DoD's $45M contract for management consulting services awarded to Booz Allen Hamilton Inc

Contract Overview

Contract Amount: $45,244,176 ($45.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2010-09-15

End Date: 2016-03-14

Contract Duration: 2,007 days

Daily Burn Rate: $22.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: J7/9 LESSONS LEARNED PROGRAM SUPPORT

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $45.2 million to BOOZ ALLEN HAMILTON INC for work described as: J7/9 LESSONS LEARNED PROGRAM SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of over $45 million indicates a significant investment in consulting services. 3. Services provided fall under Administrative Management and General Management Consulting, a broad category. 4. The contract duration spans nearly six years, from September 2010 to March 2016. 5. The firm fixed-price contract type aims to control costs by establishing a set price. 6. Awarded by the U.S. Special Operations Command, highlighting its relevance to specialized military operations.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables and performance metrics. However, the total award of approximately $45.2 million over nearly six years suggests an average annual spend of around $7.5 million for management consulting services. This figure needs to be compared against the complexity and scope of the 'LESSONS LEARNED PROGRAM SUPPORT' provided to the U.S. Special Operations Command. Without detailed performance data or comparable contract values for similar specialized support, a definitive value-for-money assessment is difficult. The firm fixed-price structure, however, provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' procurement method, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified in the provided data, but the designation implies a competitive environment was sought. This approach is generally intended to foster price discovery and ensure the government receives competitive pricing by allowing multiple companies to vie for the contract.

Taxpayer Impact: A full and open competition process is favorable for taxpayers as it increases the likelihood of obtaining services at a more competitive price, potentially leading to cost savings compared to sole-source or limited competition awards.

Public Impact

The primary beneficiary is the Department of Defense, specifically the U.S. Special Operations Command, which receives support for its lessons learned program. The services delivered are related to administrative management and general management consulting, crucial for program effectiveness and operational improvements. The geographic impact is likely concentrated within the operational areas and headquarters of the U.S. Special Operations Command, potentially influencing global special operations effectiveness. Workforce implications may include the engagement of Booz Allen Hamilton's consultants, contributing to specialized expertise within the command.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it hard to gauge the true impact of the consulting services.
The broad nature of 'Administrative Management and General Management Consulting Services' could lead to scope creep if not tightly managed.
Reliance on a single large contractor for critical program support might pose a risk if the contractor's capabilities diminish or if they face financial instability.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair selection process.
The firm fixed-price contract type provides cost predictability for the government.
Booz Allen Hamilton is a well-established contractor with significant experience in government consulting, implying a level of expertise.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically management consulting. This sector is a significant component of federal spending, supporting various government functions from strategic planning to operational efficiency. The market for management consulting services to the federal government is substantial, with numerous large and small firms competing for contracts. This specific award to Booz Allen Hamilton for the U.S. Special Operations Command's lessons learned program is indicative of the specialized support required by defense agencies to institutionalize knowledge and improve future operations.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false) and did not involve small business subcontracting (sb: false). This suggests that the prime contract was awarded to a large business, Booz Allen Hamilton, and there were no specific requirements or opportunities identified for small business participation as subcontractors within this particular award. Consequently, the direct impact on the small business ecosystem for this specific contract appears minimal.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Special Operations Command contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract structure, which obligates the contractor to deliver specific services for a set price. Transparency is generally facilitated through contract award databases like FPDS, where basic information is publicly available. The Inspector General for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Defense Management Consulting Services
Special Operations Command Support Contracts
Lessons Learned Program Management
Federal Administrative Services
Management and Strategy Consulting

Risk Flags

Potential for scope creep in broad consulting services.
Performance metrics not detailed, making outcome assessment difficult.
Reliance on a single large contractor for specialized support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.2 million to BOOZ ALLEN HAMILTON INC. J7/9 LESSONS LEARNED PROGRAM SUPPORT

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 (U.S. Special Operations Command).

What is the total obligated amount?

The obligated amount is $45.2 million.

What is the period of performance?

Start: 2010-09-15. End: 2016-03-14.

What specific outcomes or improvements were achieved by Booz Allen Hamilton's support for the J7/9 Lessons Learned Program?

The provided data does not detail the specific outcomes or improvements achieved by Booz Allen Hamilton's support for the J7/9 Lessons Learned Program. The contract description is limited to 'Administrative Management and General Management Consulting Services.' To assess the program's effectiveness, one would need access to performance reports, program reviews, or testimonials from the U.S. Special Operations Command that quantify the impact of the consulting services. Without such information, it is impossible to determine if the $45.2 million investment led to tangible enhancements in operational knowledge capture, dissemination, or application within the command.

How does the $45.2 million contract value compare to similar management consulting contracts awarded by the Department of Defense or other Special Operations Commands?

Comparing the $45.2 million contract value requires context regarding the scope, duration, and specific services rendered. For a nearly six-year contract supporting a lessons learned program within a specialized command like SOCOM, this value might be considered moderate to significant. However, without detailed benchmarks for similar 'lessons learned' or 'program support' contracts within the defense sector, a precise comparison is difficult. Large consulting firms often secure contracts in the tens or hundreds of millions of dollars for broad strategic support. To provide a more accurate comparison, one would need to analyze contracts with similar objectives, client organizations (e.g., other combatant commands or major defense agencies), and service categories (e.g., program management, strategic consulting).

What were the key risks identified during the procurement process for this contract, and how were they mitigated?

The provided data does not explicitly detail the risks identified during the procurement process for this contract. However, common risks associated with large management consulting contracts include scope creep, contractor performance issues, cost overruns (though mitigated by firm-fixed-price), and potential security vulnerabilities. Given the 'full and open competition' award, it can be inferred that the selection process aimed to mitigate risks by choosing a qualified contractor, Booz Allen Hamilton, with a proven track record. Mitigation strategies would typically involve clear performance work statements, robust oversight, regular progress reviews, and defined deliverables. The firm-fixed-price nature of the contract also shifts some financial risk to the contractor.

What is Booz Allen Hamilton's track record with the U.S. Special Operations Command and similar defense agencies?

Booz Allen Hamilton has a long-standing and extensive track record of providing a wide range of services to the Department of Defense and its various components, including U.S. Special Operations Command (SOCOM). Their expertise spans strategic planning, intelligence analysis, cybersecurity, digital transformation, and program management. While this specific contract focused on lessons learned program support, Booz Allen has historically secured numerous large-value contracts with SOCOM and other defense entities for complex and critical missions. Their established presence and deep understanding of the defense landscape suggest a strong capability to meet the demanding requirements of such agencies.

How has federal spending on management and general management consulting services evolved over the period this contract was active (2010-2016)?

Federal spending on management and general management consulting services generally saw fluctuations during the 2010-2016 period, influenced by budget cycles, sequestration, and evolving government priorities. Following the significant spending increases during the wars in Iraq and Afghanistan, there was a trend towards optimizing government operations and efficiency, which often involved consulting services. However, the Budget Control Act of 2011 and subsequent sequestration measures led to tighter federal budgets, potentially impacting the growth rate or even causing reductions in some areas of discretionary spending, including consulting. Despite these pressures, the need for specialized expertise in areas like program management, strategic planning, and IT modernization continued to drive demand for consulting services within agencies like the DoD.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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

Solicitation ID: H9222209R0034

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 8283 GREENSBORO DR, MCLEAN, 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: $46,555,814

Exercised Options: $45,244,176

Current Obligation: $45,244,176

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $104,500,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9222210D0016

IDV Type: IDC

Timeline