DoD's $14.7M contract for naval combat division analytic services awarded to Booz Allen Hamilton

Contract Overview

Contract Amount: $14,715,693 ($14.7M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2021-05-01

End Date: 2025-10-31

Contract Duration: 1,644 days

Daily Burn Rate: $9.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ANALYTIC SERVICES IN SUPPORT OF SMWDC SEA COMBAT DIVISION (SHAREM AND SURFREM) AND MINE WARFARE DIVISION (MIREM).

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $14.7 million to BOOZ ALLEN HAMILTON INC for work described as: ANALYTIC SERVICES IN SUPPORT OF SMWDC SEA COMBAT DIVISION (SHAREM AND SURFREM) AND MINE WARFARE DIVISION (MIREM). Key points: 1. Contract provides critical analytic support for naval warfare divisions, enhancing combat readiness. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. Performance period extends over three years, indicating a long-term need for these services. 4. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost oversight. 5. Booz Allen Hamilton, a large incumbent contractor, brings extensive experience in defense analytics. 6. Geographic focus on California aligns with key naval operational hubs.

Value Assessment

Rating: good

The contract value of $14.7 million for analytic services appears reasonable given the scope and duration. While specific benchmarks for 'analytic services in support of naval combat divisions' are difficult to ascertain without more granular detail, Booz Allen Hamilton is a well-established provider in this space. The Cost Plus Fixed Fee (CPFF) structure necessitates diligent oversight to ensure costs remain aligned with the value delivered. Comparing this to similar large-scale analytic support contracts within the Department of Defense would provide further context on its value proposition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency's decision to use full and open competition suggests confidence in the availability of multiple sources capable of meeting the complex requirements.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and encourages a wider range of innovative solutions, potentially leading to better value for the government's investment.

Public Impact

Naval warfare divisions, including Sea Combat, Sharem, Surfrem, and Mirem, benefit from enhanced analytical capabilities. Improved decision-making and strategic planning for naval operations are expected outcomes. The contract supports the Department of the Navy's mission readiness and technological advancement. Workforce implications include the potential for specialized analytic roles within the contractor's organization. Geographic impact is concentrated in California, a major hub for naval activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can incentivize contractors to increase costs to maximize profit, requiring robust government oversight.
The duration of the contract (over 3 years) means potential for cost overruns if not managed effectively.
Reliance on a single large contractor for critical analytic functions could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should drive value.
Booz Allen Hamilton has a strong track record in providing defense and intelligence analytic services.
The contract supports critical naval warfare divisions, addressing a clear government need.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced analytic capabilities for naval warfare. The market for defense analytics is substantial, driven by the increasing complexity of modern warfare and the need for data-driven decision-making. Companies like Booz Allen Hamilton are key players in this sector, offering specialized expertise in areas such as data science, simulation, and strategic analysis. Comparable spending benchmarks would likely be found within large-scale IT and professional services contracts awarded to major defense contractors.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The prime contractor, Booz Allen Hamilton, is a large business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. The impact on the small business ecosystem is therefore likely indirect, potentially through opportunities if Booz Allen Hamilton chooses to subcontract, but not through a direct set-aside mandate.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would typically involve the Department of the Navy's contracting officers and technical representatives. They are responsible for monitoring costs, ensuring performance meets requirements, and approving invoices. Accountability measures are built into the contract through performance standards and reporting requirements. Transparency is facilitated through contract awards databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Analytic Services
Naval Warfare Simulation and Analysis
Defense Intelligence Support Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Potential for contractor lock-in if performance is critical and alternatives are limited.
Scope definition clarity is crucial for CPFF contracts to prevent disputes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.7 million to BOOZ ALLEN HAMILTON INC. ANALYTIC SERVICES IN SUPPORT OF SMWDC SEA COMBAT DIVISION (SHAREM AND SURFREM) AND MINE WARFARE DIVISION (MIREM).

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 $14.7 million.

What is the period of performance?

Start: 2021-05-01. End: 2025-10-31.

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

Booz Allen Hamilton is a major incumbent contractor for the Department of Defense, with a long history of providing a wide array of services, including complex analytic support, IT modernization, and strategic consulting. They consistently win significant contract awards across various military branches and agencies. Their track record includes extensive work in areas directly relevant to naval operations, intelligence analysis, and combat systems support. While specific performance metrics for past contracts are often not public, their continued success in securing large-scale defense contracts suggests a generally positive performance history and strong client relationships within the DoD. However, like any large contractor, they have faced scrutiny and occasional contract disputes or performance reviews on specific projects over their extensive history.

How does the $14.7 million value compare to similar analytic support contracts for naval warfare?

Directly comparing the $14.7 million value requires detailed knowledge of the specific analytic services rendered and the duration. However, for large-scale, multi-year analytic support contracts within the Department of Defense, this figure is within a common range. Contracts for similar functions, such as systems engineering, simulation, modeling, and advanced data analysis for major weapon systems or operational divisions, can range from several million to hundreds of millions of dollars. Given that this contract covers analytic services for multiple naval divisions (Sea Combat, Sharem, Surfrem, Mirem) over approximately 3.5 years, the value appears proportionate to the scope. Benchmarking against contracts for comparable services awarded by the Navy or other DoD components would provide a more precise comparison, but the amount does not immediately suggest over or undervaluation without further context.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost escalation. While the 'fixed fee' component provides the contractor with a set profit margin, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If cost controls are weak or if the scope of work expands without proper modification, the total cost to the government can increase significantly beyond initial estimates. This necessitates rigorous government oversight to scrutinize incurred costs, ensure they are reasonable and allocable to the contract, and prevent scope creep. Another risk is the contractor's incentive to potentially increase costs to ensure all allowable expenses are covered, which, while not directly increasing their fee, can inflate the overall contract value. Effective contract administration and clear performance metrics are crucial to mitigate these risks.

How effective is full and open competition in ensuring value for taxpayer money in this context?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in government contracting. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. In the context of complex analytic services for naval warfare, this approach increases the likelihood that the Department of the Navy will receive proposals that are not only technically sound but also competitively priced. The process inherently promotes price discovery and allows the government to select the best value solution, rather than being limited to a pre-approved or sole-source provider. This competitive pressure incentivizes contractors to propose efficient solutions and manage costs effectively to win the contract and perform profitably.

What are the potential performance implications of awarding this contract to Booz Allen Hamilton?

Awarding this contract to Booz Allen Hamilton suggests an expectation of high-quality performance, given their established expertise in defense analytics and naval support. Their extensive experience likely translates to a quicker ramp-up time and a deeper understanding of the operational nuances required by the Sea Combat and Mine Warfare divisions. Potential performance benefits include the application of advanced analytical methodologies, access to a skilled workforce experienced in defense contexts, and the integration of sophisticated tools and technologies. However, potential performance challenges could arise if the specific requirements of this contract differ significantly from their past work, or if internal resource allocation issues impact their ability to dedicate sufficient focus. Robust performance monitoring by the Navy is essential to ensure sustained high performance throughout the contract duration.

What is the historical spending trend for similar analytic services within the Department of the Navy?

Historical spending on analytic services within the Department of the Navy has generally trended upwards, reflecting the increasing reliance on data-driven insights for operational effectiveness, strategic planning, and technological development. The Navy, like other branches of the DoD, invests heavily in areas such as intelligence analysis, combat systems modeling and simulation, cybersecurity analytics, and operational research. Major defense contractors, including Booz Allen Hamilton, consistently secure substantial portions of this spending. While specific figures for 'analytic services' can be broad, overall spending on professional services, IT, and R&D within the Navy runs into the billions annually. This particular $14.7 million contract represents a segment of that larger investment, supporting specialized needs within specific warfare divisions.

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: N0024420R3014

Offers Received: 1

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: $24,456,589

Exercised Options: $23,598,293

Current Obligation: $14,715,693

Actual Outlays: $1,623,302

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,304,431

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