DoD Awards Booz Allen Hamilton $37.5M for GPS User Equipment Engineering Support
Contract Overview
Contract Amount: $37,553,005 ($37.6M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2024-11-06
End Date: 2026-11-17
Contract Duration: 741 days
Daily Burn Rate: $50.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: GLOBAL POSITIONING SYSTEM (GPS) USER EQUIPMENT (UE) ENGINEERING SUPPORT
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92152
Plain-Language Summary
Department of Defense obligated $37.6 million to BOOZ ALLEN HAMILTON INC for work described as: GLOBAL POSITIONING SYSTEM (GPS) USER EQUIPMENT (UE) ENGINEERING SUPPORT Key points: 1. Contract awarded to a single, large business prime. 2. Significant contract value for specialized engineering services. 3. Potential for cost overruns given Cost Plus Fixed Fee structure. 4. Focus on critical defense technology (GPS UE).
Value Assessment
Rating: fair
The contract is a Cost Plus Fixed Fee type, which can lead to higher costs if not managed tightly. Benchmarking against similar engineering support contracts for complex systems is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific award type (Delivery Order) implies it might be part of a larger IDIQ, where initial competition was broader.
Taxpayer Impact: Taxpayer funds are being used for critical defense engineering services. Value for money depends on effective cost control and successful delivery of the required support.
Public Impact
Ensures continued functionality and advancement of GPS user equipment for military operations. Supports national security by maintaining a critical defense system. Potential impact on future GPS technology development and deployment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher spending.
- No small business participation noted.
- Long duration (741 days) increases exposure to cost fluctuations.
Positive Signals
- Awarded under full and open competition.
- Supports critical national security technology.
- Experienced contractor (Booz Allen Hamilton).
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense-related technology. Spending benchmarks for similar specialized engineering support contracts are typically high due to the complexity and criticality of the systems involved.
Small Business Impact
The data indicates no small business participation in this specific contract award. Efforts to include small businesses in subcontracting opportunities or future set-asides should be considered.
Oversight & Accountability
The Department of the Navy is the contracting agency. Oversight will be crucial to manage costs under the Cost Plus Fixed Fee structure and ensure successful delivery of engineering support.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- No small business participation.
- Long contract duration.
- Potential for cost overruns.
- Reliance on a single large business prime.
Tags
engineering-services, department-of-defense, ca, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.6 million to BOOZ ALLEN HAMILTON INC. GLOBAL POSITIONING SYSTEM (GPS) USER EQUIPMENT (UE) ENGINEERING 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 $37.6 million.
What is the period of performance?
Start: 2024-11-06. End: 2026-11-17.
What is the projected total cost for this contract, considering the Cost Plus Fixed Fee structure and the potential for cost growth?
The initial award is $37.55 million. However, as a Cost Plus Fixed Fee contract, the final cost could exceed this amount depending on the actual costs incurred by Booz Allen Hamilton. Robust oversight and clear performance metrics are essential to control expenditures and ensure the government pays a fair price for the services rendered.
What are the specific risks associated with the long duration of this contract and the Cost Plus Fixed Fee payment model?
The 741-day duration combined with a Cost Plus Fixed Fee structure presents a risk of escalating costs due to potential inefficiencies or scope creep. Without stringent cost controls and performance monitoring, the government might overpay for services. This model requires diligent oversight to ensure the contractor remains focused on efficient delivery.
How will the effectiveness of the engineering support be measured to ensure it meets the DoD's requirements for GPS User Equipment?
Effectiveness will likely be measured through defined performance metrics, milestones, and deliverables outlined in the contract. The Department of the Navy will need to actively monitor the quality of the engineering work, adherence to technical specifications, and the impact on GPS UE performance and reliability. Regular reviews and feedback loops are critical.
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: N6600124R3515
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: $138,729,621
Exercised Options: $53,662,718
Current Obligation: $37,553,005
Subaward Activity
Number of Subawards: 7
Total Subaward Amount: $26,719,790
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
Start Date: 2024-11-06
Current End Date: 2026-11-17
Potential End Date: 2029-11-17 00:00:00
Last Modified: 2025-12-23
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