Navy awards $120.7M engineering services contract to Booz Allen Hamilton for PMW 130 PSS

Contract Overview

Contract Amount: $120,676,508 ($120.7M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2022-01-31

End Date: 2026-01-15

Contract Duration: 1,445 days

Daily Burn Rate: $83.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PMW 130 PSS

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $120.7 million to BOOZ ALLEN HAMILTON INC for work described as: PMW 130 PSS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1445 days indicates a significant, long-term engagement. 3. Engineering services are critical for complex defense systems. 4. The contract type (Cost Plus Fixed Fee) can present cost control challenges. 5. The award amount falls within a moderate spending range for major defense contracts. 6. The specific program (PMW 130 PSS) likely supports naval platform modernization or sustainment.

Value Assessment

Rating: good

The contract value of $120.7 million for engineering services over approximately four years appears reasonable when benchmarked against similar large-scale defense support contracts. While specific per-unit cost data is not available, the fixed fee component suggests a degree of cost certainty for the government. However, the Cost Plus Fixed Fee (CPFF) structure warrants careful monitoring to ensure costs do not escalate beyond initial projections, as this structure can incentivize contractors to incur costs to achieve the fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of multiple bidders in such a competitive environment generally leads to better price discovery and potentially more favorable terms for the government. The specific number of bidders is not provided, but the designation implies a robust competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and encourages a wider pool of contractors to offer their best value, ultimately leading to more efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of the Navy and its naval modernization or sustainment efforts. Services delivered include critical engineering support for defense systems, likely related to program management and technical expertise. The geographic impact is primarily within the Department of Defense's operational sphere, with potential implications for naval bases and facilities. Workforce implications include the employment of skilled engineers and technical professionals by Booz Allen Hamilton.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently.
Lack of specific per-unit cost data makes detailed value-for-money assessment challenging.
The duration of the contract (over 4 years) requires sustained oversight to ensure continued performance and value.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Booz Allen Hamilton is a large, established contractor with significant experience in government services.
The contract supports critical defense programs, aligning with national security objectives.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the federal contracting market supporting defense and other government agencies. The market for defense engineering services is substantial, driven by the continuous need for modernization, maintenance, and development of complex military systems. Booz Allen Hamilton is a major player in this space, competing with other large defense contractors. Spending in this category is often characterized by long-term, high-value contracts due to the complexity and criticality of the services required.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and the contractor is not a small business (ss: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, as a large prime contractor, Booz Allen Hamilton may engage small businesses as subcontractors, contributing to the broader small business ecosystem, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy contracting officers and program managers. Accountability measures are embedded within the Cost Plus Fixed Fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, though specific performance metrics and detailed cost breakdowns may be subject to confidentiality. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Program Executive Office (PEO) Ships Contracts
Defense Engineering Services
Cost Plus Fixed Fee Contracts
Department of Defense IT and Professional Services

Risk Flags

Cost Plus Fixed Fee structure requires diligent oversight to manage potential cost escalations.
Limited public data on specific performance metrics and number of bidders.
Contract duration necessitates sustained government program management attention.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $120.7 million to BOOZ ALLEN HAMILTON INC. PMW 130 PSS

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 $120.7 million.

What is the period of performance?

Start: 2022-01-31. End: 2026-01-15.

What is Booz Allen Hamilton's track record with the Department of the Navy for similar engineering services?

Booz Allen Hamilton has a long-standing and extensive track record of providing professional and engineering services to the Department of the Navy and other Department of Defense agencies. They are a major incumbent contractor across numerous naval programs, often supporting complex systems engineering, program management, and technical consulting. Their history includes numerous large-value contracts, indicating a deep familiarity with Navy requirements and processes. While specific performance ratings for this exact contract are not publicly detailed, their overall presence suggests a capacity to meet the demands of such engagements. However, like any large contractor, they have faced scrutiny on specific contracts regarding cost management and performance, necessitating ongoing government oversight.

How does the $120.7 million award compare to other engineering services contracts awarded by the Navy in the last fiscal year?

The $120.7 million award for engineering services is a significant but not exceptionally large contract within the Department of the Navy's overall spending portfolio. The Navy awards numerous contracts for engineering, technical, and professional services, with values ranging from a few million to hundreds of millions of dollars annually. This particular contract, awarded over approximately four years, falls into the mid-to-upper tier for individual task orders or delivery orders under larger indefinite-delivery/indefinite-quantity (IDIQ) vehicles or for specific program support. Benchmarking requires comparing it against contracts with similar scope (e.g., program management support, systems engineering for naval platforms) and contract types (CPFF). Generally, contracts of this magnitude are common for supporting major acquisition programs or sustainment efforts.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of service?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract structure, as seen here, is the potential for cost overruns. While the 'fixed fee' provides the contractor with a guaranteed profit margin, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If costs escalate beyond initial estimates due to unforeseen complexities, scope creep, or inefficient performance, the total contract value can increase significantly. This structure can also reduce the contractor's incentive to control costs aggressively, as their fee is fixed regardless of the final cost. Effective government oversight, rigorous cost monitoring, and clear definition of work are crucial to mitigate these risks and ensure value for taxpayer money.

What is the significance of the PMW 130 PSS program for the Navy's operations?

PMW 130 PSS likely refers to a specific program within the Program Executive Office for Ships (PEO Ships), potentially related to Program Management for Warfare Systems (PMW) or a similar designation for platform systems. Without more specific program details, it's difficult to ascertain the exact operational significance. However, engineering services contracts of this nature typically support the design, development, integration, testing, or sustainment of critical naval platforms or weapon systems. Such programs are vital for maintaining the Navy's technological edge, ensuring the readiness of its fleet, and executing its mission effectively. The longevity and value of the contract suggest it supports a core, ongoing requirement for the Navy.

How has federal spending on engineering services (NAICS 541330) trended over the past five years, and where does this contract fit?

Federal spending on engineering services (NAICS 541330) has generally shown a consistent upward trend over the past five fiscal years, driven largely by defense modernization requirements and infrastructure investments. The Department of Defense is consistently the largest customer for these services. This $120.7 million contract awarded to Booz Allen Hamilton fits within this trend, representing a significant investment in specialized engineering expertise. While individual contract awards vary widely in size, this amount is substantial enough to indicate support for a major program or a critical set of ongoing engineering needs, aligning with the overall robust federal demand for such services, particularly within the defense sector.

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: N0003921R3019

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: $195,291,405

Exercised Options: $172,602,660

Current Obligation: $120,676,508

Actual Outlays: $351,947

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $28,931,011

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