DoD awards Booz Allen Hamilton $18.5M for long-term initiative support, raising value concerns

Contract Overview

Contract Amount: $18,553,170 ($18.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2007-09-27

End Date: 2013-03-19

Contract Duration: 2,000 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: Defense

Official Description: EXECUTIVE-LEVEL, LONG-TERM AND EMERGENT INITIATIVE, PROJECT AND BRIEFING SUPPORT

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.6 million to BOOZ ALLEN HAMILTON INC for work described as: EXECUTIVE-LEVEL, LONG-TERM AND EMERGENT INITIATIVE, PROJECT AND BRIEFING SUPPORT Key points: 1. The contract value of $18.5M for engineering services is substantial. 2. Booz Allen Hamilton, a large incumbent, secured this award. 3. The lack of small business participation is a potential risk. 4. Engineering services are critical for defense operations.

Value Assessment

Rating: questionable

The contract's value of $18.5M for engineering services over six years warrants scrutiny. Without clear benchmarks or comparison data, it's difficult to assess if this represents fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded under full and open competition, the pricing mechanism (Cost No Fee) suggests a focus on effort rather than fixed deliverables, potentially impacting price discovery and cost control.

Taxpayer Impact: While competition was open, the lack of small business involvement means potential benefits to smaller enterprises are missed, and the overall cost-effectiveness for taxpayers is not fully optimized.

Public Impact

Significant taxpayer funds allocated to a single large contractor. Potential for limited innovation due to incumbent dominance. Lack of small business participation may hinder economic diversity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation
Cost No Fee pricing structure
Long-term contract duration

Positive Signals

Awarded under full and open competition
Experienced contractor selected

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector crucial for defense operations. Spending benchmarks for similar long-term support contracts can vary widely based on scope and complexity.

Small Business Impact

The contract explicitly states no small business participation (ss: false, sb: false). This indicates a missed opportunity to leverage small businesses for specialized engineering support and potentially achieve cost savings.

Oversight & Accountability

The contract was awarded via a Delivery Order under a larger contract, suggesting some level of pre-existing oversight. However, the Cost No Fee structure necessitates robust monitoring to ensure efficient resource utilization.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of small business participation
Cost No Fee pricing structure may lead to cost overruns
Limited transparency on specific services rendered for the cost
Potential for contractor lock-in due to long-term nature

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.6 million to BOOZ ALLEN HAMILTON INC. EXECUTIVE-LEVEL, LONG-TERM AND EMERGENT INITIATIVE, PROJECT AND BRIEFING 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 $18.6 million.

What is the period of performance?

Start: 2007-09-27. End: 2013-03-19.

What specific engineering services were provided under this contract, and how did their scope justify the $18.5M cost over six years?

The data indicates 'EXECUTIVE-LEVEL, LONG-TERM AND EMERGENT INITIATIVE, PROJECT AND BRIEFING SUPPORT.' Without a detailed breakdown of tasks, hours, and rates, it's challenging to validate the $18.5M expenditure. The Cost No Fee structure implies the government is paying for the effort expended by Booz Allen Hamilton, making detailed performance monitoring crucial to ensure value.

Given the 'Cost No Fee' structure and the long duration, what mechanisms were in place to mitigate cost overruns and ensure efficient service delivery?

The 'Cost No Fee' (CNF) structure inherently shifts risk towards the government, as the contractor is reimbursed for incurred costs regardless of a fixed profit margin. Robust oversight, including detailed cost tracking, performance reviews, and potentially independent cost audits, would be essential to manage this risk and ensure the contractor is delivering necessary support efficiently.

How did the 'full and open competition' process ensure the best possible value was achieved, especially considering the absence of small business participation?

While 'full and open competition' theoretically allows all responsible sources to compete, the absence of small business participation raises questions about whether the competition truly captured the full spectrum of available expertise and pricing. The government should have ensured that the solicitation clearly defined requirements and evaluation criteria to incentivize competitive pricing and innovative solutions from all eligible firms.

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: N0002407R3373

Offers Received: 2

Pricing Type: COST NO FEE (S)

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: $78,764,212

Exercised Options: $30,860,527

Current Obligation: $18,553,170

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4024

IDV Type: IDC

Timeline