DoD's $91M PMW 170 Contract for Program Management and Acquisition Support Awarded to Booz Allen Hamilton
Contract Overview
Contract Amount: $91,055,383 ($91.1M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2007-10-01
End Date: 2021-11-30
Contract Duration: 5,174 days
Daily Burn Rate: $17.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: PMW 170 PROGRAM MANAGEMENT, COST MODELING, CONTRACT MANAGEMENT AND ACQ SUPPORT
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $91.1 million to BOOZ ALLEN HAMILTON INC for work described as: PMW 170 PROGRAM MANAGEMENT, COST MODELING, CONTRACT MANAGEMENT AND ACQ SUPPORT Key points: 1. Contract awarded to a single large business, Booz Allen Hamilton, with no small business participation. 2. The contract spans over 14 years, indicating a long-term need for these services. 3. Cost Plus Award Fee (CPAF) contract type allows for performance-based incentives. 4. The Engineering Services sector (NAICS 541330) is critical for defense program execution.
Value Assessment
Rating: fair
The contract type is Cost Plus Award Fee (CPAF), which can lead to higher costs if not managed carefully. Benchmarking against similar program management contracts is difficult without 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 competitive bidding process. However, the long duration and specific nature of support may have limited the number of bidders.
Taxpayer Impact: The use of CPAF and a long contract duration could potentially lead to higher taxpayer costs if performance incentives are not effectively managed or if costs escalate.
Public Impact
Ensures continued program management and acquisition support for critical Department of Defense initiatives. Long-term contract provides stability for the contractor and consistent support for the agency. Potential for cost overruns exists with CPAF contracts if not rigorously overseen.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Lack of small business participation.
- Long contract duration may limit flexibility.
- CPAF contract type can incentivize cost growth.
Positive Signals
- Awarded under full and open competition.
- Contractor has extensive experience in program management.
- Performance incentives are built into the contract.
Sector Analysis
This contract falls within the Engineering Services sector, which is vital for the Department of Defense's complex acquisition programs. Spending in this sector is substantial, supporting research, development, and program management.
Small Business Impact
This contract does not appear to have any small business participation. This is a missed opportunity to support small businesses within the defense contracting ecosystem.
Oversight & Accountability
The contract's long duration and CPAF structure necessitate robust oversight from the Defense Contract Management Agency to ensure cost control and effective performance.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of small business subcontracting.
- Potential for cost overruns due to CPAF structure.
- Long contract duration may indicate a lack of market research for more agile solutions.
- Limited transparency on award fee payouts and performance justification.
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $91.1 million to BOOZ ALLEN HAMILTON INC. PMW 170 PROGRAM MANAGEMENT, COST MODELING, CONTRACT MANAGEMENT AND ACQ SUPPORT
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 $91.1 million.
What is the period of performance?
Start: 2007-10-01. End: 2021-11-30.
What was the total value of award fees paid out over the life of the contract, and how did this compare to the target?
The total value of the contract, including base and award fees, was approximately $91 million over its 14-year duration. Without specific breakdowns of base cost and actual award fees paid, it's difficult to assess the effectiveness of the incentive structure. A detailed review would be needed to determine if the award fees accurately reflected exceptional performance or contributed to cost growth.
How did the contractor's performance metrics align with the award fee criteria, and were there any significant cost variances?
The contract utilized a Cost Plus Award Fee (CPAF) structure, implying that the contractor's performance was evaluated against specific criteria to determine additional award fees. Analyzing the awarded fees against the base cost would reveal the contractor's success in meeting or exceeding performance expectations. Significant cost variances would warrant scrutiny to understand if they were justified by performance or indicative of poor cost control.
What specific acquisition support functions were performed, and how did they contribute to the overall effectiveness of DoD programs?
The contract provided program management, cost modeling, and acquisition support. These functions are crucial for the efficient execution of complex defense programs, ensuring they stay on schedule and within budget. The long duration suggests these services were consistently needed and likely contributed to the successful acquisition of various defense systems, though specific program impacts would require further analysis.
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: N0002407R3353
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
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
Financial Breakdown
Contract Ceiling: $95,241,223
Exercised Options: $95,241,223
Current Obligation: $91,055,383
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4024
IDV Type: IDC
Timeline
Start Date: 2007-10-01
Current End Date: 2021-11-30
Potential End Date: 2021-11-30 00:00:00
Last Modified: 2022-06-17
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