Transportation contract for IT services awarded to Booz Allen Hamilton for over $21M, with a long performance period

Contract Overview

Contract Amount: $21,299,581 ($21.3M)

Contractor: Booz Allen Hamilton Inc.

Awarding Agency: Department of Transportation

Start Date: 2017-09-07

End Date: 2024-12-31

Contract Duration: 2,672 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: MOD TO DTFAWA-12-D-00060/0010 - SOAR TASK ORDER #10-SOAR BASE ARCHITECTURE CHANGE IGF::OT::IGF

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Transportation obligated $21.3 million to BOOZ ALLEN HAMILTON INC. for work described as: MOD TO DTFAWA-12-D-00060/0010 - SOAR TASK ORDER #10-SOAR BASE ARCHITECTURE CHANGE IGF::OT::IGF Key points: 1. The contract's value appears reasonable given the extensive performance duration and the nature of IT system development. 2. Full and open competition was utilized, suggesting a competitive bidding process that should have yielded fair pricing. 3. The contract is a delivery order under a larger IDIQ, indicating it's part of a broader IT services framework. 4. Performance extends over several years, allowing for phased development and integration of complex IT solutions. 5. The sector is dominated by large, established IT service providers, with Booz Allen Hamilton being a significant player. 6. Risk indicators are moderate, primarily related to the long performance period and potential for scope creep in IT projects.

Value Assessment

Rating: good

The total award amount of approximately $21.3 million for a task order spanning over seven years suggests a moderate annual spend. Benchmarking against similar large-scale IT system development contracts is challenging without more granular data on specific deliverables. However, the time-and-materials pricing structure, while common for evolving IT needs, requires careful monitoring to ensure cost efficiency and prevent overruns. The value proposition hinges on the successful delivery of the SOAR Base Architecture changes within the allocated budget and timeline.

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 specific number of bidders is not provided, but the use of this procurement method generally fosters price discovery and encourages competitive pricing. As a delivery order under a larger indefinite-delivery indefinite-quantity (IDIQ) contract, the initial competition likely occurred at the IDIQ level, with this task order being awarded based on best value or lowest price among eligible awardees.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, driving down prices through market forces and increasing the likelihood of receiving the best value for public funds.

Public Impact

The Federal Aviation Administration (FAA) benefits from improved IT systems supporting its operations. Services delivered include computer systems design, crucial for modernizing air traffic management infrastructure. The geographic impact is national, as FAA systems support air traffic across the United States. Workforce implications include the need for skilled IT professionals to develop and maintain these complex systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the time-and-materials pricing model over a long contract duration.
Risk of scope creep if requirements are not clearly defined and managed throughout the project lifecycle.
Dependency on a single contractor for critical IT architecture changes could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Long performance period allows for phased implementation and adaptation to evolving technological needs.
Contractor (Booz Allen Hamilton) is a well-established firm with significant experience in government IT services.

Sector Analysis

The IT services sector, particularly for government contracts, is highly competitive and characterized by large, established players. This contract falls within the Computer Systems Design Services NAICS code (541512). Spending in this area is substantial across federal agencies as they modernize legacy systems and develop new digital capabilities. Comparable spending benchmarks would typically involve analyzing other large-scale IT modernization projects within the federal government, such as those undertaken by the Department of Defense or other civilian agencies focused on critical infrastructure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Booz Allen Hamilton is a large prime contractor. While there is no direct indication of small business subcontracting requirements or performance from the provided data, large prime contractors are often encouraged or required to subcontract portions of their work to small businesses. The absence of a small business set-aside means that opportunities for small businesses to compete directly for this prime contract were limited.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Aviation Administration's contracting officers and program managers. As a delivery order under a larger IDIQ, oversight mechanisms established for the parent contract would also apply. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would typically cover investigations into fraud, waste, and abuse related to the contract's performance and expenditures.

Related Government Programs

FAA IT Modernization Programs
NextGen Air Transportation System
Government IT Services Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts
Cloud Computing Services Contracts
Cybersecurity Services Contracts

Risk Flags

Long contract duration increases risk of scope creep and cost escalation.
Time and Materials pricing model requires diligent oversight to ensure cost control.
Dependency on a single task order for critical architecture changes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $21.3 million to BOOZ ALLEN HAMILTON INC.. MOD TO DTFAWA-12-D-00060/0010 - SOAR TASK ORDER #10-SOAR BASE ARCHITECTURE CHANGE IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $21.3 million.

What is the period of performance?

Start: 2017-09-07. End: 2024-12-31.

What is the historical spending trend for this specific contract vehicle or similar task orders awarded to Booz Allen Hamilton by the FAA?

Analyzing historical spending for this specific contract (MOD TO DTFAWA-12-D-00060/0010) reveals a consistent award pattern, with Task Order #10 representing a significant portion of the total value. Prior task orders under the parent IDIQ would provide further context on the cumulative investment in the SOAR program. Examining Booz Allen Hamilton's broader contract portfolio with the FAA would show their overall role in supporting the agency's IT infrastructure. Without access to the full history of the parent IDIQ and all its task orders, a precise trend analysis is limited, but the $21.3M award for this specific task order indicates a substantial, long-term commitment to the SOAR architecture.

How does the per-hour billing rate for Booz Allen Hamilton on this contract compare to industry benchmarks for similar IT systems design services?

Determining the precise per-hour billing rate requires access to the detailed contract line item numbers (CLINs) and labor categories, which are not provided in the summary data. However, Booz Allen Hamilton is a large, established government contractor known for providing high-level expertise. Their rates are generally expected to be at the higher end of the market spectrum, reflecting their experience, overhead, and the complexity of the services offered. To benchmark effectively, one would need to compare specific labor categories (e.g., senior systems architect, cybersecurity analyst) against published government rate ceilings (like GSA schedules) or industry surveys for comparable skill sets and experience levels. Given the 'Time and Materials' nature, careful monitoring of actual hours billed against project milestones is crucial for value assessment.

What are the key performance indicators (KPIs) used to measure the success of the SOAR Base Architecture Change task order?

The provided data does not specify the Key Performance Indicators (KPIs) for this task order. Typically, for IT system development and architecture changes, KPIs would focus on aspects such as adherence to project timelines, successful integration of new architectural components, system performance metrics (e.g., uptime, response time), security compliance, user adoption rates, and defect/bug resolution rates. The FAA's program management office would establish these KPIs in the Performance Work Statement (PWS) to ensure the contractor meets the defined objectives for the SOAR Base Architecture Change. Regular performance reviews would assess progress against these metrics.

What is the potential impact of this contract on the FAA's overall IT modernization efforts and the NextGen program?

This contract, focused on the SOAR (System Operations and Analysis Resource) Base Architecture Change, is likely a critical component of the FAA's broader IT modernization strategy and, by extension, the Next Generation Air Transportation System (NextGen) program. A robust and adaptable base architecture is fundamental for integrating new technologies, improving data sharing, enhancing system resilience, and supporting the advanced capabilities envisioned by NextGen. Successful implementation of these architecture changes should enable more efficient operations, better decision-making through improved data analytics, and increased safety. Conversely, delays or failures in this foundational work could impede the progress of other NextGen initiatives reliant on this architecture.

Are there any known past performance issues or successes associated with Booz Allen Hamilton on similar large-scale FAA IT projects?

Booz Allen Hamilton is a major contractor with a long history of supporting federal agencies, including the FAA. While specific performance details for this exact task order are not provided, the company generally has a strong track record in delivering complex IT solutions. Past performance evaluations are a standard part of the federal procurement process. Any significant issues or successes on prior FAA IT projects would have been documented and considered during the evaluation of bids for this contract. Agencies typically maintain performance records, and contracting officers review these when making award decisions and managing ongoing contracts. A review of CPARS (Contractor Performance Assessment Reporting System) data, if available, would offer more specific insights.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 1818 MARKET ST STE 2700, PHILADELPHIA, PA, 19103

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,522,513

Exercised Options: $21,299,581

Current Obligation: $21,299,581

Actual Outlays: $15,412,395

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $2,334,797

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFAWA12D00060

IDV Type: IDC

Timeline