DoD Awards $46.9M Engineering Services Contract to Booz Allen Hamilton Under Full and Open Competition
Contract Overview
Contract Amount: $46,914,957 ($46.9M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2020-03-31
End Date: 2025-04-05
Contract Duration: 1,831 days
Daily Burn Rate: $25.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Engineering Services
Official Description: EMAC T&E
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $46.9 million to BOOZ ALLEN HAMILTON INC for work described as: EMAC T&E Key points: 1. Contract awarded to a large, established firm (Booz Allen Hamilton). 2. Full and open competition suggests a robust price discovery process. 3. Potential for cost overruns exists with Cost Plus Fixed Fee contract type. 4. The Engineering Services sector is critical for defense modernization.
Value Assessment
Rating: good
The contract's Cost Plus Fixed Fee structure allows for flexibility but requires careful monitoring to ensure costs remain reasonable. The awarded amount appears within a typical range for complex engineering services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for achieving fair market prices. This method allows multiple qualified vendors to bid, driving down costs through competitive pressure.
Taxpayer Impact: The competitive bidding process is designed to ensure taxpayer funds are used efficiently, maximizing value for the services rendered by the Department of Defense.
Public Impact
Ensures critical engineering support for naval operations. Supports technological advancement and readiness within the Department of Defense. Provides employment opportunities within the engineering services sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns if not managed tightly.
- Long contract duration (over 4 years) increases exposure to changing market conditions and potential scope creep.
Positive Signals
- Full and open competition promotes competitive pricing.
- Award to a reputable contractor suggests a higher likelihood of successful performance.
Sector Analysis
This contract falls within the Engineering Services sector, which is vital for government projects requiring specialized technical expertise. Spending in this sector is often driven by defense, infrastructure, and research needs.
Small Business Impact
The contract was awarded to Booz Allen Hamilton, a large business. There is no explicit indication of small business participation in this specific award, which could be an area for future consideration.
Oversight & Accountability
The Department of Defense's procurement processes typically include oversight mechanisms. However, the effectiveness of oversight for Cost Plus Fixed Fee contracts is crucial to prevent cost escalation.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Potential for scope creep.
- Lack of explicit small business subcontracting noted.
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.9 million to BOOZ ALLEN HAMILTON INC. EMAC T&E
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 $46.9 million.
What is the period of performance?
Start: 2020-03-31. End: 2025-04-05.
What is the benchmark for Cost Plus Fixed Fee contracts in the Engineering Services sector for the Department of Defense?
Benchmarking Cost Plus Fixed Fee (CPFF) contracts in the Engineering Services sector for the DoD is complex due to varying project scopes and risk profiles. Generally, the fixed fee component aims for 5-15% of the estimated cost. However, effective oversight is paramount to ensure the 'cost' portion remains reasonable and doesn't inflate the overall price beyond market value for comparable services.
What are the primary risks associated with a Cost Plus Fixed Fee contract for long-duration projects?
The primary risks with CPFF contracts, especially for long durations, include potential cost overruns if the contractor's costs exceed initial estimates, leading to higher overall spending. There's also a risk of scope creep, where project requirements expand without commensurate adjustments to the fixed fee, potentially reducing the contractor's incentive for efficiency. Robust monitoring and clear contract modifications are essential.
How does the 'full and open competition' method impact the effectiveness of this contract's pricing?
Full and open competition significantly enhances pricing effectiveness by fostering a competitive environment where multiple vendors vie for the contract. This typically drives down prices to a more market-based level and encourages innovation. The presence of multiple bids allows the agency to select the best value, balancing cost, technical merit, and performance, thereby maximizing the return on taxpayer investment.
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: N0017819R3509
Offers Received: 2
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: $62,076,225
Exercised Options: $62,076,225
Current Obligation: $46,914,957
Actual Outlays: $709,836
Subaward Activity
Number of Subawards: 23
Total Subaward Amount: $8,388,532
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: 2020-03-31
Current End Date: 2025-04-05
Potential End Date: 2025-04-05 00:00:00
Last Modified: 2025-10-30
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