Booz Allen Hamilton awarded $14.6M for economic growth technical assistance in Serbia

Contract Overview

Contract Amount: $14,621,498 ($14.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Agency for International Development

Start Date: 2007-09-24

End Date: 2011-09-30

Contract Duration: 1,467 days

Daily Burn Rate: $10.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TECHNICAL ASSISTANCE TO: A) GENERATE RAPID, SUSTAINED, AND BROAD-BASED ECONOMIC GROWTH IN SERBIA, B) SUBSTANTIALLY INCREASE THE PRODUCTIVITY, COMPETITIVENESS, AND GROWTH OF PRIVATE ENTERPRISES IN HIGH POTENTIAL SECTORS; AND C) SUBSTANTIALLY IMPROVE THE BUSINESS ENABLING ENVIRONMENT THROUGH POLICY AND INSTITUTIONAL DEVELOPMENT WITHIN THE HIGH POTENTIAL SECTORS.

Plain-Language Summary

Agency for International Development obligated $14.6 million to BOOZ ALLEN HAMILTON INC for work described as: TECHNICAL ASSISTANCE TO: A) GENERATE RAPID, SUSTAINED, AND BROAD-BASED ECONOMIC GROWTH IN SERBIA, B) SUBSTANTIALLY INCREASE THE PRODUCTIVITY, COMPETITIVENESS, AND GROWTH OF PRIVATE ENTERPRISES IN HIGH POTENTIAL SECTORS; AND C) SUBSTANTIALLY IMPROVE THE BUSINESS ENABLING ENVIRONME… Key points: 1. Contract focused on fostering economic growth, private enterprise productivity, and policy development in Serbia. 2. Services provided through a Time and Materials contract type. 3. Contract duration spanned over 1400 days. 4. The contract was not competed, raising questions about potential value for money. 5. No specific small business set-aside was identified. 6. The contract was awarded by the Agency for International Development.

Value Assessment

Rating: questionable

The total award of $14.6 million for technical assistance over approximately four years requires careful benchmarking. Without comparable contracts for similar economic development initiatives in the region or for similar services, assessing value for money is difficult. The Time and Materials pricing structure can also lead to cost overruns if not closely managed, further complicating value assessment. The lack of competition suggests potential for inflated pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no open competition among potential contractors. This approach is typically used when a specific contractor possesses unique capabilities or when urgency dictates. However, the lack of competition limits the government's ability to secure the best possible price and service through market forces.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government does not benefit from competitive bidding to drive down prices.

Public Impact

The primary beneficiaries are Serbian enterprises and the Serbian economy, aiming for increased productivity and competitiveness. Services delivered include technical assistance for economic growth, private sector development, and policy/institutional reform. The geographic impact is focused on Serbia. Workforce implications may include local employment opportunities within Serbian enterprises and potential engagement of local consultants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than could have been achieved through an open bidding process.
Time and Materials contract type carries inherent risks of cost escalation if not rigorously monitored.
The effectiveness of technical assistance in achieving sustained economic growth is difficult to measure and depends on numerous external factors.

Positive Signals

Booz Allen Hamilton is a well-established contractor with experience in management consulting and international development.
The contract aimed to address critical development needs in Serbia, potentially leading to significant positive economic impact.
The contract duration suggests a commitment to achieving long-term development goals.

Sector Analysis

This contract falls within the Management Consulting services sector, specifically focusing on economic development and policy reform. The global market for such consulting services is substantial, driven by governments and international organizations seeking expertise to foster growth and improve governance. Comparable spending benchmarks would involve looking at other USAID or similar development agency contracts for technical assistance in transitional economies.

Small Business Impact

There is no indication that this contract involved a small business set-aside. As a sole-source award to a large prime contractor, the potential for small business subcontracting opportunities would depend on the prime contractor's own subcontracting plan and the nature of the services required. Without specific subcontracting data, the impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). Mechanisms likely include regular reporting requirements from the contractor, performance reviews, and financial audits. Transparency would depend on USAID's public disclosure policies regarding contract performance and outcomes. Inspector General jurisdiction would apply for any investigations into fraud, waste, or abuse.

Related Government Programs

USAID Economic Growth Programs
International Development Assistance
Management and Technical Consulting Services
Economic Policy Reform Initiatives

Risk Flags

Sole-source award lacks competitive pricing pressure.
Time and Materials contract type poses cost control risks.
Measuring the direct impact of technical assistance on economic growth is complex.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $14.6 million to BOOZ ALLEN HAMILTON INC. TECHNICAL ASSISTANCE TO: A) GENERATE RAPID, SUSTAINED, AND BROAD-BASED ECONOMIC GROWTH IN SERBIA, B) SUBSTANTIALLY INCREASE THE PRODUCTIVITY, COMPETITIVENESS, AND GROWTH OF PRIVATE ENTERPRISES IN HIGH POTENTIAL SECTORS; AND C) SUBSTANTIALLY IMPROVE THE BUSINESS ENABLING ENVIRONMENT THROUGH POLICY AND INSTITUTIONAL DEVELOPMENT WITHIN THE HIGH POTENTIAL SECTORS.

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Agency for International Development (Agency for International Development).

What is the total obligated amount?

The obligated amount is $14.6 million.

What is the period of performance?

Start: 2007-09-24. End: 2011-09-30.

What was the specific justification for awarding this contract on a sole-source basis?

The provided data does not specify the justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source is available or capable of providing the required services, or in cases of urgent and compelling need. For a contract of this magnitude and duration, a detailed justification would have been required by federal acquisition regulations, likely involving factors such as unique expertise, prior performance on related tasks, or specific knowledge of the Serbian economic environment that only Booz Allen Hamilton possessed at the time of award.

How did the final cost compare to the initial estimated cost, if available?

The provided data only includes the total award amount ($14,621,497.78) and does not contain information about initial cost estimates or how the final cost compared to them. Without this comparative data, it is impossible to assess cost efficiency or potential overruns. The Time and Materials (T&M) contract type, used here, means that costs are based on actual labor hours and material costs incurred, plus a fixed fee or profit. Effective management and oversight are crucial with T&M contracts to control costs.

What were the key performance indicators (KPIs) and how did the contractor perform against them?

The available data does not detail the specific Key Performance Indicators (KPIs) established for this contract or provide an assessment of Booz Allen Hamilton's performance against them. The contract's objectives (generating rapid economic growth, increasing enterprise productivity, and improving the business environment) are broad. Measuring success would likely involve metrics related to GDP growth, private sector investment, job creation, policy implementation rates, and improvements in business climate rankings. A thorough performance review would be necessary to evaluate the contractor's effectiveness.

Are there any publicly available reports or evaluations on the impact of this technical assistance program in Serbia?

The provided data does not include links to or summaries of public reports or evaluations concerning the impact of this specific technical assistance program. USAID and other development agencies often publish project reports, evaluations, and impact assessments on their official websites. To determine the program's impact, one would need to search USAID's public data repositories or conduct targeted searches for evaluations related to economic development projects in Serbia during the contract period (2007-2011).

What is Booz Allen Hamilton's track record with USAID for similar economic development contracts?

Booz Allen Hamilton has a significant history of contracting with U.S. government agencies, including USAID, across various sectors. While this specific contract focused on economic growth in Serbia, the company has experience in management consulting, strategic planning, and program implementation for development initiatives globally. Their broader track record includes work in areas like public sector modernization, defense, and intelligence. A detailed review of USAID's contract database or federal procurement data (like FPDS) would be needed to identify and analyze all their prior contracts with USAID, particularly those related to economic development and in similar geographic regions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: SEALED BID

Offers Received: 6

Pricing Type: TIME AND MATERIALS (Y)

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

Financial Breakdown

Contract Ceiling: $44,991,794

Exercised Options: $44,991,794

Current Obligation: $14,621,498

Actual Outlays: $50,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: AIDEEMI000700007

IDV Type: IDC

Timeline