Booz Allen Hamilton awarded $16.9M contract for Fleet Experimentation Support Services by the Department of the Navy

Contract Overview

Contract Amount: $16,947,911 ($16.9M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2022-09-01

End Date: 2026-08-31

Contract Duration: 1,460 days

Daily Burn Rate: $11.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: FLEET EXPERIMENTATION SUPPORT SERVICES FOR UNITED STATES FLEET FORCES COMMAND

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.9 million to BOOZ ALLEN HAMILTON INC for work described as: FLEET EXPERIMENTATION SUPPORT SERVICES FOR UNITED STATES FLEET FORCES COMMAND Key points: 1. Contract provides critical support for fleet experimentation, enhancing naval capabilities. 2. Competition was robust, indicating potential for competitive pricing and value. 3. Performance period spans four years, suggesting a long-term need for these services. 4. The contract type (Cost Plus Fixed Fee) requires careful monitoring of costs. 5. Services are essential for maintaining and advancing the operational readiness of the U.S. Fleet Forces Command. 6. This award aligns with broader defense modernization efforts.

Value Assessment

Rating: good

The contract value of $16.9 million over four years appears reasonable for specialized engineering and support services. Benchmarking against similar contracts for fleet experimentation and technical support is necessary for a definitive value assessment. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D and complex services, necessitates diligent oversight to ensure costs remain within expected parameters and that the fixed fee adequately compensates the contractor for the defined scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. With three bidders participating, the competition level suggests a healthy market for these specialized services. This level of competition is generally favorable for price discovery and can lead to more competitive offers, benefiting the government.

Taxpayer Impact: Full and open competition with multiple bidders typically results in better pricing for taxpayers by fostering a competitive environment that drives down costs.

Public Impact

The primary beneficiaries are the United States Fleet Forces Command, which will receive enhanced support for experimentation and operational readiness. Services delivered include technical, analytical, and programmatic support crucial for developing and testing new naval concepts and technologies. The geographic impact is primarily within the operational areas of the U.S. Fleet Forces Command, likely encompassing naval bases and training grounds. Workforce implications may include the need for specialized engineers, analysts, and technical personnel to support the fleet's experimental initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not managed tightly.
Reliance on a single contractor for critical experimentation support could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Contract duration of four years indicates a stable, long-term requirement.
Booz Allen Hamilton is a well-established contractor with significant experience in defense and government services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related research, development, and experimentation. The market for defense engineering and technical support services is substantial, with significant government spending allocated annually. This contract represents a portion of the Navy's investment in maintaining technological superiority and operational effectiveness through rigorous testing and evaluation of new capabilities.

Small Business Impact

The data indicates this contract was not set aside for small businesses and that small business subcontracting is not explicitly mentioned as a requirement in the provided details. Therefore, the direct impact on the small business ecosystem appears minimal, though the prime contractor may engage small businesses as subcontractors depending on their specific needs and capabilities.

Oversight & Accountability

Oversight will likely be managed by the contracting officer and the program management office within the U.S. Fleet Forces Command. Accountability measures are inherent in the CPFF contract type, requiring detailed cost reporting and performance metrics. Transparency is facilitated through contract award databases and reporting requirements, though specific operational details may remain classified.

Related Government Programs

Naval Warfare Development Command Support
Fleet Readiness Support
Defense Research and Development Services
Naval Technology Experimentation

Risk Flags

Cost Plus Fixed Fee contract type requires diligent cost monitoring.
Potential for cost overruns inherent in CPFF structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.9 million to BOOZ ALLEN HAMILTON INC. FLEET EXPERIMENTATION SUPPORT SERVICES FOR UNITED STATES FLEET FORCES COMMAND

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 $16.9 million.

What is the period of performance?

Start: 2022-09-01. End: 2026-08-31.

What is Booz Allen Hamilton's track record with similar Department of Defense contracts?

Booz Allen Hamilton Inc. has an extensive and well-documented track record with the Department of Defense, having secured numerous contracts across various agencies and service branches. Their portfolio includes a wide range of services such as IT consulting, cybersecurity, systems engineering, data analytics, and strategic planning. Historically, they have been a significant player in supporting complex defense initiatives, including fleet modernization, intelligence analysis, and operational support. While specific performance metrics for individual contracts are often not publicly detailed, their consistent award of large-value contracts suggests a generally positive performance history and strong past performance ratings from the government. However, like any large contractor, they may have faced scrutiny or performance issues on specific projects, which would be detailed in contract performance reports not readily available in the public domain.

How does the $16.9 million value compare to similar fleet experimentation support contracts?

Comparing the $16.9 million value requires access to a database of similar contracts, which is not publicly available in real-time. However, based on general knowledge of defense contracting, this value for a four-year support services contract for fleet experimentation appears to be within a reasonable range for specialized engineering and technical support. Contracts for similar services, especially those involving advanced technology development, testing, and integration for naval fleets, can range from a few million to tens or even hundreds of millions of dollars, depending on the scope, duration, and complexity. The number of bidders (three) suggests that the market size and demand for these services support multiple providers, and the full and open competition indicates a standard procurement process. Without specific benchmark data for 'fleet experimentation support services,' a precise value comparison is difficult, but the award size does not immediately suggest an outlier.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of service?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Booz Allen Hamilton for Fleet Experimentation Support Services, is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. If the contractor's costs exceed initial estimates, the government bears the burden of these increased costs, while the contractor's fee remains fixed. This can incentivize contractors to be less cost-conscious than in fixed-price contracts. For complex services like fleet experimentation, where requirements can evolve and unforeseen technical challenges may arise, cost control is paramount. Effective oversight by the government is crucial to monitor expenditures, ensure costs are reasonable and allocable, and prevent scope creep that could inflate the total contract value beyond the initial intent.

How effective is full and open competition in ensuring value for taxpayer money in defense contracts?

Full and open competition is widely considered the most effective method for ensuring value for taxpayer money in defense contracting. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive proposals. This competition drives down prices as contractors vie for the award. Furthermore, it encourages innovation and efficiency as companies strive to offer the best technical solutions at the most attractive price points. When multiple bidders participate, as in this case with three bidders, it provides a strong basis for price negotiation and allows the government to select the offer that represents the best overall value, considering both technical merit and cost. While not a guarantee against all inefficiencies, it establishes a robust framework for achieving competitive pricing and superior performance.

What are the historical spending patterns for fleet experimentation support services within the Department of the Navy?

Historical spending patterns for fleet experimentation support services within the Department of the Navy are not detailed in the provided data. However, it is understood that the Navy consistently invests in research, development, testing, and evaluation (RDT&E) to maintain its technological edge and operational readiness. Spending in this area typically fluctuates based on strategic priorities, technological advancements, and budget allocations. Contracts for experimentation support are often awarded through competitive processes and can vary significantly in value year over year. Analyzing historical spending would require a comprehensive review of Navy procurement data over several fiscal years, looking specifically at contracts categorized under engineering services, RDT&E support, and fleet modernization initiatives. This contract represents a specific allocation for a defined period, contributing to the Navy's ongoing efforts in this domain.

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: N0018922R3022

Offers Received: 3

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: $34,175,959

Exercised Options: $24,324,604

Current Obligation: $16,947,911

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,441,680

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