Booz Allen Hamilton received over $81.9M for SWORD Project Management support, a cost-plus-fixed-fee contract

Contract Overview

Contract Amount: $81,955,452 ($82.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2009-01-01

End Date: 2014-12-31

Contract Duration: 2,190 days

Daily Burn Rate: $37.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: SUPPORT TO SWORD PROJECT MANAGEMENT OFFICE

Plain-Language Summary

Department of Defense obligated $82.0 million to BOOZ ALLEN HAMILTON INC for work described as: SUPPORT TO SWORD PROJECT MANAGEMENT OFFICE Key points: 1. The contract's cost-plus-fixed-fee structure may incentivize cost increases, requiring close oversight. 2. Competition was limited after exclusion of sources, potentially impacting price negotiation. 3. The duration of the contract (2190 days) suggests a long-term need for these services. 4. The service category, 'Other Scientific and Technical Consulting Services,' is broad and requires specific performance metrics. 5. The contract was awarded to a single vendor, Booz Allen Hamilton, indicating a lack of broader market engagement for this specific award. 6. The absence of small business set-asides suggests this contract was not specifically targeted for small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics and a clear understanding of the 'SWORD Project Management' scope. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex projects, carries inherent risks of cost overruns. Comparing this to similar project management support contracts within the Department of Defense would be necessary to assess if the $81.9 million over five years represents a fair price for the services rendered. The lack of detailed performance data makes a definitive value assessment difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the initial intent might have been broader competition, certain sources were excluded, leading to a more limited pool of bidders. The specific reasons for exclusion are not detailed here, but this approach typically results in fewer than ideal competitive bids, potentially impacting the government's ability to secure the most favorable pricing.

Taxpayer Impact: A limited competition means taxpayers may not have benefited from the full range of potential cost savings that a broader, more open competition could have yielded.

Public Impact

The primary beneficiaries are the Department of the Army and the SWORD Project Management Office, receiving critical support for project execution. Services delivered include technical consulting and project management expertise, essential for complex defense initiatives. The geographic impact is likely concentrated within the Department of Defense's operational areas, supporting national security objectives. Workforce implications include the direct employment of Booz Allen Hamilton personnel and potential indirect impacts on government project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee structure can incentivize higher costs.
Limited competition may lead to suboptimal pricing.
Broad service category requires careful performance monitoring.
Lack of transparency on source exclusion criteria.

Positive Signals

Awarded to a large, established contractor with significant experience.
Contract duration suggests sustained need and potential for stable support.
Project management support is crucial for complex government initiatives.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on management and technical consulting. This sector is a significant component of federal spending, supporting a wide array of government functions. Comparable spending benchmarks would involve analyzing other large-scale project management support contracts awarded by the Department of Defense or other federal agencies for similar complex initiatives. The market for these services is dominated by large, established consulting firms.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Consequently, there are no direct subcontracting implications mandated for small businesses through this specific award. The absence of set-asides means that opportunities for small businesses to participate in this particular contract are limited to potential subcontracting roles that the prime contractor, Booz Allen Hamilton, may voluntarily pursue.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army's contracting officers and program managers. Accountability measures would be tied to the performance metrics outlined in the contract's statement of work and the cost-plus-fixed-fee structure, which requires detailed financial reporting. Transparency is facilitated through contract award databases, but specific details on project execution and spending may be limited due to the nature of defense projects.

Related Government Programs

Defense Project Management Support
Technical Consulting Services
Department of the Army Contracts
Large Professional Services Contracts
Cost-Plus-Fixed-Fee Contracts

Risk Flags

Limited competition may impact price.
Cost-plus-fixed-fee structure requires careful oversight.
Lack of transparency on source exclusion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $82.0 million to BOOZ ALLEN HAMILTON INC. SUPPORT TO SWORD PROJECT MANAGEMENT OFFICE

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 $82.0 million.

What is the period of performance?

Start: 2009-01-01. End: 2014-12-31.

What specific services did Booz Allen Hamilton provide under the SWORD Project Management Office contract?

The contract description indicates 'SUPPORT TO SWORD PROJECT MANAGEMENT OFFICE' and falls under 'Other Scientific and Technical Consulting Services.' While specific deliverables are not detailed in the provided data, this typically encompasses a range of activities such as strategic planning, program analysis, risk management, resource allocation, process improvement, and technical guidance to support the effective management and execution of the SWORD project. The cost-plus-fixed-fee structure suggests a need for flexibility and expert support in areas that may evolve or are difficult to precisely define upfront, common in complex defense initiatives.

How does the cost-plus-fixed-fee (CPFF) pricing structure compare to other contract types for similar services?

The Cost-Plus-Fixed-Fee (CPFF) structure is often used when the scope of work is not precisely defined or is expected to change, as is common in research, development, and complex project management. It involves reimbursing the contractor for allowable costs plus a fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers less cost certainty for the government but allows for greater flexibility. Compared to Cost-Plus-Incentive-Fee (CPIF) or Cost-Plus-Award-Fee (CPAF), CPFF provides a fixed profit margin, potentially reducing the incentive for the contractor to control costs as strongly as in incentive-based fee structures. For project management support, CPFF can be appropriate if the project's evolution is anticipated, but it requires robust oversight to manage costs effectively.

What are the potential risks associated with a 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award?

This award type suggests that while the contract was initially intended for full and open competition, certain potential bidders were excluded. The primary risk is a reduction in the competitive landscape, potentially leading to higher prices and less innovation than if all qualified sources had been allowed to bid. The reasons for exclusion are critical; if they were arbitrary or improperly justified, it could indicate a flawed procurement process. This approach can also raise concerns about fairness and equal opportunity among potential contractors. Without knowing the specific exclusions, it's difficult to quantify the exact impact, but it generally implies a less competitive environment than true full and open competition.

What does the contract duration of 2190 days (6 years) imply about the SWORD project?

A contract duration of six years for project management support strongly suggests that the SWORD project is a long-term, complex initiative requiring sustained expertise and continuity. Such extended periods are typical for major defense programs, infrastructure development, or large-scale system implementations where significant planning, execution, and oversight are needed over an extended timeline. This duration implies a stable requirement for the services provided by Booz Allen Hamilton and indicates that the project is not a short-term engagement but rather a strategic, multi-year endeavor for the Department of the Army.

How does the $81.9 million contract value compare to typical spending on similar consulting services within the DoD?

The $81.9 million awarded to Booz Allen Hamilton over approximately six years for project management support is substantial, reflecting the scale and complexity often associated with Department of Defense (DoD) initiatives. To benchmark this value, one would need to compare it against other large-scale, long-term project management or technical consulting contracts awarded by the DoD for similar types of projects (e.g., system modernization, strategic planning, program execution). The average annual value of approximately $13.65 million falls within the range of significant federal consulting contracts. However, without detailed performance metrics and a clear understanding of the specific scope of 'SWORD Project Management,' a precise value-for-money assessment relative to market rates is difficult.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91CRB08R0117

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $89,703,120

Exercised Options: $89,703,120

Current Obligation: $81,955,452

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline