DoD Awards $41.9M Engineering Services Contract to Booz Allen Hamilton, Not Competed

Contract Overview

Contract Amount: $41,919,135 ($41.9M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2022-06-10

End Date: 2026-05-15

Contract Duration: 1,435 days

Daily Burn Rate: $29.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: BASE YEAR LABOR

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92110

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $41.9 million to BOOZ ALLEN HAMILTON INC for work described as: BASE YEAR LABOR Key points: 1. Significant award to a large, established contractor. 2. Lack of competition raises questions about price discovery. 3. Engineering services sector is critical for defense operations. 4. Potential for cost overruns in Cost Plus Fixed Fee contracts.

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed closely. Benchmarking against similar engineering services contracts is difficult without more detailed scope information.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these engineering services.

Public Impact

Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on these services for critical engineering functions. Booz Allen Hamilton, a major contractor, receives a substantial award. Contract duration extends over several years, impacting long-term budget planning.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
Lack of transparency in pricing

Positive Signals

Award to established contractor
Supports critical defense functions

Sector Analysis

This contract falls within the Engineering Services sector, which is vital for government infrastructure and defense projects. Spending in this sector can vary widely based on project scope and complexity.

Small Business Impact

This contract was awarded to Booz Allen Hamilton, a large business. There is no indication that small businesses were involved in this specific award.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure costs are reasonable and the scope of work is strictly adhered to. Accountability for performance and spending is crucial.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Sole-source award limits competition.
Cost Plus Fixed Fee contract type can lead to higher costs.
Potential for contractor to incur costs exceeding estimates.
Lack of detailed scope may obscure true value.
Long contract duration increases long-term financial commitment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.9 million to BOOZ ALLEN HAMILTON INC. BASE YEAR LABOR

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 $41.9 million.

What is the period of performance?

Start: 2022-06-10. End: 2026-05-15.

What is the justification for awarding this contract on a sole-source basis instead of through full and open competition?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available sources. Without specific documentation, it's difficult to assess if these criteria were met, raising concerns about potential missed savings from competition.

How will the government ensure cost control and prevent overruns in this Cost Plus Fixed Fee contract?

Effective oversight, detailed performance metrics, and regular audits are crucial for managing Cost Plus Fixed Fee contracts. The government must actively monitor expenditures against the fixed fee and the estimated cost to ensure value for money and prevent unnecessary spending.

What is the expected impact of these engineering services on the Department of the Navy's operational effectiveness?

Engineering services are fundamental to maintaining and improving naval assets and infrastructure. The successful delivery of these services is expected to enhance operational readiness, support modernization efforts, and ensure the long-term viability of critical naval systems.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0003921R1014

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $49,477,627

Exercised Options: $42,815,558

Current Obligation: $41,919,135

Actual Outlays: $-89,588

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $11,079,774

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline