Booz Allen Hamilton awarded $43.6M for SPAWAR business financial management support, highlighting engineering services

Contract Overview

Contract Amount: $43,606,912 ($43.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2016-07-18

End Date: 2021-07-14

Contract Duration: 1,822 days

Daily Burn Rate: $23.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF SPAWAR BUSINESS FINANCIAL MANAGEMENT COMPETENCY SUPPORT

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $43.6 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF SPAWAR BUSINESS FINANCIAL MANAGEMENT COMPETENCY SUPPORT Key points: 1. Contract value of $43.6M for business financial management support. 2. Awarded to Booz Allen Hamilton Inc., a large, established contractor. 3. Full and open competition indicates a potentially competitive bidding process. 4. Contract duration of 1822 days suggests a long-term need for services. 5. Services fall under engineering, a critical support function for defense. 6. The contract was awarded via a delivery order, implying it's part of a larger vehicle.

Value Assessment

Rating: fair

The contract value of $43.6 million over approximately five years for business financial management support appears reasonable given the duration and the nature of the services. Benchmarking against similar contracts for specialized financial management and engineering support within the Department of Defense is necessary for a definitive value assessment. However, the absence of specific performance metrics or detailed cost breakdowns makes a precise value-for-money evaluation challenging without further data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders were likely considered. This approach generally promotes a competitive environment, which can lead to better pricing and service quality. The presence of 3 bidders indicates a moderate level of competition for this specific award.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of offers, potentially driving down costs and improving the quality of services received.

Public Impact

The Department of Defense, specifically SPAWAR (Space and Naval Warfare Systems Command), benefits from enhanced business financial management capabilities. Services delivered include critical support for financial operations, budgeting, and resource management within a major defense command. The geographic impact is primarily within Virginia, where the contractor is located and likely where services are performed or managed. Workforce implications include the employment of skilled professionals in financial analysis, management consulting, and engineering support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in cost-plus-fixed-fee contracts if not managed tightly.
Reliance on a single large contractor for critical financial functions could pose a risk if performance falters.
The long duration of the contract may lead to vendor lock-in, reducing future flexibility.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Booz Allen Hamilton is a well-established contractor with a significant track record in government services.
The contract addresses a core functional need (business financial management) for a major defense entity.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on engineering services and management consulting. The market for these services within the defense industry is substantial, with significant spending allocated to supporting complex command and control systems like those managed by SPAWAR. Comparable spending benchmarks would involve looking at other large, long-term support contracts for financial management and operational efficiency within federal agencies, particularly the Department of Defense.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside consideration (ss: false, sb: false). While Booz Allen Hamilton is a large business, there is no explicit information on subcontracting plans for small businesses within this specific award. The impact on the small business ecosystem is therefore neutral to potentially limited, unless Booz Allen Hamilton voluntarily engages small businesses for specialized support.

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. Accountability measures are embedded within the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract award databases, though detailed performance reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

SPAWAR Business Financial Management Competency Support
Department of Defense Financial Management Services
Engineering Services for Defense Agencies
Management and Consulting Services for Federal Government

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing can lead to cost overruns if not managed diligently.
Long contract duration may reduce flexibility and increase risk of vendor lock-in.
Reliance on a single large contractor for critical financial functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.6 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF SPAWAR BUSINESS FINANCIAL MANAGEMENT COMPETENCY 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 $43.6 million.

What is the period of performance?

Start: 2016-07-18. End: 2021-07-14.

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

Booz Allen Hamilton Inc. has an extensive and long-standing track record of providing a wide array of services to the Department of Defense (DoD), including management consulting, IT support, engineering, and financial services. They are a prime contractor on numerous large-scale contracts across various military branches and agencies. Their history with the DoD includes supporting complex programs and critical functions, often involving significant dollar values and long durations. While their overall track record is generally considered strong, specific performance on individual contracts can vary, and scrutiny often focuses on cost management and delivery timelines for large, complex engagements like this one.

How does the $43.6 million contract value compare to similar business financial management support contracts within the DoD?

The $43.6 million contract value, spread over approximately five years (1822 days), for business financial management support is within a typical range for large, specialized support services awarded by major DoD entities like SPAWAR. Contracts of this nature often involve complex financial analysis, system integration, budgeting, and strategic planning, requiring significant expertise. Benchmarking requires comparing this contract's scope, duration, and specific deliverables against other similar contracts. However, without access to detailed scope-of-work and performance data for comparable contracts, it's difficult to definitively state whether this represents a premium or a discount. The full and open competition suggests an effort to achieve competitive pricing.

What are the primary risks associated with this contract for the government?

The primary risks associated with this contract include potential cost overruns, especially given the Cost Plus Fixed Fee (CPFF) pricing structure, which requires careful monitoring to ensure the fixed fee remains appropriate for the work performed. There's also a risk of vendor lock-in due to the long contract duration and the specialized nature of the services, potentially limiting future flexibility or the ability to switch to more cost-effective solutions. Performance risk is another concern; if Booz Allen Hamilton fails to deliver the expected level of financial management support, it could impact SPAWAR's operational efficiency and decision-making. Finally, reliance on a single large contractor for critical financial functions could pose a disruption risk if unforeseen issues arise with the contractor's ability to perform.

How effective is full and open competition in ensuring value for money in contracts of this size and type?

Full and open competition is generally considered the most effective method for ensuring value for money in contracts of this size and type. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. This process encourages contractors to offer their best terms and prices to win the award. For a $43.6 million contract supporting critical functions like business financial management, a competitive process helps prevent inflated costs and ensures that the government selects a contractor capable of delivering high-quality services at a reasonable price. The presence of 3 bidders in this instance indicates a moderate level of competition.

What is the historical spending pattern for business financial management support within SPAWAR or similar naval commands?

Historical spending patterns for business financial management support within SPAWAR and similar naval commands typically show a consistent and significant allocation of resources. These functions are critical for the operational readiness and fiscal accountability of naval warfare systems commands, which manage vast budgets and complex acquisition programs. Spending in this area often involves a mix of internal government personnel and external contractors, with contracts frequently being long-term and high-value to ensure continuity and specialized expertise. Trends may include shifts towards more integrated financial systems, data analytics, and cybersecurity for financial data, reflecting evolving technological and security requirements. The sustained need for such support suggests it is a recurring and essential expenditure.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002416R3045

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: $47,104,691

Exercised Options: $47,104,691

Current Obligation: $43,606,912

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $22,331,625

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