Labor Department Awards $8.6M for Foreign Labor Certification IT Support to Booz Allen Hamilton

Contract Overview

Contract Amount: $8,597,787 ($8.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Labor

Start Date: 2024-04-01

End Date: 2026-02-12

Contract Duration: 682 days

Daily Burn Rate: $12.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: ORDER ISSUED TO PROVIDE OPERATION AND MAINTENANCE SUPPORT SERVICES FOR THE EMPLOYMENT AND TRAINING ADMINISTRATION (ETA) OFFICE OF FOREIGN LABOR CERTIFICATION (OFLC), FOREIGN LABOR APPLICATION GATEWAY (FLAG), PERMANENT ONLINE AND CASE MANAGEMENT SYSTE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $8.6 million to BOOZ ALLEN HAMILTON INC for work described as: ORDER ISSUED TO PROVIDE OPERATION AND MAINTENANCE SUPPORT SERVICES FOR THE EMPLOYMENT AND TRAINING ADMINISTRATION (ETA) OFFICE OF FOREIGN LABOR CERTIFICATION (OFLC), FOREIGN LABOR APPLICATION GATEWAY (FLAG), PERMANENT ONLINE AND CASE MANAGEMENT SYSTE Key points: 1. Contract supports critical IT systems for foreign labor certification. 2. Booz Allen Hamilton, a large incumbent contractor, secured the award. 3. Potential for cost overruns exists given the labor-hour contract type. 4. IT services sector sees significant government spending.

Value Assessment

Rating: good

The contract is priced using labor hours, making direct comparison difficult. However, the estimated value of $8.6 million over approximately two years suggests a moderate investment for specialized IT support services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. The use of a BPA Call suggests a pre-negotiated framework, potentially leading to more efficient pricing discovery.

Taxpayer Impact: Taxpayer funds are being used to ensure the efficient operation of systems vital to the foreign labor certification process.

Public Impact

Ensures continued operation of systems processing foreign labor applications. Supports economic activity by facilitating the certification process. Maintains the integrity and efficiency of the Foreign Labor Application Gateway (FLAG).

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor hour pricing can lead to cost uncertainty.
Reliance on a single large contractor for critical systems.

Positive Signals

Awarded under full and open competition.
Supports essential government functions.
Experienced contractor selected.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. Government spending in this area is substantial, with many large firms competing for these types of awards.

Small Business Impact

The awardee, Booz Allen Hamilton, is a large business. There is no indication of specific small business participation in this particular award, which is common for large, complex IT service contracts.

Oversight & Accountability

The Department of Labor's Office of the Assistant Secretary for Administration and Management is overseeing this contract. Standard oversight mechanisms for IT service contracts should be in place to ensure performance and cost control.

Related Government Programs

Custom Computer Programming Services
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Labor hour contract type introduces cost uncertainty.
Potential for vendor lock-in with a large incumbent.
Dependence on a single contractor for critical systems.
Lack of explicit small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $8.6 million to BOOZ ALLEN HAMILTON INC. ORDER ISSUED TO PROVIDE OPERATION AND MAINTENANCE SUPPORT SERVICES FOR THE EMPLOYMENT AND TRAINING ADMINISTRATION (ETA) OFFICE OF FOREIGN LABOR CERTIFICATION (OFLC), FOREIGN LABOR APPLICATION GATEWAY (FLAG), PERMANENT ONLINE AND CASE MANAGEMENT SYSTE

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $8.6 million.

What is the period of performance?

Start: 2024-04-01. End: 2026-02-12.

What is the estimated hourly rate for the labor hours under this contract, and how does it compare to industry benchmarks?

The contract does not specify an hourly rate but is awarded on a labor hour basis. To assess value, one would need to analyze the specific labor categories and their proposed rates against market data for similar IT support services in the Washington D.C. area. Without this breakdown, a precise per-unit cost comparison is not feasible.

What are the key performance indicators (KPIs) for this contract, and how will performance be measured to mitigate risk?

Key performance indicators are likely to include system uptime, response times for support requests, and successful completion of maintenance tasks. The Department of Labor will likely track these metrics through regular reporting and performance reviews to ensure the contractor meets its obligations and to identify any potential issues early.

How does the continued reliance on Booz Allen Hamilton for these critical systems impact long-term IT modernization efforts?

While Booz Allen Hamilton is an experienced provider, long-term reliance on a single vendor for critical systems can sometimes stifle innovation or lead to vendor lock-in. The Department of Labor should periodically assess whether this contract structure supports or hinders its broader IT modernization goals and explore opportunities for competition or diversification.

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

Solicitation ID: 1605TA-24-Q-00038

Pricing Type: LABOR HOURS (Z)

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: $9,300,166

Exercised Options: $8,749,408

Current Obligation: $8,597,787

Actual Outlays: $8,375,006

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $658,564

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1605TA22A0001

IDV Type: BPA

Timeline