DoD's $93.4M Engineering Services Contract Awarded to Booz Allen Hamilton Faces Scrutiny
Contract Overview
Contract Amount: $93,389,855 ($93.4M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2018-06-12
End Date: 2022-07-31
Contract Duration: 1,510 days
Daily Burn Rate: $61.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $93.4 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF Key points: 1. The contract, valued at $93.4 million, was awarded to Booz Allen Hamilton Inc. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract duration is 1510 days, ending in July 2022. 4. The sector is Engineering Services, a critical area for defense operations. 5. The contract type is Cost Plus Fixed Fee, which can sometimes lead to cost overruns.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure warrants careful review to ensure costs remained reasonable and aligned with the fixed fee. Benchmarking against similar engineering service contracts is crucial for assessing value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. However, the Cost Plus Fixed Fee pricing arrangement requires diligent oversight to prevent potential cost escalations beyond the initial estimates.
Taxpayer Impact: While competition was robust, the Cost Plus Fixed Fee structure necessitates vigilance to ensure taxpayer funds are used efficiently and effectively for the services rendered.
Public Impact
Defense readiness and technological advancement rely on engineering services. Contractors like Booz Allen Hamilton play a vital role in supporting military operations. Transparency in contract spending ensures public trust and accountability. The effectiveness of engineering services directly impacts mission success.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee pricing structure
- Long contract duration
- Potential for cost overruns
Positive Signals
- Full and open competition
- Experienced contractor
- Critical service area
Sector Analysis
Engineering services are fundamental to the Department of Defense's ability to design, develop, and maintain complex systems. Spending in this sector is benchmarked against the overall defense budget and the specific needs for technical expertise.
Small Business Impact
This contract was awarded to a large business, Booz Allen Hamilton Inc. There is no indication of specific provisions or set-asides for small businesses within this award, which is common for large, complex engineering service contracts.
Oversight & Accountability
The Department of Defense, through its contracting officers and potentially Inspectors General, is responsible for overseeing the performance and financial aspects of this contract. Ensuring adherence to the Cost Plus Fixed Fee terms and validating the necessity of all costs incurred is paramount.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee pricing can incentivize higher spending.
- Long contract duration may reduce flexibility.
- Potential for scope creep without strict management.
- Lack of small business participation noted.
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $93.4 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF
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 $93.4 million.
What is the period of performance?
Start: 2018-06-12. End: 2022-07-31.
What was the final cost of the contract, and how did it compare to the initial estimate given the Cost Plus Fixed Fee structure?
The contract had an award amount of $93,389,855.17. With a Cost Plus Fixed Fee structure, the final cost could potentially exceed this amount if actual costs incurred were higher than anticipated, provided they were deemed reasonable and allocable. A detailed final cost audit would be necessary to confirm the exact final expenditure and compare it against the initial projections and the fixed fee.
How effectively did the full and open competition process ensure the best value for the government, considering the Cost Plus Fixed Fee arrangement?
Full and open competition is designed to foster a competitive environment, theoretically leading to better pricing and value. However, the Cost Plus Fixed Fee structure inherently shifts some cost risk to the government. While competition likely drove down the initial bid, ongoing oversight is critical to ensure the contractor remains cost-conscious throughout the contract's life to realize the full value intended by the competitive process.
What specific engineering services were provided, and how did they contribute to the Department of the Navy's mission effectiveness?
The contract falls under NAICS code 541330 (Engineering Services), which is broad. Specific services could range from design and analysis to testing and systems integration for naval platforms or infrastructure. The effectiveness would be measured by the successful delivery of these engineering solutions, their impact on operational readiness, technological advancement, or cost savings achieved for the Navy's specific projects.
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: N0042117R3066
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Booz Allen Hamilton Holding Corporation
Address: BOOZ ALLEN HAMILTON INC, MC LEAN, VA, 22102
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $99,961,050
Exercised Options: $99,323,345
Current Obligation: $93,389,855
Actual Outlays: $2,754,203
Subaward Activity
Number of Subawards: 62
Total Subaward Amount: $6,514,878
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4024
IDV Type: IDC
Timeline
Start Date: 2018-06-12
Current End Date: 2022-07-31
Potential End Date: 2023-07-31 00:00:00
Last Modified: 2025-07-28
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