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
- Cost Plus Award Fee (CPAF) contracts can lead to higher costs if not managed carefully.
- Reliance on a single large business may limit future competition or innovation.
Positive Signals
- Full and open competition utilized.
- Contract supports a critical defense platform (LCS).
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
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Award Fee (CPAF) structure.
- Contract awarded to a single large business.
- Long contract duration (nearly 5 years).
- No explicit small business subcontracting noted.
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 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: 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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