Defense Department awards $55.2M for program management and acquisition support to Booz Allen Hamilton

Contract Overview

Contract Amount: $55,242,789 ($55.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2016-12-29

End Date: 2021-12-19

Contract Duration: 1,816 days

Daily Burn Rate: $30.4K/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 THE CONTRACTOR SHALL SUPPLY PROGRAM MANAGEMENT, ACQUISITION MANAGEMENT, CONTRACT MANAGEMENT, BUSINESS MANAGEMENT, AND INSTALLATION MANAGEMENT SUPPORT SERVICES TO PMW 120.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $55.2 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF THE CONTRACTOR SHALL SUPPLY PROGRAM MANAGEMENT, ACQUISITION MANAGEMENT, CONTRACT MANAGEMENT, BUSINESS MANAGEMENT, AND INSTALLATION MANAGEMENT SUPPORT SERVICES TO PMW 120. Key points: 1. Contract provides essential program, acquisition, and installation management support. 2. Booz Allen Hamilton, a large, established contractor, holds this award. 3. The contract spans nearly five years, indicating a need for sustained support. 4. Services are critical for the success of PMW 120 initiatives. 5. The contract type (Cost Plus Fixed Fee) allows for cost reimbursement plus a fixed fee. 6. This award represents a significant investment in program management capabilities.

Value Assessment

Rating: good

The contract's value of $55.2 million over approximately five years suggests a substantial but potentially reasonable investment for comprehensive program management services. Benchmarking against similar large-scale support contracts within the Department of Defense is necessary for a definitive value assessment. The Cost Plus Fixed Fee (CPFF) structure, while common for complex services, requires careful monitoring to ensure costs remain controlled and the fixed fee is appropriate for the scope of work.

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 bidders had the opportunity to submit proposals. The presence of multiple bidders generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The specific number of bidders is not provided, but the 'full and open' designation is a positive indicator of robust competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best value by encouraging a wider range of potential contractors to compete, potentially driving down costs and improving service quality.

Public Impact

The primary beneficiaries are the program management, acquisition, and installation management functions within PMW 120. Services delivered include program management, acquisition management, contract management, business management, and installation management. The geographic impact is primarily within the Department of Defense's operational areas, supporting its mission. Workforce implications include the potential for skilled professionals to be engaged in critical defense support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

CPFF contracts can incentivize cost overruns if not closely managed.
Reliance on a single large contractor for critical support functions may reduce flexibility.
Scope creep could increase costs beyond initial projections without adequate oversight.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Contractor (Booz Allen Hamilton) has a significant track record in government contracting.
Long-term nature of the contract (nearly 5 years) indicates sustained need and potential for stable support.
Services are essential for program execution, suggesting alignment with critical defense needs.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), specifically supporting program management and acquisition functions for a defense program. The market for defense program management and acquisition support is substantial, dominated by large, established government contractors. Spending in this area is driven by the complexity and scale of defense acquisition programs, requiring specialized expertise. Comparable spending benchmarks would involve analyzing other large-scale support service contracts awarded by the Department of Defense for similar functions.

Small Business Impact

The data indicates this contract was not set aside for small businesses (SB: false) and does not explicitly mention subcontracting requirements for small businesses. This suggests that the primary awardee, Booz Allen Hamilton, is a large business, and the contract may not have specific provisions to ensure significant subcontracting opportunities for small businesses. Further review of the contract's subcontracting plan would be needed to fully assess its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA) and the contracting officer within the Department of Defense. Accountability measures are inherent in the CPFF contract type, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases and reporting requirements, though specific performance metrics and IG oversight details would require deeper contract analysis.

Related Government Programs

Defense Program Management Support
Acquisition Services
Contract Management Services
Installation Management Support
Department of Defense IT and Engineering Services

Risk Flags

Potential for cost overruns under CPFF structure
Reliance on large contractor for critical support functions
Need for robust oversight to ensure value for money

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.2 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF THE CONTRACTOR SHALL SUPPLY PROGRAM MANAGEMENT, ACQUISITION MANAGEMENT, CONTRACT MANAGEMENT, BUSINESS MANAGEMENT, AND INSTALLATION MANAGEMENT SUPPORT SERVICES TO PMW 120.

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 $55.2 million.

What is the period of performance?

Start: 2016-12-29. End: 2021-12-19.

What is Booz Allen Hamilton's track record with similar large-scale defense support contracts?

Booz Allen Hamilton is a well-established government contractor with extensive experience in providing program management, acquisition, and engineering services to the Department of Defense and other federal agencies. They frequently hold large, complex contracts similar in scope to this award. Their track record includes managing significant budgets and providing strategic support across various defense initiatives. While specific performance details for individual contracts are often not publicly disclosed, their consistent presence and success in winning competitive bids for these types of services suggest a generally positive performance history. However, like any large contractor, they may have faced scrutiny or performance issues on specific contracts, which would require a deeper dive into contract-specific data and any associated performance reviews or corrective actions.

How does the $55.2 million value compare to similar program management contracts within the DoD?

The $55.2 million value for approximately five years of program management, acquisition, and installation support is substantial, reflecting the complexity and critical nature of services provided to PMW 120. To benchmark this value effectively, one would compare it against other large-scale support service contracts awarded by the Department of Defense for similar functions, such as program management offices, acquisition support, or systems engineering. Contracts of this magnitude are not uncommon for major defense programs requiring extensive contractor support. Factors influencing this value include the specific scope of work, the level of expertise required, the duration of the contract, and the competitive landscape. Without direct comparisons to contracts with identical scopes and durations, it's challenging to definitively state if it's high or low, but it aligns with significant investments in program support.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this size revolve around cost control and potential for scope creep. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' component means the government reimburses the contractor for allowable costs incurred. If cost controls are weak or if the scope of work expands without adequate adjustments to the fee or contract terms, the total cost to the government can escalate significantly beyond initial projections. For the government, ensuring that all costs claimed by the contractor are reasonable, allocable, and allowable is paramount. Effective oversight, detailed reporting requirements, and robust negotiation of the fixed fee are crucial to mitigating these risks and ensuring the government receives good value.

How does the 'full and open competition' award method impact price discovery and taxpayer value?

Awarding this contract through 'full and open competition' is generally beneficial for price discovery and taxpayer value. This method allows any responsible source to submit a bid, maximizing the number of potential offerors and fostering a competitive environment. Increased competition typically drives down prices as contractors strive to offer the most attractive bid to win the contract. It also encourages innovation and efficiency as contractors compete on both price and technical merit. For taxpayers, this means a higher likelihood that the government is securing the required services at the most competitive price achievable in the market, thereby maximizing the value of public funds invested in defense support services.

What are the implications of this contract for the specific defense program (PMW 120)?

This contract is crucial for the effective functioning of PMW 120, as it directly provides the program management, acquisition, contract management, business management, and installation management support services necessary for the program's execution. The continuity of these services, provided by a contractor like Booz Allen Hamilton over nearly five years, suggests that PMW 120 relies heavily on external expertise for these critical functions. The success of PMW 120's objectives, whether related to developing, acquiring, or sustaining specific defense capabilities, is therefore significantly dependent on the quality and efficiency of the support rendered under this contract. Any disruption or underperformance in these services could directly impede the program's progress and its ability to meet its strategic goals.

What is the significance of the contract duration (1816 days)?

The contract duration of 1816 days, approximately 4.97 years, is significant as it indicates a long-term, sustained need for the program management, acquisition, and installation support services being provided to PMW 120. Such a duration suggests that these services are not short-term or ad-hoc but are integral to the ongoing operations and strategic objectives of the program. For the contractor, it offers a period of stable revenue and the opportunity to build deep institutional knowledge. For the government, it implies a commitment to a particular support structure and potentially a stable relationship with the contractor, which can foster efficiency and expertise, but also necessitates ongoing vigilance to ensure continued value and performance.

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: N0002416R3196

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: $59,042,338

Exercised Options: $59,042,338

Current Obligation: $55,242,789

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $8,500,000

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