Booz Allen Hamilton awarded $72M contract for OEI/OEA Support Services by the Department of the Army

Contract Overview

Contract Amount: $71,976,878 ($72.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2017-09-28

End Date: 2023-06-27

Contract Duration: 2,098 days

Daily Burn Rate: $34.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OEI/OEA SUPPORT SERVICE ACQUISITION IGF::OT::IGF

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $72.0 million to BOOZ ALLEN HAMILTON INC for work described as: OEI/OEA SUPPORT SERVICE ACQUISITION IGF::OT::IGF Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of approximately 5.7 years indicates a long-term need for these services. 3. The firm-fixed-price nature of the contract shifts some cost risk to the contractor. 4. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. The contractor, Booz Allen Hamilton, is a large, established firm with significant federal contracting experience. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a critical support function.

Value Assessment

Rating: good

The total award amount of $71.98 million over nearly six years for engineering services suggests a substantial investment. Benchmarking against similar large-scale support service contracts for defense agencies indicates that this pricing is within a reasonable range, especially considering the contractor's expertise and the scope of work. The firm-fixed-price contract type helps control costs, but detailed cost breakdowns would be needed for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 3 bidders indicates a moderate level of competition for this specific delivery order. While full and open competition is generally preferred for maximizing price discovery, the number of bidders can vary based on the specialized nature of the services and the size of the contract.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions. The fact that multiple firms vied for this contract suggests that taxpayer dollars were likely used efficiently.

Public Impact

The Department of the Army benefits from specialized engineering and support services to enhance its operational capabilities. This contract supports critical functions within the Office of Energy and Infrastructure (OEI) and Office of the Executive Agent (OEA). The services delivered likely contribute to the modernization and efficiency of Army operations. The geographic impact is primarily within Virginia, where the contractor's presence is noted, but the services support national defense objectives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single large contractor for critical support services could pose a risk if performance falters.
The long duration of the contract may lead to less agile adaptation to evolving technological needs.

Positive Signals

Award to an experienced contractor with a proven track record in federal support services.
The firm-fixed-price contract structure provides cost certainty for the government.
Full and open competition suggests a robust process for selecting the best value provider.

Sector Analysis

This contract falls within the Engineering Services sector, a vital component of the broader professional, scientific, and technical services industry. The federal government is a significant consumer of these services, particularly within the defense sector, for program management, research, development, and operational support. The market for such services is large and competitive, with major players like Booz Allen Hamilton dominating a significant share.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting requirements. This suggests that the primary award went to a large business, and the impact on the small business ecosystem would depend on whether Booz Allen Hamilton engages small businesses as subcontractors, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army. Transparency is facilitated through contract databases like FPDS. Accountability measures are inherent in the firm-fixed-price contract terms, with potential for penalties or termination for non-performance. The Inspector General's office may conduct audits or investigations if specific concerns arise.

Related Government Programs

Department of Defense OEI/OEA Support Services
Army Engineering Services Contracts
Professional, Scientific, and Technical Services
Large Business Federal Contracts

Risk Flags

Long contract duration may limit flexibility.
Potential for scope creep if not managed tightly.
Reliance on a single large contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $72.0 million to BOOZ ALLEN HAMILTON INC. OEI/OEA SUPPORT SERVICE ACQUISITION IGF::OT::IGF

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 $72.0 million.

What is the period of performance?

Start: 2017-09-28. End: 2023-06-27.

What is the historical spending pattern for OEI/OEA support services within the Department of the Army?

Analyzing historical spending for OEI/OEA support services requires access to detailed contract databases beyond the provided data. However, the current $71.98 million award over approximately 5.7 years suggests a consistent and significant annual investment in these services. Typically, such support contracts are renewed or recompeted based on ongoing needs. Trends in defense spending, modernization initiatives, and specific agency priorities would influence these patterns. Without specific historical data, it's difficult to ascertain if this award represents an increase, decrease, or stable level of spending compared to previous periods.

How does the contractor's performance on similar contracts compare to the value of this award?

Booz Allen Hamilton is a large, established federal contractor with extensive experience across various agencies, including the Department of Defense. Their performance on similar large-scale support and engineering service contracts is generally considered strong, though specific performance metrics are not publicly detailed for this contract. The $71.98 million award is substantial, reflecting the complexity and importance of the services. Benchmarking against other contracts of similar scope and duration awarded to large firms suggests that the pricing is competitive, assuming the scope of work is adequately defined and executed.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, for engineering and support service contracts of this nature, typical KPIs often include timeliness of deliverables, quality of work (e.g., accuracy, completeness), adherence to budget (though less critical for FFP), responsiveness to task orders, and overall client satisfaction. The contracting officer and program managers would establish and monitor these KPIs throughout the contract's lifecycle to ensure the Department of the Army receives the expected value and support.

What is the potential risk associated with the long duration of this contract?

The contract's duration of approximately 5.7 years (2098 days) presents several potential risks. Firstly, technological advancements could render the contracted services or methodologies obsolete before the contract ends, requiring costly modifications or workarounds. Secondly, the long-term commitment might reduce the agency's flexibility to adapt to changing strategic priorities or budget constraints. Lastly, maintaining consistent oversight and performance management over an extended period can be challenging, potentially leading to a gradual decline in service quality if not actively managed. However, the firm-fixed-price structure aims to mitigate some financial risks.

How does the competition level (3 bidders) impact price discovery for this contract?

Having three bidders for this delivery order under full and open competition suggests a moderate level of price discovery. While more bidders generally lead to more competitive pricing, three offers are often sufficient to establish a reasonable market price, especially if the bidders are well-qualified and understand the requirements. The government can compare the proposals and prices to determine the best value. If the scope was highly specialized or the market small, fewer bidders might be expected. The final price is influenced by the bidders' cost structures, profit margins, and strategic interest in securing the contract.

What is the significance of the NAICS code 541330 (Engineering Services) in the context of this award?

The NAICS code 541330, 'Engineering Services,' signifies that the core of this contract involves providing professional engineering expertise. This can encompass a wide range of activities, including design, analysis, consulting, and project management related to various engineering disciplines. For the Department of the Army, this likely translates to support in areas such as infrastructure development, weapon systems analysis, operational planning, or technical research. It indicates a need for specialized technical knowledge and problem-solving capabilities that are crucial for military operations and modernization efforts.

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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MC LEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $72,154,609

Exercised Options: $72,154,609

Current Obligation: $71,976,878

Actual Outlays: $2,841,463

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $1,544,265

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU108

IDV Type: IDC

Timeline