Booz Allen Hamilton contract for program management services awarded by the Department of the Navy for over $13.4 million

Contract Overview

Contract Amount: $13,481,589 ($13.5M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2006-09-30

End Date: 2011-09-30

Contract Duration: 1,826 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200612!SS6162!1700!N00039!SPACE AND NAVAL WARFARE SYSTEMS !N0017804D4024 !A!N! !Y!NS08 ! !20060930!20070930!006928857!006928857!006928857!N!BOOZ ALLEN HAMILTON INC !8283 GREENSBORO DRIVE !MCLEAN !VA!22102!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000001084838!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: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92110

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $13.5 million to BOOZ ALLEN HAMILTON INC for work described as: 200612!SS6162!1700!N00039!SPACE AND NAVAL WARFARE SYSTEMS !N0017804D4024 !A!N! !Y!NS08 ! !20060930!20070930!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 for program management and support services, indicating a need for specialized expertise. 2. The contract was competed on a full and open basis, suggesting a competitive bidding process. 3. The duration of the contract is approximately 5 years, allowing for sustained support. 4. The contract type is Cost Plus Fixed Fee, which can incentivize cost control by the contractor. 5. The primary place of performance is San Diego, California, aligning with naval operations. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services, suggesting a technical component to the program management.

Value Assessment

Rating: fair

The contract value of $13.4 million over five years averages to approximately $2.68 million per year. Without specific deliverables or performance metrics, it's challenging to benchmark this value definitively. However, for program management and engineering support services, this amount appears within a reasonable range for complex government projects. Further analysis would require comparing the scope of work and deliverables to similar contracts awarded to other large defense contractors.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data does not specify the number of bidders, but a full and open competition generally suggests a healthy level of market interest. This approach is intended to foster price discovery and ensure the government receives competitive offers.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining services at a competitive price, potentially leading to cost savings compared to sole-source or limited competition awards.

Public Impact

The Department of the Navy benefits from specialized program management and support services, crucial for complex defense initiatives. The contract supports naval operations and potentially contributes to the readiness and effectiveness of the fleet. The primary geographic impact is in San Diego, California, a major hub for naval activities. The contract likely supports a workforce of program managers, analysts, and technical specialists, potentially including both government personnel and contractor employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee contract type can sometimes lead to cost overruns if not carefully managed and monitored.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's efficiency and effectiveness.
The broad nature of 'Program Management/Support Services' could lead to scope creep if not clearly defined and controlled.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
The contractor, Booz Allen Hamilton, is a well-established firm with significant experience in government contracting, particularly in defense.
The contract duration of five years allows for continuity of services and knowledge retention within the program.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically engineering services (NAICS 541330). This sector is a significant component of the federal contracting landscape, particularly within the Department of Defense. Spending in this area often supports complex research, development, and program management for advanced technologies and systems. Benchmarks for similar program management contracts within the defense sector can vary widely based on scope, duration, and complexity, but this contract's value is consistent with support services for major defense programs.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss=false, sb=false). As a large contract awarded through full and open competition, it is unlikely to have significant direct subcontracting opportunities specifically mandated for small businesses, although the prime contractor may engage small businesses as part of its overall supply chain. The absence of a small business set-aside means the primary competition was likely among larger, established firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Navy. Performance monitoring, invoicing review, and adherence to contract terms are standard oversight mechanisms. Given the nature of the services, the contract may also be subject to audits by the Defense Contract Audit Agency (DCAA) and oversight from the Department of Defense Inspector General, particularly concerning cost reporting and performance. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Program Management Support
Engineering and Technical Services Contracts
Defense Contract Services
Federal IT and Professional Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Potential for scope creep in broad program management services.
Performance metrics not detailed, making direct effectiveness assessment challenging.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.5 million to BOOZ ALLEN HAMILTON INC. 200612!SS6162!1700!N00039!SPACE AND NAVAL WARFARE SYSTEMS !N0017804D4024 !A!N! !Y!NS08 ! !20060930!20070930!006928857!006928857!006928857!N!BOOZ ALLEN HAMILTON INC !8283 GREENSBORO DRIVE !MCLEAN !VA!22102!66000!073!06!SAN DIEGO !SAN DIEGO !CALIFORNIA!+000001084838!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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $13.5 million.

What is the period of performance?

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

What is the track record of Booz Allen Hamilton in performing similar program management and support services for the Department of Defense?

Booz Allen Hamilton is a large, well-established government contractor with extensive experience providing program management, systems engineering, and technical support services across various defense agencies. They have a long history of supporting complex naval programs, including those related to shipbuilding, C4ISR systems, and strategic planning. Their track record generally includes successful execution of large-scale contracts, though like any major contractor, they have faced scrutiny on specific projects regarding cost, performance, and personnel. For this specific contract, the provided data does not detail past performance evaluations, but their overall presence and capabilities in the defense sector suggest a strong capacity to fulfill such requirements. Further investigation into past performance reviews and any associated contract disputes would provide a more granular assessment.

How does the awarded amount of $13.4 million compare to similar program management contracts for naval systems?

The awarded amount of $13.4 million over a period of approximately five years (2006-2011) translates to an average annual value of roughly $2.68 million. This figure is within the expected range for program management and support services for naval systems, especially considering the complexity and scale often associated with defense programs. However, a direct comparison is difficult without knowing the specific scope of work, deliverables, and the level of technical expertise required. Contracts for major defense acquisition programs can range from tens of millions to billions of dollars. This contract appears to be for a specific set of support services rather than the entire lifecycle management of a major weapon system. Benchmarking against contracts with similar NAICS codes (541330) and contract types (Cost Plus Fixed Fee) awarded around the same period by the Department of the Navy would provide a more precise value assessment.

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

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs compared to fixed-price contracts, as their profit (the fixed fee) is predetermined. While the government pays the actual allowable costs, the contractor is guaranteed their fee regardless of cost efficiency. This can lead to potential cost overruns if not rigorously monitored. For program management services, risks also include scope creep, where the defined tasks expand without corresponding adjustments to the fee or schedule, and potential for less innovation if the contractor focuses solely on meeting the minimum requirements to secure their fee. Effective oversight, clear definition of allowable costs, and strong performance management are crucial to mitigate these risks.

What is the expected effectiveness of these program management services in supporting naval operations?

The effectiveness of these program management services hinges on the clarity of the contract's objectives, the contractor's ability to execute the defined tasks, and the government's oversight. Program management services are intended to streamline acquisition processes, manage project timelines, coordinate technical efforts, and ensure resources are allocated efficiently. For naval operations, this could translate to improved readiness, faster development of new capabilities, or more efficient maintenance and sustainment of existing systems. The contractor's expertise in navigating complex defense regulations, managing diverse teams, and mitigating project risks is critical. Without specific performance metrics tied to naval operational outcomes, assessing effectiveness is indirect, but successful program management is a foundational element for the successful deployment and sustainment of naval assets.

How has federal spending on engineering and program management services (NAICS 541330) by the Department of the Navy trended historically?

Federal spending on engineering and program management services, categorized under NAICS code 541330, by the Department of the Navy has historically been substantial, reflecting the significant investment in naval research, development, procurement, and sustainment. This spending tends to fluctuate based on defense budgets, strategic priorities, and the lifecycle of major naval programs (e.g., shipbuilding, aircraft development, IT systems). In the years leading up to and following this contract's award (mid-2000s), defense spending was generally high due to ongoing conflicts and modernization efforts. While this specific contract represents a small fraction of the Navy's overall budget, the trend for this service category generally shows consistent, high-volume demand driven by the complexity and scale of naval technological requirements. Detailed historical spending data would reveal specific peaks and troughs related to major acquisition programs.

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: N0002406R3559

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)

Address: BOOZ ALLEN HAMILTON INC, MC LEAN, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4024

IDV Type: IDC

Timeline