Booz Allen Hamilton awarded $111M for Navy engineering and analysis services, spanning over 1700 days

Contract Overview

Contract Amount: $111,368,289 ($111.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2016-12-15

End Date: 2021-10-27

Contract Duration: 1,777 days

Daily Burn Rate: $62.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF THIS TASK ORDER PROVIDES FULL SPECTRUM ARCHITECTURE, ANALYSIS, INTEROPERABILITY ASSESSMENTS, ENGINEERING, CONFIGURATION MANAGEMENT (CM), TECHNICAL MANAGEMENT SERVICES, SCIENCE AND TECHNOLOGY, VERIFICATION, VALIDATION, AND CERTIFICATION, SOFTWARE ENGINEERING SUPPORT, COST ENGINEERING AND ECONOMIC ANALYSIS, RELIABILITY AND SYSTEMS SAFETY ASSURANCE ENGINEERING AND ANALYSIS, INTEGRATION AND INTEROPERABILITY (I&I), FUTURE CAPABILITIES AND NEW CONSTRUCTION SHIPS FOR SPAWAR'S PMW 160.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $111.4 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF THIS TASK ORDER PROVIDES FULL SPECTRUM ARCHITECTURE, ANALYSIS, INTEROPERABILITY ASSESSMENTS, ENGINEERING, CONFIGURATION MANAGEMENT (CM), TECHNICAL MANAGEMENT SERVICES, SCIENCE AND TECHNOLOGY, VERIFICATION, VALIDATION, AND CERTIFICATION, SOFTWARE ENGINEERING SUPPORT, … Key points: 1. Contract focuses on comprehensive engineering, analysis, and technical management for SPAWAR's PMW 160. 2. Significant duration of the contract suggests a long-term need for these specialized services. 3. The award was made under full and open competition, indicating a broad market solicitation. 4. Services encompass a wide range of technical disciplines, from architecture to software engineering and cost analysis. 5. The contract type, Cost Plus Fixed Fee, allows for reimbursement of costs plus a fixed fee, which can be suitable for complex projects where cost estimation is challenging.

Value Assessment

Rating: good

The contract value of $111.4 million over nearly five years for comprehensive engineering and technical services appears reasonable given the scope. While specific comparable contracts for SPAWAR PMW 160 are not detailed here, the breadth of services including architecture, analysis, engineering, and software support suggests a significant undertaking. The Cost Plus Fixed Fee (CPFF) contract type, while offering flexibility, requires careful oversight to manage costs effectively. Benchmarking against similar large-scale engineering support contracts within the Department of Defense would provide a more precise value-for-money 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 offers. The presence of 5 bidders indicates a competitive environment for these specialized engineering and technical services. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value by encouraging multiple companies to offer their best pricing and technical solutions.

Public Impact

Naval warfare capabilities are enhanced through advanced engineering, analysis, and technical management. The project supports the Program Management Warfare (PMW) 160, crucial for naval systems development. Workforce implications include specialized engineering, software development, and analytical roles within the contractor's organization. Geographic impact is primarily centered around naval operations and support infrastructure, likely with a concentration in areas where SPAWAR operates.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
The broad scope of services requires robust project management to ensure all requirements are met effectively.
Reliance on a single contractor for such a wide array of critical services could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, suggesting a healthy market response and potential for competitive pricing.
The long contract duration indicates a sustained need and potentially a strong working relationship built on performance.
The contractor, Booz Allen Hamilton, is a well-established firm with extensive experience in government contracting and defense services.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the defense industrial base. The market for defense engineering services is substantial, driven by the continuous need for modernization, research, development, and sustainment of military platforms and systems. Booz Allen Hamilton is a major player in this space, competing with other large defense contractors. Spending in this sector is often characterized by long-term, high-value contracts requiring specialized expertise.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While the primary awardee is a large business, there may be opportunities for small businesses to participate as subcontractors. The nature of the services provided, such as specialized engineering and analysis, could involve subcontracting to smaller firms with niche expertise. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates close monitoring of costs incurred by the contractor to ensure they align with the fixed fee and the overall contract objectives. Transparency is generally maintained through regular reporting requirements and contract performance reviews. The Inspector General's office for the Department of Defense would have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

SPAWAR Systems Center Atlantic (SSC Atlantic) Contracts
Naval Sea Systems Command (NAVSEA) Support Contracts
Department of Defense Engineering Services
Information Technology Support Services for Defense
Program Executive Office (PEO) Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
Broad scope of services necessitates robust project management and clear performance metrics.
Potential for contractor performance issues impacting critical naval systems support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $111.4 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF THIS TASK ORDER PROVIDES FULL SPECTRUM ARCHITECTURE, ANALYSIS, INTEROPERABILITY ASSESSMENTS, ENGINEERING, CONFIGURATION MANAGEMENT (CM), TECHNICAL MANAGEMENT SERVICES, SCIENCE AND TECHNOLOGY, VERIFICATION, VALIDATION, AND CERTIFICATION, SOFTWARE ENGINEERING SUPPORT, COST ENGINEERING AND ECONOMIC ANALYSIS, RELIABILITY AND SYSTEMS SAFETY ASSURANCE ENGINEERING AND ANALYSIS, INTEGRATION AND INTEROPERABILITY (I&I), FUTURE CAPABILITIES AND NEW CONSTRUCTION SHIPS FOR SPAWAR'S PMW 160.

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 $111.4 million.

What is the period of performance?

Start: 2016-12-15. End: 2021-10-27.

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

Booz Allen Hamilton has a long and extensive history of performing large-scale engineering, analysis, 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 the Navy. Their track record includes managing multi-year, multi-million dollar contracts involving systems engineering, IT modernization, cybersecurity, and strategic consulting. While specific performance metrics for this particular contract are not detailed here, the company's overall reputation is that of a major, experienced defense contractor capable of handling sophisticated requirements. Past performance is a key evaluation factor in federal contracting, and Booz Allen Hamilton's sustained presence suggests a generally positive history.

How does the $111.4 million value compare to other engineering services contracts for naval programs?

The $111.4 million value for this contract, spanning nearly five years, is substantial but falls within the typical range for large, comprehensive engineering and technical support services awarded to major defense contractors for naval programs. Contracts for systems development, modernization, and sustainment for platforms like ships, submarines, and associated combat systems often reach hundreds of millions, or even billions, of dollars over their lifecycle. This specific award for SPAWAR's PMW 160 appears to be a significant delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a standalone contract for a defined set of services. Benchmarking against other PEO or PMW-level contracts would reveal if the per-year cost is competitive, but the overall value is consistent with the complexity and duration of the support required.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?

The primary risks associated with a CPFF contract of this magnitude revolve around cost control and contractor incentives. While the fixed fee provides the contractor with a defined profit margin, the cost reimbursement aspect means the government bears the risk of actual costs incurred. If the contractor's costs are higher than anticipated, the total contract value increases, potentially exceeding initial budget projections. Key risks include: 1) Inadequate cost estimation by the contractor leading to higher-than-expected costs. 2) Potential for scope creep without proper change control, driving up costs. 3) Contractor incentives may not be perfectly aligned with government's goal of minimizing costs if oversight is weak. 4) Difficulty in accurately forecasting the final contract price. Robust government oversight, detailed cost tracking, and strong contract administration are crucial to mitigate these risks.

How effective is the competition level in ensuring value for money for taxpayers?

The 'full and open competition' with 5 bidders is a strong indicator that the competition level is effective in ensuring value for taxpayers. This approach maximizes the pool of potential offerors, encouraging a wider range of technical solutions and competitive pricing. When multiple capable companies vie for a contract, they are incentivized to submit their most competitive proposals to win the award. This dynamic typically drives down prices and improves the quality of services offered compared to sole-source or limited competition scenarios. The government benefits from a more robust price discovery process, leading to a better allocation of taxpayer funds. The presence of several bidders suggests that the market is healthy and that the government is likely receiving a fair price for the required engineering and analysis services.

What is the historical spending trend for similar engineering and technical services within the Department of the Navy?

Historical spending trends for engineering and technical services within the Department of the Navy have consistently shown significant investment, driven by the need to maintain, modernize, and develop complex naval systems. The Navy procures a vast array of services, including systems engineering, software development, cybersecurity, research and development, and lifecycle support. Spending in this category often fluctuates based on major acquisition programs, fleet readiness requirements, and strategic priorities. Over the past decade, there has been a sustained high level of spending on IT modernization, platform upgrades, and advanced capabilities, making engineering and technical services a critical and substantial part of the Navy's budget. Contracts like this one, supporting program management offices like PMW 160, are representative of this ongoing investment.

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: N0002415R3570

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

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

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $114,721,035

Exercised Options: $114,721,035

Current Obligation: $111,368,289

Actual Outlays: $10,972,371

Subaward Activity

Number of Subawards: 37

Total Subaward Amount: $53,104,438

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4024

IDV Type: IDC

Timeline