Booz Allen Hamilton awarded $25.2M for Program Manager Support Services by the Department of Defense

Contract Overview

Contract Amount: $25,182,628 ($25.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2006-10-01

End Date: 2010-09-30

Contract Duration: 1,460 days

Daily Burn Rate: $17.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: PROGRAM MANAGER SUPPORT SERVICES

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $25.2 million to BOOZ ALLEN HAMILTON INC for work described as: PROGRAM MANAGER SUPPORT SERVICES Key points: 1. Contract provides essential program management support, indicating a need for specialized expertise. 2. The duration of the contract suggests a long-term requirement for these services. 3. Awarded via full and open competition, implying a robust market for these services. 4. The cost-plus-fixed-fee pricing structure allows for flexibility but requires careful oversight. 5. Services are categorized under Engineering Services, aligning with the contract's technical nature. 6. The contract was awarded as a delivery order, suggesting it's part of a larger indefinite-delivery contract.

Value Assessment

Rating: good

The contract value of $25.2 million over approximately four years for program manager support services appears reasonable given the nature of the work. Benchmarking against similar contracts for program management support within the Department of Defense is challenging without more specific service details. However, the fixed fee component suggests a degree of cost control. The pricing structure (Cost Plus Fixed Fee) can sometimes lead to higher costs if not managed tightly, but it also allows for adaptation to evolving program needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple companies were eligible to bid. The presence of four bidders suggests a competitive environment for these types of program management support services. A competitive process generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down prices through market forces. It provides assurance that the government is receiving services at a fair market value.

Public Impact

The Department of Defense benefits from enhanced program management capabilities, leading to more efficient execution of its initiatives. Services delivered include crucial support for program managers, ensuring projects stay on track and within scope. The primary geographic impact is likely within the operational areas of the Department of Defense, potentially worldwide. Workforce implications include the employment of skilled professionals in program management and related support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize cost overruns if not rigorously monitored.
The broad category of 'Engineering Services' may obscure specific cost drivers without further detail.
Long contract duration requires sustained oversight to ensure continued value and performance.

Positive Signals

Awarded through full and open competition, indicating a healthy market and potential for competitive pricing.
The contract provides specialized support critical for complex government programs.
The fixed fee component provides a baseline for cost predictability.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically engineering services. This sector is characterized by a high degree of specialization and is crucial for supporting government operations, particularly in defense. The market for program management support services is robust, with numerous firms capable of providing these specialized skills. Comparable spending in this area within the DoD is substantial, reflecting the complexity and scale of defense programs.

Small Business Impact

The data does not indicate any specific small business set-aside provisions for this contract. As a large contract awarded to a major prime contractor, there may be opportunities for small businesses to participate as subcontractors. However, the extent of small business subcontracting is not detailed in the provided information and would require further investigation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of Defense. Accountability measures are embedded in the contract's performance requirements and the cost-plus-fixed-fee structure, which requires detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific performance metrics and detailed cost breakdowns may not be publicly available.

Related Government Programs

Program Management Support
Engineering Services
Defense Contract Management

Risk Flags

Cost-plus-fixed-fee contract requires diligent oversight to manage costs.
Long contract duration necessitates sustained performance monitoring.
Scope definition for 'Program Manager Support Services' could be broad, requiring clear performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.2 million to BOOZ ALLEN HAMILTON INC. PROGRAM MANAGER 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 $25.2 million.

What is the period of performance?

Start: 2006-10-01. End: 2010-09-30.

What is the specific nature of the 'Program Manager Support Services' provided under this contract?

The provided data categorizes this contract under 'Engineering Services' (NAICS 541330) and identifies the service as 'PROGRAM MANAGER SUPPORT SERVICES'. While specific deliverables are not detailed, this typically involves providing expertise to assist government program managers in planning, organizing, directing, and controlling project activities. This can include tasks such as strategic planning, risk management, budget tracking, schedule development, stakeholder communication, and ensuring compliance with regulations and policies. The 'Cost Plus Fixed Fee' (CPFF) contract type suggests that the contractor is reimbursed for allowable costs plus a fixed amount for profit, indicating a need for flexibility in service delivery as program needs evolve.

How does the $25.2 million contract value compare to similar program management support contracts within the DoD?

Directly comparing the $25.2 million value requires access to a database of similar contracts with identical service scopes and durations. However, for a contract spanning approximately four years (1460 days) awarded via full and open competition, this value is within a plausible range for specialized program management support within a large agency like the Department of Defense. Contracts for similar support can range from a few million to tens or even hundreds of millions of dollars, depending on the complexity, scope, and duration of the programs being supported. The CPFF structure also means the final cost could vary based on actual expenses incurred.

What are the key 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 if the government's oversight is insufficient. While the fixed fee provides a profit ceiling, the contractor is reimbursed for all allowable costs. This can incentivize less cost-consciousness compared to fixed-price contracts. For the government, risks include ensuring that all costs submitted by the contractor are reasonable, allocable, and allowable. Effective management requires robust auditing and performance monitoring to ensure the contractor is delivering value and managing resources efficiently. Scope creep, if not managed through contract modifications, can also increase costs.

What does the fact that this was awarded as a 'Delivery Order' imply about the overall contract vehicle?

The 'AW' (Award Type) being 'DELIVERY ORDER' indicates that this specific contract action is one of potentially many under a larger, pre-existing indefinite-delivery contract (IDIQ) or similar multiple-award contract vehicle. This means that the foundational contract terms, conditions, and pricing structures were likely established earlier, possibly through a separate competitive process. A delivery order then specifies the quantity, delivery schedule, and sometimes price for a particular order of goods or services. This approach allows agencies to procure services or items rapidly as needed over a defined period without conducting a new full competition for each individual requirement.

What is the track record of Booz Allen Hamilton in providing similar services to the Department of Defense?

Booz Allen Hamilton is a well-established and large government contractor with extensive experience supporting the Department of Defense across a wide array of services, including program management, systems engineering, and strategic consulting. They have a long history of holding numerous contracts with various DoD components. While this specific contract's performance details are not provided, Booz Allen Hamilton's general track record suggests they possess the organizational capacity and expertise to deliver on complex requirements. However, as with any large contractor, performance can vary across individual contracts, and specific past performance reviews would be necessary for a definitive assessment.

How does the competition level (4 bidders) influence the value received by the government?

Having four bidders in a full and open competition generally indicates a healthy level of market interest and capability for these services. More bidders typically lead to greater price competition, potentially driving down the offered prices and improving the overall value proposition for the government. It also increases the likelihood that the government can select a contractor offering the best combination of technical approach and price. A lower number of bidders might suggest market concentration or barriers to entry, potentially leading to less competitive pricing. Four bidders strikes a reasonable balance, suggesting sufficient competition without being overly burdensome.

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: N0002406R3462

Offers Received: 4

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: $359,293,200

Exercised Options: $122,852,830

Current Obligation: $25,182,628

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4024

IDV Type: IDC

Timeline