Booz Allen Hamilton awarded $25M contract for AMCS Service Delivery by FAA, a sole-source award

Contract Overview

Contract Amount: $24,977,314 ($25.0M)

Contractor: Booz Allen Hamilton Engineering Services, LLC

Awarding Agency: Department of Transportation

Start Date: 2007-08-13

End Date: 2008-04-09

Contract Duration: 240 days

Daily Burn Rate: $104.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CLIN 3001 AMCS SERVICE DEL.

Place of Performance

Location: LAYTON, DAVIS County, UTAH, 84041

State: Utah Government Spending

Plain-Language Summary

Department of Transportation obligated $25.0 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC for work described as: CLIN 3001 AMCS SERVICE DEL. Key points: 1. The contract value of $24.98 million for AMCS Service Delivery represents a significant investment in air transportation support. 2. As a sole-source award, the absence of a competitive bidding process raises questions about potential price optimization. 3. The contract duration of 240 days suggests a focused, short-term need for the specified services. 4. The fixed-price contract type aims to provide cost certainty for the government, shifting performance risk to the contractor. 5. The Federal Aviation Administration (FAA) is the awarding agency, indicating a focus on aviation infrastructure and operations. 6. The contractor, Booz Allen Hamilton, is a well-established entity in government contracting, suggesting a degree of reliability.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without comparable sole-source awards for similar AMCS Service Delivery. However, the fixed-price nature provides some cost control. The total award amount of $24.98 million for a 240-day period warrants scrutiny to ensure it aligns with market rates for specialized support activities in air transportation. Without competition, it's difficult to definitively assess if the government secured the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Booz Allen Hamilton, was solicited. This approach bypasses the standard competitive bidding process, which typically involves multiple vendors vying for the contract. While sole-source awards can be justified for unique capabilities or urgent needs, they limit the government's ability to leverage market competition to drive down prices and foster innovation.

Taxpayer Impact: Taxpayers may not benefit from the cost savings that typically arise from a competitive bidding environment. The absence of multiple bids means there was no direct price pressure on the contractor to offer the most economical solution.

Public Impact

The primary beneficiaries are the Federal Aviation Administration (FAA) and potentially the broader air transportation sector, which relies on effective AMCS (Air Mobility Command System) services. The services delivered are crucial for the operational efficiency and safety of air traffic management and related support activities. The geographic impact is likely national, given the FAA's mandate, though specific operational sites may be prioritized. The contract supports specialized technical and analytical services, potentially impacting a workforce skilled in aviation systems and logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potential taxpayer savings.
Lack of competition may reduce incentives for contractor efficiency.
Contract duration is relatively short, raising questions about long-term strategic planning.
Specific performance metrics and deliverables are not detailed, making outcome assessment difficult.

Positive Signals

Award to a known contractor (Booz Allen Hamilton) suggests a level of confidence in their capabilities.
Fixed-price contract type provides budget certainty.
Contract addresses a specific need within the FAA's operational framework.

Sector Analysis

This contract falls within the 'Other Support Activities for Air Transportation' sector, a niche but critical area supporting the broader aviation industry. The market for such specialized support services is often dominated by a few large, experienced contractors due to the technical expertise and security clearances required. The FAA's spending in this area is vital for maintaining the safety and efficiency of the national airspace system. Comparable spending benchmarks are difficult to establish precisely due to the specialized nature and sole-source award.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, Booz Allen Hamilton, is a large business. There is no explicit information regarding subcontracting plans for small businesses. This suggests that the primary focus of this award was on the prime contractor's capabilities, with potential limited direct benefit to the small business ecosystem unless subcontracting opportunities arise organically.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA) contracting officers and program managers. As a sole-source award, there may be heightened scrutiny from oversight bodies like the Government Accountability Office (GAO) or the Department of Transportation's Office of Inspector General (OIG) if performance issues or cost concerns arise. Transparency is limited by the non-competitive nature of the award, but contract modifications and performance reports, if publicly available, would offer insights.

Related Government Programs

FAA Air Traffic Control Operations
Aviation Systems Modernization Programs
Department of Transportation IT Support Services
Air Mobility Command System (AMCS) Support

Risk Flags

Sole-source award without clear justification
Potential lack of price competition
Limited transparency on performance metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $25.0 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC. CLIN 3001 AMCS SERVICE DEL.

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $25.0 million.

What is the period of performance?

Start: 2007-08-13. End: 2008-04-09.

What is the specific nature of the 'AMCS Service Delivery' and why was it deemed suitable for a sole-source award?

The specific nature of 'AMCS Service Delivery' likely pertains to the operational and technical support for the Air Mobility Command System, which is crucial for managing air traffic and related logistics. Sole-source awards are typically justified when a unique capability is required that only one contractor can provide, or in cases of urgent and compelling need where competition is not feasible. For this contract, the justification would likely stem from Booz Allen Hamilton possessing proprietary knowledge, specialized technology, or an established infrastructure directly related to the AMCS that other potential contractors lack. The Federal Aviation Administration (FAA) would have had to formally document and approve this justification, often subject to review by oversight bodies, to ensure it met the criteria for non-competitive procurement.

How does the fixed-price contract type influence the risk allocation between the government and Booz Allen Hamilton for this $24.98 million award?

In a Firm Fixed Price (FFP) contract, the price is set and not subject to adjustment based on the contractor's cost experience. This means that Booz Allen Hamilton assumes the primary risk for cost overruns. If their costs to deliver the AMCS Service Delivery exceed their estimates, their profit margin will decrease, or they could incur a loss. Conversely, if they can deliver the services for less than anticipated, their profit will increase. For the government (FAA), this contract type provides budget certainty, as the total cost is known upfront. The risk for the government is primarily related to performance; they risk not receiving the full benefit of the services if the contractor fails to meet the contract's requirements, regardless of the contractor's costs.

What are the potential implications of this sole-source award on future competition for similar services within the FAA?

Sole-source awards can have several implications for future competition. Firstly, they may discourage other potential vendors from investing in developing capabilities for similar services if they perceive that the incumbent contractor has an entrenched advantage or that future awards will also be non-competitive. Secondly, the lack of a competitive process means that the government does not gain market intelligence on pricing and capabilities from multiple bidders, which could hinder informed decision-making for future procurements. However, if the sole-source award is for a highly specialized, unique service, it might not significantly impact competition for more standard services. The FAA's justification and documentation for this sole-source award will be critical in assessing its impact on future competitive opportunities.

Given the 240-day duration, what kind of services are typically encompassed by 'AMCS Service Delivery' that would require such a focused, short-term engagement?

A 240-day duration for 'AMCS Service Delivery' suggests a project-based or task-specific engagement rather than ongoing, long-term operational support. Such services could include system upgrades or enhancements, specialized technical analysis, implementation of new modules or features within the Air Mobility Command System, troubleshooting and resolution of complex technical issues, or providing expert consultation during a critical phase of system development or deployment. It might also cover a period of transition or support following a major system change. The short timeframe implies a need for rapid deployment of expertise to address a defined objective within the AMCS, without necessarily implying a permanent expansion of services.

What is Booz Allen Hamilton's track record with the FAA and in providing similar support services, and how might this influence the sole-source decision?

Booz Allen Hamilton is a large, well-established government contractor with a significant history of serving various federal agencies, including the FAA. Their extensive experience in providing a wide range of services, from IT and systems engineering to management consulting and cybersecurity, likely includes prior work related to aviation systems and air traffic management. This established track record, including past performance on FAA contracts, would be a key factor in the agency's decision to award this contract on a sole-source basis. The FAA would likely have confidence in Booz Allen Hamilton's ability to deliver the required AMCS services effectively and efficiently, based on their demonstrated capabilities and familiarity with the agency's environment and requirements. This prior success reduces perceived risk for the FAA.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Carlyle Partners IV, L.P. (UEI: 806367616)

Address: 334 N MARSHALL WAY STE J, LAYTON, UT, 01

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $24,977,314

Exercised Options: $24,977,314

Current Obligation: $24,977,314

Parent Contract

Parent Award PIID: DTFAWA05D00020

IDV Type: IDC

Timeline