Transportation awards $2.6M contract for administrative management consulting, with a recent $319K funding increase

Contract Overview

Contract Amount: $2,579,790 ($2.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Transportation

Start Date: 2023-04-25

End Date: 2027-04-24

Contract Duration: 1,460 days

Daily Burn Rate: $1.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AMENDMENT: HMIC RECOMPETE FOR INFO CENTER - THIS AMENDMENT IS TO ADD ADDITIONAL FUNDING IN THE AMOUNT OF $319,666. SPEND PLAN TEXT: THE PURPOSE OF THIS AMENDMENT IS TO REQUEST AN AMENDMENT TO OBLIGATE ADDITIONAL FUNDING IN THE AMOUNT OF $319,666.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20590

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $2.6 million to BOOZ ALLEN HAMILTON INC for work described as: AMENDMENT: HMIC RECOMPETE FOR INFO CENTER - THIS AMENDMENT IS TO ADD ADDITIONAL FUNDING IN THE AMOUNT OF $319,666. SPEND PLAN TEXT: THE PURPOSE OF THIS AMENDMENT IS TO REQUEST AN AMENDMENT TO OBLIGATE ADDITIONAL FUNDING IN THE AMOUNT OF $319,666. Key points: 1. Contract value is modest, suggesting a focused scope for administrative management services. 2. Full and open competition indicates a potentially competitive bidding process. 3. The contract duration of 4 years allows for sustained support. 4. The recent amendment for additional funding warrants scrutiny of the original scope and current needs. 5. Booz Allen Hamilton, a large incumbent, is the awardee, suggesting potential for established relationships. 6. The North American Industry Classification System (NAICS) code 541611 points to general management consulting services.

Value Assessment

Rating: good

The contract's total obligated amount is $2.6 million over four years. While specific performance metrics are not detailed, the recent amendment adding $319,666 suggests either an increase in scope or unforeseen costs. Benchmarking against similar administrative management consulting contracts would provide a clearer picture of value for money. However, the firm fixed-price structure generally favors cost control for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, implying that all responsible sources were permitted to submit a bid. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a wider pool of bidders vying for the contract.

Public Impact

The Pipeline and Hazardous Materials Safety Administration (PHMSA) within the Department of Transportation benefits from enhanced administrative management. Services likely include strategic planning, operational efficiency improvements, and general management support. The contract is geographically focused on Washington D.C., where PHMSA is headquartered. The award to Booz Allen Hamilton, a large professional services firm, implies the use of experienced personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The recent amendment adding significant funding ($319,666) requires further investigation into the reasons for the increase and its impact on the original budget.
Lack of detailed performance metrics makes it difficult to assess the effectiveness and efficiency of the services provided.
The contract's reliance on a single large contractor could limit opportunities for smaller, specialized firms.

Positive Signals

The use of full and open competition suggests a robust and fair procurement process.
The firm fixed-price contract type provides cost certainty for the government.
The contract duration allows for continuity of services and potential for long-term strategic support.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is characterized by a mix of large, established firms and smaller niche providers. Spending in this area often supports government efficiency, strategic planning, and operational improvements. Comparable spending benchmarks would depend on the specific services rendered, but general management consulting is a common government expenditure.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As such, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, Booz Allen Hamilton, may engage small businesses as subcontractors, depending on their internal subcontracting plans and the specific needs of the contract.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program managers within the Pipeline and Hazardous Materials Safety Administration. Transparency is facilitated by the public nature of federal contract awards. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Management and Consulting Services
Administrative Support Services
Federal IT Consulting
Government Program Management

Risk Flags

Funding Increase Amendment
Potential for Scope Creep
Limited Performance Metrics Provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $2.6 million to BOOZ ALLEN HAMILTON INC. AMENDMENT: HMIC RECOMPETE FOR INFO CENTER - THIS AMENDMENT IS TO ADD ADDITIONAL FUNDING IN THE AMOUNT OF $319,666. SPEND PLAN TEXT: THE PURPOSE OF THIS AMENDMENT IS TO REQUEST AN AMENDMENT TO OBLIGATE ADDITIONAL FUNDING IN THE AMOUNT OF $319,666.

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Pipeline and Hazardous Materials Safety Administration).

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2023-04-25. End: 2027-04-24.

What specific services are being provided under this administrative management consulting contract?

The contract is classified under NAICS code 541611, which pertains to Administrative Management and General Management Consulting Services. While the specific deliverables are not detailed in the provided data, such contracts typically involve providing expertise to improve organizational efficiency, strategic planning, policy development, operational analysis, and general management support. The Pipeline and Hazardous Materials Safety Administration (PHMSA) likely utilizes these services to enhance its internal operations, streamline processes, and support its mission of ensuring the safe transportation of hazardous materials.

What is the significance of the recent amendment increasing the funding by $319,666?

The amendment signifies an increase in the total obligated funds for the contract. This could be due to several factors: an expansion of the original scope of work, unforeseen requirements that emerged during contract performance, adjustments in pricing, or the need for additional resources to meet program objectives. Without further details from PHMSA, it's difficult to pinpoint the exact reason. However, such amendments warrant scrutiny to ensure they represent a justifiable need and are managed effectively to maintain value for money.

How does Booz Allen Hamilton's track record influence the assessment of this contract?

Booz Allen Hamilton is a large, well-established government contractor with extensive experience in management consulting across various federal agencies. Their long history suggests a deep understanding of government procurement processes and operational challenges. While their size and experience can be a positive indicator of capability, it also means they are a significant incumbent. The assessment of this specific contract should consider whether their past performance on similar contracts demonstrates consistent delivery of high-quality services within budget and schedule, and whether their pricing remains competitive.

What are the potential risks associated with this contract?

Potential risks include scope creep, where the project's objectives expand beyond the original agreement, potentially leading to cost overruns or delays, especially given the recent funding amendment. There's also a risk of vendor lock-in if the contractor becomes indispensable, making future transitions difficult. Performance risk exists if the contractor fails to deliver the expected quality or timeliness of services. Finally, reliance on a single large contractor could limit innovation or the adoption of more cost-effective solutions if not managed carefully.

How does this contract compare to other administrative management consulting contracts within the federal government?

The contract value of approximately $2.6 million over four years is relatively modest for a large incumbent like Booz Allen Hamilton, suggesting a potentially focused or specialized scope of work within administrative management. Many federal agencies procure similar consulting services, with contract values varying widely based on the complexity and duration of the engagement. To provide a precise comparison, one would need to analyze contracts with similar NAICS codes (541611) and agencies, considering factors like the specific services rendered, the level of expertise required, and the contract duration. The firm fixed-price nature is common for well-defined 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

Offers Received: 1

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: $2,579,790

Exercised Options: $2,579,790

Current Obligation: $2,579,790

Actual Outlays: $1,746,050

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F008DA

IDV Type: FSS

Timeline