Treasury's $43.4M IT Program Management Contract Awarded to Booz Allen Hamilton Under Full and Open Competition

Contract Overview

Contract Amount: $43,426,054 ($43.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of the Treasury

Start Date: 2019-06-16

End Date: 2026-06-15

Contract Duration: 2,556 days

Daily Burn Rate: $17.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: INFORMATION TECHNOLOGY PROGRAM MANAGEMENT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20220

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $43.4 million to BOOZ ALLEN HAMILTON INC for work described as: INFORMATION TECHNOLOGY PROGRAM MANAGEMENT SERVICES Key points: 1. Contract provides essential IT program management services to the Bureau of the Fiscal Service. 2. Awarded through full and open competition, suggesting a robust market evaluation. 3. The contract duration of 2556 days (approx. 7 years) indicates a long-term need for these services. 4. The Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring of costs to ensure value. 5. The contract is a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The contractor, Booz Allen Hamilton, is a large, established firm with significant federal contracting experience. 7. The contract is not set aside for small businesses, indicating a focus on large prime contractors. 8. The primary service category is Computer Systems Design Services, aligning with IT program management needs.

Value Assessment

Rating: good

The total award amount of $43.4 million over approximately seven years suggests a significant investment in IT program management. Benchmarking this against similar contracts for IT program management services within the federal government is crucial. The CPFF structure necessitates diligent oversight to ensure costs remain reasonable and that the fixed fee adequately compensates the contractor for their services without excessive profit. Without specific comparable contract data, a definitive value-for-money assessment is challenging, but the competitive award process provides some assurance.

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 an offer. The presence of 5 bidders suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award. The agency's decision to use full and open competition implies they sought the best possible value from the widest range of qualified vendors.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and higher quality services due to the pressure on contractors to be competitive. This process helps ensure that government funds are used efficiently by fostering a market-driven approach to service acquisition.

Public Impact

The Bureau of the Fiscal Service benefits directly through enhanced IT program management capabilities, supporting its critical financial operations. Services delivered likely include strategic planning, project execution, risk management, and system integration for the Treasury. The geographic impact is primarily within the District of Columbia, where the agency is headquartered. The contract supports a workforce of IT professionals and program managers, contributing to the federal IT sector employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts require robust oversight to prevent cost overruns and ensure the fixed fee remains appropriate for the scope of work.
The long contract duration (approx. 7 years) necessitates continuous performance monitoring to ensure sustained quality and value.
As a Delivery Order, its performance is dependent on the underlying IDIQ contract's terms and conditions.
The specific IT systems and programs managed are not detailed, making it difficult to assess the complexity and associated risks.
Reliance on a single large contractor for critical IT program management functions could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a thorough vetting of potential contractors.
The contractor, Booz Allen Hamilton, has extensive experience in federal IT program management, suggesting a high likelihood of successful performance.
The contract aims to provide essential IT program management services, crucial for the efficient operation of the Bureau of the Fiscal Service.
The clear definition of Computer Systems Design Services provides a focused scope for the contract.
The long duration allows for continuity and deep integration of program management expertise within the agency.

Sector Analysis

The IT program management services sector within the federal government is a significant market, driven by the continuous need to modernize and manage complex information systems. This contract falls under the Computer Systems Design Services category, which encompasses a broad range of IT support functions. Spending in this area is consistently high across various agencies, reflecting the critical role of IT in government operations. Comparable contracts often involve large, established IT service providers competing for multi-year agreements to support agency-wide IT initiatives.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates the prime contractor is not a small business. Therefore, there are no direct set-aside benefits for small businesses on this prime contract. However, the prime contractor, Booz Allen Hamilton, may utilize small businesses for subcontracting opportunities to fulfill specific aspects of the IT program management services. The extent of small business subcontracting will depend on the contractor's internal policies and the specific requirements of the work performed.

Oversight & Accountability

Oversight for this contract will likely be managed by the Bureau of the Fiscal Service's contracting officers and program managers. Performance will be monitored against the contract's statement of work and key performance indicators. Transparency is facilitated through federal procurement databases like FPDS-NG, where contract awards are reported. Inspector General jurisdiction may apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

IT Program Management Support Services
Computer Systems Design Services
Federal IT Modernization Programs
Department of the Treasury IT Contracts
Bureau of the Fiscal Service Operations

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing requires diligent oversight.
Long contract duration necessitates sustained performance monitoring.
Potential for contractor performance issues over the contract lifecycle.
Dependence on the underlying IDIQ contract's terms.
Lack of specific details on IT systems managed limits risk assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $43.4 million to BOOZ ALLEN HAMILTON INC. INFORMATION TECHNOLOGY PROGRAM MANAGEMENT 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 Treasury (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $43.4 million.

What is the period of performance?

Start: 2019-06-16. End: 2026-06-15.

What is the track record of Booz Allen Hamilton in delivering IT program management services to the federal government, particularly within the Department of the Treasury?

Booz Allen Hamilton is a well-established federal contractor with a long history of providing IT and management consulting services across numerous government agencies, including the Department of the Treasury. They have a significant portfolio of contracts related to IT program management, systems integration, cybersecurity, and strategic planning. Their track record generally indicates a capacity to handle large, complex federal IT programs. Specific performance metrics and past performance evaluations for this particular contract or similar ones would provide a more granular view, but their overall presence and scale suggest a strong capability. Agencies often select Booz Allen Hamilton for critical IT initiatives due to their extensive experience and resources.

How does the awarded amount of $43.4 million compare to similar IT program management contracts awarded by the federal government?

The $43.4 million award over approximately seven years translates to an average annual value of roughly $6.2 million. This figure is within the typical range for significant IT program management support contracts awarded to large system integrators and consulting firms within the federal government. Contracts of this nature often span multiple years and involve comprehensive support for agency-wide IT strategies, system development, and operational management. While specific comparisons depend on the scope, complexity, and agency, this amount reflects a substantial, long-term commitment to IT program management, consistent with the needs of a bureau like the Fiscal Service.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT program management services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the government may end up paying more than necessary if the contractor's costs are not well-managed or if the fixed fee is disproportionately high for the effort involved. For the government, effective oversight is critical to ensure that only allowable costs are reimbursed and that the contractor is incentivized to control expenses while achieving the fixed fee. For the contractor, the risk lies in underestimating the costs required to perform the work, as their profit is capped by the fixed fee. This structure requires a strong partnership and transparent cost accounting from the contractor, coupled with diligent monitoring by the government.

What is the expected effectiveness of these IT program management services for the Bureau of the Fiscal Service?

The expected effectiveness of these IT program management services is high, given the critical role of IT in supporting the Bureau of the Fiscal Service's mission. Effective program management should lead to more efficient IT project execution, better alignment of IT investments with strategic goals, improved system reliability and security, and potentially cost savings through optimized resource allocation. By providing structured oversight, risk mitigation, and strategic guidance, the contractor should help the Bureau achieve its technology objectives, enhance operational efficiency, and ensure the integrity of its financial systems. The long-term nature of the contract suggests a focus on sustained improvement and strategic IT development.

How has federal spending on IT program management services evolved over the past five years, and where does this contract fit in?

Federal spending on IT program management services has generally seen a steady increase over the past five years, driven by the ongoing digital transformation initiatives across government agencies, the need to modernize legacy systems, and the increasing complexity of cybersecurity threats. Agencies are investing heavily in program management to ensure IT projects are delivered on time, within budget, and meet mission requirements. This $43.4 million contract for the Bureau of the Fiscal Service fits within this trend as a significant, long-term investment in ensuring the effective management of its IT programs. It reflects the broader government-wide emphasis on strategic IT acquisition and execution.

What are the implications of awarding this contract under 'full and open competition' versus other methods like sole-source or limited competition?

Awarding this contract under 'full and open competition' implies that the agency sought proposals from all responsible sources, maximizing the potential for competitive pricing and innovative solutions. This method is generally preferred as it offers the best opportunity to achieve value for taxpayer money. In contrast, a sole-source award would mean only one contractor was considered, potentially leading to higher costs and less innovation. Limited competition, involving a restricted number of bidders, falls between these two extremes. The choice of full and open competition here suggests the agency believed a robust market existed and that this approach would yield the best overall outcome for the government.

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: COST PLUS FIXED FEE (U)

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: $62,406,939

Exercised Options: $44,384,089

Current Obligation: $43,426,054

Actual Outlays: $39,263,235

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $53,197

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0004

IDV Type: GWAC

Timeline