DoD's Naval Aviation Cost Reduction Contract with BCG Exceeds $31M, Awarded via Full and Open Competition
Contract Overview
Contract Amount: $31,376,463 ($31.4M)
Contractor: THE Boston Consulting Group Inc
Awarding Agency: Department of Defense
Start Date: 2021-12-01
End Date: 2022-12-16
Contract Duration: 380 days
Daily Burn Rate: $82.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: NAVAL AVIATION COST REDUCTION EXCELLENCE
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $31.4 million to THE BOSTON CONSULTING GROUP INC for work described as: NAVAL AVIATION COST REDUCTION EXCELLENCE Key points: 1. Contract value of $31.4M for administrative management and general management consulting services. 2. Awarded to The Boston Consulting Group Inc. under full and open competition. 3. Focus on cost reduction within Naval Aviation suggests potential for significant taxpayer savings. 4. The contract duration of 380 days indicates a focused, project-based engagement.
Value Assessment
Rating: good
The contract value of $31.4M for consulting services appears reasonable given the specialized nature of cost reduction analysis for a major defense sector like Naval Aviation. Benchmarking against similar large-scale consulting engagements for government agencies would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery, allowing multiple qualified firms to bid. This method generally leads to more competitive pricing compared to limited or sole-source procurements.
Taxpayer Impact: By aiming to reduce costs in Naval Aviation, this contract has the potential to yield substantial savings for taxpayers if successful in identifying and implementing efficiencies.
Public Impact
Potential for improved efficiency and cost savings in a critical defense area. Transparency in government spending through competitive bidding processes. Impact on the operational readiness and budget allocation for the Navy's aviation programs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for scope creep in consulting projects.
- Dependence on consultant recommendations for actual cost savings.
Positive Signals
- Awarded through full and open competition.
- Focus on cost reduction, a key government objective.
- Experienced contractor with a strong reputation.
Sector Analysis
This contract falls under administrative management and general management consulting services, a common area for government outsourcing to leverage specialized expertise. Spending in this sector can vary widely, but large contracts like this often target significant operational improvements or strategic initiatives.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as indicated by 'sb': false. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The use of full and open competition suggests a structured procurement process. Oversight would typically involve regular performance reviews and milestone tracking by the Department of the Navy to ensure the contractor meets objectives and stays within budget.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns if not managed tightly.
- Risk of recommendations being difficult to implement.
- Dependency on consultant expertise for success.
- Limited visibility into specific deliverables and outcomes.
Tags
administrative-management-and-general-ma, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.4 million to THE BOSTON CONSULTING GROUP INC. NAVAL AVIATION COST REDUCTION EXCELLENCE
Who is the contractor on this award?
The obligated recipient is THE BOSTON CONSULTING GROUP 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 $31.4 million.
What is the period of performance?
Start: 2021-12-01. End: 2022-12-16.
What specific cost reduction strategies were identified and implemented as a result of this contract?
The provided data does not detail the specific strategies or outcomes of the cost reduction efforts. A follow-up analysis of performance reports or project deliverables would be necessary to ascertain the concrete actions taken and their effectiveness in achieving the contract's objectives.
What is the projected return on investment (ROI) for this $31.4M contract in terms of cost savings?
The projected ROI is not explicitly stated in the provided data. The contract's success hinges on the actual cost savings realized from the implemented recommendations. Without post-contract performance data, it's impossible to quantify the ROI at this stage.
How does the cost of this consulting engagement compare to the potential savings identified?
A direct comparison between the contract cost and identified savings is not available in the given information. The value proposition of this contract lies in its potential to generate savings exceeding its $31.4M cost. The effectiveness of the consultant's work in identifying and enabling these savings is crucial.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: BCG Federal Corporation
Address: 4800 HAMPDEN LANE STE 500, BETHESDA, MD, 20814
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,376,463
Exercised Options: $31,376,463
Current Obligation: $31,376,463
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $1,435,500
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QRAA21D00AU
IDV Type: FSS
Timeline
Start Date: 2021-12-01
Current End Date: 2022-12-16
Potential End Date: 2022-12-16 00:00:00
Last Modified: 2025-08-11
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