Booz Allen Hamilton awarded $54.3M for Engineering Services, with 3 bids received
Contract Overview
Contract Amount: $54,278,272 ($54.3M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2010-06-28
End Date: 2015-11-30
Contract Duration: 1,981 days
Daily Burn Rate: $27.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PROFESSIONAL SUPPORT SERVICES
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $54.3 million to BOOZ ALLEN HAMILTON INC for work described as: PROFESSIONAL SUPPORT SERVICES Key points: 1. Contract value appears reasonable given the duration and scope of engineering services. 2. Full and open competition suggests a healthy market for these services. 3. The contract's duration and cost-plus-fixed-fee structure may present cost control risks. 4. Services provided are critical for ongoing defense engineering support. 5. This contract falls within the broad professional services sector for the Department of Defense.
Value Assessment
Rating: good
The total award of $54.3 million over approximately 5 years for engineering services is within a reasonable range for large-scale defense contracts. Benchmarking against similar large engineering support contracts awarded by the DoD suggests that the pricing structure, while cost-plus-fixed-fee, is not inherently excessive. The fixed fee component provides some incentive for cost control, but the overall value is contingent on efficient service delivery and management.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified vendors were allowed to bid. With three bids received, the competition level suggests a moderately competitive environment. While three bidders are better than one or two, a higher number could potentially drive prices down further. The agency likely received a range of proposals to evaluate.
Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the best value for engineering services. The presence of multiple bidders helps ensure that the selected contractor's pricing is market-driven.
Public Impact
The Department of Defense benefits from specialized engineering expertise to support its complex operations. Services delivered likely include technical analysis, system design, and program management support. The geographic impact is primarily within the United States, supporting defense installations and operations. The contract supports a workforce of skilled engineers and technical professionals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can lead to cost overruns if not managed tightly.
- The long duration of the contract (1981 days) increases the potential for scope creep and cost escalation.
- Reliance on a single large contractor for critical engineering services can create vendor lock-in.
Positive Signals
- Awarded through full and open competition, ensuring a broad base of potential providers.
- The fixed fee component provides a defined profit margin, offering some cost predictability.
- The contractor, Booz Allen Hamilton, has a significant track record in government contracting.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader professional services market supporting government agencies, particularly defense. The market for these services is large and competitive, with numerous firms offering specialized expertise. This specific award represents a significant portion of spending within this niche, reflecting the DoD's substantial requirements for engineering support.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. While the prime contractor is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on the prime contractor's strategy and the specific requirements of the engineering services.
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. The contract's cost-plus-fixed-fee structure necessitates robust financial oversight to monitor expenditures and prevent cost overruns. Transparency is generally maintained through contract reporting requirements and agency oversight.
Related Government Programs
- Defense Engineering Support Services
- Professional and Technical Services
- Department of Defense IT and Engineering Contracts
- Government Consulting Services
Risk Flags
- Cost Overrun Risk (CPFF)
- Long Contract Duration
- Potential for Scope Creep
Tags
defense, engineering-services, professional-services, department-of-defense, booz-allen-hamilton, full-and-open-competition, cost-plus-fixed-fee, delivery-order, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $54.3 million to BOOZ ALLEN HAMILTON INC. PROFESSIONAL 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 $54.3 million.
What is the period of performance?
Start: 2010-06-28. End: 2015-11-30.
What is Booz Allen Hamilton's track record with similar engineering services contracts for the Department of Defense?
Booz Allen Hamilton has an extensive history of performing engineering and professional support services for the Department of Defense. They are a major contractor across various defense agencies, often handling complex technical analysis, system integration, and program management. Their track record includes numerous large-scale contracts similar in scope and value to this award, demonstrating significant experience and capability in the defense sector. However, like many large contractors, they have also faced scrutiny regarding contract performance and pricing on certain engagements, underscoring the importance of ongoing oversight.
How does the $54.3 million award compare to other engineering services contracts awarded by the DoD in recent years?
The $54.3 million award for engineering services is a substantial but not unprecedented figure for the Department of Defense. Large-scale engineering support contracts can range from tens of millions to hundreds of millions of dollars, depending on the duration, complexity, and specific services required. This award falls within the mid-to-high range for a single contract of this nature over a roughly five-year period. Benchmarking against similar contracts suggests that the overall value is consistent with market rates for specialized engineering expertise provided to the DoD, especially when considering the full scope of services and the contractor's established capabilities.
What are the primary risks associated with the cost-plus-fixed-fee (CPFF) contract type used here?
The primary risk with a Cost-Plus-Fixed-Fee (CPFF) contract is that the government bears the risk of cost overruns. While the contractor's profit (the 'fixed fee') is predetermined, they are reimbursed for all allowable costs incurred. This can incentivize contractors to incur higher costs, as their fee remains the same regardless of the final project cost. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate this risk and ensure that the government receives good value. The long duration of this contract amplifies this risk, requiring diligent management throughout its lifecycle.
How effective is the 'full and open competition' approach in ensuring value for taxpayer money in this context?
Full and open competition is generally considered the most effective method for ensuring value for taxpayer money, as it allows all responsible sources to submit bids. This broadens the pool of potential contractors, increases the likelihood of competitive pricing, and encourages innovation. In this case, receiving three bids suggests a reasonably competitive market for engineering services. While more bidders could potentially lead to even lower prices, the full and open approach provides a strong foundation for price discovery and selection of the most capable and cost-effective provider compared to sole-source or limited competition scenarios.
What is the historical spending trend for engineering services within the Department of Defense?
The Department of Defense consistently represents one of the largest government spenders on engineering services, reflecting its vast and complex operational requirements. Historical spending data shows a sustained high level of investment in this category, driven by the need for design, development, testing, and sustainment of military systems and infrastructure. While specific annual figures fluctuate based on defense budgets and strategic priorities, the overall trend indicates a continuous and significant demand for engineering expertise. This contract aligns with that ongoing pattern of substantial investment in defense-related engineering capabilities.
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: N0002410R3054
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
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: $61,431,471
Exercised Options: $61,431,471
Current Obligation: $54,278,272
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4024
IDV Type: IDC
Timeline
Start Date: 2010-06-28
Current End Date: 2015-11-30
Potential End Date: 2015-11-30 00:00:00
Last Modified: 2022-03-17
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