Booz Allen Hamilton awarded $35.7M contract for professional services by Defense Contract Management Agency

Contract Overview

Contract Amount: $35,730,100 ($35.7M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2014-08-01

End Date: 2017-07-31

Contract Duration: 1,095 days

Daily Burn Rate: $32.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF LOT I - BASE PERIOD: RSNF SERVICE

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $35.7 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF LOT I - BASE PERIOD: RSNF SERVICE Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of 1095 days (3 years) indicates a medium-term engagement for these services. 4. The North American Industry Classification System (NAICS) code 541990 covers 'All Other Professional, Scientific, and Technical Services'. 5. The contract was awarded to a single vendor, Booz Allen Hamilton Inc. 6. The base period value is $32.6 million, with potential for adjustments based on performance and additional periods.

Value Assessment

Rating: fair

The contract value of $35.7 million over three years for 'All Other Professional, Scientific, and Technical Services' appears to be within a reasonable range for large-scale government contracts of this nature. However, without specific details on the services rendered and comparable contract benchmarks for similar scope and complexity, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type introduces a degree of risk, as costs can escalate beyond initial estimates if not rigorously monitored. Benchmarking against other CPFF contracts for similar professional services would be necessary for a more definitive assessment of pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'Full and Open Competition' solicitation, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bidders suggests a moderate level of competition for this particular contract. While three bidders is better than a sole-source award, a higher number of bids typically leads to more robust price discovery and potentially lower costs for the government. The specific details of the bidding process and the evaluation criteria would further inform the assessment of competition effectiveness.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, generally provides taxpayers with a better opportunity for competitive pricing compared to sole-source or limited competition scenarios. This process aims to ensure that the government receives the best value by allowing multiple companies to vie for the contract.

Public Impact

The primary beneficiaries are likely components within the Department of Defense requiring specialized professional, scientific, and technical support. The services delivered are broadly categorized under 'All Other Professional, Scientific, and Technical Services', implying a wide range of potential support functions. The geographic impact is centered around the Defense Contract Management Agency's operational areas, primarily within Virginia where the contractor is located. Workforce implications include the potential for employment opportunities within Booz Allen Hamilton and its subcontractors to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractors to increase costs to maximize profit, requiring stringent oversight.
The broad nature of 'All Other Professional, Scientific, and Technical Services' could lead to scope creep if not clearly defined and managed.
Reliance on a single vendor for a significant duration may limit flexibility and introduce vendor lock-in risks.

Positive Signals

Awarded through full and open competition, indicating a structured and accessible bidding process.
Booz Allen Hamilton is a well-established contractor with extensive experience in government services.
The contract duration suggests a stable requirement and a commitment to a specific service provider.

Sector Analysis

The professional, scientific, and technical services sector is a significant component of the federal contracting landscape. This contract falls under NAICS code 541990, which encompasses a diverse range of services not classified elsewhere. The federal government frequently procures such services to augment its capabilities in areas requiring specialized expertise. Spending in this sector is driven by the need for analytical support, research, consulting, and technical assistance across various agencies. Benchmarks for similar contracts would vary widely depending on the specific nature of the services and the agency procuring them.

Small Business Impact

This contract does not appear to have been specifically set aside for small businesses, as indicated by the 'sb': false flag. Booz Allen Hamilton is a large business. There is no explicit information provided regarding subcontracting plans or goals for small businesses within this contract's data. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, unless subcontracting opportunities are pursued by the prime contractor.

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. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor costs and ensure they align with the fixed fee. Transparency is facilitated through contract reporting mechanisms, though the extent of public visibility into the day-to-day operations and specific deliverables is limited. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Professional and Management Support Services
Scientific and Engineering Services
Technical Support Services
Defense Contract Management Services

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Broad service category ('All Other Professional, Scientific, and Technical Services') may lack specificity, increasing scope creep potential.
Limited number of bidders (3) in a full and open competition may indicate barriers to entry or specific requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.7 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF LOT I - BASE PERIOD: RSNF SERVICE

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 $35.7 million.

What is the period of performance?

Start: 2014-08-01. End: 2017-07-31.

What is the historical spending pattern for Booz Allen Hamilton with the Department of Defense?

Booz Allen Hamilton has a long and extensive history of contracting with the Department of Defense (DoD). Analyzing historical spending reveals consistent and substantial awards across various service categories, including IT, management consulting, engineering, and intelligence support. The company is a major prime contractor for the DoD, often securing large, multi-year contracts. Trends in their DoD spending often reflect broader shifts in defense priorities, such as increased investment in cybersecurity, data analytics, and modernization programs. Specific spending figures would require detailed database queries, but it is evident that Booz Allen Hamilton is a significant player in the DoD contracting ecosystem, with a substantial portion of its revenue derived from this agency.

How does the $35.7M contract value compare to similar 'All Other Professional, Scientific, and Technical Services' contracts?

The $35.7 million contract value for 'All Other Professional, Scientific, and Technical Services' awarded to Booz Allen Hamilton is a moderate-sized contract within the federal landscape. Contracts under NAICS code 541990 can vary dramatically in value, from small, specialized task orders to multi-billion dollar programs. For large federal agencies like the Department of Defense, a $35.7 million, three-year contract is not unusual for comprehensive support services. However, without knowing the specific deliverables, the complexity of the services, and the exact nature of the 'other' professional services, direct comparison is difficult. Benchmarking would ideally involve looking at contracts with similar scope, duration, and agency, but the broadness of this NAICS code makes precise comparisons challenging without further detail.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This can create an incentive for the contractor to incur higher costs, as the fee remains constant regardless of the actual costs incurred. For the government, this means the total contract cost can exceed initial estimates if cost controls are not robust. Effective management requires stringent oversight of contractor expenditures, clear definitions of allowable costs, and proactive risk mitigation strategies to ensure the project stays within budget and delivers value. The fixed fee itself is subject to negotiation and can be adjusted based on performance incentives or penalties.

What is the typical performance context for Booz Allen Hamilton in government contracts?

Booz Allen Hamilton typically performs a wide array of professional, technical, and management consulting services for government agencies. Their performance context often involves supporting complex, mission-critical programs that require deep subject matter expertise, advanced analytical capabilities, and secure handling of sensitive information. They are frequently engaged in areas such as IT modernization, cybersecurity, data analytics, strategic planning, and operational support. Their track record generally indicates a capacity to manage large, complex contracts and deliver sophisticated solutions. Performance is usually evaluated based on adherence to contract requirements, quality of deliverables, timeliness, and cost control, with feedback often provided through contract performance reports and CPARS (Contractor Performance Assessment Reporting System).

How has federal spending in 'All Other Professional, Scientific, and Technical Services' evolved over the past five years?

Federal spending in the 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990) has generally seen a steady increase over the past five years, reflecting the government's ongoing need for specialized expertise across diverse domains. This category captures a wide range of services, making precise trend analysis complex. However, growth is often driven by demand for advanced analytics, specialized research, environmental consulting, and other niche professional services that don't fit neatly into more defined categories. Agencies like the Department of Defense, Health and Human Services, and Energy are significant procurers within this sector. The overall trend indicates a sustained reliance on external expertise to supplement internal government capabilities, particularly in rapidly evolving technological and scientific fields.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0018913RZ002

Offers Received: 3

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: $38,111,383

Exercised Options: $38,111,383

Current Obligation: $35,730,100

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline