Booz Allen Hamilton awarded $45.3M for PMW 790 Program Management and Systems Engineering

Contract Overview

Contract Amount: $45,341,216 ($45.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2010-07-13

End Date: 2014-09-30

Contract Duration: 1,540 days

Daily Burn Rate: $29.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PMW 790 PROGRAM MANAGEMENT AND SYSTEMS ENGINEERING

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92110

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $45.3 million to BOOZ ALLEN HAMILTON INC for work described as: PMW 790 PROGRAM MANAGEMENT AND SYSTEMS ENGINEERING Key points: 1. Contract value represents a significant investment in program management and systems engineering capabilities. 2. The full and open competition suggests a robust market for these specialized services. 3. Contract duration of over 4 years indicates a long-term need for these critical functions. 4. The cost-plus-fixed-fee pricing structure may incentivize contractor efficiency while managing risk. 5. This award falls within the broader engineering services sector, supporting defense initiatives.

Value Assessment

Rating: good

The contract value of $45.3 million over approximately four years for program management and systems engineering appears reasonable given the scope and duration. Benchmarking against similar large-scale defense program support contracts suggests that the overall investment is in line with industry standards for complex engineering services. The cost-plus-fixed-fee structure, while requiring careful oversight, is a common approach for services where scope can evolve. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive nature of the award provides some assurance of fair pricing.

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 had the opportunity to bid. The presence of 5 bidders suggests a healthy level of competition for this type of specialized defense support. A competitive bidding process generally leads to better price discovery and can drive innovation as contractors strive to offer the most compelling technical solutions at competitive prices. The agency's decision to pursue full and open competition is a positive indicator for achieving optimal value.

Taxpayer Impact: Taxpayers benefit from the competitive process, which is expected to yield a more cost-effective solution and potentially higher quality services compared to less competitive award methods.

Public Impact

The Department of Defense benefits through enhanced program management and systems engineering for its initiatives. Services delivered likely include strategic planning, technical oversight, and system integration support. The geographic impact is primarily centered around the Defense Contract Management Agency's oversight and the program's operational base, likely within California. Workforce implications include the employment of highly skilled engineers, program managers, and technical specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not managed diligently.
The long duration of the contract necessitates ongoing performance monitoring to ensure continued value.
Reliance on a single large contractor for critical program management functions could pose a risk if capabilities degrade.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace.
Booz Allen Hamilton is a well-established contractor with significant experience in government services.
The contract addresses critical program management and systems engineering needs for the Department of Defense.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a substantial market supporting government and private industry with specialized technical expertise. The defense segment of this market is characterized by complex requirements, long program cycles, and significant investment. Spending in this area is crucial for developing and maintaining advanced technological capabilities. Comparable spending benchmarks for program management and systems engineering support on large defense programs often run into tens or hundreds of millions of dollars over several years, making this award size consistent with the sector's demands.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. As a large prime contract awarded to a major defense contractor, the primary impact on the small business ecosystem would be through potential subcontracting opportunities. However, without explicit set-aside provisions or reported subcontracting plans, the direct benefit to small businesses from this specific award is not guaranteed and would depend on the prime contractor's procurement practices.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures would be embedded in the contract's terms and conditions, including performance metrics and reporting requirements. Transparency is facilitated through contract awards databases, though detailed operational data may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Program Management Support
Systems Engineering Services
Naval Systems Engineering
Department of Defense IT Support
Engineering and Technical Services

Risk Flags

Cost-plus-fixed-fee contract type requires diligent cost oversight.
Long contract duration necessitates sustained performance monitoring.
Potential for contractor inefficiency if cost controls are not robust.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.3 million to BOOZ ALLEN HAMILTON INC. PMW 790 PROGRAM MANAGEMENT AND SYSTEMS ENGINEERING

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 $45.3 million.

What is the period of performance?

Start: 2010-07-13. End: 2014-09-30.

What is Booz Allen Hamilton's track record with similar Department of Defense contracts?

Booz Allen Hamilton has an extensive track record with the Department of Defense, having secured numerous contracts across various agencies and service areas. They are a major incumbent contractor for a wide range of services, including systems engineering, IT support, intelligence analysis, and program management. Their history includes both large, complex, multi-year programs and smaller, specialized task orders. While specific performance details for past contracts are often not publicly detailed, their continued success in winning significant government awards suggests a generally positive performance history and strong client relationships within the DoD. However, like any large contractor, they have also faced scrutiny and contract reviews on specific engagements over the years.

How does the $45.3 million award compare to other program management and systems engineering contracts?

The $45.3 million award for PMW 790 Program Management and Systems Engineering, spanning approximately four years, is a substantial but not extraordinary figure within the context of large-scale defense contracts. Major defense programs often involve hundreds of millions, or even billions, of dollars for comprehensive program management and systems engineering support over their lifecycles. For instance, contracts supporting major weapon system development or fleet-wide modernization efforts can dwarf this amount. However, when compared to contracts for more narrowly defined engineering services or shorter-term projects, this award represents a significant investment, reflecting the complexity and duration of the support required for the PMW 790 program.

What are the primary risks associated with this cost-plus-fixed-fee contract?

The primary risks associated with a Cost-Plus-Fixed-Fee (CPFF) contract, such as this one, revolve around cost control and potential for scope creep. While the fixed fee provides the contractor with a defined profit margin, the 'cost-plus' element means the government reimburses the contractor for allowable costs incurred. If these costs exceed initial estimates, the total contract value can increase significantly beyond the originally anticipated level. This necessitates robust government oversight to scrutinize all claimed costs, ensure they are reasonable and allocable to the contract, and prevent unnecessary expenditures. Additionally, the CPFF structure can sometimes disincentivize the contractor from aggressively seeking cost efficiencies, as their profit is fixed regardless of the total cost incurred, provided costs remain allowable.

What does the 'PMW 790' designation typically signify within the Navy?

Within the U.S. Navy, 'PMW' typically stands for Program Management Warfare. These are specific program executive offices (PEOs) or program offices responsible for the development, acquisition, and sustainment of major naval warfare systems and capabilities. Each PMW is usually assigned a number (e.g., PMW 790) to denote a specific portfolio of programs or systems. These offices manage complex, high-value projects critical to naval operations, encompassing everything from ship systems and combat electronics to communication networks and cybersecurity solutions. Therefore, a contract supporting PMW 790 indicates involvement in a significant naval warfare program requiring specialized management and engineering expertise.

How has federal spending on engineering services evolved in recent years?

Federal spending on engineering services has generally seen a steady increase over the past decade, driven by ongoing modernization efforts across defense, infrastructure, and technology sectors. The Department of Defense remains a primary consumer of these services, funding research, development, testing, and evaluation (RDT&E) for new platforms and systems, as well as sustainment and upgrade programs for existing assets. Civilian agencies also contribute significantly, particularly in areas like transportation infrastructure (e.g., FAA, DOT), energy research (e.g., DOE), and scientific R&D (e.g., NASA, NSF). Trends include a growing emphasis on cybersecurity engineering, advanced materials, artificial intelligence integration, and sustainable technologies, reflecting evolving national priorities and technological advancements.

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: N0002409R3528

Offers Received: 5

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: $64,837,258

Exercised Options: $64,837,258

Current Obligation: $45,341,216

Subaward Activity

Number of Subawards: 33

Total Subaward Amount: $228,000,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4024

IDV Type: IDC

Timeline