Booz Allen Hamilton awarded $85.9M in consulting services for SOF AT&L Travel

Contract Overview

Contract Amount: $85,859,055 ($85.9M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2016-11-16

End Date: 2020-10-30

Contract Duration: 1,444 days

Daily Burn Rate: $59.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF SOF AT&L TRAVEL

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $85.9 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF SOF AT&L TRAVEL Key points: 1. Contract value represents a significant investment in specialized administrative and management consulting. 2. The firm fixed-price contract type suggests a clear scope and predictable costs. 3. A duration of 1444 days indicates a long-term need for these services. 4. The contract was awarded under full and open competition, implying a robust bidding process. 5. The North American Industry Classification System (NAICS) code 541611 points to general management consulting. 6. The award was made to a single contractor, Booz Allen Hamilton Inc.

Value Assessment

Rating: good

The contract value of $85.9 million over approximately four years for administrative management and general management consulting services appears reasonable given the duration and the nature of the services provided to U.S. Special Operations Command. Benchmarking against similar large-scale consulting contracts within the Department of Defense suggests that this award falls within expected spending ranges for specialized support. The firm fixed-price structure helps control costs, but detailed analysis of the specific deliverables and their impact on operational efficiency 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 through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 10 bids suggests a healthy level of interest and competition for this requirement. A competitive bidding process generally leads to better price discovery and ensures that the government receives proposals from a range of capable contractors, potentially resulting in more favorable terms and pricing.

Taxpayer Impact: Taxpayers benefit from a competitive process that drives down costs and ensures the government secures the best value for its investment in consulting services.

Public Impact

The primary beneficiaries are the U.S. Special Operations Command (SOCOM) personnel and operations, who will receive enhanced administrative and management support. Services delivered include general management consulting, likely focusing on improving efficiency, strategy, and operational processes within SOCOM. The contract's geographic impact is centered in Florida, where the award was made, but the services likely support SOCOM operations nationwide and potentially globally. Workforce implications may include the direct employment of consultants by Booz Allen Hamilton and potential indirect impacts on SOCOM staff through improved processes and resource allocation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term consulting contracts if not managed tightly.
Reliance on a single large contractor for critical support functions.
Ensuring the consulting services directly translate to measurable improvements in SOCOM's operational effectiveness.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent process.
Firm fixed-price contract type provides cost certainty for the government.
Booz Allen Hamilton is a well-established contractor with significant experience in government consulting.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management and general management consulting. This sector is a significant component of federal spending, supporting various agencies in areas ranging from strategic planning to operational efficiency. The market for government consulting services is competitive, with large, established firms like Booz Allen Hamilton often securing substantial contracts due to their expertise, past performance, and ability to handle complex requirements. Comparable spending benchmarks for large federal consulting contracts can range from tens to hundreds of millions of dollars, depending on the scope and duration.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions. While Booz Allen Hamilton is a large business, the competitive nature of the award suggests that small businesses may have had the opportunity to participate as subcontractors. Further investigation into the subcontracting plan would be necessary to determine the extent of small business involvement and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Special Operations Command's contracting and program management offices. Accountability measures are embedded within the firm fixed-price contract terms, requiring the contractor to deliver specific services within the agreed-upon budget. Transparency is generally maintained through contract award databases and reporting requirements, although the specifics of the consulting work may be sensitive. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Management and Consulting Services
Special Operations Command Support Contracts
Federal Administrative Services Contracts
Professional Services - Management Consulting

Risk Flags

Long contract duration may increase risk of evolving requirements.
Potential for contractor to focus on profit maximization over optimal outcomes in fixed-price contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $85.9 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF SOF AT&L TRAVEL

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 $85.9 million.

What is the period of performance?

Start: 2016-11-16. End: 2020-10-30.

What is the specific nature of the 'AT&L Travel' services provided under this contract?

The 'AT&L Travel' designation within the contract title likely refers to 'Acquisition, Technology, and Logistics' travel support. This suggests that the consulting services provided by Booz Allen Hamilton are aimed at optimizing or managing the travel processes associated with the acquisition, technology development, and logistics functions within the U.S. Special Operations Command. This could encompass a range of activities, such as developing more efficient travel policies, implementing better travel management systems, analyzing travel expenditures for cost savings, or providing strategic advice on logistics-related travel planning. The exact scope would be detailed in the contract's Statement of Work (SOW), which is not provided here but would specify the deliverables, performance metrics, and reporting requirements.

How does the $85.9 million contract value compare to typical spending on similar consulting services by SOCOM?

The $85.9 million contract value for administrative and management consulting services over approximately four years is substantial, reflecting the complexity and scale of support required by the U.S. Special Operations Command (SOCOM). Benchmarking this against publicly available data for SOCOM's consulting expenditures reveals that large, multi-year contracts of this magnitude are not uncommon for specialized support functions. SOCOM, like other major defense entities, often engages large, experienced contractors for strategic advice and operational support. While specific comparisons are difficult without knowing the precise deliverables, this award appears to be within the expected range for significant, long-term consulting engagements within a high-demand, specialized military command.

What are the key risks associated with a long-term, firm fixed-price consulting contract of this size?

A primary risk with long-term, firm fixed-price consulting contracts is the potential for the contractor to deliver only the minimum required services to maximize profit, potentially leading to suboptimal outcomes if not carefully managed. Another risk is scope creep, where the government's needs evolve, and managing changes within a fixed-price structure can become contentious or lead to contract modifications. For the government, there's also the risk that the consultant's advice may not be effectively implemented or may not yield the anticipated benefits, especially if there's a disconnect between the consultants and the operational personnel. Ensuring clear performance metrics and robust oversight is crucial to mitigate these risks and ensure value realization.

What is Booz Allen Hamilton's track record with federal consulting contracts, particularly with the Department of Defense?

Booz Allen Hamilton Inc. is a major, well-established government contractor with extensive experience providing a wide array of consulting services to the Department of Defense (DoD) and other federal agencies. They have a long history of securing large, complex contracts across various domains, including strategy, technology, cybersecurity, and management consulting. Their track record with the DoD is significant, encompassing numerous awards for support to different branches and commands. While specific performance details for individual contracts are not always public, their continued success in winning competitive bids for substantial programs indicates a generally positive perception of their capabilities and past performance by federal agencies. However, like any large contractor, they may have faced scrutiny or performance issues on specific engagements over their long history.

How does the number of bids (10) influence the perceived value for taxpayers in this full and open competition?

Receiving 10 bids in a full and open competition is a strong indicator of a healthy and competitive market for the services solicited. For taxpayers, this level of competition is generally beneficial as it suggests that multiple capable firms were interested in the contract, driving down proposed prices through competitive pressure. A larger number of bidders increases the likelihood that the government will receive proposals that are not only technically sound but also competitively priced. It reduces the risk of the government being locked into a contract with a single provider or a small group of providers, which could lead to inflated costs over time. Therefore, 10 bids suggest that the government likely secured a fair market price for these consulting services.

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: H9222214R0020

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $87,066,557

Exercised Options: $87,066,557

Current Obligation: $85,859,055

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $23,090,786

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: H9222215D0022

IDV Type: IDC

Timeline