Booz Allen Hamilton awarded $125M+ contract for engineering services by the Department of Defense

Contract Overview

Contract Amount: $125,073,591 ($125.1M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2020-03-16

End Date: 2025-03-15

Contract Duration: 1,825 days

Daily Burn Rate: $68.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: SEE PAGE 2: GENERAL COMMENTS

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92110

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $125.1 million to BOOZ ALLEN HAMILTON INC for work described as: SEE PAGE 2: GENERAL COMMENTS Key points: 1. Contract value exceeds $125 million, indicating a significant investment in engineering services. 2. Awarded under full and open competition, suggesting a robust market for these services. 3. The contract duration of 5 years points to a long-term need for these capabilities. 4. The 'Cost Plus Fixed Fee' pricing structure requires careful monitoring to ensure value. 5. This award represents a substantial portion of the Department of the Navy's engineering service expenditures. 6. The contractor, Booz Allen Hamilton, is a major player in the government contracting space.

Value Assessment

Rating: good

The contract value of over $125 million for engineering services is substantial. Benchmarking against similar large-scale engineering contracts within the Department of Defense is crucial. The 'Cost Plus Fixed Fee' (CPFF) structure necessitates diligent oversight to ensure costs remain reasonable and the fixed fee aligns with market expectations for similar services. Without specific per-unit cost data, a direct comparison is difficult, but the overall value suggests a significant scope of work.

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 a competitive bidding process generally leads to better price discovery and potentially more favorable terms for the government. The specific number of bidders is not provided, but the category suggests a healthy level of market interest.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment, driving down costs and encouraging innovation among potential contractors.

Public Impact

The Department of Defense benefits from specialized engineering expertise to support its operations and technological advancements. Services delivered likely include a range of engineering disciplines critical for military readiness and infrastructure. The contract's primary geographic impact is likely within California, where the contractor is based, but could extend to various DoD operational areas. This contract supports a workforce of skilled engineers and technical professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Cost Plus Fixed Fee' (CPFF) contract type can lead to cost overruns if not managed meticulously.
Reliance on a single large contractor for critical engineering services could pose a risk if performance falters.
The long duration of the contract may not always reflect the most current technological needs or market pricing.

Positive Signals

Awarded through full and open competition, indicating a competitive market and potential for value.
The contractor, Booz Allen Hamilton, has a significant track record in government contracting.
The contract duration suggests a stable and ongoing need for these essential engineering services.

Sector Analysis

The engineering services sector for the federal government is a substantial market, encompassing a wide array of technical support, design, and consulting. This contract falls within the broader professional services category, where large, established firms like Booz Allen Hamilton often compete. Spending in this sector is driven by the complex needs of agencies like the Department of Defense, requiring specialized expertise for everything from infrastructure development to advanced technological systems. Comparable spending benchmarks would involve analyzing other large engineering services contracts awarded across various federal agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss: false' and 'sb: false'. This suggests that the primary award was made to a large business. While there are no explicit subcontracting requirements mentioned, large prime contractors are often encouraged or required to subcontract portions of their work to small businesses. The impact on the small business ecosystem would depend on whether Booz Allen Hamilton actively pursues small business subcontractors for this specific contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy and the Department of Defense. Mechanisms likely include contract performance reviews, financial audits, and adherence to reporting requirements stipulated in the contract. Transparency is generally maintained through contract databases and public reporting, though specific project details may be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Engineering Services
Professional Services Contracts
Cost Plus Fixed Fee Contracts
Naval Engineering Support
Government Consulting Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
Long contract duration may not always align with rapidly evolving technological needs.
Reliance on a single large contractor for critical services can pose performance risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $125.1 million to BOOZ ALLEN HAMILTON INC. SEE PAGE 2: GENERAL COMMENTS

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 $125.1 million.

What is the period of performance?

Start: 2020-03-16. End: 2025-03-15.

What is Booz Allen Hamilton's track record with similar 'Cost Plus Fixed Fee' engineering contracts within the Department of Defense?

Booz Allen Hamilton has a long and extensive history of performing 'Cost Plus Fixed Fee' (CPFF) contracts across various federal agencies, including the Department of Defense. Their track record generally indicates a capacity to manage complex projects under this pricing structure. However, CPFF contracts inherently carry a risk of cost escalation if not rigorously managed. Analysis of their past performance on similar DoD contracts would involve reviewing past performance evaluations, any documented cost overruns or underruns, and the efficiency with which they met the fixed fee objectives. Specific data on their historical performance on CPFF engineering contracts within the DoD would provide a clearer picture of their value delivery and cost control capabilities in this specific context.

How does the awarded amount of $125 million compare to typical engineering services contracts of this nature?

The $125 million award is a substantial figure, placing it in the upper tier of engineering services contracts. To benchmark this value, one would compare it against other large-scale engineering support contracts awarded by the Department of Defense or other federal agencies to prime contractors of similar size and capability. Factors such as the specific engineering disciplines required, the duration of the contract (5 years in this case), and the complexity of the tasks involved would influence the 'typical' range. Contracts of this magnitude often involve broad support across multiple projects or operational areas, rather than highly specialized, niche services. A detailed comparison would require access to a database of similar contracts, analyzing their total value, period of performance, and the scope of work.

What are the primary risks associated with a 'Cost Plus Fixed Fee' contract of this magnitude and duration?

The primary risks associated with a 'Cost Plus Fixed Fee' (CPFF) contract of this magnitude ($125M+) and duration (5 years) revolve around cost control and contractor incentive alignment. For the government, the risk is that the 'cost plus' component could lead to higher-than-anticipated expenditures if the contractor's actual costs exceed projections, even with a fixed fee. Inefficient practices by the contractor can inflate costs without directly impacting their fee. The 'fixed fee' provides some predictability but may not adequately incentivize cost savings if the contractor is not effectively managed. For the contractor, risks include underestimating costs and being unable to cover them with the fixed fee, or facing intense scrutiny over allowable costs. Robust government oversight, clear definition of allowable costs, and performance metrics are crucial to mitigate these risks.

What is the expected program effectiveness and impact of these engineering services for the Department of the Navy?

The expected program effectiveness hinges on the specific engineering services provided, which are not detailed in the provided data. However, for the Department of the Navy, engineering services are critical for maintaining and modernizing naval assets, developing new technologies, ensuring operational readiness, and supporting infrastructure. Effective delivery of these services should translate into improved system performance, enhanced safety, reduced lifecycle costs, and the successful implementation of new capabilities. The impact could range from supporting the design and construction of new vessels to providing technical expertise for complex weapon systems or ensuring the reliability of existing platforms. The long-term success will be measured by the Navy's ability to meet its strategic objectives with the support provided.

How has federal spending on engineering services, particularly by the Department of Defense, trended in recent years?

Federal spending on engineering services, particularly by the Department of Defense (DoD), has historically been substantial and tends to fluctuate based on geopolitical events, modernization priorities, and budget allocations. The DoD is consistently one of the largest federal purchasers of engineering and technical services. In recent years, spending has been influenced by ongoing military operations, investments in advanced technologies (e.g., AI, cyber, hypersonics), and infrastructure upgrades. While specific year-over-year trends require detailed analysis of historical federal procurement data, the overall demand for engineering expertise within the DoD remains high due to the complexity and scale of its operations and equipment. This $125M+ contract aligns with the DoD's continuous need for such specialized support.

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: N0003919R3510

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $204,995,556

Exercised Options: $204,995,556

Current Obligation: $125,073,591

Actual Outlays: $12,144,879

Subaward Activity

Number of Subawards: 33

Total Subaward Amount: $18,235,159

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7264

IDV Type: IDC

Timeline