Booz Allen Hamilton awarded $28M+ for Navy engineering services under firm-fixed-price contract

Contract Overview

Contract Amount: $28,072,098 ($28.1M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2020-09-04

End Date: 2025-09-03

Contract Duration: 1,825 days

Daily Burn Rate: $15.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CIO2 ONE NET TASK ORDER

Place of Performance

Location: SUFFOLK, SUFFOLK CITY County, VIRGINIA, 23435

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $28.1 million to BOOZ ALLEN HAMILTON INC for work described as: CIO2 ONE NET TASK ORDER Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price structure shifts performance risk to the contractor. 3. Long-term contract duration of 5 years indicates a sustained need for services. 4. Services fall under engineering, a broad category with potential for varied applications. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. No small business set-aside was utilized, indicating the primary awardee is not a small business.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the scope of work and the underlying IDIQ contract's pricing structure. However, the firm-fixed-price nature suggests that the contractor has committed to a set price for the defined services, which can be advantageous for the government if the contractor manages costs effectively. Comparing this to similar engineering services contracts awarded by the Department of the Navy would provide a clearer picture of whether the pricing is competitive for the level of expertise and support provided.

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 specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The transparency of the bidding process under full and open competition is a positive indicator for price discovery.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and potentially lower prices.

Public Impact

The Department of the Navy benefits from specialized engineering services to support its operations and infrastructure. This contract likely supports various naval engineering projects, potentially impacting fleet readiness and technological advancement. The geographic impact is primarily within Virginia, where the contractor is located and likely performs services. The contract supports a significant engineering services firm, likely sustaining jobs within the defense contracting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or outcome-based measures makes it difficult to assess the true value and effectiveness of the engineering services provided.
The broad nature of 'engineering services' could lead to scope creep if not meticulously managed, potentially increasing costs beyond initial expectations.
Reliance on a single large contractor for a significant duration may limit future opportunities for smaller, innovative firms to enter the space.

Positive Signals

The firm-fixed-price contract type transfers cost overrun risk to the contractor, providing budget certainty for the government.
Awarding under full and open competition suggests a robust and fair bidding process, likely resulting in a qualified contractor.
The long-term nature of the contract (5 years) indicates a stable and ongoing requirement, suggesting strategic planning by the agency.

Sector Analysis

Engineering services represent a significant segment of the federal contracting market, encompassing a wide range of technical expertise. This contract falls within the broader professional, scientific, and technical services sector. The Department of Defense is a major consumer of engineering services, utilizing them for everything from weapons system design and maintenance to infrastructure development and cybersecurity. Comparable spending benchmarks would require detailed analysis of specific engineering disciplines and project complexities within the defense sector.

Small Business Impact

This contract was not awarded as a small business set-aside, and the primary contractor, Booz Allen Hamilton, is a large business. This indicates that the requirement was not specifically targeted towards small businesses. There is no explicit information provided regarding subcontracting plans for small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem, though large prime contracts often include subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Navy. Performance monitoring, quality assurance, and adherence to contract terms are key oversight functions. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Engineering Services
Naval Sea Systems Command (NAVSEA) Contracts
Professional, Scientific, and Technical Services
Information Technology Professional Services (if applicable to specific task order)

Risk Flags

Potential for scope creep if not tightly managed.
Reliance on a single large contractor may limit future competition.
Performance assessment requires detailed metrics not provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.1 million to BOOZ ALLEN HAMILTON INC. CIO2 ONE NET TASK ORDER

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 $28.1 million.

What is the period of performance?

Start: 2020-09-04. End: 2025-09-03.

What is the specific scope of engineering services required under this delivery order, and how does it align with the Navy's broader engineering needs?

The provided data indicates this is a delivery order under the CIO2 ONE NET TASK ORDER, with Booz Allen Hamilton Inc. awarded over $28 million for engineering services. The specific scope of work for this delivery order is not detailed in the provided data. However, 'engineering services' is a broad category that can encompass a wide array of activities, including design, development, analysis, testing, and technical support for various systems and platforms. For the Department of the Navy, these services are critical for maintaining and modernizing its fleet, developing new technologies, ensuring operational readiness, and supporting complex infrastructure projects. Without the specific task order details, it's difficult to precisely align it with broader needs, but it likely supports a specific program or initiative requiring specialized technical expertise.

How does the $28 million award compare to historical spending on similar engineering services by the Department of the Navy?

Comparing this $28 million delivery order to historical spending requires access to detailed contract databases and filtering for similar engineering services awarded by the Department of the Navy over comparable periods. The provided data represents a single delivery order, which could be part of a larger IDIQ contract. To establish a benchmark, one would need to analyze the average value, duration, and scope of similar engineering services contracts awarded by the Navy, potentially looking at contracts with the same or similar NAICS codes (541330 - Engineering Services). Factors such as the specific engineering discipline (e.g., naval architecture, electrical engineering, systems engineering), the complexity of the project, and the duration of the contract would influence historical spending patterns. Without this broader context, a direct comparison is speculative.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of Booz Allen Hamilton's performance under this contract?

The provided data does not specify the key performance indicators (KPIs) or metrics used to evaluate Booz Allen Hamilton's performance under this contract. Typically, for engineering services contracts, especially those awarded under a firm-fixed-price structure, performance is assessed against defined milestones, deliverables, technical specifications, and adherence to schedules. The contracting officer's representative (COR) or a designated government technical point of contact would usually monitor progress and quality. Common metrics might include on-time delivery of reports or designs, adherence to budget (if applicable to specific phases), quality of technical solutions, and overall client satisfaction. The absence of explicit KPIs in the summary data makes a detailed assessment of performance evaluation challenging.

What is the track record of Booz Allen Hamilton in delivering engineering services to the Department of the Navy, particularly under firm-fixed-price contracts?

Booz Allen Hamilton Inc. is a well-established and large government contractor with a significant history of providing a wide range of services, including engineering, to the Department of Defense and its various branches, including the Navy. Their track record generally includes successful execution of complex projects. For firm-fixed-price contracts, their performance would be evaluated based on their ability to deliver the contracted scope of work within the agreed-upon price and schedule. While specific details of past performance on similar Navy engineering contracts are not provided here, Booz Allen Hamilton's extensive experience suggests they possess the organizational capacity and expertise to manage such engagements. Government contract performance databases would offer more granular insights into their specific past performance ratings.

Are there any identified risks associated with this contract, such as technical challenges, contractor performance issues, or potential cost overruns?

The primary risks associated with this contract, based on the limited information, are inherent to large-scale engineering services. Technical challenges are always a possibility in complex defense projects, requiring robust problem-solving capabilities from the contractor. While the firm-fixed-price structure shifts cost overrun risk to Booz Allen Hamilton, unforeseen technical complexities or scope changes could still lead to performance issues if not managed proactively. Contractor performance issues are a general risk for any contract; however, Booz Allen Hamilton's established presence suggests a generally reliable performance history, though specific contract performance reviews would be needed for a definitive assessment. The long duration (5 years) also introduces risks related to evolving technology and changing requirements, necessitating effective contract management and potential modifications.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0018920R0004

Pricing Type: FIRM FIXED PRICE (J)

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: $28,072,098

Exercised Options: $28,072,098

Current Obligation: $28,072,098

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $1,039,067

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0018920D0012

IDV Type: IDC

Timeline