DoD Awards $47.6M for HPM Support to Booz Allen Hamilton Under Full and Open Competition
Contract Overview
Contract Amount: $47,556,095 ($47.6M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2022-02-01
End Date: 2027-01-31
Contract Duration: 1,825 days
Daily Burn Rate: $26.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: HPM SUPPORT
Place of Performance
Location: KING GEORGE, KING GEORGE County, VIRGINIA, 22485
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $47.6 million to BOOZ ALLEN HAMILTON INC for work described as: HPM SUPPORT Key points: 1. Contract awarded to a single large business, Booz Allen Hamilton. 2. Engineering Services sector, NAICS 541330, indicates specialized technical expertise. 3. Full and open competition suggests a robust price discovery process. 4. Contract duration of 5 years (1825 days) allows for long-term support.
Value Assessment
Rating: good
The contract is a Cost Plus Fixed Fee type, which can lead to higher costs if not managed carefully. However, the benchmark of $26,058 suggests a reasonable price point for the services rendered, pending detailed cost analysis.
Cost Per Unit: $26,058
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Full and open competition aims to secure competitive pricing, maximizing taxpayer value by ensuring a fair market price for engineering services.
Public Impact
Supports Department of the Navy operations with essential engineering services. Booz Allen Hamilton, a major defense contractor, will provide the services. The contract spans five years, ensuring continuity of support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type requires careful monitoring to control costs.
- Potential for cost overruns if scope creep occurs without adequate controls.
Positive Signals
- Awarded via full and open competition, suggesting competitive pricing.
- Long-term contract provides stability for critical support functions.
Sector Analysis
This contract falls within the Engineering Services sector, which is crucial for defense projects requiring specialized technical expertise. Spending in this sector is significant, and competitive bidding is essential to manage costs effectively.
Small Business Impact
The contract was awarded to a large business (Booz Allen Hamilton) and does not indicate any specific set-asides for small businesses. This suggests that small businesses were not the primary focus for this particular procurement.
Oversight & Accountability
The contract's full and open competition method implies a structured bidding process. However, ongoing oversight will be necessary to ensure the Cost Plus Fixed Fee structure does not lead to excessive costs.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for scope creep without strict management.
- Reliance on a single large business contractor.
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 $47.6 million to BOOZ ALLEN HAMILTON INC. HPM 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 $47.6 million.
What is the period of performance?
Start: 2022-02-01. End: 2027-01-31.
What specific HPM support services are being provided under this contract, and how do they align with the Department of the Navy's strategic objectives?
HPM support likely encompasses program management, logistics, and technical assistance critical for naval operations. The specific services would detail how they contribute to the Navy's readiness, modernization, and operational effectiveness, ensuring alignment with broader strategic goals and mission requirements.
Given the Cost Plus Fixed Fee structure, what are the primary risk mitigation strategies in place to control costs and prevent scope creep?
Mitigation strategies typically include detailed performance work statements, regular progress reviews, robust change control processes, and clear criteria for allowable costs. The fixed fee component incentivizes the contractor to manage costs efficiently, while the government's oversight ensures adherence to the contract's scope and objectives.
How does the benchmark price of $26,058 per unit compare to similar engineering services contracts awarded by the DoD or other federal agencies?
A comprehensive comparison would involve analyzing contracts with similar NAICS codes, scope of work, and contract types. If this benchmark is significantly lower than comparable contracts, it suggests excellent value. Conversely, a higher benchmark might indicate potential overpricing or unique service requirements.
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: N0017821R3007
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: $70,829,510
Exercised Options: $70,829,510
Current Obligation: $47,556,095
Actual Outlays: $1,232,719
Subaward Activity
Number of Subawards: 36
Total Subaward Amount: $12,018,306
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: 2022-02-01
Current End Date: 2027-01-31
Potential End Date: 2027-01-31 00:00:00
Last Modified: 2026-01-15
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