DoD's $94M PMW 150 Program Management Support Services contract awarded to Booz Allen Hamilton Inc

Contract Overview

Contract Amount: $94,239,672 ($94.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2006-10-01

End Date: 2011-09-30

Contract Duration: 1,825 days

Daily Burn Rate: $51.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PMW 150 PROGRAM MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $94.2 million to BOOZ ALLEN HAMILTON INC for work described as: PMW 150 PROGRAM MANAGEMENT SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1825 days (5 years) indicates a long-term need for these services. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 4. The base award amount of $51.6M suggests significant initial investment in program management support. 5. The contract is for Engineering Services, aligning with the Defense sector's technical requirements. 6. The contractor, Booz Allen Hamilton Inc., is a large, established firm with extensive government contracting experience.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee (CPFF) contract type, while common for complex services, carries inherent risks of cost escalation. The initial award of $51.6M out of a potential $94.2M suggests that the full value was not immediately obligated, possibly due to phased funding or performance milestones. Further analysis would require understanding the specific services rendered and their impact on program objectives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of two bids suggests a moderate level of competition for this specific award. While full and open competition is generally preferred for ensuring fair pricing and access for a wide range of contractors, the limited number of bids warrants a closer look at potential barriers to entry or the specialized nature of the requirements.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in full and open competition, though the actual savings depend on the rigor of the evaluation process and the number of responsive bids received.

Public Impact

The primary beneficiaries are the Department of Defense (DoD) programs managed under PMW 150, which receive essential program management support. Services delivered likely include strategic planning, acquisition support, financial management, and technical expertise to ensure program success. The geographic impact is primarily within the Department of Defense's operational and administrative centers, likely concentrated in areas with significant defense presence. Workforce implications include the employment of skilled professionals in program management, engineering, and administrative support roles, both within the contractor's organization and potentially within the government agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs to maximize profit.
Limited number of bids (2) may indicate potential issues with competition or market saturation for these specialized services.
The significant difference between the base award ($51.6M) and the ceiling ($94.2M) could indicate potential for cost growth over the contract period.

Positive Signals

Awarded through full and open competition, which generally promotes a competitive environment.
Contractor (Booz Allen Hamilton Inc.) is a well-established entity with a proven track record in government contracting.
The contract duration of 5 years suggests a stable, long-term requirement for critical program management support.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader Defense industry. The Defense sector is characterized by complex, high-value procurements requiring specialized technical and management expertise. Spending in this area is driven by national security needs and technological advancements. Comparable spending benchmarks would involve analyzing other large-scale program management support contracts within the DoD and other federal agencies, often running into tens or hundreds of millions of dollars.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major defense contractor, it is unlikely that significant subcontracting opportunities for small businesses would be mandated or prioritized, unless specifically included in the contract's statement of work. This could limit the direct impact on the small business ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures are embedded within the CPFF contract structure, requiring the contractor to justify costs and meet performance objectives. Transparency is facilitated through contract award databases and reporting requirements, though detailed operational oversight specifics are often internal to the agency and contractor.

Related Government Programs

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

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Limited number of bids received may indicate potential competition issues.
Long contract duration increases risk of requirement changes and potential obsolescence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $94.2 million to BOOZ ALLEN HAMILTON INC. PMW 150 PROGRAM MANAGEMENT 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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $94.2 million.

What is the period of performance?

Start: 2006-10-01. End: 2011-09-30.

What specific program management functions does PMW 150 oversee, and how critical is Booz Allen Hamilton's support to their execution?

PMW 150, the Program Management - Warfare, is a key component within the Naval Air Systems Command (NAVAIR) and Naval Sea Systems Command (NAVSEA) portfolios, focusing on a range of critical naval warfare capabilities. Its responsibilities often include the acquisition, development, and sustainment of complex systems such as command and control, intelligence, surveillance, reconnaissance (ISR), and electronic warfare systems. Booz Allen Hamilton's support is likely crucial for the day-to-day execution of these programs, encompassing tasks like strategic planning, budget management, risk assessment, acquisition strategy development, and ensuring compliance with federal regulations. Their expertise helps NAVAIR/NAVSEA navigate the complexities of large-scale defense acquisition, ensuring that programs meet technical requirements, stay within budget constraints, and are delivered on schedule to support naval readiness.

How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other contract types in terms of cost control for engineering services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or involves significant uncertainties, making it suitable for research and development or complex engineering services. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. While the fee is fixed, the total cost to the government can vary significantly depending on the contractor's efficiency and the actual costs incurred. Compared to Firm-Fixed-Price (FFP) contracts, where the contractor bears the risk of cost overruns, CPFF shifts more cost risk to the government. However, it offers more flexibility than FFP when requirements evolve. Incentive Fee (IF) contracts, another alternative, aim to motivate contractor performance by adjusting the fee based on achieving specific targets, potentially offering better cost control than CPFF if well-structured.

What is the typical cost range for similar program management support contracts within the Department of Defense?

The cost range for program management support contracts within the Department of Defense (DoD) can vary dramatically based on the scope, duration, complexity, and specific services required. Contracts similar to the PMW 150 support services, which involve engineering and program management for naval warfare systems, often fall into the tens to hundreds of millions of dollars over their lifecycle. For instance, large-scale support contracts for major acquisition programs can easily exceed $100 million. Smaller, more focused support efforts might be in the $10-$50 million range. Factors influencing cost include the level of technical expertise required, the number of personnel involved, the criticality of the systems being supported, and the contract type (e.g., CPFF, Time and Materials, FFP). Benchmarking requires detailed comparison of the services rendered and the specific program's scale.

What are the potential risks associated with a 5-year contract duration for program management support services?

A 5-year contract duration for program management support services presents several potential risks. Firstly, requirements can change significantly over a 5-year period due to evolving technology, shifting strategic priorities, or changes in government leadership. A long-term contract might not be agile enough to adapt to these changes, potentially leading to inefficiencies or the need for costly modifications. Secondly, there's a risk of contractor complacency or a decline in performance over time, as the initial competitive pressure diminishes. Thirdly, long-term cost projections become less reliable, increasing the risk of budget overruns, especially with contract types like CPFF. Finally, the government may miss opportunities to leverage new technologies or more cost-effective solutions that emerge during the contract's term.

How does Booz Allen Hamilton's track record in government contracting influence the assessment of this contract's performance potential?

Booz Allen Hamilton Inc. is a large, well-established government contractor with decades of experience supporting various federal agencies, including the Department of Defense. Their extensive track record suggests a deep understanding of government contracting processes, compliance requirements, and the technical domains relevant to defense programs. This experience generally translates into a higher probability of successful contract performance, as they possess the infrastructure, personnel, and established methodologies to manage complex projects. However, past performance is not a guarantee of future success. While their reputation is strong, each contract has unique challenges, and ongoing oversight is still critical to ensure objectives are met effectively and efficiently. Their size also means they are accustomed to large-scale, high-value contracts like this one.

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: N0002406R3288

Offers Received: 2

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, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $1,381,271,964

Exercised Options: $418,971,555

Current Obligation: $94,239,672

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4024

IDV Type: IDC

Timeline