DOJ awards Booz Allen Hamilton $29.5M for IT services, continuing a 456-day contract

Contract Overview

Contract Amount: $29,469,206 ($29.5M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Justice

Start Date: 2024-08-16

End Date: 2025-11-15

Contract Duration: 456 days

Daily Burn Rate: $64.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: STOR 176 ITADD DEVELOPMENT & OPERATIONS SERVICES 12-MONTH LOGICAL FOLLOW-ON FY24: BOOZ ALLEN HAMILTON

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $29.5 million to BOOZ ALLEN HAMILTON INC for work described as: STOR 176 ITADD DEVELOPMENT & OPERATIONS SERVICES 12-MONTH LOGICAL FOLLOW-ON FY24: BOOZ ALLEN HAMILTON Key points: 1. Contract value represents a significant investment in IT development and operations. 2. Booz Allen Hamilton, a large incumbent, is the sole awardee. 3. The contract is a follow-on, suggesting a need for continuity of services. 4. Performance period extends over 15 months, indicating a substantial project. 5. The contract type is Time and Materials, which can pose cost control challenges. 6. The award is a Delivery Order under a larger contract vehicle.

Value Assessment

Rating: fair

The contract value of $29.5 million for 456 days of IT development and operations services appears within a reasonable range for large-scale federal IT support. Benchmarking against similar custom computer programming services contracts awarded by the FBI or other large agencies would provide a clearer picture of value for money. The Time and Materials pricing structure, while common for evolving IT needs, warrants close monitoring to ensure costs remain controlled and aligned with project milestones.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, as a delivery order under a larger contract vehicle, the initial competition for the parent contract is the primary driver of market dynamics. The specific number of bidders for this particular delivery order is not detailed, but the full and open nature suggests a competitive process was intended.

Taxpayer Impact: A full and open competition process, even for a delivery order, generally benefits taxpayers by encouraging competitive pricing and a wider pool of potential service providers.

Public Impact

Federal Bureau of Investigation (FBI) personnel benefit from enhanced IT development and operations. Services delivered include custom computer programming and IT support. The contract's geographic impact is primarily within Virginia, where the agency is located. The contract supports IT professionals and potentially other roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not managed diligently.
Follow-on nature of the contract may indicate limited market exploration for alternative solutions.
Sole awardee for this specific delivery order limits immediate competitive pressure on pricing and innovation.

Positive Signals

Awarded under full and open competition, suggesting a robust initial bidding process.
Booz Allen Hamilton is an established contractor with a track record in federal IT services.
The contract duration indicates a sustained need for critical IT support.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. The federal IT services market is substantial, with agencies consistently investing in software development, system integration, and IT operations. Comparable spending benchmarks for similar services can vary widely based on complexity, duration, and agency. This contract represents a specific instance of federal investment in maintaining and enhancing critical IT infrastructure.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. The prime contractor, Booz Allen Hamilton, is a large business, and while they may engage small businesses as subcontractors on various projects, this specific award does not mandate it.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the FBI. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

FBI IT Modernization Programs
Custom Computer Programming Services
IT Development and Operations Support
Federal Civilian IT Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Limited immediate competition for this specific delivery order.
Need for robust oversight to manage scope and efficiency.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $29.5 million to BOOZ ALLEN HAMILTON INC. STOR 176 ITADD DEVELOPMENT & OPERATIONS SERVICES 12-MONTH LOGICAL FOLLOW-ON FY24: BOOZ ALLEN HAMILTON

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $29.5 million.

What is the period of performance?

Start: 2024-08-16. End: 2025-11-15.

What is Booz Allen Hamilton's track record with the FBI for similar IT services?

Booz Allen Hamilton has a long-standing and extensive track record of providing IT and professional services to the FBI and other federal agencies. They are a major incumbent contractor across numerous IT domains. For the FBI specifically, they have been awarded multiple contracts for services including cybersecurity, data analytics, software development, and IT infrastructure support. Their historical performance with the FBI is generally characterized by large contract values and a broad scope of work, reflecting their capacity to handle complex federal IT requirements. Analyzing past performance reviews and contract modifications would offer deeper insights into their specific project execution and client satisfaction levels within the FBI.

How does the $29.5 million value compare to similar FBI IT development contracts?

The $29.5 million value for a 456-day (approximately 15-month) IT development and operations services contract is substantial, aligning with the scale of major IT projects undertaken by large federal agencies like the FBI. To benchmark effectively, one would compare this to other custom computer programming services (NAICS 541511) contracts awarded by the FBI or similar law enforcement/intelligence agencies. Contracts for similar durations and scopes, especially those involving complex system development or ongoing operational support, often fall within this multi-million dollar range. However, the specific nature of the 'development & operations' and the 'logical follow-on' aspect suggest a need for continuity, which can influence pricing compared to new, competitive bids for novel systems.

What are the primary risks associated with a Time and Materials (T&M) contract for IT services?

The primary risk associated with Time and Materials (T&M) contracts, like this one, is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If project scope creeps, inefficiencies arise, or labor rates are higher than anticipated, the total cost can escalate significantly beyond initial estimates. For the government, this necessitates robust oversight, diligent tracking of labor hours, and effective management to ensure the contractor is performing efficiently and that the work remains aligned with the defined objectives. Without strong controls, T&M contracts can become less cost-effective than other contract types.

What does the 'logical follow-on' designation imply for this contract?

The 'logical follow-on' designation implies that this contract is a direct continuation or extension of previously awarded work. This suggests that the services being procured are essential and that the incumbent contractor, Booz Allen Hamilton, has established expertise and infrastructure related to the specific needs of the FBI. From a procurement perspective, it often means that the agency has determined that awarding to the existing contractor is the most efficient path forward, potentially due to specialized knowledge, ongoing development, or the need for seamless transition. However, it also raises questions about whether alternative solutions or contractors were fully considered, as follow-on awards can sometimes limit the scope of competition for subsequent efforts.

How does the contract's duration (456 days) impact its overall value and risk?

A duration of 456 days (approximately 15 months) for an IT development and operations contract is a moderate length, allowing for significant project progress without the long-term commitment and potential obsolescence risks of multi-year fixed contracts. This duration provides stability for the contractor to execute complex tasks and for the agency to realize tangible benefits. However, it also means that the agency needs to plan for future procurements well in advance. The risk associated with this duration is balanced: it's long enough to require careful management and oversight to prevent cost creep (especially with T&M), but short enough that market conditions and technological advancements can be reassessed before the contract expires.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $29,469,206

Exercised Options: $29,469,206

Current Obligation: $29,469,206

Actual Outlays: $29,469,206

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $5,902,170

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F386DA

IDV Type: FSS

Timeline