Booz Allen Hamilton awarded $1.38B task order for enterprise data services to DoD and IC community

Contract Overview

Contract Amount: $1,379,603,153 ($1.4B)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2021-03-09

End Date: 2025-02-15

Contract Duration: 1,439 days

Daily Burn Rate: $958.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: TASK ORDER (TO) 47QFCA21F0018 IS HEREBY AWARDED TO BOOZ ALLEN HAMILTON, INC. (BAH) TO PROVIDE ENTERPRISE LEVEL DATA TO THE OUSD(C), AND ITS STRATEGIC PARTNERS (I.E., DOD FOURTH ESTATE, DOD DEPARTMENTS, AND IC COMMUNITY).

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $1.38 billion to BOOZ ALLEN HAMILTON INC for work described as: TASK ORDER (TO) 47QFCA21F0018 IS HEREBY AWARDED TO BOOZ ALLEN HAMILTON, INC. (BAH) TO PROVIDE ENTERPRISE LEVEL DATA TO THE OUSD(C), AND ITS STRATEGIC PARTNERS (I.E., DOD FOURTH ESTATE, DOD DEPARTMENTS, AND IC COMMUNITY). Key points: 1. Contract provides critical enterprise-level data services to the Office of the Under Secretary of Defense (Comptroller) and its strategic partners. 2. The award signifies a significant investment in data management and strategic intelligence capabilities within the defense and intelligence sectors. 3. The contract's cost-plus-award-fee structure incentivizes performance and cost control, but requires careful monitoring of award fee criteria. 4. Competition was full and open, suggesting a robust market for these specialized data services. 5. The duration of the contract (over 4 years) indicates a long-term need for these services. 6. The geographic focus on the District of Columbia highlights the concentration of federal agencies requiring these data capabilities.

Value Assessment

Rating: good

The contract value of $1.38 billion over approximately four years represents a substantial investment in enterprise data services. Benchmarking this against similar large-scale data management and IT services contracts within the federal government is challenging due to the specific nature of 'enterprise-level data' for the OUSD(C) and its partners. However, the cost-plus-award-fee (CPAF) pricing structure suggests an expectation of performance-based value, where the contractor can earn additional fees based on meeting specific performance objectives. This structure, while potentially leading to higher overall costs if performance is exceptional, aims to align contractor incentives with government goals.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive environment that should theoretically drive better pricing and service offerings. The General Services Administration (GSA) often leverages broad agency announcements and existing contract vehicles to ensure wide participation.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and a wider array of innovative approaches to service delivery.

Public Impact

The primary beneficiaries are the Office of the Under Secretary of Defense (Comptroller), its strategic partners, including DOD Fourth Estate organizations, DOD Departments, and the Intelligence Community (IC). The contract delivers enterprise-level data services, which are crucial for financial management, strategic planning, and operational decision-making within these high-level defense and intelligence entities. The geographic impact is concentrated in the District of Columbia, where many of these federal agencies are headquartered. The contract supports a workforce of data analysts, IT specialists, and program managers, contributing to specialized federal employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The cost-plus-award-fee structure requires diligent oversight to ensure award fees are justified and not excessively awarded.
The broad scope of 'enterprise-level data' could lead to scope creep if not precisely managed.
Reliance on a single contractor for such critical data infrastructure poses a potential risk if performance falters or if the contractor faces significant business challenges.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded a strong offer.
The CPAF structure incentivizes high performance and achievement of specific objectives.
Booz Allen Hamilton is a well-established contractor with extensive experience in government IT and data services, indicating a high likelihood of successful execution.
The contract duration of over four years suggests a stable, long-term partnership for critical services.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. This sector encompasses a wide range of services, including IT consulting, systems integration, and data management. The federal government is a major consumer of these services, particularly within defense and intelligence agencies, to manage vast amounts of data, enhance cybersecurity, and improve operational efficiency. Spending in this area is driven by the need to modernize legacy systems, adopt new technologies, and address complex national security challenges. Comparable spending benchmarks would typically be found within large IT services contracts awarded to major federal contractors supporting defense and intelligence missions.

Small Business Impact

This contract was not set aside for small businesses and Booz Allen Hamilton is a large business. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal, although large prime contractors are often encouraged or required to have small business subcontracting plans for other contracts.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the General Services Administration (GSA) as the issuing agency, and the contracting activity within the Office of the Under Secretary of Defense (Comptroller) as the primary customer. The Cost Plus Award Fee (CPAF) structure necessitates robust performance monitoring and evaluation to determine the appropriate award fee. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or identified.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
Intelligence Community Information Technology Enterprise (ICE)
DoD Enterprise Resource Planning (ERP) Systems
Federal Data Strategy Initiatives
Cybersecurity and Data Protection Services

Risk Flags

Potential for scope creep due to broad service definition.
Dependency on a single large contractor for critical data infrastructure.
Complexity of integrating data across diverse DOD and IC systems.
Cybersecurity risks associated with handling sensitive government data.
Need for rigorous oversight of CPAF award criteria to ensure value.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $1.38 billion to BOOZ ALLEN HAMILTON INC. TASK ORDER (TO) 47QFCA21F0018 IS HEREBY AWARDED TO BOOZ ALLEN HAMILTON, INC. (BAH) TO PROVIDE ENTERPRISE LEVEL DATA TO THE OUSD(C), AND ITS STRATEGIC PARTNERS (I.E., DOD FOURTH ESTATE, DOD DEPARTMENTS, AND IC COMMUNITY).

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 $1.38 billion.

What is the period of performance?

Start: 2021-03-09. End: 2025-02-15.

What is the historical spending pattern for enterprise data services by the OUSD(C) and its partners?

Historical spending data for enterprise data services by the OUSD(C) and its partners is not directly available in the provided snippet. However, the significant value of this $1.38 billion task order suggests a substantial and ongoing requirement for such services. Federal agencies, particularly within defense and intelligence, have consistently increased their investment in data management, analytics, and IT infrastructure over the past decade to address evolving threats and operational needs. This trend is reflected in overall federal IT spending, which often includes large contracts for data services, system integration, and cybersecurity. Analyzing past GSA schedules, agency-specific IT budgets, and prior contract awards to similar large system integrators would provide a broader context for this spending, indicating whether this award represents an increase, a continuation, or a consolidation of previous efforts.

How does the performance of Booz Allen Hamilton on similar contracts compare?

Booz Allen Hamilton is a large, established government contractor with a long history of performance across various federal agencies, including significant work within the Department of Defense and the Intelligence Community. While specific performance metrics for this exact task order are not yet available as it is a recent award, the company generally has a strong track record in providing IT consulting, systems engineering, and data analytics services. Their past performance is typically evaluated during the procurement process. Government contract databases and past performance reviews often indicate successful delivery on complex projects. However, like any large contractor, there may be instances of challenges or criticisms on specific contracts, which would be detailed in official performance evaluations or IG reports if significant issues arose. The CPAF structure of this contract suggests the government expects high performance and has mechanisms to reward it.

What are the key risks associated with this contract, beyond general contractor performance?

Beyond general contractor performance risks, key risks associated with this contract include the potential for scope creep given the broad definition of 'enterprise-level data services.' Ensuring clear definition and adherence to the scope is crucial. Another risk is the concentration of critical data services with a single large contractor, which could create dependency and impact continuity if issues arise. The complexity of integrating data across various DOD departments and IC agencies presents significant technical and interoperability challenges. Furthermore, the sensitive nature of the data involved necessitates stringent cybersecurity measures and compliance with numerous regulations, posing risks related to data breaches or non-compliance. The Cost Plus Award Fee (CPAF) structure, while incentivizing, also carries a risk of increased costs if award criteria are not tightly managed and objectively assessed.

How effective is the Cost Plus Award Fee (CPAF) structure in ensuring value for money in this context?

The Cost Plus Award Fee (CPAF) structure is designed to incentivize contractor performance by allowing for additional fees based on achieving specific, pre-defined objectives. In the context of complex enterprise data services for the OUSD(C) and its partners, this structure can be effective in ensuring value for money if the award criteria are well-defined, measurable, and directly aligned with the government's strategic goals. It encourages the contractor, Booz Allen Hamilton, to go beyond minimum requirements and deliver exceptional results. However, the effectiveness hinges on robust government oversight to ensure that award fees are objectively assessed and justified, preventing potential overpayment. If award criteria are vague or performance metrics are not rigorously tracked, CPAF can lead to higher costs without a commensurate increase in value, making diligent contract management critical.

What are the implications of this contract for data standardization and interoperability across DOD and IC?

This contract has significant implications for data standardization and interoperability across the Department of Defense (DOD) and the Intelligence Community (IC). By providing 'enterprise-level data services,' the contract aims to create a more unified and accessible data environment. This likely involves efforts to standardize data formats, implement common data architectures, and develop mechanisms for seamless data sharing between different entities. Success in this area could dramatically improve decision-making, reduce redundancy, and enhance collaboration. Conversely, failure to achieve effective standardization and interoperability could perpetuate existing data silos and hinder the efficient flow of critical information, undermining the contract's core objectives and the strategic goals of the OUSD(C) and its partners.

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 › 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: COST PLUS AWARD FEE (R)

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: $1,602,230,952

Exercised Options: $1,602,230,952

Current Obligation: $1,379,603,153

Actual Outlays: $-916,151

Subaward Activity

Number of Subawards: 612

Total Subaward Amount: $474,080,071

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0004

IDV Type: GWAC

Timeline