Treasury's Data Transparency Program awarded $41.8M to Booz Allen Hamilton for IT support services

Contract Overview

Contract Amount: $41,751,620 ($41.8M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of the Treasury

Start Date: 2018-07-05

End Date: 2022-09-19

Contract Duration: 1,537 days

Daily Burn Rate: $27.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TECHNICAL AND SUPPORT SERVICES FOR THE DATA TRANSPARENCY PROGRAM TO SUPPORT SCHEMA, DATA BROKER, USASPENDING WEBSITE, SERVICE DESK, DATA ANALYTICS, AND HOSTING SERVICE AREAS.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22101

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $41.8 million to BOOZ ALLEN HAMILTON INC for work described as: TECHNICAL AND SUPPORT SERVICES FOR THE DATA TRANSPARENCY PROGRAM TO SUPPORT SCHEMA, DATA BROKER, USASPENDING WEBSITE, SERVICE DESK, DATA ANALYTICS, AND HOSTING SERVICE AREAS. Key points: 1. Contract provides essential IT and data services for the Data Transparency Program. 2. Services include schema, data broker, USAspending website, service desk, analytics, and hosting. 3. Contract duration of 1537 days indicates a long-term need for these services. 4. The contract was awarded under full and open competition, suggesting a competitive process. 5. Booz Allen Hamilton, a large established contractor, is the sole awardee. 6. The contract type is Time and Materials, which can pose cost control challenges. 7. The contract value of $41.8M is significant for IT support services.

Value Assessment

Rating: fair

The contract value of $41.8M for IT support services over approximately four years appears within a reasonable range for the scope of work, which includes complex data management and IT infrastructure. However, the Time and Materials (T&M) pricing structure warrants careful monitoring to ensure cost efficiency. Benchmarking against similar large-scale IT support contracts for federal data transparency initiatives would provide a clearer picture of value for money. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 5 bids suggests a reasonably competitive environment for this type of IT support service. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: A full and open competition process helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and encourages innovation.

Public Impact

The Data Transparency Program benefits taxpayers by improving access to federal spending data. The USAspending website, a key deliverable, provides a public portal for financial transparency. Services support the management and accessibility of critical government financial data. The contract supports federal IT infrastructure and data management capabilities. Workforce implications include IT specialists and data analysts employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
The significant contract value necessitates robust oversight to ensure value for money.
Reliance on a single large contractor for critical IT functions may pose a risk.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
The contract supports a critical government function: data transparency.
The contractor, Booz Allen Hamilton, is a well-established firm with extensive government contracting experience.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on custom computer programming and IT support. The federal IT services market is substantial, with agencies consistently investing in data management, cybersecurity, and digital transformation. This contract for the Data Transparency Program aligns with the government's broader push for increased transparency and data accessibility, fitting into a category of spending aimed at modernizing government operations and improving public access to information.

Small Business Impact

This contract was not set aside for small businesses and there is no indication of subcontracting plans for small businesses. The award to a large prime contractor like Booz Allen Hamilton suggests that the primary focus was on technical capability and scale rather than small business participation. This could limit opportunities for small businesses to engage in this specific contract, though they may participate in other federal IT procurements.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The Bureau of the Fiscal Service, as the awarding agency, is responsible for monitoring performance and ensuring compliance. Given the nature of the services, oversight would likely involve regular performance reviews, financial audits, and adherence to service level agreements. Transparency is inherent in the program's mission, and the USAspending website itself serves as a transparency tool.

Related Government Programs

USAspending.gov
Data Transparency Initiatives
Federal IT Modernization Programs
Financial Data Management Systems

Risk Flags

Time and Materials Pricing
Potential for Cost Overruns
Contractor Performance Monitoring
Data Security and Integrity

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $41.8 million to BOOZ ALLEN HAMILTON INC. TECHNICAL AND SUPPORT SERVICES FOR THE DATA TRANSPARENCY PROGRAM TO SUPPORT SCHEMA, DATA BROKER, USASPENDING WEBSITE, SERVICE DESK, DATA ANALYTICS, AND HOSTING SERVICE AREAS.

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 Treasury (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $41.8 million.

What is the period of performance?

Start: 2018-07-05. End: 2022-09-19.

What is the track record of Booz Allen Hamilton in delivering similar IT support and data management services to the federal government?

Booz Allen Hamilton is a major government contractor with a long history of providing a wide range of IT, consulting, and engineering services to federal agencies. They have extensive experience in data analytics, cybersecurity, systems integration, and program management. For instance, they have held numerous large contracts with the Department of Defense, NASA, and other civilian agencies for complex IT solutions. Their track record generally indicates a capacity to handle large-scale, mission-critical projects. However, like any large contractor, they have faced scrutiny and past performance issues on specific contracts, which are typically evaluated during the procurement process. For this specific contract, their past performance would have been a key factor in the award decision.

How does the cost of this contract compare to similar federal IT support contracts for data transparency programs?

Direct cost comparison is challenging without access to detailed pricing structures and specific service level agreements of comparable contracts. However, the total contract value of $41.8 million over approximately four years, for a comprehensive suite of IT and data services supporting a national transparency program, appears to be within the expected range for a large, established contractor like Booz Allen Hamilton. The Time and Materials (T&M) pricing model, while common, can lead to higher costs if not managed diligently compared to fixed-price contracts. Benchmarking would ideally involve comparing the hourly rates for specific labor categories, overhead rates, and the overall cost per unit of service delivered (e.g., per data record processed, per user supported) against other large federal IT support contracts.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks include potential cost overruns due to the Time and Materials (T&M) pricing structure, performance issues in delivering complex IT and data services, and vendor lock-in. Mitigation strategies typically involve robust contract management by the Bureau of the Fiscal Service, including detailed monitoring of labor hours and costs, regular performance reviews against established metrics and service level agreements (SLAs), and clear communication channels with the contractor. The competitive award process also serves as a risk mitigation factor by selecting a vendor deemed capable. Furthermore, the government's ability to exercise contract options or re-compete the work at the end of the period of performance helps mitigate long-term vendor dependency.

How effective is the Data Transparency Program in achieving its goals, and how does this contract contribute to that effectiveness?

The effectiveness of the Data Transparency Program is measured by its ability to provide accurate, timely, and accessible federal spending data to the public and policymakers. This contract is crucial as it funds the core IT infrastructure and services that power the USAspending website and underlying data systems. By ensuring the reliability of these systems, supporting data ingestion and processing, and maintaining the user interface, the contractor directly enables the program's mission. The program's effectiveness is also influenced by data quality from reporting agencies and user engagement, but the technical foundation provided by this contract is indispensable for its overall success.

What are the historical spending patterns for IT support services related to federal transparency initiatives?

Federal spending on IT support for transparency initiatives has generally increased over the years as agencies adopt more digital tools and face growing demands for public data access. Initiatives like USAspending, mandated by legislation, require continuous investment in IT infrastructure, data management, and web services. Historical spending patterns show a trend towards consolidating IT support functions under larger, comprehensive contracts to achieve economies of scale and streamline management. Agencies often use a mix of contract types, including T&M and fixed-price, depending on the nature of the services. The overall trend reflects a sustained commitment to leveraging technology for government accountability and public information dissemination.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: 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: $45,847,307

Exercised Options: $41,751,620

Current Obligation: $41,751,620

Actual Outlays: $33,447,960

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TFSAFSABPA17009

IDV Type: BPA

Timeline