Navy awards $8.57M for mine warfare engineering and logistics support to Booz Allen Hamilton

Contract Overview

Contract Amount: $8,567,298 ($8.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2022-12-14

End Date: 2026-12-13

Contract Duration: 1,460 days

Daily Burn Rate: $5.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: AIRBORNE LASER MINE DETECTION SYSTEM (ALMDS), AIRBORNE MINE NEUTRALIZATION SYSTEM (AMNS), BARRACUDA, AND MINE WARFARE (MIW) ENGINEERING AND LOGISTICS SUPPORT

Place of Performance

Location: PANAMA CITY, BAY County, FLORIDA, 32401

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $8.6 million to BOOZ ALLEN HAMILTON INC for work described as: AIRBORNE LASER MINE DETECTION SYSTEM (ALMDS), AIRBORNE MINE NEUTRALIZATION SYSTEM (AMNS), BARRACUDA, AND MINE WARFARE (MIW) ENGINEERING AND LOGISTICS SUPPORT Key points: 1. Contract provides critical support for airborne mine detection and neutralization systems. 2. Booz Allen Hamilton, a large defense contractor, holds this award. 3. The contract duration is 4 years, indicating a long-term need for these services. 4. This award falls under engineering services, a common category for defense support. 5. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 6. The award was made via full and open competition, suggesting a competitive process.

Value Assessment

Rating: good

The total award amount of $8.57 million for a 4-year period for mine warfare engineering and logistics support appears reasonable given the specialized nature of the services. Benchmarking against similar contracts for advanced defense systems engineering and logistics is challenging without more specific data on the scope of work. However, the Cost Plus Fixed Fee (CPFF) contract type introduces some risk of cost escalation, though the fixed fee component provides a degree of cost control. The value proposition hinges on the successful delivery of critical mine warfare capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. The specific number of bidders is not provided, but this approach generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the Navy sought the best available solution from the widest possible pool of qualified contractors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and innovative solutions, potentially reducing overall program costs.

Public Impact

The primary beneficiaries are the U.S. Navy's mine warfare units, ensuring they have the necessary engineering and logistical support for critical systems. Services delivered include engineering and logistics support for Airborne Laser Mine Detection System (ALMDS), Airborne Mine Neutralization System (AMNS), BARRACUDA, and general Mine Warfare (MIW) operations. The contract is geographically focused on Florida (st), indicating a concentration of naval operations or facilities related to mine warfare in that region. This contract supports specialized technical roles within the defense sector, potentially impacting a skilled workforce in engineering and logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs to maximize profit.
The specialized nature of mine warfare systems may limit the pool of qualified contractors, potentially impacting future competition.
Reliance on a single large contractor for critical engineering and logistics support could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
The contract duration of 4 years indicates a stable and ongoing requirement for these essential services.
Booz Allen Hamilton is a well-established contractor with significant experience in defense sector support.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting advanced defense technologies related to mine warfare. The market for specialized defense engineering and logistics is substantial, driven by ongoing national security requirements. Comparable spending benchmarks would typically involve contracts for the development, integration, and sustainment of complex military systems, often requiring high levels of technical expertise and security clearances. The $8.57 million award is moderate for a multi-year engineering support contract within the defense industry.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false) and the contractor is a large business (co: BOOZ ALLEN HAMILTON INC). There is no explicit information regarding subcontracting plans for small businesses within the provided data. The impact on the small business ecosystem is likely minimal unless specific subcontracting opportunities are pursued by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are inherent in the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Mine Countermeasures Programs
Naval Surface Warfare Center (NSWC) Engineering Support
Defense Logistics Agency (DLA) Support Services
Airborne Systems Engineering Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Dependence on a single large contractor for critical support.
Limited public data on specific performance metrics for this contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.6 million to BOOZ ALLEN HAMILTON INC. AIRBORNE LASER MINE DETECTION SYSTEM (ALMDS), AIRBORNE MINE NEUTRALIZATION SYSTEM (AMNS), BARRACUDA, AND MINE WARFARE (MIW) ENGINEERING AND LOGISTICS SUPPORT

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 $8.6 million.

What is the period of performance?

Start: 2022-12-14. End: 2026-12-13.

What is Booz Allen Hamilton's track record with similar Navy contracts, particularly in mine warfare or related engineering services?

Booz Allen Hamilton is a large, established government contractor with extensive experience supporting the Department of Defense, including the Navy. They frequently win contracts related to engineering, systems integration, logistics, and technical support across various defense platforms. While specific details on their performance for mine warfare systems require deeper analysis of past contract performance reviews and award histories, their consistent presence in winning large defense contracts suggests a generally positive track record. However, the CPFF contract type necessitates careful monitoring of cost performance and adherence to scope to ensure value.

How does the $8.57 million value compare to similar engineering and logistics support contracts for mine warfare systems?

The $8.57 million award for a 4-year period for specialized mine warfare engineering and logistics support appears to be within a reasonable range for such niche services. However, a precise comparison is difficult without knowing the exact scope of work, deliverables, and the specific systems being supported (ALMDS, AMNS, BARRACUDA). Contracts for advanced military systems engineering can vary significantly in cost based on complexity, research and development components, and the level of sustainment required. Generally, multi-year engineering support for critical defense assets can range from millions to tens of millions of dollars.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for these services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs compared to a fixed-price contract, as their profit (the fixed fee) is earned regardless of the final cost incurred. This can lead to cost overruns if the government does not maintain rigorous oversight of expenditures and scope creep. For specialized engineering and logistics, estimating costs accurately can be challenging, increasing the potential for the 'cost' portion to exceed initial projections. The government bears the risk of higher-than-expected costs, while the contractor is assured a profit margin.

How effective are airborne systems like ALMDS and AMNS in modern mine warfare, and what is the significance of this contract to their operational readiness?

Airborne systems like the Airborne Laser Mine Detection System (ALMDS) and Airborne Mine Neutralization System (AMNS) are crucial for modern mine warfare, offering standoff capabilities that enhance safety and efficiency in detecting and neutralizing underwater threats. ALMDS uses lasers to detect mines from the air, while AMNS can neutralize them. This contract's focus on engineering and logistics support is vital for ensuring these advanced systems are operational, maintained, and continuously improved. Reliable engineering and logistics are foundational to the readiness and effectiveness of these critical mine warfare assets, directly impacting the Navy's ability to maintain maritime security.

What has been the historical spending trend for mine warfare engineering and logistics support within the Department of the Navy?

Historical spending on mine warfare engineering and logistics support within the Department of the Navy has likely been consistent, reflecting the enduring threat of naval mines. While specific aggregate figures for this niche category are not readily available in summary data, the Navy consistently invests in mine countermeasures (MCM) capabilities. Spending typically fluctuates based on modernization programs, new system procurements, and sustainment needs. The award of this $8.57 million contract suggests a continued commitment to maintaining and advancing these essential capabilities, aligning with ongoing naval modernization efforts and operational requirements.

Are there any specific performance concerns or positive indicators related to Booz Allen Hamilton's past performance on similar defense engineering contracts?

Assessing specific performance concerns or positive indicators for Booz Allen Hamilton on similar defense engineering contracts requires access to detailed past performance evaluations, which are typically not publicly disclosed in full. However, as a major defense contractor, Booz Allen Hamilton generally maintains a significant portfolio of contracts across various agencies. Their ability to consistently win and perform on large, complex contracts suggests a baseline level of satisfactory performance. Any specific concerns would likely be related to cost control on CPFF contracts or adherence to delivery schedules, while positive indicators would include successful system integration, timely delivery of technical expertise, and effective project management.

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: N6133122R3005

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: $23,368,157

Exercised Options: $18,433,616

Current Obligation: $8,567,298

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,050,662

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