DoD's $53.8M Engineering Services Contract for SCMS Division Awarded to Booz Allen Hamilton

Contract Overview

Contract Amount: $53,803,498 ($53.8M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2015-09-01

End Date: 2018-05-31

Contract Duration: 1,003 days

Daily Burn Rate: $53.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF TECHNICAL ENGINEERING SERVICES IN SUPPORT OF THE SPECIAL COMMUNICATIONS MISSION SOLUTIONS (SCMS) DIVISION COMMUNICATIONS-ELECTRONICS ADVANCED TECHNOLOGY (CEAT) SYSTEMS.

Place of Performance

Location: SAINT INIGOES, SAINT MARYS County, MARYLAND, 20684

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $53.8 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF TECHNICAL ENGINEERING SERVICES IN SUPPORT OF THE SPECIAL COMMUNICATIONS MISSION SOLUTIONS (SCMS) DIVISION COMMUNICATIONS-ELECTRONICS ADVANCED TECHNOLOGY (CEAT) SYSTEMS. Key points: 1. Contract awarded to a single, large business vendor. 2. Focuses on specialized engineering services for communications technology. 3. Potential for limited competition due to specialized nature. 4. Significant taxpayer investment in advanced communications technology.

Value Assessment

Rating: fair

The contract value of $53.8M over approximately 3 years is substantial. Without specific per-unit cost data or benchmarks for similar specialized engineering services, a precise value assessment is difficult. The Cost Plus Fixed Fee (CPFF) structure can lead to cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for the government compared to a competitive process. The justification for sole-source likely relates to specialized expertise required for the SCMS division.

Taxpayer Impact: The lack of competition means taxpayers may not have received the best possible price for these specialized engineering services. Oversight is crucial to ensure costs remain reasonable.

Public Impact

Supports critical national security communications infrastructure. Investment in advanced technology for the Department of the Navy. Potential impact on future defense communication systems. Ensures specialized technical support for sensitive projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
CPFF contract type can incentivize cost increases.
Lack of transparency in pricing due to no-bid award.

Positive Signals

Supports critical defense communications technology.
Awarded to a known, established contractor.
Long-term contract duration suggests ongoing need.

Sector Analysis

This contract falls under Engineering Services, a broad category often supporting defense and technology sectors. The value is significant for a single contract in this niche, suggesting a high level of specialization and importance for the SCMS division's advanced technology systems.

Small Business Impact

The contract was awarded to Booz Allen Hamilton Inc., a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, which is common for highly specialized, sole-source contracts.

Oversight & Accountability

Given the sole-source nature and CPFF contract type, robust oversight from the Department of the Navy is essential. This includes monitoring costs, ensuring performance meets requirements, and verifying the necessity of any contract modifications to protect taxpayer funds.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competition.
Potential for cost overruns with CPFF.
Limited transparency on pricing.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.8 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF TECHNICAL ENGINEERING SERVICES IN SUPPORT OF THE SPECIAL COMMUNICATIONS MISSION SOLUTIONS (SCMS) DIVISION COMMUNICATIONS-ELECTRONICS ADVANCED TECHNOLOGY (CEAT) SYSTEMS.

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 $53.8 million.

What is the period of performance?

Start: 2015-09-01. End: 2018-05-31.

What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The justification for a sole-source award typically centers on the unique capabilities or proprietary knowledge held by a specific contractor, making competition impractical or detrimental to the government's interests. For specialized engineering services supporting advanced communications technology, the government might have determined that only Booz Allen Hamilton possessed the requisite expertise, security clearances, or existing system knowledge to fulfill the requirement effectively within the given timeframe.

How were costs controlled and justified under the Cost Plus Fixed Fee (CPFF) structure for this specialized engineering work?

Under a CPFF contract, the government pays the contractor's allowable costs plus a fixed fee representing profit. Cost control relies heavily on detailed audits of incurred costs, rigorous negotiation of the fixed fee, and clear definition of contract scope to prevent scope creep. Effective oversight involves regular reviews of contractor expenditures and performance metrics to ensure value for money and prevent unnecessary cost increases.

What is the long-term strategic value of investing in these specific engineering services for the SCMS division's CEAT systems?

Investing in specialized engineering services for advanced communications technology is crucial for maintaining a technological edge in national security. These services likely contribute to the development, maintenance, and enhancement of critical communication systems, ensuring secure and reliable information flow for military operations. The long-term value lies in safeguarding sensitive communications and enabling future advancements in defense capabilities.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0042115R0046

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: $59,846,564

Exercised Options: $59,846,564

Current Obligation: $53,803,498

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline