Booz Allen Hamilton awarded $68.6M for professional support services to the Navy, spanning program, acquisition, and financial management

Contract Overview

Contract Amount: $68,626,320 ($68.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2016-11-07

End Date: 2021-09-30

Contract Duration: 1,788 days

Daily Burn Rate: $38.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF 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 $68.6 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF 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… Key points: 1. Contract provides critical support for program management, acquisition, and financial functions, essential for naval operations. 2. Services encompass installation support, modernization planning, risk management, contracts management, and financial execution. 3. The contract duration of 1788 days indicates a long-term need for these specialized services. 4. Awarded via full and open competition, suggesting a competitive environment for these services. 5. The cost-plus-fixed-fee contract type allows for flexibility while managing costs. 6. Services are concentrated in Virginia, aligning with significant naval presence and operations.

Value Assessment

Rating: good

The total award of $68.6 million over approximately five years represents a significant investment in professional support services. Benchmarking against similar large-scale professional services contracts for defense agencies, this award appears to be within a reasonable range, considering the breadth of services required. The cost-plus-fixed-fee structure necessitates careful oversight to ensure value for money, but it also allows for adaptation to evolving program needs. The contract's duration and scope suggest a strategic partnership rather than a transactional service agreement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bids suggests a moderately competitive landscape for this specific requirement. While more than two bidders could potentially drive prices lower, full and open competition generally ensures a fair process and allows the government to select the best value offer.

Taxpayer Impact: Taxpayers benefit from the competitive process which aims to secure the most advantageous pricing and technical solution for essential naval support services.

Public Impact

Naval program managers and acquisition specialists benefit from enhanced support in planning, execution, and financial oversight. Modernization and risk management efforts for naval installations and programs are directly supported. The services contribute to the efficient financial management and budget execution of naval initiatives. Workforce implications include the provision of specialized expertise to government personnel, potentially enhancing their capabilities. Geographic impact is concentrated in Virginia, supporting key naval command and operational centers.

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 may reduce flexibility if requirements change significantly.
Reliance on a single contractor for critical support functions could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
The contractor, Booz Allen Hamilton, has a strong track record in providing similar services to the government.
The contract addresses a broad range of essential support functions, indicating comprehensive service delivery.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically engineering services (NAICS 541330). This sector is a significant component of federal spending, particularly within the Department of Defense, supporting a wide array of program management, acquisition, and technical functions. The market for these services is characterized by large, established firms with extensive experience in government contracting. Comparable spending benchmarks for similar large-scale professional support services contracts within the DoD often range in the tens to hundreds of millions of dollars over several years.

Small Business Impact

This contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. The award to a large prime contractor like Booz Allen Hamilton suggests that the primary focus was on securing specialized expertise, potentially limiting direct opportunities for small businesses as prime contractors on this specific award. However, large contractors often utilize small business subcontractors, so indirect opportunities may exist.

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. The cost-plus-fixed-fee nature of the contract necessitates rigorous financial oversight to monitor expenditures and ensure the fixed fee is earned appropriately. Transparency is typically maintained through contract reporting mechanisms and performance reviews. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Professional Services Contracts
Naval Program Management Support
Acquisition and Financial Management Services
Engineering Services Contracts
Large Prime Contractor Support

Risk Flags

Cost Overrun Risk
Contractor Performance Dependency
Potential for Inefficiencies in CPFF Structure

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $68.6 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF 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 $68.6 million.

What is the period of performance?

Start: 2016-11-07. End: 2021-09-30.

What is Booz Allen Hamilton's track record with similar professional support services contracts for the Department of Defense?

Booz Allen Hamilton is a well-established government contractor with extensive experience providing professional support services, including program management, acquisition support, and financial management, to the Department of Defense and other federal agencies. They have a long history of securing and performing on large, complex contracts. Their performance on previous contracts, while generally positive, has also faced scrutiny, as is common for large contractors. Reviews of past performance indicate a capacity to deliver on diverse requirements, though specific contract outcomes can vary based on scope, duration, and oversight. Their extensive portfolio suggests a deep understanding of DoD processes and needs, making them a frequent choice for critical support functions.

How does the $68.6 million award compare to other professional support services contracts for naval programs?

The $68.6 million award for professional support services to Booz Allen Hamilton is substantial, reflecting the comprehensive nature of the services required for program, acquisition, and financial management. When compared to other large-scale professional services contracts within the Navy or DoD, this figure is within the expected range for multi-year support engagements. Many similar contracts for program management, systems engineering, and strategic planning can reach or exceed this value over their lifecycle. The contract's duration (1788 days, approximately 4.9 years) also aligns with typical long-term support agreements. The specific services outlined—ranging from installation support to earned value management—justify a significant investment, placing it in the category of major support contracts.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude ($68.6 million) revolve around cost control and contractor incentive. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' element means the government bears the risk of actual costs incurred. If the contractor's costs are higher than anticipated, the total contract value increases, potentially exceeding initial budget expectations. Key risks include: potential for scope creep without adequate change control, contractor inefficiencies leading to higher costs, and the government's ability to effectively monitor and audit all incurred costs. Diligent oversight, robust reporting requirements, and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value.

How effective is full and open competition in ensuring value for money for these types of specialized engineering and management services?

Full and open competition is generally considered the most effective method for ensuring value for money when procuring specialized engineering and management services. It allows a wide range of qualified contractors to compete, fostering price discovery and encouraging innovation. By soliciting proposals from all responsible sources, the government can compare technical approaches, past performance, and pricing to select the best overall value. In this case, with two bids received, the competition level was moderate. While more bidders could potentially drive prices lower, the 'full and open' designation ensures a fair playing field. The ultimate value for money depends on the clarity of the solicitation, the evaluation criteria, and the government's ability to negotiate effectively based on the competitive offers received.

What are the implications of concentrating these support services in Virginia for naval operations?

Concentrating these professional support services in Virginia has several implications for naval operations. Virginia is a hub for naval command, training, and operational planning, housing numerous key installations and headquarters. Locating these support functions geographically close to the primary beneficiaries allows for enhanced collaboration, faster communication, and more responsive service delivery. It facilitates direct interaction between contractor personnel and government stakeholders, potentially improving understanding of requirements and enabling quicker problem-solving. This proximity can also lead to efficiencies in travel and logistical support. However, it also concentrates risk; any disruption affecting the Virginia area could impact the delivery of these critical services.

How does this contract fit into the broader landscape of federal IT and defense spending?

This contract, valued at $68.6 million, fits within the significant federal spending allocated to professional, scientific, and technical services, particularly within the defense sector. While not directly an IT procurement, the services provided (program management, acquisition, financial management) are foundational to the successful execution of complex defense programs, many of which are heavily reliant on IT systems. Federal spending in these support categories is substantial, often running into billions of dollars annually across agencies. This contract represents a specific, targeted investment to ensure the efficient management and oversight of naval initiatives. It complements direct spending on technology and platforms by providing the essential human expertise and management frameworks required for effective program delivery and resource allocation within the DoD.

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: N0002416R3218

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: $74,224,945

Exercised Options: $74,224,945

Current Obligation: $68,626,320

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $29,990,566

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