Booz Allen Hamilton Inc. awarded $40.4M contract for engineering services by DHS, with a high benchmarked per-unit cost

Contract Overview

Contract Amount: $40,433,615 ($40.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Homeland Security

Start Date: 2005-05-24

End Date: 2006-07-26

Contract Duration: 428 days

Daily Burn Rate: $94.5K/day

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: CONTRACT SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $40.4 million to BOOZ ALLEN HAMILTON INC for work described as: CONTRACT SUPPORT Key points: 1. Contract value of $40.4M for engineering services indicates a significant investment in specialized expertise. 2. The contract was awarded as Other Direct Costs (ODC), suggesting flexibility in resource allocation. 3. A high benchmarked per-unit cost of $94,471 warrants scrutiny regarding cost-effectiveness. 4. The contract duration of 428 days suggests a medium-term engagement for specific engineering needs. 5. The contractor, Booz Allen Hamilton Inc., is a large, established firm with extensive federal contracting experience. 6. The contract's performance period falls within a historical context of significant federal spending on engineering services.

Value Assessment

Rating: questionable

The per-unit cost benchmark of $94,471 is notably high when compared to typical engineering service contracts of similar scope. While Booz Allen Hamilton Inc. is a reputable contractor, this elevated cost raises questions about the value for money achieved. Further analysis would be needed to understand the specific services rendered that justify this premium pricing, such as highly specialized expertise or unique project requirements not evident from the provided data.

Cost Per Unit: $94,471

Competition Analysis

Competition Level: unknown

The competition level for this contract is not specified in the provided data. Without information on whether this was a sole-source award, competed among a limited number of bidders, or fully and openly competed, it is difficult to assess the impact on price discovery. A lack of robust competition could potentially lead to higher prices for the government.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Limited or sole-source awards may result in less favorable pricing compared to those secured through open competition, potentially increasing the overall cost to taxpayers.

Public Impact

The primary beneficiaries are likely federal agencies within the Department of Homeland Security requiring specialized engineering support. The services delivered are engineering services, crucial for the planning, design, and execution of various infrastructure or technical projects. The geographic impact is centered in the District of Columbia, where the contract was awarded. Workforce implications include the potential employment of engineers and technical specialists by Booz Allen Hamilton Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High per-unit cost benchmark suggests potential for overspending or inefficient resource utilization.
Lack of transparency regarding competition level hinders assessment of fair pricing and taxpayer value.
Contract type (Time and Materials) can sometimes lead to cost overruns if not managed tightly.

Positive Signals

Award to a large, experienced contractor like Booz Allen Hamilton Inc. may indicate a focus on reliability and proven performance.
The contract addresses a clear need for engineering services within a critical federal agency.
The contract was awarded by the Department of Homeland Security, a high-priority agency.

Sector Analysis

Engineering services represent a broad sector within the federal contracting landscape, encompassing a wide range of technical expertise. This contract falls within the professional services category, often characterized by high-value, specialized knowledge. Comparable spending benchmarks in this sector vary widely based on the specific engineering discipline and project complexity, but the per-unit cost here appears elevated.

Small Business Impact

The provided data does not indicate any small business set-aside provisions for this contract, nor does it specify subcontracting goals. Given the large contract value and the nature of the prime contractor (Booz Allen Hamilton Inc.), it is possible that subcontracting opportunities may exist for specialized small businesses, but this cannot be confirmed without further details.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) and the agency's procurement oversight bodies within the Department of Homeland Security. Transparency is dependent on the agency's reporting practices and the public availability of contract details. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Homeland Security - Engineering Support Services
Federal Engineering and Technical Services Contracts
Professional Services Contracts
Time and Materials Contracts

Risk Flags

High Per-Unit Cost
Lack of Competition Data
Time and Materials Contract Type Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $40.4 million to BOOZ ALLEN HAMILTON INC. CONTRACT 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 Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $40.4 million.

What is the period of performance?

Start: 2005-05-24. End: 2006-07-26.

What specific engineering services were provided under this contract?

The provided data indicates the contract was for 'Engineering Services' (NAICS code 541330). However, the specific nature of these services is not detailed. This could range from civil, mechanical, electrical, or systems engineering, to specialized consulting related to security infrastructure, technology integration, or operational planning within the Department of Homeland Security. Without a detailed statement of work (SOW), it's impossible to ascertain the precise technical tasks performed.

How does the per-unit cost of $94,471 compare to similar engineering service contracts within DHS?

The per-unit cost benchmark of $94,471 is significantly higher than the average for many standard engineering service contracts. While specific comparisons are difficult without knowing the exact services, a typical benchmark for engineering services might range from $100 to $300 per hour, translating to a much lower per-unit cost over a contract's life, depending on the unit definition. This high figure suggests either a very specialized niche service, a high level of contractor overhead, or potentially an inefficiently priced contract. Benchmarking against contracts with identical NAICS codes and similar scope within DHS would be necessary for a precise comparison.

What is the risk associated with a Time and Materials (T&M) contract type for engineering services?

Time and Materials (T&M) contracts carry inherent risks for the government, primarily related to cost control. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee. The risk is that costs can escalate beyond initial estimates if the scope of work is not well-defined or if project duration extends unexpectedly. Effective oversight, clear task orders, and diligent monitoring of labor hours and material costs are crucial to mitigate these risks and ensure the government receives good value.

What is Booz Allen Hamilton Inc.'s track record with federal engineering service contracts?

Booz Allen Hamilton Inc. is a large, well-established government contractor with a substantial history of performing a wide array of professional and technical services, including engineering. They have consistently secured significant federal contracts across various agencies. Their track record generally indicates extensive experience and capability in delivering complex solutions. However, like any large contractor, specific contract performance can vary, and a detailed review of their past performance ratings and any past performance issues on similar contracts would provide a more nuanced understanding.

What does the contract award date of May 24, 2005, suggest about current spending patterns?

An award date in 2005 places this contract in a historical context predating many significant shifts in federal procurement policies and technology adoption. While it reflects spending patterns of that era, it may not be directly representative of current federal spending on engineering services. Modern contracts might incorporate different performance metrics, competition strategies, and technological requirements. Analyzing spending trends from 2005 provides insight into historical resource allocation but should be supplemented with more recent data for contemporary analysis.

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

Contractor Details

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

Address: 8283 GREENSBORO DR # 700, MC LEAN, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $40,433,615

Exercised Options: $40,433,615

Current Obligation: $40,433,615

Parent Contract

Parent Award PIID: GS23F0025K

IDV Type: FSS

Timeline