DoD's LCS Mission Package Engineering Contract Awarded to Booz Allen Hamilton for $26M

Contract Overview

Contract Amount: $26,047,304 ($26.0M)

Contractor: Booz Allen Hamilton Engineering Services, LLC

Awarding Agency: Department of Defense

Start Date: 2006-12-13

End Date: 2011-10-31

Contract Duration: 1,783 days

Daily Burn Rate: $14.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: LCS) MISSION PACKAGE ENGINEERING, TEST & EVALUATION, AND LIFE CYCLE MANAGEMENT

Place of Performance

Location: PANAMA CITY, BAY County, FLORIDA, 32408

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $26.0 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC for work described as: LCS) MISSION PACKAGE ENGINEERING, TEST & EVALUATION, AND LIFE CYCLE MANAGEMENT Key points: 1. Contract awarded to a single large business, Booz Allen Hamilton. 2. Significant contract value of $26 million over nearly 5 years. 3. Full and open competition was used, suggesting a competitive bidding process. 4. The contract falls under Engineering Services, a critical sector for defense. 5. Potential for cost overruns given the Cost Plus Award Fee structure.

Value Assessment

Rating: good

The contract value of $26 million over almost 5 years appears reasonable for specialized engineering services. Benchmarking against similar large-scale defense engineering contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition indicates a broad solicitation, allowing multiple qualified contractors to bid. This method generally promotes competitive pricing and ensures the government receives best value.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair market value for the engineering services provided.

Public Impact

Supports the Littoral Combat Ship (LCS) program, a key naval asset. Engineering, test, and evaluation services are crucial for maintaining and improving naval capabilities. The contract duration of nearly 5 years indicates a long-term need for these specialized services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Engineering Services sector, which is vital for the Department of Defense's technological advancement and operational readiness. Spending in this area is typically high due to the complexity and specialized nature of defense engineering.

Small Business Impact

The contract was awarded to a large business and there is no indication of small business participation. This suggests that small businesses were either not involved or did not secure a subcontracting role in this specific award.

Oversight & Accountability

The Department of the Navy awarded this delivery order under full and open competition, indicating a structured procurement process. Oversight would focus on performance metrics and cost control under the CPAF structure.

Related Government Programs

Risk Flags

Tags

engineering-services, department-of-defense, fl, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.0 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC. LCS) MISSION PACKAGE ENGINEERING, TEST & EVALUATION, AND LIFE CYCLE MANAGEMENT

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 Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $26.0 million.

What is the period of performance?

Start: 2006-12-13. End: 2011-10-31.

What specific engineering, test, and evaluation tasks are included in this contract, and how do they align with the LCS program's current needs?

The contract encompasses mission package engineering, test, and evaluation, and life cycle management for the Littoral Combat Ship (LCS). These tasks are critical for ensuring the operational effectiveness, reliability, and continued development of the LCS's various mission packages, addressing needs related to system upgrades, performance verification, and long-term sustainment.

What are the potential risks associated with the Cost Plus Award Fee (CPAF) contract type for this engineering service?

The primary risk with CPAF is that the contractor may incur costs beyond what might be achieved under a fixed-price contract, as the fee is tied to performance. While designed to incentivize performance, it can lead to higher overall spending if award criteria are not strictly managed or if the base cost is underestimated, potentially impacting taxpayer value.

How effectively does the full and open competition ensure optimal value and technical solutions for the LCS mission packages?

Full and open competition is generally effective in driving value by fostering a competitive environment where multiple vendors can propose solutions. This process allows the Navy to select the offer that best balances cost, technical merit, and performance, thereby maximizing the likelihood of obtaining optimal solutions for the complex engineering and testing requirements of the LCS mission packages.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering 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: N0002406R3676

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)

Address: 2551 RIVA ROAD, ANNAPOLIS, MD, 21401

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $444,066,469

Exercised Options: $219,869,685

Current Obligation: $26,047,304

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4016

IDV Type: IDC

Timeline

Start Date: 2006-12-13

Current End Date: 2011-10-31

Potential End Date: 2011-10-31 00:00:00

Last Modified: 2018-02-27

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