DoD's PEO USC Awards $205M Engineering Services Contract to Booz Allen Hamilton
Contract Overview
Contract Amount: $205,138,437 ($205.1M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2023-05-09
End Date: 2026-08-04
Contract Duration: 1,183 days
Daily Burn Rate: $173.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PROFESSIONAL SUPPORT SERVICES IN SUPPORT OF THE PROGRAM EXECUTIVE OFFICE FOR UNMANNED AND SMALL COMBATANTS (PEO USC).
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002
Plain-Language Summary
Department of Defense obligated $205.1 million to BOOZ ALLEN HAMILTON INC for work described as: PROFESSIONAL SUPPORT SERVICES IN SUPPORT OF THE PROGRAM EXECUTIVE OFFICE FOR UNMANNED AND SMALL COMBATANTS (PEO USC). Key points: 1. Contract awarded to Booz Allen Hamilton for professional support services. 2. Significant value of $205.4 million over its period of performance. 3. Competition method was full and open, indicating broad market engagement. 4. Services fall under Engineering Services (NAICS 541330). 5. Contract type is Cost Plus Fixed Fee, common for complex services.
Value Assessment
Rating: good
The contract value of $205.4 million appears reasonable for comprehensive engineering support services to a major program executive office. Benchmarking against similar large-scale defense support contracts would provide further context on pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary defense support services.
Public Impact
Supports critical unmanned and small combatant programs for the Navy. Ensures continued development and sustainment of advanced naval capabilities. Impacts the defense industrial base through a major contract award.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize cost overruns if not managed closely.
- Long duration (1183 days) requires sustained oversight.
- No small business participation noted.
Positive Signals
- Full and open competition promotes market efficiency.
- Supports a critical defense program (PEO USC).
- Experienced contractor (Booz Allen Hamilton).
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically engineering services. Spending in this area is substantial within the Department of Defense, supporting complex weapon system development and acquisition.
Small Business Impact
The data indicates that this contract was not awarded to a small business (ss: false, sb: false). There is no indication of small business subcontracting goals within the provided data, which could be an area for review.
Oversight & Accountability
The Department of the Navy's contracting activity suggests established oversight processes. However, the Cost Plus Fixed Fee structure necessitates diligent monitoring of costs and performance to ensure accountability and prevent waste.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- No small business participation.
- Long contract duration requiring sustained oversight.
- Services are critical to advanced naval programs.
Tags
engineering-services, department-of-defense, dc, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $205.1 million to BOOZ ALLEN HAMILTON INC. PROFESSIONAL SUPPORT SERVICES IN SUPPORT OF THE PROGRAM EXECUTIVE OFFICE FOR UNMANNED AND SMALL COMBATANTS (PEO USC).
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 $205.1 million.
What is the period of performance?
Start: 2023-05-09. End: 2026-08-04.
What specific engineering services are being provided under this contract, and how do they align with PEO USC's strategic objectives?
The contract is for professional support services for PEO USC. While the specific services aren't detailed, they likely encompass systems engineering, technical support, program management assistance, and acquisition support critical for the development, integration, and sustainment of unmanned and small combatant naval systems. These services directly support PEO USC's mission to deliver advanced maritime capabilities to the warfighter.
What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for these complex engineering services?
CPFF contracts, while allowing flexibility for evolving requirements, carry a risk of cost overruns if the contractor's costs exceed projections. Effective government oversight is crucial to manage the 'cost' component, ensuring that the 'fixed fee' remains appropriate and that the contractor is incentivized to control expenses. Without robust monitoring, the total contract cost could escalate beyond initial estimates.
How does the $205.4 million contract value compare to similar engineering support contracts for major defense programs, and what does this suggest about its value for money?
The $205.4 million value is substantial, reflecting the complexity and scope of supporting PEO USC. Without specific benchmarks for comparable programs, a definitive value-for-money assessment is difficult. However, the full and open competition suggests a market-driven price. Further analysis would involve comparing unit costs, labor rates, and overhead structures against similar DoD contracts to ensure competitive pricing.
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: N0016422R3004
Offers Received: 3
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: $286,543,668
Exercised Options: $218,239,449
Current Obligation: $205,138,437
Subaward Activity
Number of Subawards: 30
Total Subaward Amount: $14,125,233
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
Start Date: 2023-05-09
Current End Date: 2026-08-04
Potential End Date: 2028-05-08 00:00:00
Last Modified: 2025-12-11
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