Defense awards Booz Allen Hamilton $91.3M for tuition, registration, and membership fees over 6 years
Contract Overview
Contract Amount: $91,297,503 ($91.3M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2000-02-01
End Date: 2006-04-30
Contract Duration: 2,280 days
Daily Burn Rate: $40.0K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: 200006!1700!00F158!RA13A !FLEET & INDUSTRIAL SUPPLY CENTER!N0014000CK018 !A!*!* !20000201!20010131!006928857!006928857!006928857!N!17038!BOOZ ALLEN & HAMILTON INC !8283 GREENSBORO DR !MC LEAN !VA!22102!12150!037!24!CALIFORNIA !ST. MARY S !MARYLAND !0001!+000003440000!Y!N!000000000000!U005!TUITION, REGISTRATION & MEMBERSHIP FEES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !3299!3!*!*!*!B!N!Z!B !U!U!1!001!N!4A!Z!Y!Z!* !* !N!C!*!A!A!A!A!A!A!* !*!N!A!C!N!*!*!*!*!*!
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $91.3 million to BOOZ ALLEN HAMILTON INC for work described as: 200006!1700!00F158!RA13A !FLEET & INDUSTRIAL SUPPLY CENTER!N0014000CK018 !A!*!* !20000201!20010131!006928857!006928857!006928857!N!17038!BOOZ ALLEN & HAMILTON INC !8283 GREENSBORO DR !MC LEAN !VA!22102!12150!037!24!CALIFORNIA !ST.… Key points: 1. The contract value of $91.3M over 6 years suggests a significant but potentially high annual spend. 2. Awarded as 'NOT COMPETED', raising questions about price discovery and potential for better value. 3. The 'COST PLUS FIXED FEE' contract type can incentivize cost overruns if not closely monitored. 4. This spending falls within the broad 'Professional, Scientific, and Technical Services' sector, common for DoD.
Value Assessment
Rating: questionable
The contract value of $91.3M over 6 years, averaging over $15M annually, appears high for tuition, registration, and membership fees. Benchmarking against similar services for large organizations is difficult without more detail, but the lack of competition suggests potential overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED', indicating a limited competition approach. This method may lead to higher prices as it bypasses a competitive bidding process, potentially limiting price discovery and the government's ability to secure the best value.
Taxpayer Impact: The lack of competition and a cost-plus contract type may result in taxpayers paying more than necessary for these services.
Public Impact
Taxpayers may be overpaying for educational and membership services due to a lack of competitive bidding. The long contract duration (6 years) locks in this spending without opportunities for re-evaluation. Transparency is limited, making it difficult for the public to assess the necessity and cost-effectiveness of these fees.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- High annual spend for fees
Positive Signals
- Contract awarded to a known entity (Booz Allen Hamilton)
- Contract duration is defined
Sector Analysis
This contract falls under professional, scientific, and technical services, a broad category. DoD spending in this area is substantial, but the specific nature of 'tuition, registration & membership fees' is unusual for such a large sum, warranting scrutiny.
Small Business Impact
The data does not indicate any specific allocation or benefit for small businesses in this contract award.
Oversight & Accountability
The 'NOT COMPETED' status suggests potential oversight gaps. A lack of competition requires robust justification and monitoring to ensure fair pricing and prevent potential waste.
Related Government Programs
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competition raises concerns about price fairness.
- Cost-plus contract type can lead to cost escalation.
- High annual expenditure for 'fees' lacks clear justification.
- Contract duration is lengthy, reducing flexibility.
- Limited transparency on specific services rendered.
Tags
department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $91.3 million to BOOZ ALLEN HAMILTON INC. 200006!1700!00F158!RA13A !FLEET & INDUSTRIAL SUPPLY CENTER!N0014000CK018 !A!*!* !20000201!20010131!006928857!006928857!006928857!N!17038!BOOZ ALLEN & HAMILTON INC !8283 GREENSBORO DR !MC LEAN !VA!22102!12150!037!24!CALIFORNIA !ST. MARY S !MARYLAND !0001!+000003440000!Y!N!000000000000!U005!TUITION, REGISTRATION & MEMBERSHIP FEES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !3299!3!*!*!*!B!N!Z!B !U!U!
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 $91.3 million.
What is the period of performance?
Start: 2000-02-01. End: 2006-04-30.
What specific tuition, registration, and membership programs are covered under this $91.3M contract, and how do they directly benefit fleet and industrial supply center operations?
The contract details are vague, listing 'TUITION, REGISTRATION & MEMBERSHIP FEES' without specifics. It's unclear if these fees are for employee professional development, specialized training, or industry association memberships. Without this clarity, assessing the direct operational benefit and justifying the significant cost is challenging for oversight bodies and the public.
Given the 'NOT COMPETED' status, what was the justification for not seeking competitive bids, and how was the 'cost plus fixed fee' price determined to be fair and reasonable?
The justification for not competing this contract is not provided in the data. Typically, sole-source or limited competition requires specific circumstances like unique capabilities or urgent needs. The 'cost plus fixed fee' structure necessitates rigorous negotiation and auditing to ensure the fixed fee is reasonable and that costs incurred are allowable and allocable, preventing potential overcharging.
What mechanisms are in place to ensure the value received for these tuition, registration, and membership fees aligns with the substantial $91.3M expenditure over six years?
With a cost-plus contract and limited competition, value realization relies heavily on stringent oversight. The contracting officer and relevant program managers must actively track the utilization and effectiveness of the services funded. Performance metrics, regular reviews of fee necessity, and comparison against industry standards for similar services are crucial to ensure the government receives adequate value for taxpayer money.
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2000-02-01
Current End Date: 2006-04-30
Potential End Date: 2006-04-30 00:00:00
Last Modified: 2023-06-03
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