Interior's $131M Booz Allen Hamilton Contract for Business Process Support Faces Scrutiny

Contract Overview

Contract Amount: $131,305,862 ($131.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of the Interior

Start Date: 2019-09-04

End Date: 2025-03-03

Contract Duration: 2,007 days

Daily Burn Rate: $65.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: BUSINESS PROCESS AND INFORMATION MANAGEMENT SUPPORT SERVICES (BPIMSS)SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $131.3 million to BOOZ ALLEN HAMILTON INC for work described as: BUSINESS PROCESS AND INFORMATION MANAGEMENT SUPPORT SERVICES (BPIMSS)SERVICES Key points: 1. Significant contract value of $131.3M awarded to a single large business. 2. Competition method was 'Full and Open', but award type is 'Delivery Order'. 3. Potential risk associated with Time and Materials pricing structure. 4. Sector is IT services, specifically Computer Systems Design. 5. Contract duration is substantial, spanning over 5 years.

Value Assessment

Rating: questionable

The contract's Time and Materials pricing structure, especially for a large value over five years, raises concerns about cost control and potential overruns compared to fixed-price contracts for similar IT support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While the contract was awarded under full and open competition, the use of a Delivery Order and Time and Materials pricing may limit effective price discovery and cost efficiency over its long duration.

Taxpayer Impact: Taxpayers may be exposed to higher costs due to the T&M pricing model, especially if not closely managed and monitored for efficiency.

Public Impact

Citizens rely on efficient government operations, which this contract aims to support. The large sum allocated could potentially fund other critical public services. Transparency in how these funds are utilized is crucial for public trust.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing
Large contract value
Long contract duration
No small business participation

Positive Signals

Full and open competition initially
Support for essential business processes

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Benchmarks for similar large-scale IT support services often favor fixed-price or performance-based contracts to ensure cost-effectiveness.

Small Business Impact

The contract data indicates no small business participation, which is a missed opportunity to foster growth and innovation within the small business community for government contracting.

Oversight & Accountability

Oversight is critical for Time and Materials contracts to ensure that costs remain reasonable and that the services provided are necessary and efficient. Regular reviews and audits are essential for accountability.

Related Government Programs

Computer Systems Design Services
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of small business participation.
Long contract duration increases risk exposure.
Delivery Order award type may limit ongoing competition benefits.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $131.3 million to BOOZ ALLEN HAMILTON INC. BUSINESS PROCESS AND INFORMATION MANAGEMENT SUPPORT SERVICES (BPIMSS)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 the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $131.3 million.

What is the period of performance?

Start: 2019-09-04. End: 2025-03-03.

What specific business processes are being supported by this contract, and how does their optimization directly benefit the Department of the Interior's mission?

This contract supports critical business process and information management functions within the Department of the Interior. Effective support in these areas is vital for streamlining operations, improving data accuracy, and enabling informed decision-making, ultimately contributing to the agency's ability to manage national resources and fulfill its public service mandates efficiently.

Given the Time and Materials pricing, what mechanisms are in place to mitigate the risk of cost overruns and ensure value for taxpayer money?

The primary risk mitigation mechanism for T&M contracts is robust oversight. This includes detailed tracking of labor hours and material costs, regular performance reviews, and potentially establishing cost ceilings or fixed-price milestones within the T&M framework. The agency must actively manage the scope and duration of tasks to prevent unnecessary expenditures.

How effectively has the 'Full and Open Competition' process translated into competitive pricing and optimal service delivery over the contract's lifespan?

While 'Full and Open Competition' theoretically ensures the widest possible pool of bidders, the subsequent award as a Delivery Order under a Time and Materials structure may dilute the initial competitive advantage. Effective price discovery and ongoing value realization depend heavily on the agency's ability to manage the contract closely and ensure the chosen vendor remains the most cost-effective solution throughout its term.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

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: $163,084,939

Exercised Options: $163,084,939

Current Obligation: $131,305,862

Actual Outlays: $131,295,334

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $11,284,008

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200008W

IDV Type: GWAC

Timeline