DoD's $174.7M GPS Enterprise Engineering Services contract awarded to Booz Allen Hamilton faces scrutiny over value and competition
Contract Overview
Contract Amount: $174,738,223 ($174.7M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2019-10-24
End Date: 2024-11-15
Contract Duration: 1,849 days
Daily Burn Rate: $94.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: GLOBAL POSITIONING SYSTEM (GPS) ENTERPRISE ENGINEERING SERVICES
Place of Performance
Location: EL SEGUNDO, LOS ANGELES County, CALIFORNIA, 90245
Plain-Language Summary
Department of Defense obligated $174.7 million to BOOZ ALLEN HAMILTON INC for work described as: GLOBAL POSITIONING SYSTEM (GPS) ENTERPRISE ENGINEERING SERVICES Key points: 1. The contract's significant value raises questions about cost-effectiveness for GPS enterprise engineering. 2. Full and open competition was utilized, but the impact on price discovery needs further analysis. 3. Potential risks include cost overruns and the long duration of the contract. 4. The sector is critical for defense operations, making efficient spending paramount.
Value Assessment
Rating: questionable
The $174.7 million contract value over 5 years for engineering services requires careful benchmarking against similar DoD contracts. Without specific performance metrics and comparable data, assessing the value for money is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive indicator for price discovery. However, the specific bidding process and the number of bidders would provide a clearer picture of competitive pressure.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive environment, potentially leading to better pricing.
Public Impact
Ensures continued operation and enhancement of the critical Global Positioning System (GPS) for military and civilian use. Supports advanced engineering and technical services essential for maintaining a complex defense system. The long-term nature of the contract suggests a sustained need for these specialized services within the Department of Defense.
Waste & Efficiency Indicators
Waste Risk Score: 70 / 10
Warning Flags
- Long contract duration (5 years)
- Cost Plus Fixed Fee contract type
- High total contract value
Positive Signals
- Awarded under full and open competition
- Supports critical national infrastructure (GPS)
Sector Analysis
Engineering services for defense systems, particularly GPS, are crucial for national security and technological advancement. Spending benchmarks in this specialized sector can vary widely based on complexity and innovation required.
Small Business Impact
This contract was awarded to a large business (Booz Allen Hamilton) and does not appear to have specific set-asides or subcontracting goals for small businesses mentioned in the provided data.
Oversight & Accountability
Oversight is crucial for Cost Plus Fixed Fee contracts to ensure costs remain reasonable and that the contractor meets performance expectations. The Department of the Navy is responsible for monitoring this contract.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- High contract value
- Long contract duration
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Limited transparency on specific deliverables and performance metrics
Tags
engineering-services, department-of-defense, ca, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $174.7 million to BOOZ ALLEN HAMILTON INC. GLOBAL POSITIONING SYSTEM (GPS) ENTERPRISE ENGINEERING SERVICES
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 $174.7 million.
What is the period of performance?
Start: 2019-10-24. End: 2024-11-15.
What specific engineering services are included under this contract, and how do they directly contribute to the modernization or sustainment of the GPS enterprise?
The contract covers enterprise engineering services for the GPS system. This likely includes activities such as system design, integration, testing, cybersecurity, and lifecycle management. These services are vital for ensuring the GPS constellation remains operational, secure, and capable of meeting evolving military and civilian requirements, including modernization efforts and resilience against jamming or spoofing.
Given the Cost Plus Fixed Fee structure, what mechanisms are in place to control costs and prevent potential overruns, especially over an 1849-day period?
Cost Plus Fixed Fee contracts require robust oversight to manage costs. The Department of the Navy likely employs Earned Value Management (EVM) or similar techniques to track performance against cost and schedule. Regular audits, detailed reporting requirements, and clear definition of allowable costs are essential to mitigate the risk of overruns and ensure the fixed fee remains appropriate for the effort.
How does the $174.7 million expenditure compare to historical spending on similar GPS engineering support contracts, and what is the projected return on investment?
Benchmarking this $174.7 million expenditure against historical data for comparable GPS engineering support contracts is essential for assessing value. Without specific comparable contract data, it's difficult to determine if this represents efficient spending. A clear return on investment calculation would need to quantify the benefits derived from the engineering services, such as improved system reliability, enhanced capabilities, or cost savings in other areas.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6600119R3600
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: $178,466,206
Exercised Options: $178,466,206
Current Obligation: $174,738,223
Actual Outlays: $5,435,374
Subaward Activity
Number of Subawards: 36
Total Subaward Amount: $31,761,453
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: 2019-10-24
Current End Date: 2024-11-15
Potential End Date: 2024-11-15 00:00:00
Last Modified: 2025-10-30
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