Booz Allen Hamilton awarded $32.9M for Navy HPM/HPRF support, highlighting engineering services

Contract Overview

Contract Amount: $32,926,844 ($32.9M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2018-05-01

End Date: 2022-01-31

Contract Duration: 1,371 days

Daily Burn Rate: $24.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: HPM/HPRF SUPPORT

Place of Performance

Location: DAHLGREN, KING GEORGE County, VIRGINIA, 22448

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $32.9 million to BOOZ ALLEN HAMILTON INC for work described as: HPM/HPRF SUPPORT Key points: 1. Contract value of $32.9M for engineering services indicates significant investment in specialized support. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The contract duration of 1371 days points to a long-term need for these services. 4. Engineering services are critical for complex defense projects, implying a focus on technical expertise. 5. The award to a large, established contractor like Booz Allen Hamilton suggests a preference for proven capabilities. 6. The contract's focus on HPM/HPRF support indicates a specialized area within naval operations.

Value Assessment

Rating: good

The contract value of $32.9 million for engineering services over approximately 3.75 years appears reasonable given the specialized nature of HPM/HPRF support. Benchmarking against similar large-scale engineering contracts within the Department of Defense, this award falls within expected ranges for complex technical services. The cost-plus-fixed-fee (CPFF) contract type allows for flexibility while providing a defined profit margin for the contractor, which can be a cost-effective approach for evolving requirements. However, detailed cost breakdowns would be necessary for a more precise value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bids suggests a healthy level of interest and competition for this requirement. A competitive bidding process generally helps to ensure that the government receives fair market prices and that taxpayers' money is used efficiently. The number of bidders provides a good indication of the market's responsiveness to this type of specialized engineering service.

Taxpayer Impact: The full and open competition process for this contract is beneficial for taxpayers as it likely drove down costs through competitive bidding, ensuring a better return on investment for the services rendered.

Public Impact

Naval operations and readiness are enhanced through specialized HPM/HPRF support. The Department of the Navy benefits from expert engineering services for critical programs. The contract supports highly skilled engineering professionals, contributing to the defense workforce. Geographic impact is likely concentrated around naval bases and operational areas where these services are deployed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
Reliance on a single large contractor may limit future competition or innovation.
Scope creep could increase the overall cost beyond initial projections without careful management.

Positive Signals

Award to a contractor with a strong track record in defense support suggests reliability.
Full and open competition indicates a fair and transparent procurement process.
The defined contract duration provides a clear framework for service delivery and budget planning.

Sector Analysis

The engineering services sector within the federal government is substantial, supporting a wide array of defense, infrastructure, and research initiatives. This contract for HPM/HPRF support falls within the broader category of professional and management consulting services, often characterized by high technical expertise and specialized knowledge. The market for such services is competitive, with large, established firms like Booz Allen Hamilton often securing significant portions of government contracts due to their demonstrated capabilities and security clearances. Comparable spending benchmarks for similar engineering support contracts within the Department of Defense can range from tens to hundreds of millions of dollars, depending on the scope and duration.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. The award to a large prime contractor like Booz Allen Hamilton suggests that the primary focus was on securing specialized expertise, potentially overlooking opportunities for small business participation in this specific instance. Further analysis would be needed to determine if small businesses were involved in the supply chain or as subcontractors on this delivery order.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. Performance reviews, regular reporting, and adherence to the contract's terms and conditions are standard oversight mechanisms. Transparency is generally maintained through contract award databases and public reporting, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Support Contracts
Department of Defense Engineering Services
Program Management Support Contracts
Defense Health Program Support

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
Long contract duration increases the potential for scope creep if not managed effectively.
Reliance on a single large contractor may limit future market flexibility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.9 million to BOOZ ALLEN HAMILTON INC. HPM/HPRF SUPPORT

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 $32.9 million.

What is the period of performance?

Start: 2018-05-01. End: 2022-01-31.

What is the historical spending trend for HPM/HPRF support within the Department of the Navy?

Analyzing historical spending for HPM/HPRF support within the Department of the Navy requires access to detailed procurement data over multiple fiscal years. Generally, spending in specialized support areas like HPM/HPRF can fluctuate based on evolving operational needs, technological advancements, and budgetary allocations. A trend analysis would involve aggregating contract awards related to these specific functions, identifying the primary contractors, and observing patterns in contract values and durations. For instance, if there's an increased focus on readiness or modernization, spending in such support areas might show an upward trend. Conversely, shifts in strategic priorities or efficiency drives could lead to a decrease. Without specific historical data for this niche, it's difficult to provide precise figures, but such support is often characterized by consistent, albeit potentially variable, investment due to its critical nature.

How does the per-unit cost of this contract compare to similar engineering services contracts awarded by the Navy?

Determining the per-unit cost comparison for this contract is challenging without specific unit metrics defined within the award. The contract is for 'HPM/HPRF SUPPORT' and awarded as 'Engineering Services' with a Cost Plus Fixed Fee structure. Per-unit costs are typically derived by dividing the total contract value by a quantifiable output, such as hours, deliverables, or specific services rendered. Since these units are not provided, a direct per-unit cost comparison is not feasible. However, we can infer value by comparing the total contract value ($32.9M) against the duration (1371 days) and the nature of the services. If similar contracts for specialized engineering support of comparable complexity and duration were awarded in the $25M-$40M range, then this contract would be considered within market norms. A more granular analysis would require access to the contractor's detailed cost proposals and the government's cost-benefit analysis.

What is Booz Allen Hamilton's track record with Department of Defense contracts, particularly in engineering services?

Booz Allen Hamilton has an extensive and well-established track record with the Department of Defense (DoD), holding numerous contracts across various service areas, including engineering, IT, cybersecurity, and management consulting. They are a prime contractor on many large-scale, complex programs, often serving as a trusted advisor to military branches. Their history with the DoD includes significant work in areas directly related to defense operations, strategy, and technical support. While specific performance metrics for individual contracts are often not publicly detailed, their consistent ability to win and execute large DoD contracts suggests a strong performance history and a high degree of confidence from government agencies. They are known for their deep technical expertise and ability to navigate complex security and regulatory environments inherent in defense contracting.

What are the potential risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this service?

The Cost Plus Fixed Fee (CPFF) contract type, used here, presents specific risks for the government. While it provides the contractor with a guaranteed profit margin, it can incentivize cost overruns if not managed diligently. The 'cost plus' element means the government reimburses the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. If the contractor's costs exceed estimates, the government bears that additional expense, potentially leading to a higher final contract price than initially anticipated. The risk for the government lies in ensuring that all costs claimed by the contractor are reasonable, allocable, and necessary for the contract's performance. Robust oversight, detailed cost tracking, and clear definition of allowable costs are crucial to mitigate these risks and ensure the government receives good value.

How does the competition level (4 bidders) impact the pricing and value received by the government?

Having four bidders in a full and open competition generally indicates a healthy level of market interest and competition, which is favorable for the government. This level of competition typically exerts downward pressure on pricing, as contractors strive to offer the most competitive bids to win the contract. It also provides the government with multiple options and perspectives, allowing for a more informed selection process based on technical merit, past performance, and price. With four bidders, the government is more likely to receive proposals that reflect fair market value for the specialized engineering services required. This contrasts with sole-source or limited competition scenarios where the government may have less leverage to negotiate favorable terms and pricing.

What is the significance of the PSC code '541330' (Engineering Services) in the context of this contract?

The Product Service Code (PSC) '541330' specifically designates 'Engineering Services.' This classification is crucial as it clearly defines the primary nature of the work being procured. It signals that the contract is for specialized technical expertise, design, analysis, and consultation related to engineering disciplines. For HPM/HPRF support within the Department of the Navy, this likely involves complex technical planning, system design, integration, testing, or operational analysis. The '541330' code helps in categorizing spending, benchmarking against similar services, and understanding the specific skill sets required from the contractor. It confirms that the procurement is focused on intellectual and technical contributions rather than the provision of goods or simpler support functions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0017818R3004

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: BOOZ ALLEN HAMILTON INC, MC LEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $40,375,892

Exercised Options: $40,375,892

Current Obligation: $32,926,844

Actual Outlays: $5,534,277

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $1,832,234

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4024

IDV Type: IDC

Timeline