DoD's Navy Awards $30.7M Engineering Services Contract to Booz Allen Hamilton for Surface Warfare
Contract Overview
Contract Amount: $30,772,807 ($30.8M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2021-09-24
End Date: 2026-09-23
Contract Duration: 1,825 days
Daily Burn Rate: $16.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SURFACE WARFARE ENTERPRISES SUPPORT SERVICES
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92135
Plain-Language Summary
Department of Defense obligated $30.8 million to BOOZ ALLEN HAMILTON INC for work described as: SURFACE WARFARE ENTERPRISES SUPPORT SERVICES Key points: 1. Contract awarded to a single large business, Booz Allen Hamilton. 2. The contract is for engineering services supporting surface warfare. 3. Full and open competition was utilized. 4. The contract duration is 5 years, ending in 2026. 5. The award value is $30.7 million.
Value Assessment
Rating: good
The contract's Cost Plus Fixed Fee (CPFF) pricing structure allows for flexibility but requires careful monitoring of costs to ensure value. Benchmarking against similar engineering support contracts is recommended to confirm competitive pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. This method allows multiple qualified vendors to bid, fostering a competitive environment that should drive down costs and improve service quality.
Taxpayer Impact: The competitive bidding process aims to ensure taxpayer funds are used efficiently for essential defense services.
Public Impact
Supports critical naval operations and technological advancements. Ensures continued readiness and modernization of the U.S. Navy's surface fleet. Impacts the defense contracting industry and specialized engineering workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns with CPFF contract type.
- Reliance on a single large contractor for critical support.
Positive Signals
- Utilizes full and open competition.
- Long-term contract provides stability for essential services.
Sector Analysis
This contract falls within the Engineering Services sector, which is a significant area of government spending, particularly for the Department of Defense. Benchmarks for similar contracts can vary widely based on scope and complexity.
Small Business Impact
The contract was awarded to Booz Allen Hamilton, a large business. There is no indication of small business participation in this specific award, which is a missed opportunity for small business engagement.
Oversight & Accountability
The Department of the Navy's contracting process, including the use of full and open competition, suggests a degree of oversight. However, ongoing monitoring of performance and costs under the CPFF structure is crucial for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Lack of small business participation.
- Contract awarded to a single large incumbent.
- Long contract duration may reduce flexibility.
Tags
engineering-services, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.8 million to BOOZ ALLEN HAMILTON INC. SURFACE WARFARE ENTERPRISES SUPPORT SERVICES
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 $30.8 million.
What is the period of performance?
Start: 2021-09-24. End: 2026-09-23.
What specific engineering services are included in this contract, and how do they align with current and future naval modernization priorities?
The contract specifies engineering services for Surface Warfare Enterprises. While the exact breakdown isn't detailed, these typically encompass areas like systems engineering, technical support, acquisition, and lifecycle management for naval platforms. The alignment with modernization priorities would depend on the specific tasks outlined in the Statement of Work, which likely focuses on enhancing combat systems, C4ISR capabilities, and platform readiness for the Navy's surface fleet.
What are the key performance indicators (KPIs) used to measure the success of Booz Allen Hamilton's performance under this contract?
Key performance indicators for this contract would likely focus on technical performance, schedule adherence, cost control, and customer satisfaction. Specific metrics might include the timely delivery of engineering reports, successful integration of new technologies, adherence to budget constraints, and positive feedback from Navy program managers. Regular performance reviews would assess Booz Allen Hamilton's ability to meet these defined objectives.
How does the Cost Plus Fixed Fee (CPFF) structure incentivize efficiency and cost savings for the government in this context?
The CPFF structure incentivizes efficiency by providing a fixed fee to the contractor, regardless of the final cost, while the government reimburses actual costs. This means the contractor's profit is fixed, encouraging them to manage costs effectively to avoid exceeding the estimated cost ceiling. However, the government bears the risk of cost overruns, necessitating robust oversight to ensure costs remain reasonable and justified.
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: N0024421R3024
Offers Received: 2
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: $37,314,242
Exercised Options: $36,232,716
Current Obligation: $30,772,807
Actual Outlays: $9,482,721
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $1,314,141
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
Start Date: 2021-09-24
Current End Date: 2026-09-23
Potential End Date: 2026-09-23 00:00:00
Last Modified: 2026-01-08
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