Booz Allen Hamilton awarded $39.8M contract for professional development training to Saudi Naval Forces

Contract Overview

Contract Amount: $39,834,634 ($39.8M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2010-08-01

End Date: 2013-07-31

Contract Duration: 1,095 days

Daily Burn Rate: $36.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SERVICES FOR ROYAL SAUDI NAVAL FORCES

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $39.8 million to BOOZ ALLEN HAMILTON INC for work described as: SERVICES FOR ROYAL SAUDI NAVAL FORCES Key points: 1. Contract value represents a significant investment in specialized training services. 2. Sole-source award suggests limited market availability or unique contractor capabilities. 3. Performance period of three years indicates a substantial, ongoing requirement. 4. Training services are critical for maintaining operational readiness and technical expertise. 5. Geographic focus on Saudi Arabia highlights international defense cooperation. 6. Contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost oversight.

Value Assessment

Rating: fair

The contract value of $39.8 million for professional and management development training over three years appears substantial. Benchmarking this against similar international defense training contracts is challenging due to the specific nature of the client (Royal Saudi Naval Forces) and the sole-source award. The Cost Plus Fixed Fee (CPFF) contract type, while common for complex services, can sometimes lead to higher costs if not managed diligently. Without more granular data on the specific training modules and hours, a precise value-for-money assessment is difficult, but the price point suggests a high level of specialized expertise is being procured.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This typically occurs when a specific contractor possesses unique capabilities, proprietary technology, or when there are urgent, compelling reasons for a particular source. The lack of competition means that price discovery through market forces was absent, potentially leading to a higher price than if multiple bids had been solicited. The justification for a sole-source award would need to be robust to ensure fair pricing and value.

Taxpayer Impact: Taxpayers are exposed to potentially higher costs due to the absence of competitive bidding. The government relies on the contractor's proposed pricing and internal cost controls to ensure reasonable expenditure.

Public Impact

The Royal Saudi Naval Forces are the primary beneficiaries, receiving enhanced professional and management development. Services delivered include specialized training aimed at improving operational effectiveness and technical proficiency. The geographic impact is concentrated in Saudi Arabia, supporting a key international defense partner. Workforce implications are significant for the contractor's personnel assigned to deliver the training, as well as for the Saudi naval personnel receiving it.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Cost Plus Fixed Fee contract type can incentivize cost overruns if not closely monitored.
Lack of public detail on training content makes it difficult to assess specific value and effectiveness.
International nature of the contract adds complexity in oversight and performance verification.

Positive Signals

Contract addresses a critical need for specialized training in defense operations.
Booz Allen Hamilton is a well-established contractor with extensive experience in government services.
Long-term performance period suggests a stable and important relationship.
Focus on professional development can lead to improved capabilities and efficiency for the end-users.

Sector Analysis

The professional and management development training sector within the defense industry is substantial, supporting military readiness and modernization efforts globally. This contract falls under the broader professional services category, which includes consulting, training, and technical support. Comparable spending benchmarks are difficult to establish precisely due to the unique client and sole-source nature, but significant investments are common for specialized military training programs, especially those involving international partnerships.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, Booz Allen Hamilton, is a large business. There is no explicit information regarding subcontracting plans for small businesses within this award. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal, though large prime contractors often engage small businesses in their broader portfolio of work.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to manage costs and prevent overruns. Transparency is limited due to the sole-source nature and the international client, making public assessment of accountability measures challenging. Inspector General jurisdiction may apply depending on the specific circumstances and funding source.

Related Government Programs

Foreign Military Sales (FMS)
Defense Training and Education
International Security Cooperation Programs
Professional Services Contracts
Cost-Plus Contracts

Risk Flags

Sole-source award may limit competitive pricing.
Cost Plus Fixed Fee contract type requires diligent cost oversight.
International contract performance can present unique oversight challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.8 million to BOOZ ALLEN HAMILTON INC. SERVICES FOR ROYAL SAUDI NAVAL FORCES

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 $39.8 million.

What is the period of performance?

Start: 2010-08-01. End: 2013-07-31.

What specific professional and management development training modules were included in this contract?

The provided data does not specify the exact training modules covered under this contract. However, given the client is the Royal Saudi Naval Forces and the North American Industry Classification System (NAICS) code is 611430 (Professional and Management Development Training), the training likely encompassed areas such as leadership development, strategic planning, operational management, technical skills enhancement relevant to naval operations, and potentially cross-cultural communication for international collaboration. The 'SERVICES FOR ROYAL SAUDI NAVAL FORCES' description suggests a focus tailored to the specific needs and operational environment of the Saudi navy.

How does the contract value of $39.8 million compare to similar international defense training contracts?

Direct comparison of the $39.8 million contract value is difficult without more specific details on the scope, duration, and nature of training provided. International defense training contracts can vary widely in cost based on factors like the complexity of the subject matter, the number of personnel trained, the duration of the training, and the level of specialization required. Booz Allen Hamilton is a large, experienced contractor, and the sole-source nature of this award suggests unique or highly specialized services were procured. While substantial, the value is not inherently out of line for significant, multi-year training initiatives for a major naval force, but a precise benchmark requires more granular comparative data.

What are the key risks associated with a sole-source, Cost Plus Fixed Fee contract for international training?

The primary risks associated with this contract structure are twofold. Firstly, the sole-source award eliminates competition, which can lead to inflated pricing as there is no market pressure to offer the most cost-effective solution. The government relies heavily on the contractor's proposed pricing and negotiation. Secondly, the Cost Plus Fixed Fee (CPFF) structure, while providing flexibility for evolving requirements, carries the risk of cost overruns. If the contractor's costs exceed initial estimates, the government pays these actual costs plus a pre-determined fixed fee. Effective oversight is crucial to manage these risks, ensuring costs are reasonable and the fixed fee adequately compensates for the effort without incentivizing unnecessary spending.

What is Booz Allen Hamilton's track record in providing defense training services, particularly internationally?

Booz Allen Hamilton has a long and extensive track record of providing a wide range of professional services, including training and management consulting, to the U.S. Department of Defense and other government agencies. They are known for their expertise in areas such as strategy, technology, and operations. While specific details on their international defense training contracts are not provided in this data, their established presence and capabilities suggest they are well-equipped to handle complex training requirements for foreign military partners. Their history indicates a capacity to deliver sophisticated solutions across diverse operational environments.

What does the contract's performance period of 1095 days (3 years) imply about the nature of the training requirement?

A performance period of 1095 days (three years) for professional and management development training suggests that the requirement is not for a one-off event but rather for an ongoing, sustained program. This duration implies a need for continuous skill enhancement, potentially involving multiple training cycles, curriculum development, adaptation to evolving naval doctrines or technologies, and long-term support. It indicates a strategic investment by the Royal Saudi Naval Forces in building and maintaining a highly skilled workforce over an extended period, rather than addressing a short-term training gap.

How does the 'NOT AVAILABLE FOR COMPETITION' status impact the assessment of value for money?

The 'NOT AVAILABLE FOR COMPETITION' status, synonymous with a sole-source award, significantly impacts the assessment of value for money. In a competitive environment, multiple bidders vie for the contract, driving prices down and encouraging innovation. When a contract is sole-source, this competitive pressure is absent. The government must rely on negotiation, justification of fair and reasonable pricing, and robust oversight to ensure value. Without competition, there is an inherent risk that the price paid may be higher than what could have been achieved through a competitive process. Therefore, the assessment of value for money becomes more reliant on the contractor's proposed costs and the government's ability to scrutinize them.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

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, 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: $44,401,568

Exercised Options: $44,401,568

Current Obligation: $39,834,634

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline