DoD's $240M Contract with Booz Allen Hamilton for Defense Services Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $240,515,217 ($240.5M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 1999-12-21
End Date: 2006-11-14
Contract Duration: 2,520 days
Daily Burn Rate: $95.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $240.5 million to BOOZ ALLEN HAMILTON INC for work described as: Key points: 1. Significant contract value of $240.5 million awarded to a major defense contractor. 2. Full and open competition suggests a robust bidding process, potentially leading to better pricing. 3. Contract duration of 7 years (1999-2006) indicates a long-term need for these services. 4. The 'Cost Plus Award Fee' structure incentivizes performance but requires careful oversight to manage costs.
Value Assessment
Rating: good
The contract's Cost Plus Award Fee structure allows for cost reimbursement plus a fee based on performance. While this can incentivize contractor efficiency, it necessitates strong oversight to ensure costs remain reasonable and aligned with awarded fees.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery, as multiple bidders likely competed. This method generally leads to more competitive pricing compared to sole-source or limited solicitations.
Taxpayer Impact: The competitive bidding process likely resulted in a fair price for the services rendered, maximizing taxpayer value for the defense needs addressed.
Public Impact
Ensures critical defense support services are procured through a competitive process. Long-term contract provides stability for defense operations and contractor planning. Potential for performance-based incentives to drive efficiency in defense contracting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure requires diligent monitoring to prevent cost overruns.
- Long contract duration may not adapt well to rapidly changing defense needs.
- Lack of small business participation noted.
Positive Signals
- Full and open competition ensures a broad range of potential bidders.
- Award fee mechanism can drive contractor performance and efficiency.
- Contract awarded to a well-established firm with demonstrated capabilities.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, a common area for large defense contracts. Spending benchmarks in this sector vary widely based on service type, but a $240 million contract over seven years is substantial.
Small Business Impact
The data indicates that small businesses were not directly involved in this contract, as the 'sb' field is false. This suggests the prime contractor did not subcontract to small businesses or that the contract was not specifically set aside for them.
Oversight & Accountability
The 'Cost Plus Award Fee' structure necessitates robust oversight from the Defense Contract Management Agency to ensure costs are reasonable and performance targets are met. Regular audits and performance reviews are crucial for accountability.
Related Government Programs
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to 'Cost Plus Award Fee' structure.
- Long contract duration may lead to outdated services or missed opportunities for innovation.
- Lack of small business participation.
- Contractor performance metrics and award fee criteria require rigorous government oversight.
Tags
department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $240.5 million to BOOZ ALLEN HAMILTON INC. See the official description on USAspending.
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $240.5 million.
What is the period of performance?
Start: 1999-12-21. End: 2006-11-14.
What specific defense services were provided under this contract, and how did they contribute to national security objectives?
The provided data does not specify the exact nature of the defense services. However, given the contractor and agency, it likely involved complex analytical, technical, or management support critical to Department of Defense operations. These services would have aimed to enhance military readiness, strategic planning, or technological advancement, directly contributing to national security.
How effectively did the 'Cost Plus Award Fee' structure manage costs and incentivize performance compared to other contract types?
The 'Cost Plus Award Fee' (CPAF) structure aims to balance cost control with performance incentives. While it allows for reimbursement of incurred costs plus a base fee, it also includes an award fee tied to achieving specific performance objectives. This can motivate contractors to exceed minimum requirements. However, effective cost management relies heavily on the government's ability to define clear performance metrics and diligently monitor expenditures to prevent potential cost overruns.
What was the long-term impact of this contract on Booz Allen Hamilton's market position within the defense sector?
A contract of this magnitude ($240.5 million over nearly seven years) would significantly bolster Booz Allen Hamilton's revenue and solidify its reputation as a key provider of professional services to the Department of Defense. Such a substantial award demonstrates the company's capability to handle complex, long-term engagements, likely enhancing its competitive standing and attractiveness for future large-scale government contracts.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Contractor Details
Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)
Address: 8283 GREENSBORO DR, MC LEAN, VA, 22102
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 1999-12-21
Current End Date: 2006-11-14
Potential End Date: 2006-11-14 00:00:00
Last Modified: 2017-05-04
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