Army Reserve Logistics Support Contract Awarded to Booz Allen Hamilton for $48.8M
Contract Overview
Contract Amount: $48,782,213 ($48.8M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2007-09-15
End Date: 2013-06-15
Contract Duration: 2,100 days
Daily Burn Rate: $23.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: U.S. ARMY RESERVE CENTER MATERIAL MANAGEMENT, ACCOUNTABILITY, ASSET VISIBILITY, AND EQUIPMENT MANAGEMENT SUPPORT TEAM SERVICE
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $48.8 million to BOOZ ALLEN HAMILTON INC for work described as: U.S. ARMY RESERVE CENTER MATERIAL MANAGEMENT, ACCOUNTABILITY, ASSET VISIBILITY, AND EQUIPMENT MANAGEMENT SUPPORT TEAM SERVICE Key points: 1. Booz Allen Hamilton secured a significant contract for essential logistics and asset management services. 2. The contract value of $48.8 million indicates a substantial investment in supply chain efficiency. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The services provided are critical for maintaining operational readiness and equipment accountability within the Army Reserve.
Value Assessment
Rating: fair
The contract was awarded on a Time and Materials basis, which can lead to cost overruns if not managed carefully. The total value of $48.8 million over 2100 days suggests a daily rate that needs careful scrutiny against industry benchmarks for similar consulting services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which generally promotes competitive pricing. However, the Time and Materials pricing structure may limit the government's ability to achieve the lowest possible price compared to fixed-price contracts.
Taxpayer Impact: Taxpayers are impacted by the $48.8 million expenditure, with the effectiveness of this spending dependent on efficient service delivery and cost control under the T&M structure.
Public Impact
Ensures the Army Reserve maintains accurate records of its equipment and assets. Supports operational readiness by ensuring necessary materials and equipment are available. Contributes to the efficient management of taxpayer-funded resources within the military. Provides critical support for logistics and supply chain operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing structure can lead to cost uncertainty.
- Contract duration is lengthy, requiring sustained oversight.
- Lack of specific performance metrics in provided data.
Positive Signals
- Full and open competition utilized.
- Services are essential for operational readiness.
- Experienced contractor in Booz Allen Hamilton.
Sector Analysis
This contract falls under professional services, specifically logistics consulting. Spending in this sector often focuses on improving efficiency and reducing operational costs for government agencies. Benchmarks for similar contracts would typically consider the complexity of the logistics environment and the scope of asset management required.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as Booz Allen Hamilton is a large corporation. There is no indication of small business subcontracting goals within the provided information.
Oversight & Accountability
Oversight is crucial for Time and Materials contracts to ensure costs remain within reasonable bounds and that services are delivered effectively. The Department of the Army's contracting officers and program managers are responsible for monitoring performance and expenditures.
Related Government Programs
- Process, Physical Distribution, and Logistics Consulting Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Long contract duration requires sustained oversight.
- Lack of specific performance metrics in provided data.
- No indication of small business participation.
Tags
process-physical-distribution-and-logist, department-of-defense, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.8 million to BOOZ ALLEN HAMILTON INC. U.S. ARMY RESERVE CENTER MATERIAL MANAGEMENT, ACCOUNTABILITY, ASSET VISIBILITY, AND EQUIPMENT MANAGEMENT SUPPORT TEAM SERVICE
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 $48.8 million.
What is the period of performance?
Start: 2007-09-15. End: 2013-06-15.
What specific performance metrics were established to ensure the value for money in this Time and Materials contract?
The provided data does not specify performance metrics. Effective oversight would require clearly defined metrics related to inventory accuracy, asset visibility, equipment readiness, and timely delivery of materials. Without these, assessing the true value for money achieved by the $48.8 million expenditure is challenging.
How does the cost of this contract compare to similar logistics support contracts awarded by other military branches or government agencies?
A direct comparison is difficult without detailed scope and service level data. However, the $48.8 million total contract value over approximately 5.75 years suggests a significant annual spend. Benchmarking would require analyzing the specific services rendered, the number of personnel supported, and the complexity of the asset management system.
What mechanisms are in place to mitigate the risk of cost overruns inherent in a Time and Materials contract for such a long duration?
Mitigation strategies typically include robust government oversight, regular reviews of contractor hours and expenses, clear task order definitions, and potentially establishing cost ceilings or CLINs (Contract Line Item Numbers) with not-to-exceed values. Active management by the contracting officer's representative (COR) is paramount.
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
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
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, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $48,782,213
Exercised Options: $48,782,213
Current Obligation: $48,782,213
Parent Contract
Parent Award PIID: GS10F0330L
IDV Type: FSS
Timeline
Start Date: 2007-09-15
Current End Date: 2013-06-15
Potential End Date: 2013-06-15 00:00:00
Last Modified: 2014-06-28
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