Booz Allen Hamilton awarded $19M+ for Engineering Services, with 2 bids received

Contract Overview

Contract Amount: $19,041,973 ($19.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2017-05-18

End Date: 2022-05-31

Contract Duration: 1,839 days

Daily Burn Rate: $10.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF CSM RIP SPT

Place of Performance

Location: ALBANY, DOUGHERTY County, GEORGIA, 31704

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $19.0 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF CSM RIP SPT Key points: 1. Contract value of over $19 million for engineering services. 2. Competition was full and open, indicating a broad market search. 3. The contract was awarded as a delivery order, suggesting task-based work. 4. Firm Fixed Price contract type aims to control costs. 5. The contract duration spans over 1800 days, indicating a long-term need. 6. The contractor, Booz Allen Hamilton, is a large, established firm. 7. The contract falls under the Engineering Services NAICS code. 8. Awarded by the Department of the Navy, a major defense spender.

Value Assessment

Rating: good

The contract value of approximately $19 million over five years suggests a moderate annual spend. Without specific deliverables or comparable contracts for the exact engineering services rendered, a precise value-for-money assessment is challenging. However, the firm fixed-price structure is a positive indicator for cost control. Benchmarking against similar large-scale engineering support contracts for naval operations would provide further insight into whether this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. With two bids received, the competition level appears moderate. While two bidders suggest some level of market interest, a higher number of bids would typically lead to more robust price discovery and potentially lower prices for the government. The limited number of bids could indicate a specialized service or a market dominated by a few large players.

Taxpayer Impact: The full and open competition, despite only two bidders, suggests an effort to achieve fair market pricing. However, taxpayers may not have realized the full benefit of intense competition that could have driven prices lower.

Public Impact

The Department of the Navy benefits from specialized engineering expertise. Services likely support naval readiness, platform maintenance, or new system development. Geographic impact is likely concentrated around naval bases or operational areas. Workforce implications include employment for engineers and technical specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bids) may have resulted in higher costs than a more robustly competed contract.
Long contract duration could lead to scope creep or evolving requirements not fully captured in initial pricing.
As a large business, Booz Allen Hamilton's involvement may limit opportunities for smaller, specialized firms in this specific award.

Positive Signals

Firm Fixed Price contract type provides cost certainty for the government.
Full and open competition demonstrates an effort to engage the broader market.
Booz Allen Hamilton is a well-established contractor with a track record in government services.

Sector Analysis

Engineering services are a critical component of the defense sector, supporting everything from research and development to maintenance and modernization of military assets. The market for these services is substantial, with significant government spending allocated annually. This contract fits within the broader category of professional services supporting defense readiness, where large, experienced firms like Booz Allen Hamilton often compete.

Small Business Impact

This contract was not set aside for small businesses and was awarded to a large prime contractor. There is no explicit information on subcontracting plans for small businesses. The absence of a small business set-aside or specific subcontracting goals means that opportunities for small businesses to participate in this specific contract may be limited, potentially impacting the small business ecosystem for these specialized engineering services.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a delivery order under a larger contract vehicle, oversight would likely involve program managers within the Department of the Navy responsible for task execution and performance monitoring. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Engineering Services
Department of Defense Engineering and Technical Services
Professional Services Contracts
Defense Logistics Agency Support Contracts

Risk Flags

Limited Competition
Long Contract Duration
Potential for Cost Overruns if Requirements Evolve

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.0 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF CSM RIP SPT

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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $19.0 million.

What is the period of performance?

Start: 2017-05-18. End: 2022-05-31.

What specific engineering services were provided under this contract?

The provided data indicates the contract was for 'Engineering Services' under NAICS code 541330. While the specific nature of these services isn't detailed, this code typically encompasses services such as design, development, and consulting related to engineering disciplines. For the Department of the Navy, this could range from naval architecture and marine engineering to systems engineering for complex platforms, weapons systems, or infrastructure. Further details would require examining the contract's Statement of Work (SOW) or task orders issued against it.

How does the $19M contract value compare to similar engineering services contracts awarded by the Navy?

The $19 million contract value over approximately five years represents an average annual spend of around $3.8 million. This is a moderate-sized contract within the vast landscape of Department of Defense procurement. The Navy awards numerous contracts for engineering services, many of which are significantly larger, especially those supporting major shipbuilding programs or advanced technology development. However, this value is substantial enough to indicate a significant need for specialized engineering support. A direct comparison would require identifying contracts with identical or highly similar scopes of work and durations.

What is Booz Allen Hamilton's track record with the Department of the Navy?

Booz Allen Hamilton is a major, long-standing government contractor with extensive experience serving the Department of Defense, including the Department of the Navy. They have a broad portfolio of contracts across various service areas, including engineering, IT, cybersecurity, and management consulting. Their historical performance with the Navy is generally characterized by large contract awards and a consistent presence in supporting naval operations and modernization efforts. Specific performance ratings and past issues would be detailed in contract performance reports (CPARS) if publicly accessible.

What are the potential risks associated with a firm fixed-price contract of this duration?

While a firm fixed-price (FFP) contract is designed to provide cost certainty, risks can still emerge, especially over a long duration like 1839 days (approx. 5 years). One primary risk is that the initial pricing may not accurately reflect unforeseen changes in labor costs, material prices, or technological advancements over the contract period. If the contractor underestimated these factors, they might seek contract modifications, potentially increasing the overall cost. Conversely, if the government's requirements evolve significantly, the FFP structure might limit flexibility in adapting the scope without costly renegotiations. Scope creep, where the contractor performs work beyond the original agreement without a corresponding price adjustment, is also a risk if not managed diligently.

How does the limited number of bids (2) impact the value proposition for taxpayers?

A limited number of bids, such as the two received for this contract, can potentially reduce the value proposition for taxpayers. Intense competition among multiple bidders typically drives down prices as companies vie for the contract. When only two bidders participate, there is less pressure on each company to offer the lowest possible price. This can lead to the government paying a higher price than if there had been, for example, five or more competitive bids. While the contract was competed under 'full and open' procedures, the market dynamics indicated by the low bid count suggest that taxpayers may not have achieved the maximum cost savings possible.

What is the significance of this contract being awarded as a 'Delivery Order'?

Awarding this contract as a 'Delivery Order' signifies that it is likely a task order issued against a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar contract vehicle. This approach is common for services that are needed over a period but whose exact quantity or timing isn't known upfront. It allows the agency to procure specific services as needed, providing flexibility. For the government, it means the basic terms, conditions, and pricing structure were likely established earlier, and this order represents a specific call for a defined set of services within those parameters. The duration of 1839 days suggests this might be a significant delivery order or represent the cumulative duration of multiple orders under a larger IDIQ.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: M6700417R0006

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, MC LEAN, 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: $20,812,408

Exercised Options: $19,041,973

Current Obligation: $19,041,973

Actual Outlays: $893,094

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $551,781

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU108

IDV Type: IDC

Timeline