DoD Awards $56.4M Contract for Program Management Services to Booz Allen Hamilton

Contract Overview

Contract Amount: $56,406,304 ($56.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2006-09-19

End Date: 2011-11-30

Contract Duration: 1,898 days

Daily Burn Rate: $29.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200612!SS6166!1700!N00039!SPACE AND NAVAL WARFARE SYSTEMS !N0017804D4024 !A!N! !Y!NS06 ! !20060919!20071031!006928857!006928857!006928857!N!BOOZ ALLEN HAMILTON INC !8283 GREENSBORO DRIVE !MCLEAN !VA!22102!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000003735411!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !5!B!M! !A!D!20090331!B! ! !A! !A!N!U!2!021!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! ! !1700!N00039!0001! !

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $56.4 million to BOOZ ALLEN HAMILTON INC for work described as: 200612!SS6166!1700!N00039!SPACE AND NAVAL WARFARE SYSTEMS !N0017804D4024 !A!N! !Y!NS06 ! !20060919!20071031!006928857!006928857!006928857!N!BOOZ ALLEN HAMILTON INC !8283 GREENSBORO DRIVE !MCLEAN !VA!22102!66000!073!06!SAN DIEGO !SAN … Key points: 1. Contract awarded to Booz Allen Hamilton for program management and support services. 2. The contract has a total value of $56.4 million. 3. Competition was full and open, indicating a competitive bidding process. 4. The sector is Defense, specifically related to Space and Naval Warfare Systems. 5. Risk is moderate due to the cost-plus-fixed-fee pricing structure.

Value Assessment

Rating: good

The contract's pricing is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar program management contracts is difficult without more detailed cost breakdowns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method generally leads to more competitive pricing.

Taxpayer Impact: The competitive award aims to ensure taxpayer funds are used efficiently for essential defense program management services.

Public Impact

Supports critical Space and Naval Warfare Systems programs. Provides essential program management and support services to the Department of Defense. Booz Allen Hamilton, a major defense contractor, will perform the work. The contract duration is over 1800 days, indicating a long-term need.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee pricing can incentivize contractor overspending.
Long contract duration increases exposure to potential scope creep or changing requirements.
Limited transparency on specific service components and their cost drivers.

Positive Signals

Awarded through full and open competition.
Experienced contractor with a strong track record in defense.
Supports critical national security functions.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting program management for defense systems. Spending in this area is substantial within the DoD, with benchmarks varying widely based on program complexity and duration.

Small Business Impact

There is no indication that small businesses were involved in this specific contract award. The prime contractor is a large business.

Oversight & Accountability

The Defense Contract Management Agency (DCMA) is responsible for oversight. The contract's Cost Plus Fixed Fee structure requires diligent monitoring to ensure cost control and adherence to scope.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost Overruns Potential (CPFF)
Scope Creep Risk
Long-Term Dependency
Limited Small Business Participation
Lack of Detailed Cost Transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.4 million to BOOZ ALLEN HAMILTON INC. 200612!SS6166!1700!N00039!SPACE AND NAVAL WARFARE SYSTEMS !N0017804D4024 !A!N! !Y!NS06 ! !20060919!20071031!006928857!006928857!006928857!N!BOOZ ALLEN HAMILTON INC !8283 GREENSBORO DRIVE !MCLEAN !VA!22102!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000003735411!N!N!000000000000!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !5!B!M! !A!D!200

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 $56.4 million.

What is the period of performance?

Start: 2006-09-19. End: 2011-11-30.

What specific program management functions are included, and how are they benchmarked against industry standards?

The contract specifies 'PROGRAM MANAGEMENT/SUPPORT SERVICES'. Without a detailed breakdown of these services and their associated labor categories and hours, it is difficult to benchmark against industry standards. Further analysis would require access to the contract's statement of work and detailed cost proposals to assess the efficiency and appropriateness of the proposed labor mix and rates for the services rendered.

What are the key performance indicators (KPIs) for this contract, and how is contractor performance measured?

Key performance indicators are not explicitly detailed in the provided data. For a Cost Plus Fixed Fee contract, performance is typically measured against adherence to schedule, cost targets (within the fixed fee scope), and quality of deliverables. The contracting officer's representative (COR) and DCMA would be responsible for monitoring these aspects, with formal performance reviews likely occurring at milestones or contractually defined intervals.

How does the fixed fee component compare to the total contract value, and what does this imply about profit margins?

The fixed fee is not explicitly stated as a separate line item from the total contract value of $56.4 million. In a Cost Plus Fixed Fee (CPFF) contract, the fixed fee represents the contractor's profit, which is negotiated upfront and remains constant regardless of the actual costs incurred. A higher fixed fee relative to the estimated cost might suggest higher perceived risk or value, while a lower fixed fee could indicate a more competitive negotiation or lower risk.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 21

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

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: N0017804D4024

IDV Type: IDC

Timeline