Booz Allen Hamilton awarded $54.8M for professional support services to the Department of Defense

Contract Overview

Contract Amount: $54,853,332 ($54.9M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2011-10-01

End Date: 2017-01-15

Contract Duration: 1,933 days

Daily Burn Rate: $28.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PMW 150 PROFESSIONAL SUPPORT SERVICES (PSS) THE SERVICES INCLUDE: PROGRAM MANAGEMENT (INSTALLATION SUPPORT AND MODERNIZATION, PLANNING AND DESIGN, AND RISK MANAGEMENT); ACQUISITION MANAGEMENT (CONTRACTS MANAGEMENT); AND FINANCIAL MANAGEMENT (BUDGET, EXECUTION, EARNED VALUE MANAGEMENT, AND PROGRAM OBJECTIVE MEMORANDUM/PROGRAM REVIEW).

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $54.9 million to BOOZ ALLEN HAMILTON INC for work described as: PMW 150 PROFESSIONAL SUPPORT SERVICES (PSS) THE SERVICES INCLUDE: PROGRAM MANAGEMENT (INSTALLATION SUPPORT AND MODERNIZATION, PLANNING AND DESIGN, AND RISK MANAGEMENT); ACQUISITION MANAGEMENT (CONTRACTS MANAGEMENT); AND FINANCIAL MANAGEMENT (BUDGET, EXECUTION, EARNED VALUE MANA… Key points: 1. Contract provides critical program, acquisition, and financial management support. 2. Services encompass installation support, modernization planning, risk management, and contract oversight. 3. Financial management includes budget execution and earned value management. 4. Contract duration spans over 5 years, indicating a long-term need for these services. 5. The services are essential for the effective execution of defense programs. 6. This contract represents a significant investment in specialized professional services for the DoD.

Value Assessment

Rating: good

The total award amount of $54.8 million over approximately 5 years suggests a substantial but potentially reasonable investment for comprehensive professional support services. Benchmarking against similar large-scale professional services contracts within the Department of Defense is necessary for a definitive value assessment. However, the breadth of services covered, including program management, acquisition, and financial management, indicates a high level of complexity and expertise required, which can justify higher costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is generally expected to drive better pricing and service quality. The presence of two bidders, as indicated by the 'no' field, suggests a moderate level of competition for this specific award.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it encourages a competitive environment, potentially leading to cost savings and more efficient service delivery compared to sole-source or limited competition contracts.

Public Impact

The Department of Defense benefits from enhanced program, acquisition, and financial management capabilities. Services support the modernization and execution of critical defense programs. Personnel in Virginia are likely to be impacted through employment opportunities within Booz Allen Hamilton and its subcontractors. The contract ensures continuity and expertise in managing complex defense initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if project scope expands beyond initial estimates.
Reliance on a single contractor for critical support functions could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Contract covers a broad range of essential support services, indicating comprehensive coverage.
Long contract duration suggests stability and a proven track record of the contractor.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense-related program and acquisition management. The market for professional support services to the federal government, particularly the Department of Defense, is substantial. Companies like Booz Allen Hamilton are key players in this sector, providing specialized expertise that government agencies often outsource to ensure efficient operations and program execution. Comparable spending benchmarks would involve analyzing other large professional services contracts awarded by the DoD for similar functions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, as a large prime contractor, Booz Allen Hamilton may engage small businesses as subcontractors for specific components of the work, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA), which is listed as the 'sa' (servicing agency). Performance would be monitored against the terms of the Cost Plus Fixed Fee (CPFF) contract. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Program Management Support
Acquisition Management Services
Financial Management Services
Engineering Services Contracts
Professional Services Contracts

Risk Flags

Contract duration exceeds 5 years.
Cost Plus Fixed Fee contract type can lead to higher costs if not managed effectively.
Limited number of bidders (2) for a full and open competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.9 million to BOOZ ALLEN HAMILTON INC. PMW 150 PROFESSIONAL SUPPORT SERVICES (PSS) THE SERVICES INCLUDE: PROGRAM MANAGEMENT (INSTALLATION SUPPORT AND MODERNIZATION, PLANNING AND DESIGN, AND RISK MANAGEMENT); ACQUISITION MANAGEMENT (CONTRACTS MANAGEMENT); AND FINANCIAL MANAGEMENT (BUDGET, EXECUTION, EARNED VALUE MANAGEMENT, AND PROGRAM OBJECTIVE MEMORANDUM/PROGRAM REVIEW).

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 $54.9 million.

What is the period of performance?

Start: 2011-10-01. End: 2017-01-15.

What is the historical spending pattern for PMW 150 Professional Support Services (PSS) with Booz Allen Hamilton?

The provided data reflects a single award of $54,853,331.60 to Booz Allen Hamilton Inc. for PMW 150 Professional Support Services (PSS). This award covers the period from October 1, 2011, to January 15, 2017, a duration of 1933 days. Without access to broader contract databases or historical award data for this specific program or contractor, it is difficult to establish a comprehensive historical spending pattern. This single data point represents the total value of this particular delivery order. To understand historical trends, one would need to examine prior contracts for PSS under PMW 150, or other contracts held by Booz Allen Hamilton for similar services within the Department of Defense over a longer period.

How does the pricing structure (Cost Plus Fixed Fee) compare to other contract types for similar services?

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to Booz Allen Hamilton, are common for services where the scope of work is not precisely defined at the outset or is expected to evolve. This structure allows for flexibility but can also lead to higher costs for the government if contractor costs are not well-managed, as the fixed fee is earned on top of reimbursed costs. Compared to Firm-Fixed-Price (FFP) contracts, CPFF generally offers less price certainty for the government. However, FFP contracts are less suitable for research and development or complex service contracts where uncertainties are high. Other contract types like Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) aim to provide better cost control by incentivizing contractor performance. For complex program management and acquisition support, CPFF is a viable, albeit potentially more expensive, option when flexibility is paramount.

What are the key performance indicators (KPIs) used to evaluate Booz Allen Hamilton's performance under this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for a contract encompassing Program Management, Acquisition Management, and Financial Management, typical KPIs would likely include metrics related to schedule adherence, budget performance (e.g., variance from planned costs), quality of deliverables (e.g., accuracy of reports, effectiveness of risk assessments), responsiveness to task orders, and overall client satisfaction. For financial management, KPIs might involve the accuracy of earned value management reporting and the efficiency of budget execution. For acquisition management, timely contract closeouts and effective contract administration would be crucial. Performance would be formally assessed through contract performance reports and reviews by the contracting officer's representative (COR).

What is the risk assessment associated with Booz Allen Hamilton's track record in delivering similar professional support services?

Booz Allen Hamilton is a well-established and reputable government contractor with extensive experience in providing professional support services, including program management, acquisition, and financial management, to the Department of Defense and other federal agencies. Their track record is generally considered strong, characterized by the ability to handle complex, large-scale projects. Risks associated with their performance are typically managed through standard contract oversight mechanisms. Potential risks could include challenges in adapting to rapidly changing defense requirements, ensuring consistent quality across all service areas, or managing the large workforce often associated with such contracts. However, their long-standing presence and numerous successful contract awards suggest a low overall risk profile for performance.

How does the $54.8 million award compare to the total annual spending on professional support services within the Department of Defense?

The $54.8 million award to Booz Allen Hamilton for PMW 150 Professional Support Services (PSS) represents a specific investment for a defined period (October 2011 - January 2017). The Department of Defense (DoD) is one of the largest federal agencies, with an annual budget often exceeding hundreds of billions of dollars. Spending on professional support services, encompassing a wide array of functions like program management, IT support, logistics, and consulting, constitutes a significant portion of this budget. While $54.8 million is a substantial sum for a single contract, it is likely a relatively small fraction of the DoD's total annual expenditure on all professional support services across all its branches and components. A precise comparison would require detailed analysis of the DoD's overall budget allocation for contracted services.

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: N0002411R3257

Offers Received: 2

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: $66,997,274

Exercised Options: $66,997,274

Current Obligation: $54,853,332

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