Booz Allen Hamilton awarded $31.8M in engineering services contracts by the Department of Defense

Contract Overview

Contract Amount: $31,848,587 ($31.8M)

Contractor: Booz Allen Hamilton Inc.

Awarding Agency: Department of Defense

Start Date: 2004-07-13

End Date: 2010-03-31

Contract Duration: 2,087 days

Daily Burn Rate: $15.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.8 million to BOOZ ALLEN HAMILTON INC. for work described as: Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. Long duration of 2087 days indicates a significant, ongoing need for services. 3. Cost Plus Fixed Fee (CPFF) contract type can pose cost control challenges. 4. Services fall under engineering, a critical sector for defense operations. 5. Awarded by the Defense Contract Management Agency, indicating a focus on oversight. 6. Contractor Booz Allen Hamilton is a major player in government contracting.

Value Assessment

Rating: fair

The total award of $31.8 million over approximately 5.7 years suggests a substantial investment in engineering services. Benchmarking this against similar large-scale engineering contracts within the Department of Defense is necessary for a precise value assessment. The CPFF structure, while allowing flexibility, requires diligent oversight to ensure costs remain reasonable and aligned with project objectives. Without specific per-unit cost data or comparison to industry benchmarks for similar engineering tasks, a definitive value-for-money judgment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of two bids suggests a moderate level of competition for this specific requirement. While full and open competition is generally preferred for maximizing price discovery, the actual number of bidders can influence the competitiveness of the final price.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The Department of Defense benefits from specialized engineering expertise to support its complex operational and developmental needs. Services likely contribute to the design, development, testing, and sustainment of defense systems and infrastructure. Geographic impact is likely national, supporting various defense installations and projects across the United States. Workforce implications include the employment of highly skilled engineers and technical professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize profit if not properly managed.
The long contract duration may lead to scope creep or evolving requirements that are not adequately controlled.
Reliance on a single large contractor for critical engineering services could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Booz Allen Hamilton has a long-standing track record in government contracting, suggesting experience and capability.
The contract is managed by the Defense Contract Management Agency, implying a level of established oversight.

Sector Analysis

Engineering services are a vital component of the defense sector, encompassing a wide range of activities from research and development to system sustainment. The market for these services is substantial, with significant government spending allocated annually. This contract fits within the broader category of professional services supporting defense acquisition and readiness. Comparable spending benchmarks would involve analyzing other large engineering support contracts awarded by DoD agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Booz Allen Hamilton, is a large business. There is no explicit information on subcontracting plans for small businesses within the provided data. The impact on the small business ecosystem would depend on whether Booz Allen Hamilton actively seeks small business subcontractors for specialized tasks.

Oversight & Accountability

The contract is managed by the Defense Contract Management Agency (DCMA), which is responsible for overseeing contract performance and ensuring compliance. The CPFF contract type necessitates robust financial oversight to monitor costs and prevent overruns. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office within the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse.

Related Government Programs

Defense Engineering Services
Professional Services Contracts
Department of Defense IT and Engineering Support
Cost-Plus Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent cost monitoring.
Long contract duration increases risk of scope creep and cost escalation.
Potential for contractor inefficiencies impacting final cost.
Need for robust oversight by DCMA to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.8 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 $31.8 million.

What is the period of performance?

Start: 2004-07-13. End: 2010-03-31.

What is Booz Allen Hamilton's track record with similar Department of Defense engineering contracts?

Booz Allen Hamilton is a major government contractor with extensive experience in providing engineering and technical services to the Department of Defense and other federal agencies. They have a long history of managing large, complex contracts across various defense domains. Analyzing their past performance on similar Cost Plus Fixed Fee (CPFF) contracts, particularly those with long durations and significant dollar values, would provide insight into their ability to manage costs, deliver on technical requirements, and maintain client satisfaction. Historical data on contract awards, modifications, and any reported performance issues or disputes would be crucial for a comprehensive assessment of their track record in this specific area.

How does the $31.8 million award compare to typical spending on engineering services by the DoD?

The $31.8 million award for engineering services represents a significant, but not extraordinary, investment for the Department of Defense, which annually spends billions on a wide array of support and acquisition services. To benchmark this value, one would need to compare it against the average award size for similar engineering services contracts within DoD over a comparable period. Factors such as the specific type of engineering (e.g., systems, mechanical, electrical), the complexity of the systems supported, and the duration of the contract all influence cost. Without more granular data on the scope of work and comparable contract values, it's difficult to definitively state if this award is high or low relative to the market.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risk with a CPFF contract, especially one valued at $31.8 million and spanning over 2000 days, is the potential for cost overruns. While the 'fixed fee' component provides the contractor with a defined profit margin, the 'cost plus' element means the government reimburses the contractor's allowable costs. If costs escalate beyond initial projections due to inefficiencies, scope creep, or unforeseen challenges, the total expenditure for the government can increase significantly. Effective oversight, stringent cost controls, and clear definition of work are critical to mitigate these risks. The long duration also increases the risk of requirements evolving, potentially leading to contract modifications and further cost increases if not managed carefully.

How effective is the Defense Contract Management Agency (DCMA) in overseeing contracts of this nature?

The Defense Contract Management Agency (DCMA) is specifically tasked with providing contract administration services for the Department of Defense, including overseeing performance, ensuring compliance, and managing payments for a vast portfolio of contracts. Their effectiveness in overseeing a $31.8 million CPFF engineering services contract relies on several factors: the adequacy of their staffing and expertise assigned to the contract, the robustness of their surveillance and audit procedures, and the clarity of the contract's terms and conditions. DCMA utilizes various tools and methodologies to monitor contractor progress, costs, and quality. While generally effective, the sheer volume and complexity of contracts DCMA manages mean that oversight intensity can vary, and proactive engagement from both the government and the contractor is crucial for optimal outcomes.

What does the historical spending pattern for engineering services by the Department of Defense indicate about this contract?

Historical spending patterns reveal that the Department of Defense consistently allocates substantial funds towards engineering services, recognizing their critical role in maintaining technological superiority and operational readiness. This contract, awarded in 2004 and ending in 2010, falls within a period where defense spending was significant. Analyzing broader trends shows a continuous demand for specialized engineering expertise across all military branches for areas like weapons systems development, cybersecurity, infrastructure, and advanced research. The specific amount of $31.8 million, while substantial for a single contract, is a fraction of the overall DoD engineering services budget, suggesting it aligns with the typical scale of major support contracts.

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: 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: 4001 N FAIRFAX DRIVE, ARLINGTON, VA, 22203

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline