DoD's $89.5M FIAR Support Services Contract Awarded to Booz Allen Hamilton Faces Scrutiny
Contract Overview
Contract Amount: $89,546,140 ($89.5M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2017-03-29
End Date: 2018-11-30
Contract Duration: 611 days
Daily Burn Rate: $146.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF COMPREHENSIVE FIAR SUPPORT SERVICES
Place of Performance
Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374
Plain-Language Summary
Department of Defense obligated $89.5 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF COMPREHENSIVE FIAR SUPPORT SERVICES Key points: 1. Contract awarded to a single large business, raising questions about small business participation. 2. The contract's cost-plus-fixed-fee structure may incentivize cost overruns. 3. Limited competition could lead to suboptimal pricing for taxpayers. 4. The sector is critical for financial accountability within the Department of Defense.
Value Assessment
Rating: questionable
The contract's $89.5M value is significant for accounting services. Benchmarking against similar contracts is difficult without more detailed cost breakdowns, but the cost-plus-fixed-fee structure warrants careful review for potential inefficiencies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While advertised as full and open, the award went to a single entity, Booz Allen Hamilton. The impact on price discovery is unclear, but the lack of multiple bids suggests potential limitations in the competitive landscape for this specific service.
Taxpayer Impact: The substantial cost of this contract necessitates robust oversight to ensure taxpayer funds are used efficiently and effectively for the intended financial improvement goals.
Public Impact
Ensures financial improvement and audit readiness for the Department of the Navy. Supports critical financial management functions within a major federal agency. Potential for improved financial transparency and accountability through audit support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee structure
- Single awardee despite full and open competition
- Lack of small business participation noted
Positive Signals
- Supports critical FIAR initiative
- Awarded to a known large contractor
- Contract duration aligns with project needs
Sector Analysis
This contract falls within the professional services sector, specifically accounting and financial consulting. Spending benchmarks for similar comprehensive financial improvement and audit readiness support services can vary widely based on agency size and complexity, but $89.5M represents a significant investment.
Small Business Impact
Despite being awarded under a full and open competition, the contract was awarded solely to Booz Allen Hamilton, a large business. There is no indication of small business subcontracting in the provided data, which could be an area for improvement.
Oversight & Accountability
The contract's oversight is crucial given its cost-plus-fixed-fee nature. Regular reviews of performance, costs, and adherence to financial improvement goals are necessary to ensure accountability and prevent potential cost overruns.
Related Government Programs
- Other Accounting Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost-plus-fixed-fee structure may lead to cost overruns.
- Limited evidence of small business participation.
- Potential for contractor dependency and lack of internal capability development.
- Need for robust oversight to ensure value for money.
Tags
other-accounting-services, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $89.5 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF COMPREHENSIVE FIAR SUPPORT SERVICES
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 Navy).
What is the total obligated amount?
The obligated amount is $89.5 million.
What is the period of performance?
Start: 2017-03-29. End: 2018-11-30.
What specific deliverables and performance metrics were established to ensure the value derived from this $89.5M contract aligns with the Department of the Navy's financial improvement goals?
The contract likely includes specific deliverables related to audit readiness, financial statement preparation, and process improvements. Performance metrics would focus on achieving audit findings resolution, timely financial reporting, and successful implementation of new financial systems or controls. The effectiveness is measured by the Navy's progress towards a clean audit opinion and improved financial management.
How did the contracting agency ensure fair pricing and mitigate risks associated with a cost-plus-fixed-fee contract, especially given the significant award amount?
The agency likely conducted a thorough cost analysis based on historical data, industry benchmarks, and contractor proposals to establish a reasonable fixed fee. Risk mitigation would involve stringent oversight, regular audits, and clear performance standards to prevent scope creep and ensure costs remain aligned with the defined objectives. The 'full and open' designation suggests an attempt to solicit competitive offers.
What is the long-term effectiveness of relying on a single large contractor for comprehensive FIAR support services, and does it hinder the development of internal capabilities?
While a large contractor can bring extensive expertise, long-term reliance may limit the development of organic capabilities within the agency. This could lead to continued dependency and potentially higher costs in the future. Effectiveness hinges on knowledge transfer clauses and the agency's strategy for building internal capacity alongside contractor support.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0018909RZ056
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, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $123,216,185
Exercised Options: $123,216,185
Current Obligation: $89,546,140
Subaward Activity
Number of Subawards: 94
Total Subaward Amount: $35,729,398
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0018910DZ027
IDV Type: IDC
Timeline
Start Date: 2017-03-29
Current End Date: 2018-11-30
Potential End Date: 2018-11-30 00:00:00
Last Modified: 2022-06-13
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