Agency's involvement suggests a level of oversight on contract performance and compliance.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost No Fee pricing model.
Long contract duration.
Potential for limited competition on subsequent task orders.
Lack of specific small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.3 million to BOOZ ALLEN HAMILTON INC. PROGRAM MANAGEMENT AND TECHNICAL 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 $34.3 million.

What is the period of performance?

Start: 2009-08-12. End: 2015-02-23.

How does the 'Cost No Fee' structure impact the government's ability to ensure value for money compared to fixed-price contracts?

The 'Cost No Fee' structure means the contractor is reimbursed for allowable costs but receives no additional profit or fee. This can incentivize cost control by the contractor, as they bear the risk of unallowable costs. However, it can also make it harder for the government to benchmark against market rates or assess true value without detailed cost breakdowns and performance metrics.

What are the primary risks associated with a long-term 'Cost No Fee' contract for program management?

Key risks include potential for scope creep without clear cost implications, difficulty in performance measurement if not rigorously defined, and the possibility of contractor complacency due to the lack of profit motive tied to efficiency. Ensuring robust oversight and clear performance standards is crucial to mitigate these risks and maintain accountability.

How effective is 'full and open competition' for IDIQ vehicles in ensuring competitive pricing for subsequent delivery orders like this one?

Full and open competition for IDIQ vehicles generally establishes a competitive baseline. However, the effectiveness for individual delivery orders depends on the number of awardees, the specific task order competition rules, and the clarity of the requirements. If task orders are competed among multiple IDIQ holders, it can drive competitive pricing; if not, the initial IDIQ competition's effectiveness is diluted.

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

Solicitation ID: N0002409R3327

Offers Received: 1

Pricing Type: COST NO FEE (S)

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: $37,540,879

Exercised Options: $37,540,879

Current Obligation: $34,336,910

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4024

IDV Type: IDC

Timeline