GSA Awards $727M Contract for Enterprise IT Equipment and Services to Booz Allen Hamilton

Contract Overview

Contract Amount: $727,435,601 ($727.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2018-06-07

End Date: 2022-06-06

Contract Duration: 1,460 days

Daily Burn Rate: $498.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THE PURPOSE OF THIS REQUIREMENT IS TO DELIVER ENTERPRISE CLASS, INDUSTRY STANDARD, OPEN ARCHITECTURE EQUIPMENT AND SERVICES TO SUPPORT THE USG PROGRAM OFFICE, DOD PARTNERS, AND OTHER ORGANIZATIONS AS DETERMINED TO INCLUDE, BUT NOT LIMITED TO, INTERAGENCY PARTNERS, THE INTELLIGENCE COMMUNITY (IC), AND COALITION PARTNERS

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $727.4 million to BOOZ ALLEN HAMILTON INC for work described as: THE PURPOSE OF THIS REQUIREMENT IS TO DELIVER ENTERPRISE CLASS, INDUSTRY STANDARD, OPEN ARCHITECTURE EQUIPMENT AND SERVICES TO SUPPORT THE USG PROGRAM OFFICE, DOD PARTNERS, AND OTHER ORGANIZATIONS AS DETERMINED TO INCLUDE, BUT NOT LIMITED TO, INTERAGENCY PARTNERS, THE INTELLIGENC… Key points: 1. Significant contract value of $727M highlights the scale of enterprise IT needs. 2. Booz Allen Hamilton, a major defense contractor, secured this award. 3. The contract supports a broad range of USG, DOD, IC, and coalition partners, indicating wide-ranging impact. 4. The 'Computer Systems Design Services' NAICS code suggests a focus on integrated IT solutions.

Value Assessment

Rating: good

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. However, the fixed fee component provides some cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method aims to ensure the government receives competitive pricing.

Taxpayer Impact: The large contract value means significant taxpayer funds are allocated. Competition helps ensure these funds are used efficiently, but the CPFF structure warrants oversight.

Public Impact

Enhances IT infrastructure for critical government and defense operations. Supports interagency collaboration and intelligence sharing. Provides advanced technology solutions to coalition partners, bolstering international security efforts. Impacts various sectors relying on secure and robust IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher spending.
Long duration (4 years) may lead to scope creep or outdated technology if not managed.
No small business set-aside, potentially limiting opportunities for smaller innovative firms.

Positive Signals

Awarded under full and open competition, ensuring broad market access.
Supports critical national security and interagency missions.
Booz Allen Hamilton is a reputable contractor with extensive experience.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending in this area is crucial for modernizing government operations and maintaining cybersecurity.

Small Business Impact

The contract was not set aside for small businesses, and the awardee is a large corporation. This means small businesses were not specifically targeted for this particular award.

Oversight & Accountability

The General Services Administration (GSA) managed this award through its Federal Acquisition Service. Oversight is crucial given the contract's value and CPFF structure to ensure cost efficiency.

Related Government Programs

Computer Systems Design Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Potential for cost overruns due to CPFF structure.
Risk of technology obsolescence over the 4-year duration.
Lack of small business participation.
Complexity of managing diverse stakeholder requirements (USG, DOD, IC, coalition).

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $727.4 million to BOOZ ALLEN HAMILTON INC. THE PURPOSE OF THIS REQUIREMENT IS TO DELIVER ENTERPRISE CLASS, INDUSTRY STANDARD, OPEN ARCHITECTURE EQUIPMENT AND SERVICES TO SUPPORT THE USG PROGRAM OFFICE, DOD PARTNERS, AND OTHER ORGANIZATIONS AS DETERMINED TO INCLUDE, BUT NOT LIMITED TO, INTERAGENCY PARTNERS, THE INTELLIGENCE COMMUNITY (IC), AND COALITION PARTNERS

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $727.4 million.

What is the period of performance?

Start: 2018-06-07. End: 2022-06-06.

How will the CPFF structure be managed to prevent cost overruns and ensure value for money?

Effective management of a Cost Plus Fixed Fee (CPFF) contract requires rigorous oversight of incurred costs and contractor performance. The government must establish clear performance metrics and conduct regular audits. Regular reviews of the contractor's cost proposals and justification for expenses are essential. Proactive communication and a strong contract management team are key to ensuring the fixed fee remains appropriate and costs are controlled within the overall budget.

What mechanisms are in place to ensure the 'enterprise class, industry standard, open architecture' requirements are met throughout the contract duration?

Meeting evolving technology standards requires robust technical oversight and clear performance work statements. The contract likely includes specific technical requirements, testing protocols, and acceptance criteria. Regular technical reviews, independent verification and validation, and potentially periodic technology refresh clauses will be crucial. The government must actively monitor the contractor's adherence to open architecture principles and industry standards to prevent vendor lock-in and ensure interoperability.

How does this contract contribute to the modernization and efficiency of the supported USG, DOD, and IC entities?

This contract aims to provide essential IT infrastructure and services, directly supporting the operational capabilities of numerous government and defense entities. By delivering 'enterprise class, industry standard, open architecture' solutions, it facilitates improved data sharing, enhanced cybersecurity, and streamlined workflows. This modernization is critical for enabling these organizations to effectively execute their missions, adapt to new threats, and improve overall efficiency in a rapidly evolving technological landscape.

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: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)

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: $885,487,790

Exercised Options: $864,942,631

Current Obligation: $727,435,601

Actual Outlays: $-1,542,260

Subaward Activity

Number of Subawards: 253

Total Subaward Amount: $280,908,245

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0019

IDV Type: GWAC

Timeline