DoD's $319M PEO Subs Support Services Contract Awarded to Booz Allen Hamilton Under Full and Open Competition
Contract Overview
Contract Amount: $319,292,477 ($319.3M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2012-06-06
End Date: 2022-12-12
Contract Duration: 3,841 days
Daily Burn Rate: $83.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: SUPPORT SERVICES FOR PEO SUBS
Place of Performance
Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20376
Plain-Language Summary
Department of Defense obligated $319.3 million to BOOZ ALLEN HAMILTON INC for work described as: SUPPORT SERVICES FOR PEO SUBS Key points: 1. Significant contract value of over $319 million for essential support services. 2. Booz Allen Hamilton, a major defense contractor, secured the award. 3. The contract was awarded through full and open competition, suggesting a competitive bidding process. 4. The 'Engineering Services' NAICS code indicates a focus on technical and professional expertise.
Value Assessment
Rating: good
The contract's Cost Plus Incentive Fee (CPIF) structure allows for performance-based adjustments, potentially aligning costs with value. Benchmarking CPIF contracts requires detailed analysis of specific performance metrics and fee structures.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, this method typically fosters competitive pricing. The Delivery Order (DO) award type suggests this is one of multiple orders under a larger contract vehicle.
Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by encouraging multiple bids and driving down costs through market forces.
Public Impact
Ensures continued support for Program Executive Office (PEO) Submarine programs, critical to naval readiness. Impacts the defense industrial base by providing significant revenue to a large contractor. Highlights the government's reliance on specialized engineering services for complex defense systems.
Waste & Efficiency Indicators
Waste Risk Score: 83 / 10
Warning Flags
- Long contract duration (over 10 years) may warrant review for evolving needs.
- CPIF contracts can sometimes lead to cost overruns if not managed tightly.
Positive Signals
- Awarded via full and open competition.
- Supports critical PEO Submarine functions.
- Experienced contractor with a strong track record.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically engineering services. Spending in this sector is substantial within the DoD, supporting complex weapon systems and program management.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to a large prime contractor, Booz Allen Hamilton. Subcontracting opportunities for small businesses may exist but are not detailed here.
Oversight & Accountability
The Defense Contract Management Agency (DCMA) likely provides oversight for this contract, ensuring compliance with terms and conditions. The CPIF structure necessitates robust performance monitoring to ensure cost efficiency and effectiveness.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Long contract duration
- Cost Plus Incentive Fee structure
- Potential for scope creep over time
- Reliance on a single large prime contractor
Tags
engineering-services, department-of-defense, dc, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $319.3 million to BOOZ ALLEN HAMILTON INC. SUPPORT SERVICES FOR PEO SUBS
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 (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $319.3 million.
What is the period of performance?
Start: 2012-06-06. End: 2022-12-12.
What specific engineering services are provided under this contract, and how do they directly contribute to PEO Submarine's mission success?
The contract provides essential support services for the Program Executive Office (PEO) Submarine. While specific services aren't detailed, they likely encompass a range of engineering disciplines crucial for the development, acquisition, and sustainment of submarine platforms. This includes technical analysis, systems engineering, program management support, and potentially cybersecurity or software engineering, all vital for maintaining the U.S. Navy's submarine fleet capabilities and ensuring mission readiness.
Given the contract's duration and CPIF structure, what are the primary risks associated with cost control and potential overruns?
The primary risks with this Cost Plus Incentive Fee (CPIF) contract, spanning over a decade, include potential cost overruns if performance targets are not met efficiently or if scope creep occurs. The incentive fee structure requires careful monitoring to ensure that incentives align with genuine cost savings and value, rather than simply rewarding higher spending. Unforeseen technical challenges or changes in program requirements could also escalate costs beyond initial projections, necessitating vigilant oversight and contract management.
How does the competitive nature of the 'full and open' award process ensure the government receives effective and efficient engineering services?
The 'full and open' competition process ensures effectiveness and efficiency by allowing any qualified vendor to bid, fostering a robust marketplace of ideas and solutions. This competition drives contractors to offer competitive pricing and demonstrate superior technical capabilities to win the award. The government benefits from a wider range of potential solutions and is more likely to secure services at a fair market price, with the chosen contractor incentivized to perform effectively to achieve performance targets and earn their fee.
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
Solicitation ID: N0002410R3041
Offers Received: 7
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Booz Allen Hamilton Holding Corporation
Address: BOOZ ALLEN HAMILTON INC, MC LEAN, VA, 22102
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $621,416,636
Exercised Options: $459,329,076
Current Obligation: $319,292,477
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $38,956,697
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4024
IDV Type: IDC
Timeline
Start Date: 2012-06-06
Current End Date: 2022-12-12
Potential End Date: 2022-12-12 00:00:00
Last Modified: 2026-01-07
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