DoD Awards $60M Engineering Services Contract to Booz Allen Hamilton for 5 Years
Contract Overview
Contract Amount: $59,939,957 ($59.9M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2021-09-20
End Date: 2026-09-19
Contract Duration: 1,825 days
Daily Burn Rate: $32.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Engineering Services
Official Description: PROFESSIONAL SUPPORT SERVICES (PSS)
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92110
Plain-Language Summary
Department of Defense obligated $59.9 million to BOOZ ALLEN HAMILTON INC for work described as: PROFESSIONAL SUPPORT SERVICES (PSS) Key points: 1. Significant contract value of $59.9M over five years. 2. Booz Allen Hamilton is a major player in government contracting. 3. Potential for cost overruns with Cost Plus Fixed Fee contract type. 4. Engineering Services sector sees substantial government investment.
Value Assessment
Rating: good
The contract's Cost Plus Fixed Fee structure allows for flexibility but requires careful monitoring to ensure costs remain reasonable and aligned with project scope. Benchmarking against similar engineering services contracts is crucial.
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 that should drive favorable pricing. The Delivery Order award mechanism indicates it's part of a larger IDIQ or similar vehicle.
Taxpayer Impact: Competition generally leads to better value for taxpayers by ensuring fair pricing and efficient use of funds.
Public Impact
Supports critical Department of Defense engineering and technical requirements. Ensures continued operational readiness and technological advancement for the Navy. Impacts the professional services sector, particularly engineering and consulting firms.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to higher costs if not managed effectively.
- Long contract duration (5 years) may not adapt quickly to changing technological needs.
- No explicit small business set-aside noted.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- Experienced contractor (Booz Allen Hamilton) likely brings significant expertise.
- Contract supports essential defense functions.
Sector Analysis
This contract falls within the Engineering Services sector, a critical area for government operations, particularly defense. Spending in this sector is often substantial due to the complexity and long-term nature of projects.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This suggests larger, established firms were likely the primary bidders and recipients of this award.
Oversight & Accountability
Oversight will be critical for the Department of the Navy to manage the Cost Plus Fixed Fee aspects of this contract, ensuring that costs are justified and that performance meets all requirements throughout the five-year period.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- No small business participation noted.
- Potential for scope creep without strict management.
Tags
engineering-services, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $59.9 million to BOOZ ALLEN HAMILTON INC. PROFESSIONAL SUPPORT SERVICES (PSS)
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 $59.9 million.
What is the period of performance?
Start: 2021-09-20. End: 2026-09-19.
How does the 'Cost Plus Fixed Fee' structure compare to other contract types for similar engineering services in terms of overall cost efficiency and risk to the government?
Cost Plus Fixed Fee (CPFF) contracts offer flexibility for complex projects where scope is not fully defined, but they carry a higher risk of cost overruns compared to fixed-price contracts. The government pays actual costs plus a fixed fee, incentivizing the contractor to control costs to maximize their profit margin. However, without stringent oversight, costs can escalate beyond initial projections, potentially making it less cost-efficient than well-defined fixed-price contracts.
What specific engineering services are being procured under this contract, and how do they align with current and future Department of Defense technological priorities?
While the specific engineering services are not detailed in the provided data, the 'Engineering Services' NAICS code (541330) typically encompasses design, consulting, and development for various engineering disciplines. Given the DoD context, these services likely relate to naval systems, infrastructure, or advanced technological development. Alignment with future priorities would require further analysis of the contract's statement of work and the DoD's strategic technology roadmaps.
What mechanisms are in place to ensure effective performance and accountability from Booz Allen Hamilton throughout the 5-year contract duration?
Effective performance and accountability are typically ensured through a robust contract management plan by the contracting officer's representative (COR). This includes regular performance reviews, milestone tracking, quality assurance checks, and adherence to the contract's deliverables and reporting requirements. For CPFF contracts, detailed cost monitoring and auditing are also crucial to ensure the government is receiving fair value for its investment.
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: N0003921R3003
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Booz Allen Hamilton Holding Corporation
Address: 8283 GREENSBORO DR, MCLEAN, 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: $89,451,761
Exercised Options: $89,451,761
Current Obligation: $59,939,957
Actual Outlays: $165,717
Subaward Activity
Number of Subawards: 18
Total Subaward Amount: $15,618,422
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017819D7264
IDV Type: IDC
Timeline
Start Date: 2021-09-20
Current End Date: 2026-09-19
Potential End Date: 2026-09-19 00:00:00
Last Modified: 2025-12-16
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