Army awards $139M+ for logistics support, with Booz Allen Hamilton Inc. as prime contractor

Contract Overview

Contract Amount: $139,406,820 ($139.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2006-06-29

End Date: 2010-06-08

Contract Duration: 1,440 days

Daily Burn Rate: $96.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: 200608!001537!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !GS10F0330L !C!N! !Y!W52P1J06F0005! !20060629!20070628!006928857!006928857!006928857!N!BOOZ ALLEN HAMILTON INC !8283 GREENSBORO DRIVE !MCLEAN !VA!22102!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !+000001200000!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541614!E! !6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! ! !C!N! ! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $139.4 million to BOOZ ALLEN HAMILTON INC for work described as: 200608!001537!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !GS10F0330L !C!N! !Y!W52P1J06F0005! !20060629!20070628!006928857!006928857!006928857!N!BOOZ ALLEN HAMILTON INC !8283 GREENSBORO DRIVE !MCLEAN !VA!22102!48376!059!51!MCLEAN !FAIR… Key points: 1. Contract awarded for logistics support services, indicating a need for specialized expertise in supply chain and operational efficiency. 2. The contract's duration of 1440 days suggests a long-term requirement for these services. 3. Awarded to a single contractor, Booz Allen Hamilton Inc., highlighting their established role in providing such services. 4. The contract type is Time and Materials, which can pose risks if not managed carefully to control costs. 5. The specific NAICS code 541614 points to consulting services in process, physical distribution, and logistics. 6. The contract was awarded under full and open competition, suggesting a robust bidding process.

Value Assessment

Rating: fair

The total award amount of over $139 million for logistics support services over approximately four years is substantial. Benchmarking this against similar contracts is challenging without more specific service details. However, the Time and Materials (T&M) pricing structure, while common for evolving service needs, carries inherent risk for cost overruns if not meticulously managed and monitored by the government. The absence of a fixed ceiling or detailed performance metrics in the provided data makes a definitive value-for-money assessment difficult.

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 specific number of bidders is not provided, but the designation suggests a competitive environment. This approach is generally favored as it allows the government to solicit the best possible offers from the market, potentially leading to better pricing and service quality.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment that can drive down prices and encourage innovation, ensuring government funds are used efficiently.

Public Impact

The U.S. Army is the primary beneficiary, receiving critical logistics support services to enhance operational readiness and efficiency. Services delivered likely encompass strategic planning, process optimization, supply chain management, and distribution support. The geographic impact is likely focused on Army installations and operational theaters where logistics are paramount. Workforce implications may include the need for skilled logistics professionals, both within the contractor's organization and potentially impacting Army personnel roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Lack of specific performance metrics in the provided data hinders a full assessment of service effectiveness.
The long duration of the contract requires sustained government oversight to ensure continued value.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that could yield favorable terms.
Booz Allen Hamilton Inc. is a well-established contractor with significant experience in government services.
The contract addresses a critical need for logistics support within the Department of Defense.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on logistics consulting. The market for these services is robust, with numerous firms offering specialized expertise to government agencies. The Department of Defense is a major consumer of such services, utilizing them to manage complex supply chains and operational requirements across global deployments. Comparable spending benchmarks would typically involve analyzing other large-scale logistics support contracts awarded by DoD components.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract. As a large contract awarded to a major prime contractor, it is possible that subcontracting opportunities may exist for small businesses within specific areas of logistics support. However, without explicit subcontracting plans or goals detailed in the award, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant Army contracting command. Given the Time and Materials nature, rigorous monitoring of labor hours, rates, and direct costs is crucial. Transparency is facilitated through contract award databases, but detailed performance reports and audits would be internal to the agency and contractor. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Logistics Agency (DLA) Support Contracts
Army Materiel Command (AMC) Services
Department of Defense Consulting Services
Supply Chain Management Services Contracts
Operational Support Services

Risk Flags

Time and Materials contract type carries inherent cost risk.
Potential for scope creep without strict management.
Requires sustained government oversight due to contract duration and value.
Performance monitoring is critical for service delivery effectiveness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $139.4 million to BOOZ ALLEN HAMILTON INC. 200608!001537!2100!W52P1J!U.S. ARMY INDUSTRIAL OPERATIONS !GS10F0330L !C!N! !Y!W52P1J06F0005! !20060629!20070628!006928857!006928857!006928857!N!BOOZ ALLEN HAMILTON INC !8283 GREENSBORO DRIVE !MCLEAN !VA!22102!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !+000001200000!N!N!000000000000!R706!LOGISTICS SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541614!E! !6! ! ! ! ! !999

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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $139.4 million.

What is the period of performance?

Start: 2006-06-29. End: 2010-06-08.

What is the historical spending pattern for logistics support services by the U.S. Army?

The U.S. Army, as a major component of the Department of Defense, consistently spends billions of dollars annually on logistics support services. This encompasses a wide range of activities, including supply chain management, transportation, maintenance, warehousing, and distribution. Historical data indicates a steady demand for these services, driven by global operational requirements and the need to maintain readiness. Spending fluctuates based on geopolitical events, force structure changes, and budgetary allocations. Analyzing trends over the past decade reveals a significant portion allocated to contracted services, reflecting a strategic decision to leverage private sector expertise for specialized logistics functions. This particular contract, awarded in 2006 for over $139 million, represents a substantial investment within a broader portfolio of logistics-related procurements.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change significantly during performance. They reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. Compared to Firm-Fixed-Price (FFP) contracts, T&M offers more flexibility but less cost certainty for the government. FFP contracts provide a fixed price for a well-defined scope, making budgeting easier but potentially penalizing the contractor for unforeseen issues. Cost-Plus contracts, another alternative, reimburse costs plus a fee, with variations in how the fee is structured. For logistics support, where requirements can evolve, T&M can be suitable, but it necessitates robust government oversight to prevent cost escalation and ensure fair pricing. The risk lies in the contractor's incentive to prolong tasks or inflate labor rates without strict government monitoring.

What is Booz Allen Hamilton Inc.'s track record with large federal logistics contracts?

Booz Allen Hamilton Inc. has a long and extensive track record of securing and performing large federal contracts, particularly within the defense and intelligence sectors. They are a well-established government contractor with significant expertise in management consulting, technology solutions, and a wide array of professional services, including logistics. Their history includes numerous awards for complex support services across various agencies, including the Department of Defense. While specific details on all past logistics contracts are extensive, their consistent presence as a prime contractor on major programs indicates a strong performance record and the ability to manage large-scale, high-value engagements. Their experience suggests a deep understanding of government procurement processes and operational requirements.

What are the potential risks associated with a $139M+ logistics support contract awarded under full and open competition?

While full and open competition is generally advantageous, risks can still exist in a large logistics support contract. One primary risk is the Time and Materials (T&M) pricing structure, which, if not meticulously managed, can lead to cost overruns. The government must ensure diligent oversight of labor hours, rates, and material costs to prevent inefficiencies or inflated charges. Another risk involves the potential for scope creep, where the services required expand beyond the initial understanding without corresponding adjustments to cost and schedule controls. Contractor performance is also a risk; even with a strong track record, a large contract demands sustained high performance. Finally, ensuring effective knowledge transfer and integration with existing government logistics systems is critical for seamless operations and long-term success.

How does the NAICS code 541614 (Process, Physical Distribution, and Logistics Consulting Services) define the scope of this contract?

The North American Industry Classification System (NAICS) code 541614 specifically categorizes establishments primarily engaged in providing expertise in process, physical distribution, and logistics consulting services. This includes advising on supply chain optimization, inventory management, transportation strategies, warehousing, and the implementation of logistics technologies. For this Army contract, it implies that Booz Allen Hamilton Inc. is expected to provide strategic guidance, analytical support, and potentially operational improvements related to the Army's complex logistical functions. The scope likely extends beyond mere execution to encompass analysis, planning, and recommendations aimed at enhancing efficiency, reducing costs, and improving the overall effectiveness of Army logistics operations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)

Address: 8283 GREENSBORO DR, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS10F0330L

IDV Type: FSS

Timeline