Booz Allen Hamilton awarded $73.7M for Iraq helicopter support, raising competition concerns
Contract Overview
Contract Amount: $73,714,706 ($73.7M)
Contractor: Booz Allen Hamilton Engineering Services, LLC
Awarding Agency: Department of Defense
Start Date: 2008-10-27
End Date: 2012-09-30
Contract Duration: 1,434 days
Daily Burn Rate: $51.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CONTRACTOR LOGISTICS SUPPORT (MAINTENANCE AND TRAINING) FOR THE GOVERNMENT OF IRAQ MI - 17 HELICOPTER PROGRAM
Place of Performance
Location: ANNAPOLIS, ANNE ARUNDEL County, MARYLAND, 21401
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $73.7 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC for work described as: CONTRACTOR LOGISTICS SUPPORT (MAINTENANCE AND TRAINING) FOR THE GOVERNMENT OF IRAQ MI - 17 HELICOPTER PROGRAM Key points: 1. Significant contract value for specialized logistics and training. 2. Sole-source award limits competitive pricing and innovation. 3. Potential for cost overruns due to cost-plus contract type. 4. Focus on aviation support highlights critical defense needs.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure, combined with a lack of competitive bidding, makes a definitive pricing assessment difficult. Without benchmarks from similar contracts awarded competitively, it's hard to determine if the $73.7M represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning there was no open competition. This significantly limits the government's ability to discover the lowest possible price and may lead to higher costs than if multiple vendors had competed.
Taxpayer Impact: The lack of competition and potential for higher costs directly impact taxpayer dollars, as funds may not have been allocated as efficiently as possible.
Public Impact
Ensures continued operational readiness of critical helicopter assets for allied forces. Provides essential training, enhancing the capabilities of partner nation personnel. Supports complex logistical operations in a challenging geopolitical environment. Potential for long-term reliance on a single contractor for specialized services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Cost-plus contract type
- Lack of transparency in pricing
- Potential for contractor lock-in
Positive Signals
- Provides critical support for essential military assets
- Includes training component for capacity building
- Long-term contract duration suggests sustained need
Sector Analysis
This contract falls within the 'Other Support Activities for Air Transportation' sector. Spending in this area is often driven by specific defense needs and can be subject to sole-source awards due to unique requirements or limited vendor availability.
Small Business Impact
The contract was awarded to Booz Allen Hamilton Engineering Services, LLC, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, limiting opportunities for them.
Oversight & Accountability
The sole-source nature of this award warrants close oversight to ensure costs are reasonable and performance meets contractual requirements. Regular reviews of contractor performance and expenditures are crucial for accountability.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits price discovery.
- Cost-plus contract type increases risk of cost overruns.
- Lack of small business participation.
- Potential for contractor lock-in.
- Limited transparency on justification for sole-source award.
Tags
other-support-activities-for-air-transpo, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $73.7 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC. CONTRACTOR LOGISTICS SUPPORT (MAINTENANCE AND TRAINING) FOR THE GOVERNMENT OF IRAQ MI - 17 HELICOPTER PROGRAM
Who is the contractor on this award?
The obligated recipient is BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $73.7 million.
What is the period of performance?
Start: 2008-10-27. End: 2012-09-30.
What specific factors justified the sole-source award, and were alternatives explored?
The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of sufficient competition. Without detailed documentation, it's difficult to assess if alternatives were thoroughly explored. This lack of transparency raises concerns about whether the government secured the best possible value and if competition was truly not feasible.
How is the contractor's performance being monitored to ensure cost efficiency under the cost-plus-fixed-fee structure?
Monitoring performance under a cost-plus-fixed-fee contract requires rigorous oversight to prevent cost overruns. Key aspects include tracking direct costs, ensuring the fixed fee remains appropriate, and verifying that the contractor is operating efficiently. Regular audits and performance reviews are essential to ensure taxpayer funds are used effectively and the contractor meets all objectives.
What is the long-term strategy for helicopter maintenance and training to potentially introduce competition in the future?
A long-term strategy should aim to foster competition by breaking down requirements, developing new sources, or incentivizing innovation. This could involve market research, pre-solicitation conferences, or phased contract awards. Planning for future competition helps avoid contractor lock-in and ensures sustained value for the government.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Booz Allen Hamilton Holding Corporation
Address: 2551 RIVA RD, ANNAPOLIS, MD, 21401
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $73,714,706
Exercised Options: $73,714,706
Current Obligation: $73,714,706
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-10-27
Current End Date: 2012-09-30
Potential End Date: 2012-09-30 00:00:00
Last Modified: 2025-04-22
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