Booz Allen Hamilton Awarded $10.6M for Professional Services, Raising Oversight Questions

Contract Overview

Contract Amount: $10,603,397 ($10.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2004-03-31

End Date: 2005-09-30

Contract Duration: 548 days

Daily Burn Rate: $19.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200407!000465!2100!W912SU!ACA, NRCC - MISSION DIVISION !GS23F9755H !C!N! !Y!W912SU04F0014! !20040331!20050331!006928857!006928857!006928857!N!BOOZ ALLEN HAMILTON INC !BOOZ ALLEN HAMILTON INC !MC LEAN !VA!22102!11280!041!42!CARLISLE BARRACKS !CUMBERLAND !PENN !+000006369542!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !000 !* !541990!E! !6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !00 ! ! ! ! ! ! ! ! !WTA000!0001! !

Place of Performance

Location: NEWPORT NEWS, NEWPORT NEWS CITY County, VIRGINIA, 23601

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $10.6 million to BOOZ ALLEN HAMILTON INC for work described as: 200407!000465!2100!W912SU!ACA, NRCC - MISSION DIVISION !GS23F9755H !C!N! !Y!W912SU04F0014! !20040331!20050331!006928857!006928857!006928857!N!BOOZ ALLEN HAMILTON INC !BOOZ ALLEN HAMILTON INC !MC LEAN !VA!22102!11280!041!42!CARLISLE BARRACKS !CUMB… Key points: 1. The contract awarded to Booz Allen Hamilton Inc. for $10.6 million covers administrative management and general management consulting services. 2. Awarded under full and open competition, the contract's pricing and value will be assessed against similar professional services contracts. 3. Potential risks include the need for robust oversight to ensure effective service delivery and taxpayer value, given the significant award amount. 4. The sector is professional services, specifically management consulting, which is a common area for federal contracting.

Value Assessment

Rating: fair

The contract value of $10.6 million for a 548-day duration appears substantial for administrative management and general management consulting services. Benchmarking against similar contracts for these services is crucial to determine if the pricing is competitive and reflects fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is a positive sign for price discovery. However, the specific impact of this competition method on the final negotiated price requires further analysis of the bidding process and award justification.

Taxpayer Impact: The taxpayer impact hinges on whether the awarded price represents good value for the services rendered. Effective oversight and performance monitoring are key to ensuring taxpayer funds are used efficiently.

Public Impact

Citizens expect transparency and accountability in how their tax dollars are spent on professional services. The effectiveness of these consulting services in achieving mission objectives for the Department of the Army is a key public interest. Ensuring fair competition and preventing potential cost overruns are critical for public trust in government contracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns if services are not closely managed.
  • Need for clear performance metrics to ensure value for money.
  • Ensuring the contractor's expertise directly aligns with mission needs.

Positive Signals

  • Awarded through full and open competition.
  • Contract duration provides a stable period for service delivery.
  • Contractor has a known presence in federal contracting.

Sector Analysis

The professional services sector, particularly management consulting, sees significant federal spending. Benchmarks for similar contracts can vary widely based on the specific expertise and scope of work required by agencies like the Department of the Army.

Small Business Impact

There is no explicit indication in the provided data whether small businesses were involved as subcontractors. Further investigation would be needed to determine the extent of small business participation in this contract.

Oversight & Accountability

The contract's oversight will depend on the Department of the Army's established procedures for monitoring performance, managing contract modifications, and ensuring compliance with terms and conditions. Robust oversight is essential for this significant award.

Related Government Programs

  • Administrative Management and General Management Consulting Services
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Lack of detailed performance metrics in provided data.
  • Potential for scope creep without strict oversight.
  • Need to verify fair market value against similar contracts.
  • Ensuring long-term strategic alignment of consulting services.

Tags

administrative-management-and-general-ma, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.6 million to BOOZ ALLEN HAMILTON INC. 200407!000465!2100!W912SU!ACA, NRCC - MISSION DIVISION !GS23F9755H !C!N! !Y!W912SU04F0014! !20040331!20050331!006928857!006928857!006928857!N!BOOZ ALLEN HAMILTON INC !BOOZ ALLEN HAMILTON INC !MC LEAN !VA!22102!11280!041!42!CARLISLE BARRACKS !CUMBERLAND !PENN !+000006369542!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !000 !* !541990!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 $10.6 million.

What is the period of performance?

Start: 2004-03-31. End: 2005-09-30.

What specific deliverables and performance metrics were established to ensure the $10.6 million contract provides tangible value to the Department of the Army?

The provided data does not detail specific deliverables or performance metrics. To assess value, a review of the contract's statement of work, performance work statement, and any associated quality assurance surveillance plans would be necessary. These documents would outline the expected outcomes and how performance will be measured and evaluated.

How will the Department of the Army ensure that the services provided by Booz Allen Hamilton Inc. are essential and not duplicative of existing internal capabilities?

Ensuring essentiality and avoiding duplication requires diligent contract management and regular communication between the contracting officer's representative and the contractor. The agency should have processes in place to periodically review the necessity of contracted services against evolving mission requirements and available internal resources.

What mechanisms are in place to track the actual costs incurred by Booz Allen Hamilton Inc. against the awarded amount to prevent potential cost overruns?

For a firm-fixed-price contract, the contractor is responsible for managing costs to stay within the agreed-upon price. However, oversight mechanisms typically include regular progress reports, financial reviews (if applicable), and monitoring of contract milestones to identify any potential issues early that could lead to cost impacts or scope creep.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesAdministrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 8283 GREENSBORO DRIVE, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F9755H

IDV Type: FSS

Timeline

Start Date: 2004-03-31

Current End Date: 2005-09-30

Potential End Date: 2005-09-30 00:00:00

Last Modified: 2021-12-10

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