Booz Allen Hamilton awarded $67.3M for PNT program engineering support, facing limited competition

Contract Overview

Contract Amount: $67,275,031 ($67.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2017-02-16

End Date: 2021-06-19

Contract Duration: 1,584 days

Daily Burn Rate: $42.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF EXPERT SYSTEMS ENGINEERING IN THE AREAS OF ANALYSIS, TECHNICAL REVIEW, EVALUATION, AND SYSTEMS ENGINEERING IN SUPPORT OF THE PNT PROGRAM.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $67.3 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF EXPERT SYSTEMS ENGINEERING IN THE AREAS OF ANALYSIS, TECHNICAL REVIEW, EVALUATION, AND SYSTEMS ENGINEERING IN SUPPORT OF THE PNT PROGRAM. Key points: 1. Contract value of $67.3M over 4 years suggests significant investment in PNT program. 2. Sole-source award indicates potential lack of market competition or specialized capabilities. 3. Cost-plus-fixed-fee contract type may incentivize cost overruns if not closely managed. 4. Performance period of 1584 days (approx. 4.3 years) allows for sustained support. 5. The contract is categorized under Engineering Services, aligning with PNT program needs. 6. Awarded by the Department of Defense, highlighting strategic importance of PNT capabilities.

Value Assessment

Rating: fair

The contract value of $67.3M for engineering services over approximately 4.3 years appears substantial. Benchmarking against similar contracts for specialized engineering support within the Department of Defense is challenging without more specific service details. However, the cost-plus-fixed-fee structure warrants careful monitoring to ensure value for money, as it can lead to higher costs if contractor efficiencies are not prioritized. The limited competition aspect also raises questions about whether the government secured the most competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'limited competition,' suggesting that while not a sole-source, the pool of eligible bidders was restricted. This could be due to specific technical requirements, security clearances, or existing relationships. With only two bidders identified, the level of competition was low, potentially impacting price negotiation and the government's ability to secure the best possible terms. Further details on the solicitation process would clarify the reasons for limited competition.

Taxpayer Impact: Limited competition can result in higher costs for taxpayers compared to a fully open and competitive process, as fewer bidders may lead to less aggressive pricing strategies.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel who rely on the Positioning, Navigation, and Timing (PNT) program. The services delivered include analysis, technical review, evaluation, and systems engineering critical for PNT system development and maintenance. The geographic impact is likely national, given the strategic importance of PNT capabilities for defense operations. Workforce implications include the employment of specialized engineers and technical experts at Booz Allen Hamilton.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contract type may lead to higher costs if not managed effectively.
Limited competition raises concerns about potential price inflation and suboptimal value.
The specific technical requirements limiting competition may not be publicly detailed, hindering full transparency.

Positive Signals

Booz Allen Hamilton is a well-established contractor with significant experience in defense and engineering services.
The contract duration allows for continuity of essential PNT program support.
The award signifies a commitment to enhancing critical PNT capabilities for national security.

Sector Analysis

The defense engineering services sector is characterized by high technical barriers to entry and specialized expertise. Contracts like this are crucial for maintaining and advancing sophisticated defense systems. The PNT program is a critical component of modern military operations, encompassing technologies that provide navigation, timing, and positioning data. Spending in this area is driven by the need for resilient and secure PNT capabilities, especially in contested environments. Comparable spending benchmarks would typically be found within broader defense R&D and systems integration categories.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the prime contractor, Booz Allen Hamilton, is a large business. While large prime contractors are often encouraged to subcontract with small businesses, there is no explicit information here to confirm subcontracting plans or their impact on the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management structures, potentially involving the Defense Contract Management Agency (DCMA) for contract administration. Inspector General (IG) jurisdiction would apply to investigations of fraud, waste, or abuse. Transparency is facilitated through contract databases like FPDS, but detailed performance metrics and internal oversight processes are generally not public.

Related Government Programs

Defense Advanced Research Projects Agency (DARPA) PNT Research
Global Positioning System (GPS) Modernization Programs
Navigation and Timing Systems Development
Military Satellite Communications (MILSATCOM)

Risk Flags

Limited competition may result in suboptimal pricing.
Cost-plus-fixed-fee contract type carries inherent risk of cost overruns.
Lack of detailed public information on specific technical requirements for limited competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $67.3 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF EXPERT SYSTEMS ENGINEERING IN THE AREAS OF ANALYSIS, TECHNICAL REVIEW, EVALUATION, AND SYSTEMS ENGINEERING IN SUPPORT OF THE PNT PROGRAM.

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $67.3 million.

What is the period of performance?

Start: 2017-02-16. End: 2021-06-19.

What is Booz Allen Hamilton's track record with similar Department of Defense engineering contracts?

Booz Allen Hamilton has a long and extensive history of performing complex engineering, analysis, and technical support services for the Department of Defense and other federal agencies. They are a major defense contractor with significant expertise in areas such as systems engineering, cybersecurity, intelligence analysis, and program management. Their track record includes numerous large-scale contracts supporting critical defense programs, often involving advanced technologies and strategic initiatives. While specific performance details for individual contracts are not always public, their sustained presence and award of significant contracts suggest a generally positive performance history and capability to meet demanding government requirements. However, like any large contractor, they may have faced past performance reviews or disputes on specific projects.

How does the $67.3M contract value compare to other PNT program engineering support contracts?

Directly comparing the $67.3M value to other PNT program engineering support contracts requires access to detailed historical contract data for similar services. However, given that PNT systems are critical for national security and involve complex technological development, a contract value in the tens of millions of dollars over several years is not unusual for specialized engineering and systems integration support. Larger, more comprehensive PNT modernization efforts or platform integration projects could easily run into hundreds of millions or even billions. This specific award appears to be for a defined scope of engineering services rather than a full system development or acquisition, making it a significant but not exceptionally large contract within the broader defense technology landscape.

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

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract type, like the one awarded to Booz Allen Hamilton, is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. While the fee is fixed, the contractor has less incentive to control costs compared to fixed-price contracts, as their profit margin remains constant regardless of the final project cost. This can lead to inefficiencies or scope creep if not rigorously managed and overseen by the government. The government bears the risk of higher-than-expected costs, while the contractor is assured of their fee. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks.

What is the strategic importance of the PNT program that necessitates this level of investment?

The Positioning, Navigation, and Timing (PNT) program is of paramount strategic importance to the Department of Defense and national security. PNT capabilities, primarily provided by systems like the Global Positioning System (GPS), are fundamental to virtually all military operations, from troop movements and logistics to precision-guided munitions and command and control. In an era of increasing electronic warfare and potential denial of GPS signals, the DoD is investing heavily in ensuring resilient, secure, and reliable PNT. This includes developing alternative PNT sources, hardening existing systems, and integrating PNT data across various platforms. The engineering support funded by this contract is vital for the ongoing development, evaluation, and sustainment of these critical capabilities, ensuring the warfighter maintains situational awareness and operational effectiveness.

How has federal spending on engineering services for defense programs evolved over the past five years?

Federal spending on engineering services for defense programs has generally remained robust, reflecting the ongoing need for modernization, research, development, and sustainment of complex military systems. While specific figures fluctuate annually based on budget allocations and program priorities, the overall trend indicates sustained investment. Agencies like the Department of Defense consistently allocate significant portions of their budgets to acquiring engineering and technical support to maintain technological superiority. Factors influencing spending include geopolitical tensions, the introduction of new technologies (e.g., AI, cyber, hypersonics), and the lifecycle management of existing platforms. Data from sources like the Federal Procurement Data System (FPDS) would show billions of dollars obligated annually for defense-related engineering services across various NAICS codes.

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: N0002415R3455

Offers Received: 2

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: $67,677,623

Exercised Options: $67,677,623

Current Obligation: $67,275,031

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $1,358,441

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