Booz Allen Hamilton awarded $11.8M for Naval Air Warfare Center technical and engineering services

Contract Overview

Contract Amount: $11,817,604 ($11.8M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2023-09-06

End Date: 2026-09-05

Contract Duration: 1,095 days

Daily Burn Rate: $10.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ESTABLISH NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION (NAWCAD) WEBSTER OUTLYING FIELD (WOLF) SHIP & AIR INTEGRATED WARFARE (SAIW) TECHNICAL AND ENGINEERING SERVICES (TES) TASK ORDER

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $11.8 million to BOOZ ALLEN HAMILTON INC for work described as: ESTABLISH NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION (NAWCAD) WEBSTER OUTLYING FIELD (WOLF) SHIP & AIR INTEGRATED WARFARE (SAIW) TECHNICAL AND ENGINEERING SERVICES (TES) TASK ORDER Key points: 1. Contract awarded to a large, established defense contractor. 2. Services are critical for naval aviation warfare capabilities. 3. Task order is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. Fixed-fee structure provides some cost control for the government. 5. Performance is located in Maryland, a hub for defense contracting. 6. Long-term duration suggests ongoing need for these specialized services.

Value Assessment

Rating: good

This task order's value of $11.8 million appears reasonable for specialized engineering and technical services supporting naval aviation warfare. While direct comparisons are difficult without knowing the specific scope of work, the cost-plus-fixed-fee (CPFF) pricing structure allows for cost reimbursement with a predetermined profit margin, which can be efficient for complex projects where costs are not fully predictable. Benchmarking against similar engineering services contracts within the Department of Defense would provide a more precise value assessment, but the amount is within expected ranges for such critical support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is designed to ensure the government receives the best value by fostering price and technical innovation among potential contractors. The presence of two bids suggests a healthy, albeit potentially limited, competitive landscape for this specific task order, which is generally favorable for price discovery and selection of a capable provider.

Taxpayer Impact: Full and open competition generally leads to more competitive pricing, potentially saving taxpayer dollars compared to sole-source or limited competition awards. It also ensures that the most capable and cost-effective solution is chosen.

Public Impact

Naval Air Warfare Center Aircraft Division (NAWCAD) benefits from essential technical and engineering support. Services directly contribute to the readiness and advancement of naval air warfare systems. The contract supports specialized engineering expertise crucial for maintaining and improving complex aviation platforms. Workforce implications include employment for highly skilled engineers and technical professionals in Maryland.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in cost-plus-fixed-fee contracts if not managed diligently.
Reliance on a single large contractor for critical technical services could pose a long-term dependency risk.

Positive Signals

Awarded through full and open competition, suggesting a competitive selection process.
Booz Allen Hamilton is a well-established contractor with a proven track record in defense.
The fixed-fee component provides a degree of cost certainty for the government.
The task order supports critical naval aviation warfare capabilities, aligning with national defense priorities.

Sector Analysis

This contract falls within the Engineering Services sector, a vital component of the broader aerospace and defense industry. The market for specialized technical and engineering support for military aviation is substantial, driven by the continuous need for modernization, maintenance, and development of advanced platforms. Spending in this area is often characterized by long-term relationships between government agencies and experienced contractors like Booz Allen Hamilton, reflecting the complexity and criticality of the services provided. Comparable spending benchmarks would likely be found within other naval aviation support contracts and broader defense engineering services IDIQs.

Small Business Impact

This contract was not set aside for small businesses and was awarded to Booz Allen Hamilton, a large prime contractor. There is no explicit indication of small business subcontracting goals within the provided data. The impact on the small business ecosystem is likely minimal unless Booz Allen Hamilton actively engages small businesses as subcontractors for specialized support, which is not detailed here. Future analysis could explore subcontracting plans to assess small business participation.

Oversight & Accountability

Oversight for this task order is likely managed by the Naval Air Warfare Center Aircraft Division (NAWCAD) through contract administration and technical representatives. The cost-plus-fixed-fee structure necessitates careful monitoring of costs and performance to ensure value for money. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Air Systems Command (NAVAIR) Contracts
Naval Aviation Warfare Development
Defense Engineering Services
Aerospace Technical Support
NAWCAD Support Services

Risk Flags

Cost-plus contract type requires diligent oversight to manage potential cost overruns.
Limited number of bidders (2) may indicate a niche market or high barriers to entry.
Long contract duration necessitates ongoing performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.8 million to BOOZ ALLEN HAMILTON INC. ESTABLISH NAVAL AIR WARFARE CENTER AIRCRAFT DIVISION (NAWCAD) WEBSTER OUTLYING FIELD (WOLF) SHIP & AIR INTEGRATED WARFARE (SAIW) TECHNICAL AND ENGINEERING SERVICES (TES) TASK ORDER

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 $11.8 million.

What is the period of performance?

Start: 2023-09-06. End: 2026-09-05.

What is Booz Allen Hamilton's track record with NAWCAD and similar naval aviation contracts?

Booz Allen Hamilton has a significant and long-standing track record of providing a wide range of services to the Department of Defense, including extensive support to naval aviation commands like NAWCAD. They have historically secured numerous contracts for technical, engineering, C4ISR, and strategic consulting services. Their experience often involves complex system integration, research and development support, and lifecycle management for naval aviation platforms. While specific details of past performance on similar task orders would require deeper database analysis, their overall profile suggests a strong capability and established relationship with naval aviation entities, making them a frequent and often successful bidder for such requirements.

How does the $11.8 million value compare to other technical and engineering services contracts for naval aviation?

The $11.8 million value for this task order is moderate within the context of naval aviation technical and engineering services. Larger, multi-year contracts for major platform development or sustainment can easily reach hundreds of millions or even billions of dollars. However, task orders under IDIQ vehicles, like this one likely is, often range from a few million to tens of millions of dollars, depending on the specific scope and duration. This amount is consistent with specialized, focused support for a particular warfare area or system. Benchmarking against similar engineering services contracts awarded by NAWCAD or other naval commands would reveal if this specific value is high, low, or average for the defined services and duration.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for the contractor to incur costs that exceed initial estimates, even though the fee (profit) is fixed. While the government only pays for allowable costs plus the agreed-upon fixed fee, there is a risk of cost overruns if the contractor's cost estimation or management is inadequate, or if unforeseen technical challenges arise. This can lead to the government paying more than anticipated for the services. Effective oversight, detailed cost tracking, and robust contract administration are crucial to mitigate these risks and ensure the government receives good value. The fixed fee incentivizes efficiency to some extent, but the government bears the primary risk of cost escalation.

How effective is full and open competition in ensuring value for money for specialized engineering services?

Full and open competition is generally considered the most effective method for ensuring value for money, especially for specialized engineering services. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, driving innovation and encouraging competitive pricing. This process helps the government identify the best technical solution at the most reasonable cost. For specialized services, it ensures that a wide range of expertise is considered, preventing reliance on a single provider who might otherwise command premium pricing. The presence of multiple bidders, even if only two in this specific instance, validates the competitive nature and supports the likelihood of a fair price being established.

What are the implications of this contract's duration (1095 days) for long-term naval readiness?

A duration of 1095 days (three years) for technical and engineering services indicates a sustained need for the specific capabilities being procured. This suggests that the services are not for a short-term project but rather for ongoing support critical to the sustainment, modernization, or operational effectiveness of naval air warfare systems. Such long-term engagements can contribute positively to naval readiness by ensuring continuity of expertise, fostering deeper understanding of complex systems by the contractor, and allowing for proactive problem-solving. It also implies a stable demand for these specialized skills within the defense industrial base, supporting a consistent workforce.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0042122R3001

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: $134,232,383

Exercised Options: $64,386,295

Current Obligation: $11,817,604

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $3,149,483

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