Booz Allen Hamilton awarded $21M for engineering services, with a 5-year period of performance

Contract Overview

Contract Amount: $21,015,751 ($21.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 1999-11-22

End Date: 2004-11-22

Contract Duration: 1,827 days

Daily Burn Rate: $11.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: 200006!1700!006065!BW14A !NAVAL SURFACE WARFARE CENTER, IN!N0017400C0004 !A!*!* !19991122!20021231!006928857!006928857!006928857!N!17038!BOOZ ALLEN & HAMILTON INC !8283 GREENSBORO DR !MC LEAN !VA!22102!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !0001!+000000150000!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !8711!3!*!*!*!B!A!*!A !N!U!2!002!B!* !C!N!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 $21.0 million to BOOZ ALLEN HAMILTON INC for work described as: 200006!1700!006065!BW14A !NAVAL SURFACE WARFARE CENTER, IN!N0017400C0004 !A!*!* !19991122!20021231!006928857!006928857!006928857!N!17038!BOOZ ALLEN & HAMILTON INC !8283 GREENSBORO DR !MC LEAN !VA!22102!48376!059!51!MCLEAN !FAI… Key points: 1. Contract value of $21M over five years suggests a significant investment in specialized engineering support. 2. The contract was awarded on a full and open competition basis, indicating a broad search for qualified vendors. 3. The use of a Cost Plus Fixed Fee (CPFF) pricing structure introduces potential for cost overruns if not managed carefully. 4. The contractor, Booz Allen Hamilton, has a substantial presence in government contracting, suggesting established capabilities. 5. The services procured fall under Administrative Management and General Management Consulting Services, highlighting a focus on operational efficiency and strategic support. 6. The contract's duration of five years implies a need for sustained, long-term engineering and technical services.

Value Assessment

Rating: fair

The contract value of $21 million over five years averages to $4.2 million annually. Benchmarking this against similar engineering and technical services contracts is challenging without more specific service details. However, the Cost Plus Fixed Fee (CPFF) structure, while common for complex services, can lead to higher final costs compared to fixed-price contracts if contractor efficiencies are not rigorously pursued. The pricing needs careful monitoring to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors were likely solicited and evaluated. The number of bidders is not specified, but this approach generally fosters a competitive environment, theoretically leading to better pricing and service offerings. The agency's decision to use full and open competition indicates confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it aims to secure the best possible value by encouraging a wide range of qualified contractors to bid, potentially driving down costs through market forces.

Public Impact

The Department of Defense, specifically the Naval Surface Warfare Center, is the primary beneficiary, receiving critical engineering and technical services. Services delivered include engineering and technical support, likely contributing to naval readiness and technological advancement. The contract is managed by the Defense Contract Management Agency, indicating a focus on defense-related procurement. The geographic impact is primarily within Virginia, where the contractor is located, but the services support national defense objectives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can incentivize higher spending if not closely managed, potentially increasing costs beyond initial estimates.
Lack of specific details on the number of bidders in the full and open competition makes it difficult to fully assess the competitive pressure on pricing.
The broad NAICS code (541611) for Administrative Management and General Management Consulting Services could encompass a wide range of activities, making it hard to pinpoint specific value-for-money metrics without further breakdown.

Positive Signals

Awarded through full and open competition, suggesting a robust vetting process and potential for competitive pricing.
The contractor, Booz Allen Hamilton, is a well-established entity in government contracting with a track record in providing complex services.
A five-year performance period indicates a stable, long-term need for these critical engineering services, suggesting a well-defined program requirement.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically consulting services. This sector is a significant component of federal spending, supporting a wide array of government functions from management to highly specialized technical advice. The market for these services is competitive, with numerous large and small businesses vying for government contracts. The $21 million value over five years places this contract in the mid-to-large size category for individual service contracts within this domain.

Small Business Impact

This contract was not set aside for small businesses and was awarded to Booz Allen Hamilton, a large business. There is no explicit indication of subcontracting plans for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem appears minimal, though large prime contractors often utilize small businesses for specialized support roles.

Oversight & Accountability

Oversight for this contract is likely managed by the Naval Surface Warfare Center and the Defense Contract Management Agency. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure costs remain reasonable and deliverables are met. Transparency is generally expected for publicly awarded contracts, though specific details of performance and cost breakdowns may be subject to proprietary or national security considerations.

Related Government Programs

Naval Surface Warfare Center Contracts
Department of Defense Engineering Services
Management and Consulting Services Contracts
Cost Plus Fixed Fee Contracts
Federal IT and Professional Services

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Limited information on the number of bidders in the full and open competition.
Broad NAICS code may obscure specific service details and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.0 million to BOOZ ALLEN HAMILTON INC. 200006!1700!006065!BW14A !NAVAL SURFACE WARFARE CENTER, IN!N0017400C0004 !A!*!* !19991122!20021231!006928857!006928857!006928857!N!17038!BOOZ ALLEN & HAMILTON INC !8283 GREENSBORO DR !MC LEAN !VA!22102!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !0001!+000000150000!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !2000!NOT DISCERNABLE OR CLASSIFIED !8711!3!*!*!*!B!A!*!A !N!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 $21.0 million.

What is the period of performance?

Start: 1999-11-22. End: 2004-11-22.

What is the historical spending trend for engineering and technical services by the Naval Surface Warfare Center?

Analyzing historical spending trends for engineering and technical services by the Naval Surface Warfare Center (NSWC) requires access to detailed procurement data over multiple fiscal years. Generally, the NSWC, as a major component of the Navy's research, development, test, and evaluation (RDT&E) infrastructure, consistently procures a significant volume of such services. Spending can fluctuate based on specific platform development cycles, modernization efforts, and evolving technological requirements. Factors like budget allocations, congressional appropriations, and strategic defense priorities heavily influence these trends. Without specific historical data for this contract's category (NAICS 541611), it's difficult to provide precise figures, but the overall trend for RDT&E support services within the DoD has been substantial, often in the tens of billions of dollars annually across various agencies.

How does the $21 million contract value compare to other similar engineering services contracts awarded by the DoD?

The $21 million contract value awarded to Booz Allen Hamilton for engineering services over a five-year period represents an average annual value of $4.2 million. This places it in the mid-tier range for individual service contracts within the Department of Defense. Larger, more complex programs, such as major system development or large-scale platform modernization, can involve contracts worth hundreds of millions or even billions of dollars. Conversely, smaller, more specialized task orders or support contracts might be valued in the hundreds of thousands or low millions. Therefore, while significant, this $21 million contract is not exceptionally large in the context of the overall DoD procurement landscape, but it signifies a substantial commitment for the specific services required by the Naval Surface Warfare Center.

What are the key performance indicators (KPIs) typically used to evaluate contractors like Booz Allen Hamilton for engineering services?

Key Performance Indicators (KPIs) for evaluating engineering services contractors like Booz Allen Hamilton typically focus on technical performance, schedule adherence, cost control, and customer satisfaction. For technical performance, KPIs might include the accuracy and completeness of engineering designs, the effectiveness of technical solutions proposed, and adherence to technical specifications. Schedule adherence is measured by the contractor's ability to meet project milestones and delivery deadlines. Cost control, especially critical for Cost Plus Fixed Fee contracts, involves monitoring expenditures against the target cost and managing variances. Customer satisfaction is often gauged through formal reviews, feedback mechanisms, and the overall responsiveness of the contractor to the government's needs. Specific KPIs would be detailed in the contract's Performance Work Statement (PWS).

What is Booz Allen Hamilton's track record with similar government contracts, particularly within the Naval Surface Warfare Center?

Booz Allen Hamilton has an extensive and long-standing track record of performing services for the U.S. government, including numerous contracts with the Department of Defense and various Navy commands, such as the Naval Surface Warfare Center (NSWC). They are a major provider of management consulting, technology, and engineering services. Their history includes supporting complex defense programs, C4ISR systems, cybersecurity, and strategic planning. While specific performance details for individual contracts are often not public, Booz Allen's continued success in winning and performing large-scale government contracts suggests a generally positive track record. However, like any large contractor, they may have faced past performance reviews or disputes on specific contracts, which would be detailed in government databases like the Contractor Performance Assessment Reporting System (CPARS) if publicly releasable.

What is the risk associated with the Cost Plus Fixed Fee (CPFF) contract type for this engineering services acquisition?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract type for engineering services is the potential for cost escalation. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. While the fee is fixed, the total cost to the government can increase if the contractor's actual costs exceed initial estimates. This can happen due to unforeseen technical challenges, scope creep, or less efficient performance. The government bears the risk of cost overruns, while the contractor has less incentive to control costs compared to a fixed-price contract, as their profit margin (the fixed fee) remains constant regardless of the final cost. Effective government oversight, detailed cost tracking, and robust negotiation are essential to mitigate these risks and ensure the government receives good value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

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