Navy awards $33.2M engineering services contract to Booz Allen Hamilton for PMW 790 Program Support

Contract Overview

Contract Amount: $33,190,062 ($33.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2024-06-28

End Date: 2026-06-30

Contract Duration: 732 days

Daily Burn Rate: $45.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PMW 790 PROGRAM SUPPORT SERVICES

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $33.2 million to BOOZ ALLEN HAMILTON INC for work described as: PMW 790 PROGRAM SUPPORT SERVICES Key points: 1. Contract value represents a significant investment in program support services for the Department of the Navy. 2. Booz Allen Hamilton, a large, established contractor, secured this award through full and open competition. 3. The contract duration of 732 days suggests a need for sustained support in engineering services. 4. The cost-plus-fixed-fee pricing structure may require close monitoring to ensure cost control. 5. This award falls within the broader category of engineering services, crucial for defense sector operations. 6. The contract's geographic focus is California, indicating a concentration of naval operations or support infrastructure.

Value Assessment

Rating: good

The contract value of $33.2 million for engineering services appears reasonable given the scope and duration. Benchmarking against similar large-scale program support contracts for naval systems would provide a more precise value-for-money assessment. The cost-plus-fixed-fee structure necessitates careful oversight to manage costs effectively, but it allows for flexibility in evolving project requirements. The contractor, Booz Allen Hamilton, has a strong track record in government contracting, suggesting a lower risk of performance issues.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of three bidders, as suggested by the 'no' field, points to a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and can lead to more cost-effective solutions for the government.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a marketplace where contractors vie for the best price and performance. This process helps prevent inflated costs and encourages innovation.

Public Impact

The primary beneficiaries are the Department of the Navy, which will receive essential program support services. This contract will facilitate the continued operation and development of naval programs managed by PMW 790. The services delivered will likely involve technical expertise, project management, and strategic planning. The geographic impact is concentrated in California, where naval operations and support facilities are located. Workforce implications may include the employment of engineers, analysts, and project managers by Booz Allen Hamilton.

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 long duration of the contract requires sustained oversight to ensure continued alignment with evolving needs.
Reliance on a single large contractor for critical program support may present a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Booz Allen Hamilton is a reputable contractor with extensive experience in government services.
The contract supports critical naval programs, indicating a high level of strategic importance.

Sector Analysis

This contract falls within the Engineering Services sector, a vital component of the defense industry. The market for defense engineering services is substantial, driven by the continuous need for modernization, maintenance, and development of military systems. Comparable spending benchmarks for similar program support contracts within the Department of Defense can range from tens to hundreds of millions of dollars, depending on the complexity and duration of the program. This specific award of $33.2 million is a moderate-sized contract within this sector.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major prime contractor, there may be opportunities for small businesses to participate as subcontractors. However, the extent of small business subcontracting is not detailed in the provided information and would require further investigation into the contract's specific clauses and performance reports.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are embedded within the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is typically facilitated through contract databases and reporting requirements, though specific details of this contract's public accessibility are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Engineering Services
Program Management Support Services
Defense Contract Management Agency (DCMA) Oversight

Risk Flags

Cost-plus-fixed-fee contract requires diligent cost oversight.
Long contract duration necessitates sustained performance monitoring.
Geographic concentration in California may limit broader competition for follow-on work.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.2 million to BOOZ ALLEN HAMILTON INC. PMW 790 PROGRAM SUPPORT SERVICES

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 $33.2 million.

What is the period of performance?

Start: 2024-06-28. End: 2026-06-30.

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

Booz Allen Hamilton has a long and extensive history of contracting with the Department of the Navy, providing a wide array of services including program management, engineering, and strategic consulting. They are a frequent recipient of large contracts across various naval commands. Analyzing their past performance on similar large-scale program support contracts would involve reviewing contract databases for awards, performance evaluations (e.g., CPARS), and any documented issues or successes. Their established presence suggests a high degree of familiarity with Navy processes and requirements, which can be both a positive for continuity and a potential area for scrutiny regarding innovation and cost competitiveness compared to newer entrants.

How does the $33.2 million value compare to other engineering services contracts awarded by the Navy in the last fiscal year?

The $33.2 million award for PMW 790 Program Support Services is a significant, but not exceptionally large, contract within the Department of the Navy's portfolio for engineering services. The Navy awards numerous contracts in this category, ranging from smaller, specialized technical support to multi-billion dollar shipbuilding and system development programs. To benchmark effectively, one would compare this contract's value against the median and average values of contracts for 'Engineering Services' (NAICS code 541330) awarded by the Navy over a comparable period. Given the duration (732 days) and the nature of program support, this value appears aligned with medium-to-large scale support efforts rather than major system acquisition.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of service?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract structure for engineering services like this is the potential for cost overruns. While the contractor is incentivized to control costs to maximize their fixed fee, the government bears the risk of increased costs beyond the initial estimate. This necessitates robust oversight from the government to scrutinize all incurred costs, ensure they are reasonable and allocable to the contract, and prevent scope creep that isn't properly managed. For the contractor, the risk lies in underestimating costs, which could reduce their profit margin if they cannot adequately justify additional expenses. Effective management requires clear definition of work, regular cost reviews, and strong communication between the government and the contractor.

What is the historical spending trend for PMW 790 program support services over the past five years?

To determine the historical spending trend for PMW 790 program support services, one would need to access federal procurement data (like FPDS or USASpending) and filter specifically for contracts awarded to or associated with PMW 790 for program support or engineering services. Without direct access to this granular historical data, it's difficult to provide specific figures. However, generally, spending on program support services for major naval programs tends to fluctuate based on program lifecycle stages, budget allocations, and evolving defense priorities. Consistent, multi-year funding for critical programs like those managed by PMW 790 often indicates stable or increasing support requirements, while significant shifts might suggest program restructuring or budget constraints.

How does the competition level (3 bidders) impact the potential for cost savings for the taxpayer on this $33.2M contract?

A competition level involving three bidders is generally considered moderate and positive for taxpayer value. It indicates that the requirement was sufficiently defined and accessible to attract multiple capable firms, preventing a situation where only one or two contractors could realistically bid. This level of competition typically drives prices down from what might be offered in a sole-source or limited-source scenario. The government can leverage the proposals from these three bidders to negotiate a fair and reasonable price. However, the ultimate cost savings depend on the government's negotiation strategy and the specific nature of the services required; highly specialized or unique requirements might naturally limit the number of competitive bids.

What are the implications of this contract being awarded in California for local economic impact and workforce development?

Awarding this $33.2 million engineering services contract to a prime contractor operating in California has several local implications. It signifies continued investment in the state's defense sector infrastructure and workforce. Booz Allen Hamilton, as the prime, will likely utilize local talent or potentially relocate personnel, contributing to employment in engineering, program management, and administrative roles. Furthermore, the prime contractor may engage local small businesses for subcontracting opportunities, stimulating the regional economy. The presence of such a significant contract can also bolster California's position as a hub for defense contracting and technological expertise, potentially attracting further investment and talent to the area.

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: N0003924R3004

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: $81,193,192

Exercised Options: $53,197,661

Current Obligation: $33,190,062

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $8,216,988

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