DoD's $73M Engineering Services Contract with Booz Allen Hamilton Faces Scrutiny for Value and Competition
Contract Overview
Contract Amount: $73,268,532 ($73.3M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2008-10-22
End Date: 2011-11-28
Contract Duration: 1,132 days
Daily Burn Rate: $64.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Engineering Services
Official Description: ENGINEERING AND TECHNICAL SERVICES TO
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $73.3 million to BOOZ ALLEN HAMILTON INC for work described as: ENGINEERING AND TECHNICAL SERVICES TO Key points: 1. Contract awarded to Booz Allen Hamilton Inc. for $73.3M over 3 years. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. Sector is Engineering Services, a critical area for defense operations.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type carries inherent risk for cost escalation. Without detailed cost breakdowns and performance metrics, assessing the value for money is challenging. Benchmarking against similar contracts is difficult without more granular data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the Cost Plus Fixed Fee structure may limit the price discovery benefits of competition if not managed tightly.
Taxpayer Impact: Taxpayer funds are utilized for engineering services. The effectiveness of competition and contract management will determine the ultimate impact on taxpayer value.
Public Impact
Ensures critical engineering and technical services for the Department of the Navy. Supports national defense objectives through specialized expertise. Potential for cost overruns due to contract type could impact budget allocations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Lack of detailed performance metrics for value assessment
Positive Signals
- Full and open competition utilized
- Long-term contract provides stability for services
Sector Analysis
This contract falls within the Engineering Services sector, which is vital for government infrastructure and defense projects. Spending in this sector can vary significantly based on project complexity and national priorities.
Small Business Impact
The data does not indicate any specific provisions or awards made to small businesses under this contract. Further investigation would be needed to determine small business participation.
Oversight & Accountability
Oversight is crucial for Cost Plus Fixed Fee contracts to ensure costs are reasonable and allocable. The Department of the Navy's contracting officers and auditors would be responsible for monitoring performance and expenditures.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPFF contract type.
- Lack of transparency on specific services rendered.
- Limited insight into the effectiveness of competition beyond the awardee.
- No clear indication of small business participation.
Tags
engineering-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $73.3 million to BOOZ ALLEN HAMILTON INC. ENGINEERING AND TECHNICAL SERVICES TO
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 $73.3 million.
What is the period of performance?
Start: 2008-10-22. End: 2011-11-28.
What specific engineering and technical services were provided under this contract, and how did they align with the Department of the Navy's strategic goals?
The contract broadly covers 'ENGINEERING AND TECHNICAL SERVICES.' Without a detailed statement of work, it's impossible to ascertain the specific services. These likely included design, analysis, testing, and program support. Alignment with strategic goals would depend on the specific projects undertaken, such as naval platform development, modernization, or operational support.
What mechanisms were in place to control costs and ensure efficiency given the Cost Plus Fixed Fee contract structure?
Cost Plus Fixed Fee contracts require robust oversight. Mechanisms typically include detailed cost accounting standards, regular audits, negotiation of fair and reasonable fixed fees, and performance reviews. The government's ability to effectively monitor expenditures and contractor performance is paramount to mitigating cost overruns and ensuring value.
How did the 'full and open competition' process ensure the best possible technical solution and price for the government?
Full and open competition allows all responsible sources to submit offers. This process is intended to foster a competitive environment, driving down prices and encouraging innovation. The effectiveness in this case depends on the clarity of the solicitation, the evaluation criteria, and the number and quality of bids received. A thorough evaluation would have assessed both technical merit and cost.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0042108R0093
Offers Received: 1
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
Financial Breakdown
Contract Ceiling: $85,013,186
Exercised Options: $85,013,186
Current Obligation: $73,268,532
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-10-22
Current End Date: 2011-11-28
Potential End Date: 2011-11-28 00:00:00
Last Modified: 2021-12-07
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