DoD Awards Booz Allen Hamilton $79M for PEO IWS Logistics Support, Ending May 2025
Contract Overview
Contract Amount: $79,142,233 ($79.1M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2023-02-28
End Date: 2025-05-31
Contract Duration: 823 days
Daily Burn Rate: $96.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ACQUISITION AND INTEGRATED LOGISTICS SUPPORT SERVICES FOR PEO IWS.
Place of Performance
Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20376
Plain-Language Summary
Department of Defense obligated $79.1 million to BOOZ ALLEN HAMILTON INC for work described as: ACQUISITION AND INTEGRATED LOGISTICS SUPPORT SERVICES FOR PEO IWS. Key points: 1. Significant contract value of $79.14M awarded to a single large business. 2. Competition method was 'Full and Open', suggesting a competitive bidding process. 3. Contract type is 'Cost Plus Fixed Fee', which can pose cost control risks. 4. The sector is Engineering Services, supporting PEO IWS within the Department of Defense.
Value Assessment
Rating: fair
The contract value of $79.14M for a 2.25-year period appears substantial. Benchmarking against similar PEO IWS support contracts would be necessary for a precise assessment, but the Cost Plus Fixed Fee structure warrants scrutiny for potential cost overruns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were likely considered. However, the 'Cost Plus Fixed Fee' pricing structure may limit the effectiveness of price discovery compared to fixed-price contracts.
Taxpayer Impact: Taxpayer funds are being utilized for engineering services supporting a major defense program. The cost-plus nature of the contract requires diligent oversight to ensure value for money.
Public Impact
Supports critical Integrated Weapon Systems (IWS) for the Navy. Ensures continued operational readiness and modernization of defense systems. Potential for cost overruns due to the Cost Plus Fixed Fee contract type. No small business participation noted, impacting diversity in contracting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- No small business participation
- Long contract duration (823 days)
Positive Signals
- Full and open competition
- Supports critical defense acquisition program
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting program executive offices for integrated weapon systems. Spending in this area is crucial for defense modernization, with benchmarks varying widely based on system complexity and scope.
Small Business Impact
This contract was not awarded to small businesses, as indicated by the 'sb': false flag. This represents a missed opportunity to support small business growth within the defense industrial base.
Oversight & Accountability
The Department of the Navy is responsible for oversight. The 'Cost Plus Fixed Fee' structure necessitates robust monitoring of costs and performance to ensure accountability and prevent excessive spending.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type
- No small business participation
- Potential for cost overruns
- Long contract duration
Tags
engineering-services, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $79.1 million to BOOZ ALLEN HAMILTON INC. ACQUISITION AND INTEGRATED LOGISTICS SUPPORT SERVICES FOR PEO IWS.
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 $79.1 million.
What is the period of performance?
Start: 2023-02-28. End: 2025-05-31.
What is the typical profit margin for Cost Plus Fixed Fee contracts in defense engineering services, and how does Booz Allen Hamilton's fee compare?
Profit margins for Cost Plus Fixed Fee (CPFF) contracts in defense engineering services typically range from 7% to 15% of the total estimated cost. Without specific details on the fixed fee amount and the total estimated cost, it's difficult to benchmark Booz Allen Hamilton's fee precisely. However, agencies should ensure the fee is reasonable and reflects the level of risk and effort involved.
What specific risks are associated with the 'Cost Plus Fixed Fee' contract type for this PEO IWS support, and what mitigation strategies are in place?
The primary risk with CPFF contracts is the potential for cost overruns, as the contractor is reimbursed for all allowable costs plus a fixed fee. Mitigation strategies include stringent cost monitoring, detailed audits, clear definition of allowable costs, and performance incentives. The government must actively manage the scope and ensure efficient execution to control total expenditure.
How does the $79M contract value compare to historical spending on similar Integrated Logistics Support services for PEO IWS, and does it represent an increase or decrease?
Benchmarking this $79M contract against historical spending for similar PEO IWS logistics support requires access to historical contract data. Without that specific data, it's challenging to determine if this represents an increase or decrease. Factors like evolving system requirements, inflation, and program scope changes can influence contract values over time.
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: N0016419R3503
Offers Received: 4
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: $80,914,586
Exercised Options: $80,914,586
Current Obligation: $79,142,233
Subaward Activity
Number of Subawards: 66
Total Subaward Amount: $18,373,287
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
Start Date: 2023-02-28
Current End Date: 2025-05-31
Potential End Date: 2026-03-01 00:00:00
Last Modified: 2025-10-30
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