Booz Allen Hamilton awarded $99.3M for technical analysis and studies support to the Department of Defense

Contract Overview

Contract Amount: $99,298,281 ($99.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2019-02-14

End Date: 2024-08-14

Contract Duration: 2,008 days

Daily Burn Rate: $49.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TECHNICAL ANALYSIS AND STUDIES SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $99.3 million to BOOZ ALLEN HAMILTON INC for work described as: TECHNICAL ANALYSIS AND STUDIES SUPPORT Key points: 1. Contract value represents significant investment in specialized technical analysis. 2. Competition dynamics suggest a robust market for these services. 3. Contract duration indicates a long-term need for ongoing support. 4. Firm Fixed Price contract type aims to control costs. 5. Services provided are crucial for informed decision-making within the DoD. 6. Geographic concentration in DC highlights proximity to key decision-makers.

Value Assessment

Rating: good

The contract value of $99.3 million over its period of performance is substantial, reflecting the complexity and criticality of technical analysis and studies for the Department of Defense. Benchmarking against similar contracts for broad professional, scientific, and technical services indicates that this award falls within a typical range for large-scale, long-term engagements. The firm fixed-price structure suggests an effort to manage costs effectively, though the ultimate value-for-money will depend on the quality and impact of the studies and analyses delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bidders suggests a competitive environment, though a higher number of bidders would typically lead to more aggressive pricing and potentially better value. The fact that it was competed openly is a positive sign for price discovery and ensuring the government receives competitive offers for these essential services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve the quality of services received. It ensures that the most capable and cost-effective provider is selected.

Public Impact

The Department of Defense benefits from enhanced technical analysis and studies, leading to more informed strategic and operational decisions. Services delivered likely support various defense initiatives, research, and policy development. The primary geographic impact is within the Washington D.C. area, where the contractor is located and likely interacts with key DoD personnel. The contract supports highly skilled professionals in scientific, technical, and analytical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if study requirements are not tightly defined.
Reliance on a single large contractor could limit future flexibility or innovation if not managed well.

Positive Signals

Firm Fixed Price contract type provides cost certainty.
Full and open competition suggests a thorough vetting of potential providers.
Long contract duration allows for deep institutional knowledge development.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under the 'All Other Professional, Scientific, and Technical Services' NAICS code (541990). This broad category encompasses a wide range of analytical, research, and consulting services. The market for these services within the federal government is substantial, with significant spending allocated annually to support various agencies' technical and analytical needs. Comparable spending benchmarks would typically look at the total federal outlays for professional services, which often run into the tens of billions of dollars.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, the prime contractor, Booz Allen Hamilton, is a large business. While there is no direct set-aside, large prime contractors are often required to meet subcontracting goals with small businesses. The specific subcontracting plan for this contract would determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant program managers within the Department of Defense. The firm fixed-price nature of the contract provides a degree of accountability for cost control. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development Support
Federal Consulting Services
Technical Advisory Services
Strategic Planning Support
Defense Policy Analysis

Risk Flags

Long-term contract duration requires ongoing performance monitoring.
High contract value necessitates careful oversight of deliverables and value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $99.3 million to BOOZ ALLEN HAMILTON INC. TECHNICAL ANALYSIS AND STUDIES SUPPORT

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 (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $99.3 million.

What is the period of performance?

Start: 2019-02-14. End: 2024-08-14.

What is the historical spending trend for technical analysis and studies support within the Department of Defense over the last five years?

Analyzing historical spending trends for technical analysis and studies support within the Department of Defense reveals a consistent and significant investment. While specific figures for this exact contract type fluctuate annually based on evolving defense priorities and emerging threats, the overall budget allocation for professional, scientific, and technical services has remained robust. For instance, federal spending in the broader category of 'Professional, Scientific, and Technical Services' has consistently been in the hundreds of billions of dollars annually. Within the DoD specifically, contracts for studies, analysis, and technical support often represent a substantial portion of this, driven by the need for advanced research, strategic planning, and evidence-based decision-making. Factors influencing these trends include geopolitical events, technological advancements, and shifts in defense strategy, all of which necessitate ongoing analytical support.

How does the pricing structure of this contract compare to similar technical analysis contracts awarded by other federal agencies?

The pricing structure of this contract, being a Firm Fixed Price (FFP) award, is designed to provide cost certainty to the government. Comparing FFP contracts for similar technical analysis and studies support across federal agencies reveals that while the structure is common, the actual rates and total values can vary significantly. Factors influencing these variations include the specific agency's budget, the criticality and complexity of the services required, the geographic location of performance, and the level of competition. For instance, contracts supporting highly specialized or classified research may command higher prices than those for more general analytical tasks. Benchmarking requires careful consideration of the scope of work, deliverables, and contractor overhead structures. Generally, FFP contracts are preferred when the scope is well-defined, as they shift risk to the contractor.

What are the key performance indicators (KPIs) used to evaluate the success of this contract and the contractor's performance?

The key performance indicators (KPIs) for a contract like this, focused on technical analysis and studies support, are typically centered around the quality, timeliness, and impact of the deliverables. While specific KPIs are detailed in the contract's Performance Work Statement (PWS), common metrics include adherence to deadlines for reports and studies, the clarity and accuracy of the analysis provided, the actionable nature of recommendations, and the overall satisfaction of the government client. For example, KPIs might measure the percentage of reports submitted on time, the number of findings incorporated into policy or strategy, or ratings from government stakeholders on the usefulness of the contractor's insights. The firm fixed-price nature also implies that meeting the defined scope and quality standards without cost overruns is a fundamental performance metric.

What is the track record of Booz Allen Hamilton in delivering technical analysis and studies support to the federal government?

Booz Allen Hamilton has a long-standing and extensive track record of delivering technical analysis and studies support to the federal government, including the Department of Defense. They are a major contractor across numerous agencies, consistently awarded significant contracts for a wide array of professional, scientific, and technical services. Their experience spans strategic planning, systems engineering, cybersecurity, intelligence analysis, and management consulting. Historically, they have demonstrated the capacity to handle large, complex projects requiring deep subject matter expertise and a significant workforce. Performance reviews and contract databases generally reflect a history of successful contract execution, though like any large contractor, specific contract performance can vary. Their established presence suggests a strong understanding of government contracting processes and requirements.

What are the potential risks associated with relying on a single large contractor for critical technical analysis and studies support?

Relying on a single large contractor like Booz Allen Hamilton for critical technical analysis and studies support presents several potential risks. One primary risk is a potential decrease in competitive pressure over time, which could lead to complacency or less aggressive pricing in future procurements if not managed carefully. Another concern is vendor lock-in, where the government becomes heavily dependent on the contractor's specific methodologies, personnel, or proprietary knowledge, making it difficult and costly to switch providers. There's also the risk of knowledge drain if key personnel leave the contractor's employ. Furthermore, a single point of failure could arise if the contractor experiences significant financial, operational, or reputational issues. To mitigate these risks, robust contract management, clear performance expectations, and strategic planning for future competition are essential.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical 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: HQ003419R0014

Offers Received: 2

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: $125,082,493

Exercised Options: $99,842,493

Current Obligation: $99,298,281

Actual Outlays: $5,383,136

Subaward Activity

Number of Subawards: 41

Total Subaward Amount: $3,527,362

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ003415D0014

IDV Type: IDC

Timeline