DoD Awards $85.7M Engineering Services Contract to Booz Allen Hamilton, Not Competed
Contract Overview
Contract Amount: $85,713,754 ($85.7M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2022-01-14
End Date: 2023-06-30
Contract Duration: 532 days
Daily Burn Rate: $161.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: BASE PERIOD LABOR
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $85.7 million to BOOZ ALLEN HAMILTON INC for work described as: BASE PERIOD 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 modernization. 4. Potential for cost overruns given the cost-plus contract type.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed tightly. Benchmarking against similar engineering services contracts is difficult without more detailed cost breakdowns, but the scale of the award suggests a need for strong oversight.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source or limited competition award. This limits price discovery and may result in higher costs for taxpayers compared to a fully competitive process.
Taxpayer Impact: The lack of competition means taxpayers may not be receiving the best possible price for these essential engineering services.
Public Impact
Taxpayers may be paying a premium due to the absence of competitive bidding. The Department of Defense relies on these services for critical infrastructure and modernization efforts. Booz Allen Hamilton, a major contractor, receives a substantial award, impacting market dynamics.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Potential for cost overruns
Positive Signals
- Award to established contractor
- Supports critical defense needs
Sector Analysis
This award falls within the Engineering Services sector, which is vital for government infrastructure projects and defense capabilities. Spending in this sector is often driven by complex requirements and long-term needs, making competition crucial for cost efficiency.
Small Business Impact
The awardee, Booz Allen Hamilton, is a large business. There is no indication that small businesses were involved in this specific contract, missing an opportunity for their participation.
Oversight & Accountability
The 'VA' status suggests this contract may be subject to specific oversight mechanisms, but the lack of competition warrants close monitoring to ensure cost reasonableness and effective service delivery.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- No small business participation indicated
Tags
engineering-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $85.7 million to BOOZ ALLEN HAMILTON INC. BASE PERIOD 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 $85.7 million.
What is the period of performance?
Start: 2022-01-14. End: 2023-06-30.
What specific factors necessitated a sole-source award for these engineering services, and were alternatives explored?
The data indicates the contract was 'NOT COMPETED,' suggesting a sole-source or limited competition approach. Without further details, it's unclear if specific technical requirements, urgent needs, or a lack of qualified bidders drove this decision. Exploring alternatives is crucial to ensure fair pricing and maximize taxpayer value, even in specialized service areas.
How will the Department of Defense ensure cost control and value for money with a Cost Plus Fixed Fee contract awarded without competition?
Effective oversight is paramount. This includes rigorous monitoring of Booz Allen Hamilton's costs, performance metrics, and adherence to the fixed fee. Regular audits, clear deliverables, and performance-based incentives can help mitigate risks associated with cost-plus contracts and ensure value, especially when competition is absent.
What is the potential long-term impact of awarding significant contracts without competition on the broader engineering services market and government efficiency?
Consistently awarding contracts without competition can stifle innovation and reduce competitive pressure, potentially leading to higher prices and less efficient service delivery over time. It may also discourage new entrants and smaller firms from competing for government work, concentrating awards among a few large contractors.
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: N0016422RB004
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: $103,457,454
Exercised Options: $85,960,661
Current Obligation: $85,713,754
Subaward Activity
Number of Subawards: 388
Total Subaward Amount: $40,719,763
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-01-14
Current End Date: 2023-06-30
Potential End Date: 2023-10-09 00:00:00
Last Modified: 2023-11-18
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