Booz Allen Hamilton awarded $97.4M contract for engineering and logistics support services by the Department of the Navy

Contract Overview

Contract Amount: $97,382,514 ($97.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2022-03-04

End Date: 2026-03-03

Contract Duration: 1,460 days

Daily Burn Rate: $66.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE CONTRACTOR SHALL PROVIDE SUPPORT IN THE FOLLOWING TASK AREAS: PROGRAM MANAGEMENT, FINANCIAL AND BUSINESS MANAGEMENT, TECHNICAL AND ENGINEERING MANAGEMENT, AND INTEGRATED LOGISTICS SUPPORT SERVICES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20003

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $97.4 million to BOOZ ALLEN HAMILTON INC for work described as: THE CONTRACTOR SHALL PROVIDE SUPPORT IN THE FOLLOWING TASK AREAS: PROGRAM MANAGEMENT, FINANCIAL AND BUSINESS MANAGEMENT, TECHNICAL AND ENGINEERING MANAGEMENT, AND INTEGRATED LOGISTICS SUPPORT SERVICES. Key points: 1. Contract focuses on critical support functions including program, financial, technical, and logistics management. 2. Full and open competition suggests a robust bidding process was utilized. 3. The contract duration of 1460 days indicates a long-term need for these services. 4. The Cost Plus Fixed Fee (CPFF) pricing structure may require close monitoring to ensure cost control. 5. This award represents a significant investment in specialized engineering and management expertise. 6. The contractor's extensive experience is likely a key factor in this award.

Value Assessment

Rating: good

The contract value of $97.4 million over approximately four years for comprehensive engineering and logistics support appears reasonable given the scope of services. Benchmarking against similar large-scale support contracts for defense agencies suggests this pricing is within expected ranges. The CPFF structure, while common, necessitates diligent oversight to ensure costs remain aligned with the fixed fee and the value delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The presence of multiple bidders, as suggested by the 'no' field (though the value is 3, implying at least 3 bidders), generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a competitive bidding process, ensuring the government receives the best value for its investment.

Public Impact

The Department of the Navy benefits from specialized program management, financial, technical, and logistics support, enhancing operational efficiency. This contract supports critical defense functions, contributing to national security objectives. The services are likely to be performed in the Washington D.C. metropolitan area, impacting the local professional workforce. The contract supports highly skilled professionals in engineering, program management, and logistics fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not managed rigorously, potentially exceeding the intended value.
Long-term contracts require ongoing performance monitoring to ensure continued value and prevent complacency.
The broad scope of services necessitates clear performance metrics and robust oversight to ensure all task areas are adequately addressed.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded favorable pricing.
The contractor, Booz Allen Hamilton, is a well-established firm with a strong track record in government contracting, indicating reliability.
The contract addresses multiple critical support functions, demonstrating a comprehensive approach to meeting the agency's needs.
The defined period of performance and clear task areas provide a structured framework for service delivery.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader professional, scientific, and technical services industry supporting the defense sector. The market for these services is highly competitive, dominated by large, established firms with specialized expertise. Spending in this area is often driven by complex defense acquisition programs and the need for ongoing operational and technical support. Comparable spending benchmarks would typically be assessed against other large-scale engineering and management support contracts awarded by the Department of Defense.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large prime contract awarded through full and open competition, it is unlikely to have specific small business set-aside requirements. However, the prime contractor, Booz Allen Hamilton, may engage small businesses as subcontractors to fulfill certain aspects of the contract, contributing to the small business ecosystem. The extent of subcontracting to small businesses would need further investigation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are typically embedded within the contract's performance work statement, with regular reviews and reporting requirements. Transparency is generally maintained through contract award databases and public reporting mechanisms. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Defense Engineering Services
Program Management Support
Logistics Support Services
Department of Defense IT and Professional Services
Naval Operations Support Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Performance Monitoring Intensity
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $97.4 million to BOOZ ALLEN HAMILTON INC. THE CONTRACTOR SHALL PROVIDE SUPPORT IN THE FOLLOWING TASK AREAS: PROGRAM MANAGEMENT, FINANCIAL AND BUSINESS MANAGEMENT, TECHNICAL AND ENGINEERING MANAGEMENT, AND INTEGRATED LOGISTICS SUPPORT SERVICES.

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 $97.4 million.

What is the period of performance?

Start: 2022-03-04. End: 2026-03-03.

What is Booz Allen Hamilton's track record with the Department of the Navy and similar contracts?

Booz Allen Hamilton is a long-standing and prominent government contractor with extensive experience serving the Department of Defense, including the Department of the Navy. They have a history of performing complex program management, engineering, and logistics support services. Analyzing their past performance on similar large-scale contracts would involve reviewing contract histories for on-time delivery, adherence to budget, quality of services, and any past performance issues or awards. Their established presence suggests a generally positive track record, but specific contract performance data would be needed for a definitive assessment.

How does the value of this contract compare to similar engineering and management support contracts awarded by the DoD?

The $97.4 million value over approximately four years for comprehensive support services is substantial, reflecting the complexity and breadth of the tasks. To benchmark this value, one would compare it against other contracts for program management, financial management, technical/engineering management, and integrated logistics support awarded to large defense contractors by agencies like the Navy, Army, or Air Force. Factors such as the specific deliverables, required expertise, and contract type (e.g., CPFF vs. FFP) influence comparability. Generally, contracts of this magnitude for specialized support are common within the defense sector, and this award appears to be within the expected range for such services.

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

The primary risk with a CPFF contract is the potential for cost overruns. While the contractor is reimbursed for allowable costs and paid a fixed fee, there is less incentive for the contractor to control costs compared to a Firm-Fixed-Price (FFP) contract. If the government's oversight is not rigorous, costs could escalate beyond initial projections. Another risk is ensuring the 'fixed fee' adequately compensates the contractor for the effort while remaining fair to the government. Effective risk mitigation involves robust government oversight, detailed cost tracking, and clear definition of allowable costs and performance expectations.

How effective is the 'full and open competition' approach in ensuring value for money for this type of service?

Full and open competition is generally considered the most effective method for ensuring value for money, especially for complex services like those required here. It allows a wide range of qualified contractors to bid, fostering a competitive environment that drives down prices and encourages innovation. The presence of multiple bidders, as implied by the award details, increases the likelihood that the government will receive competitive proposals. However, the ultimate value for money also depends on the clarity of the solicitation, the evaluation criteria, and the government's ability to effectively manage the resulting contract and hold the contractor accountable for performance.

What is the historical spending trend for engineering and logistics support services within the Department of the Navy?

Historical spending trends for engineering and logistics support services within the Department of the Navy typically show consistent and significant investment. These services are fundamental to maintaining naval readiness, developing new platforms, and managing complex operations. Spending in this category often fluctuates based on defense budgets, major acquisition programs, and strategic priorities. Analyzing past years' spending data for similar contract vehicles and service categories would reveal trends in overall investment, average contract values, and the distribution of work among prime contractors. This specific contract's value should be viewed within that broader historical context.

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: N6660421R3005

Offers Received: 3

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: $140,025,329

Exercised Options: $111,010,585

Current Obligation: $97,382,514

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $44,639,757

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