Booz Allen Hamilton awarded $98.2M contract for PEO MLB professional support services by the Department of the Navy

Contract Overview

Contract Amount: $98,215,565 ($98.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2023-05-15

End Date: 2026-05-14

Contract Duration: 1,095 days

Daily Burn Rate: $89.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PROFESSIONAL SUPPORT SERVICES FOR PEO MLB

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $98.2 million to BOOZ ALLEN HAMILTON INC for work described as: PROFESSIONAL SUPPORT SERVICES FOR PEO MLB Key points: 1. Contract value represents a significant investment in professional support services for program executive offices. 2. The full and open competition suggests a robust market for these specialized services. 3. Performance period spans three years, indicating a need for sustained support. 4. The cost-plus-fixed-fee structure allows for flexibility but requires careful oversight of costs. 5. This contract falls within the broader category of engineering and professional services for defense. 6. The award to a large, established contractor like Booz Allen Hamilton is typical for complex defense support.

Value Assessment

Rating: good

The contract value of approximately $98.2 million over three years averages to about $32.7 million annually. Benchmarking this against similar professional support services contracts for program executive offices is challenging without more specific service details. However, the award to a single entity suggests a negotiated price deemed fair for the scope of work. The cost-plus-fixed-fee (CPFF) pricing structure implies that costs will be reimbursed, plus a fixed fee for profit, which can be efficient if managed well but also carries inherent cost escalation risks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the nature of the competition suggests a healthy market for these services. Full and open competition generally leads to a more competitive pricing environment and a wider selection of potential contractors.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a broader range of innovative solutions, as contractors are incentivized to offer their best value to win the contract.

Public Impact

The primary beneficiaries are the Program Executive Office for Major and Special Programs (PEO MLB) within the Department of the Navy, receiving essential professional support. Services delivered likely include program management, systems engineering, acquisition support, and strategic planning. The geographic impact is centered around the Navy's operational and acquisition hubs, primarily in Virginia. Workforce implications include the potential for skilled professionals to be employed by Booz Allen Hamilton or its subcontractors to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not meticulously managed and monitored.
Reliance on a single large contractor may limit opportunities for smaller, specialized firms.
The broad nature of 'professional support services' could mask potential scope creep if not clearly defined.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Booz Allen Hamilton is a well-established contractor with a proven track record in defense support.
The three-year duration suggests a stable, ongoing need for these critical services.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically engineering services (NAICS 541330). This sector is a significant component of the federal contracting landscape, supporting various government functions. The market size for defense-related professional support services is substantial, driven by the complexity and scale of modern military operations and acquisition programs. This contract represents a portion of the Department of Defense's overall spending on specialized expertise to manage and execute its programs.

Small Business Impact

The data indicates that small business participation (ss and sb fields) was not a specific set-aside requirement for this contract. While Booz Allen Hamilton is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on Booz Allen Hamilton's own subcontracting plan and the specific needs of the PEO MLB support services.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Navy contracting officers and program managers. The cost-plus-fixed-fee structure necessitates rigorous financial oversight to ensure costs are reasonable and allocable to the contract. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General for the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse related to this award.

Related Government Programs

Department of Defense Professional Services Contracts
Navy Program Executive Office Support
Engineering and Technical Services
Major Defense Acquisition Programs Support

Risk Flags

Cost-plus-fixed-fee contract type requires diligent oversight to manage costs.
Potential for scope creep in broad 'professional support services' contracts.
Long-term duration necessitates sustained performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $98.2 million to BOOZ ALLEN HAMILTON INC. PROFESSIONAL SUPPORT SERVICES FOR PEO MLB

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 $98.2 million.

What is the period of performance?

Start: 2023-05-15. End: 2026-05-14.

What is Booz Allen Hamilton's track record with the Department of the Navy and similar professional support contracts?

Booz Allen Hamilton is a long-standing and prominent contractor for the Department of Defense, including the Department of the Navy. They have a extensive history of providing professional, scientific, and technical services, encompassing program management, systems engineering, and strategic consulting. Their track record includes numerous large-scale contracts supporting various naval programs and initiatives. While specific performance metrics for this exact contract are not yet available due to its recent award, their overall history suggests a capacity to handle complex requirements. Past performance evaluations and contract award histories available through federal procurement databases would offer more granular insights into their specific performance on prior, similar engagements.

How does the $98.2 million contract value compare to historical spending on PEO MLB support?

To accurately compare this $98.2 million contract to historical spending on PEO MLB support, one would need access to detailed historical contract data specifically for PEO MLB. Without that granular data, a direct comparison is difficult. However, the value suggests a significant and sustained need for professional support services within the PEO MLB. Annual spending on such support can fluctuate based on program lifecycles, new initiatives, and budget allocations. This award, spanning three years, indicates a substantial commitment. If historical data shows similar or higher annual expenditures for comparable support functions, this contract would be in line with previous investment levels. Conversely, if it represents a significant increase or decrease, it might signal a shift in program priorities or contracting strategies.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude, like the $98.2 million award to Booz Allen Hamilton, revolve around cost control and contractor performance. For the government, the main risk is that the actual costs incurred by the contractor could exceed initial estimates, even though the profit (fixed fee) is predetermined. This necessitates robust government oversight to ensure that all costs claimed are reasonable, allocable, and allowable. Ineffective oversight can lead to cost overruns without a corresponding increase in value. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee provides adequate profit. If costs are underestimated, the profit margin shrinks. Additionally, there's a risk of scope creep, where the project's requirements expand beyond the initial agreement, potentially leading to disputes or increased costs if not managed through formal contract modifications.

What does the 'Engineering Services' classification (NAICS 541330) imply about the nature of the support provided?

The classification of 'Engineering Services' (NAICS 541330) for this $98.2 million contract implies that the core services provided by Booz Allen Hamilton will involve the application of engineering principles and expertise. This typically includes activities such as research and development, design, analysis, testing, and technical consultation related to engineering projects. For PEO MLB, this could translate to support in areas like systems engineering for major defense platforms, acquisition strategy development, technical evaluations of proposed systems, program risk assessments from an engineering perspective, and ensuring compliance with technical specifications and standards. It suggests a focus on the technical and programmatic aspects of acquiring and managing complex defense systems, rather than purely administrative or general consulting.

How does the three-year duration (1095 days) impact the assessment of value for money?

The three-year duration (1095 days) for this $98.2 million contract provides a substantial period for the contractor, Booz Allen Hamilton, to deliver services and for the government to assess the value received. A longer duration allows for the development of deeper institutional knowledge and more integrated support, potentially leading to greater efficiencies and effectiveness over time. It also provides a more stable environment for long-term projects managed by PEO MLB. From a value-for-money perspective, this duration enables the government to amortize the initial setup and learning curve costs over a longer period. It also allows for performance metrics to be tracked and evaluated over a significant timeframe, providing a clearer picture of sustained performance and the realization of intended program benefits. However, it also necessitates robust contract management to prevent complacency and ensure continued high performance throughout the period.

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: N0003923R3004

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, 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: $220,716,155

Exercised Options: $162,972,236

Current Obligation: $98,215,565

Actual Outlays: $1,896,651

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $15,600,962

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