DoD's $153.5M Engineering Services Contract with Booz Allen Hamilton Faces Scrutiny for Value and Competition
Contract Overview
Contract Amount: $153,548,434 ($153.5M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2008-05-12
End Date: 2014-06-30
Contract Duration: 2,240 days
Daily Burn Rate: $68.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Engineering Services
Official Description: TAS::21 2040::TAS S&TCD PROGRAMS/PROJECTS SUPPORT
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $153.5 million to BOOZ ALLEN HAMILTON INC for work described as: TAS::21 2040::TAS S&TCD PROGRAMS/PROJECTS SUPPORT Key points: 1. The contract awarded to Booz Allen Hamilton for engineering services represents a significant investment by the Department of the Army. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The Time and Materials pricing structure warrants close examination for potential cost overruns and value for money. 4. The contract falls within the Engineering Services sector, a critical area for defense operations.
Value Assessment
Rating: fair
The Time and Materials (T&M) contract type can lead to higher costs if not managed diligently. Without specific benchmarks for similar engineering services contracts, it's difficult to definitively assess if $153.5 million over six years represents excellent value. The lack of a fixed price makes direct comparison challenging.
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 indicator for price discovery. However, the T&M pricing model, while allowing flexibility, can sometimes obscure true cost efficiencies compared to fixed-price contracts.
Taxpayer Impact: While competition was present, the T&M pricing structure may result in higher overall taxpayer expenditure if not closely monitored for efficiency and necessity of hours billed.
Public Impact
Taxpayers funded over $153 million for engineering services over a six-year period. The Department of Defense utilized a flexible but potentially costly Time and Materials contract. The contract supported TAS S&TCD Programs/Projects, indicating a focus on technological advancement within the Army. The duration of the contract (2240 days) suggests a long-term need for these engineering services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing structure
- Long contract duration
- Lack of specific performance metrics in provided data
Positive Signals
- Full and open competition
- Awarded to a well-established contractor
Sector Analysis
The Engineering Services sector is vital for government operations, particularly in defense, involving complex project management and technical expertise. Spending benchmarks vary widely based on project scope and duration, but $153.5 million over six years for specialized engineering support is substantial.
Small Business Impact
The provided data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
Oversight of Time and Materials contracts is crucial to ensure that taxpayer funds are used efficiently and effectively. The Department of Defense is responsible for monitoring hours billed and the necessity of services rendered to prevent cost overruns and ensure value.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of specific performance metrics in the provided data.
- Long contract duration may indicate a lack of flexibility or adaptability.
- Limited insight into the specific value delivered for the significant expenditure.
Tags
engineering-services, department-of-defense, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $153.5 million to BOOZ ALLEN HAMILTON INC. TAS::21 2040::TAS S&TCD PROGRAMS/PROJECTS 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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $153.5 million.
What is the period of performance?
Start: 2008-05-12. End: 2014-06-30.
What was the average hourly rate or loaded labor rate for the services provided under this Time and Materials contract, and how does it compare to industry standards for similar engineering services?
The provided data does not include specific hourly rates or loaded labor rates. To assess value, a detailed breakdown of billing rates for different labor categories (e.g., engineers, technicians, project managers) would be necessary. Comparing these rates against established industry benchmarks for comparable engineering services in the Maryland region would reveal if the pricing was competitive and reasonable for the expertise provided.
What specific engineering services were rendered, and how did they directly contribute to the success of TAS S&TCD Programs/Projects?
The data identifies the contract as supporting 'TAS S&TCD PROGRAMS/PROJECTS SUPPORT' within Engineering Services. However, it lacks specifics on the nature of these services (e.g., design, analysis, testing, research). Understanding the tangible outputs and their impact on program milestones and objectives is essential to evaluate the effectiveness and necessity of the $153.5 million expenditure.
Were there any cost-saving measures or incentives built into the Time and Materials contract to encourage efficiency, or was the primary focus on flexibility and task completion?
The data indicates a 'TIME AND MATERIALS' (PT) contract type, which typically prioritizes flexibility and reimbursement for actual labor and material costs incurred. Without further details on contract clauses, it's unclear if specific cost-saving incentives or fixed-fee components were included to encourage efficiency. The primary focus appears to be on covering the costs associated with the services rendered.
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: 1
Pricing Type: TIME AND MATERIALS (Y)
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
Financial Breakdown
Contract Ceiling: $274,523,582
Exercised Options: $153,620,850
Current Obligation: $153,548,434
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T06DE401
IDV Type: IDC
Timeline
Start Date: 2008-05-12
Current End Date: 2014-06-30
Potential End Date: 2014-06-30 00:00:00
Last Modified: 2021-09-30
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