Booz Allen Hamilton awarded $540M for CDC Data Modernization Accelerator, a significant IT services contract

Contract Overview

Contract Amount: $539,549,841 ($539.5M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2023-10-23

End Date: 2026-04-22

Contract Duration: 912 days

Daily Burn Rate: $591.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: AWARD OF TASK ORDER 47QFCA23F0058 FOR DATA MODERNIZATION ACCELERATOR FOR CDC (DMAC).

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30333

State: Georgia Government Spending

Plain-Language Summary

General Services Administration obligated $539.5 million to BOOZ ALLEN HAMILTON INC for work described as: AWARD OF TASK ORDER 47QFCA23F0058 FOR DATA MODERNIZATION ACCELERATOR FOR CDC (DMAC). Key points: 1. Contract value represents a substantial investment in modernizing critical public health data infrastructure. 2. Full and open competition suggests a robust market response and potential for competitive pricing. 3. The cost-plus award fee structure incentivizes performance but requires careful monitoring of costs. 4. This task order is a key component of the CDC's broader data modernization strategy. 5. The duration of the contract indicates a long-term commitment to data system development and support. 6. The contractor, Booz Allen Hamilton, has a significant presence in federal IT services.

Value Assessment

Rating: good

The award of over $539 million to Booz Allen Hamilton for the DMAC program is a substantial investment. Benchmarking against similar large-scale IT modernization contracts within federal agencies, this figure appears within a reasonable range given the complexity and scope of data modernization efforts. The Cost Plus Award Fee (CPAF) contract type allows for flexibility in managing evolving requirements but necessitates rigorous oversight to ensure cost-effectiveness and prevent scope creep. The total value, including potential option periods, will be a key indicator of long-term value.

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 vendors were eligible to bid. The presence of four bidders suggests a competitive environment for this significant IT services contract. A competitive process generally leads to better price discovery and potentially more favorable terms for the government. The agency's decision to pursue full and open competition for such a critical program underscores a commitment to leveraging the broadest possible market.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for public funds. Full and open competition increases the likelihood of obtaining services at a fair market price and encourages innovation from a wider pool of contractors.

Public Impact

The primary beneficiary is the Centers for Disease Control and Prevention (CDC), which will receive enhanced data modernization capabilities. Services delivered include computer systems design and related services crucial for managing and analyzing public health data. The contract supports the CDC's mission to protect public health, potentially impacting disease surveillance, outbreak response, and health policy. Geographic impact is national, as the CDC's data modernization efforts affect public health initiatives across the United States. Workforce implications may include the creation or reallocation of specialized IT and data science roles within the contractor's organization and potentially within the CDC.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus award fee contracts require diligent oversight to manage costs effectively and ensure performance targets are met.
The significant dollar value and long duration necessitate robust program management to mitigate risks of cost overruns or schedule delays.
Dependence on a single contractor for a critical modernization effort could pose risks if performance falters or strategic needs change.

Positive Signals

Awarding to a single, experienced contractor like Booz Allen Hamilton can provide stability and deep domain expertise for a complex project.
The use of full and open competition indicates a structured procurement process that likely vetted multiple capable vendors.
The contract's focus on data modernization aligns with critical public health infrastructure needs, suggesting strong alignment with government priorities.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design and data modernization services. The federal IT services market is vast, with agencies consistently investing in upgrading legacy systems and enhancing data analytics capabilities. Comparable spending benchmarks for large-scale IT modernization projects within federal health agencies often run into hundreds of millions of dollars, reflecting the complexity and criticality of these systems. This contract represents a significant portion of the GSA's IT services procurement within this specialized area.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it explicitly mention subcontracting goals for small businesses in the provided data. The prime contractor, Booz Allen Hamilton, is a large business. While large contracts can sometimes offer subcontracting opportunities for small businesses, the absence of specific set-aside provisions means that direct participation by small businesses in this prime contract is unlikely unless they are part of a larger subcontracting team. Further analysis would be needed to determine the extent of small business involvement through subcontracting.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA) Federal Acquisition Service, which awarded the task order. The Cost Plus Award Fee (CPAF) structure implies performance metrics and award criteria that will be monitored. Transparency will depend on the agency's reporting practices regarding task order performance and expenditures. The Inspector General for the relevant agency (likely HHS for CDC programs) would have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.

Related Government Programs

CDC Data Modernization Initiative
Federal Health IT Modernization Programs
GSA IT Schedule Contracts
Public Health Data Infrastructure Investments
Computer Systems Design Services Contracts

Risk Flags

Cost-plus contract type requires diligent oversight.
Large contract value necessitates robust program management.
Long contract duration increases risk exposure.
Dependence on a single contractor for critical systems.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $539.5 million to BOOZ ALLEN HAMILTON INC. AWARD OF TASK ORDER 47QFCA23F0058 FOR DATA MODERNIZATION ACCELERATOR FOR CDC (DMAC).

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 $539.5 million.

What is the period of performance?

Start: 2023-10-23. End: 2026-04-22.

What is Booz Allen Hamilton's track record with similar large-scale federal IT modernization contracts, particularly within the health sector?

Booz Allen Hamilton has a well-established track record of performing large-scale IT modernization and digital transformation projects for various federal agencies, including significant work within the Department of Health and Human Services (HHS) and its components like the CDC. They have been involved in contracts related to data analytics, cloud migration, cybersecurity, and enterprise resource planning systems. Their experience often includes managing complex, multi-year programs with substantial budgets. For instance, they have previously held contracts involving health data management and modernization efforts that share similarities in scope and technical requirements with the DMAC program. This extensive experience suggests a strong capability to handle the technical and programmatic challenges inherent in modernizing critical public health data infrastructure.

How does the awarded amount of $539.5 million compare to other federal contracts for similar data modernization services?

The awarded amount of approximately $539.5 million for the CDC's Data Modernization Accelerator (DMAC) task order is substantial and aligns with the upper range for large-scale federal IT modernization contracts, especially those focused on critical infrastructure like public health data. Comparable contracts for similar services, such as enterprise data warehousing, cloud migration, and advanced analytics platform development within agencies like the Department of Defense or the Department of Veterans Affairs, often fall within the hundreds of millions of dollars over their performance periods. The complexity, scope, and duration (over 900 days) of the DMAC program justify this significant investment. While specific benchmarks vary by agency and service type, this award reflects the high cost associated with modernizing complex, mission-critical data systems in the federal government.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract structure for a program of this magnitude?

The primary risks associated with a Cost Plus Award Fee (CPAF) contract for a program like the DMAC revolve around cost control and performance incentivization. While CPAF aims to motivate contractor performance by linking a portion of the fee to achieving specific award criteria, it can also introduce complexities. There is a risk that the government may not effectively define or measure the award criteria, leading to either excessive fees paid for mediocre performance or insufficient incentives for exceptional performance. Furthermore, the 'cost-plus' nature means the government bears the cost of all allowable expenses, increasing the risk of cost overruns if not meticulously monitored. Effective oversight, clear performance metrics, and robust negotiation of the award fee structure are crucial to mitigate these risks and ensure value for taxpayer money.

How will the success of the DMAC program be measured, and what are the key performance indicators (KPIs)?

The success of the DMAC program, operating under a Cost Plus Award Fee (CPAF) structure, will be measured against specific performance objectives and award criteria defined in the contract. While the exact KPIs are not detailed in the provided data, typical metrics for such data modernization initiatives include improvements in data quality, accessibility, and timeliness; successful migration of data to modern platforms (e.g., cloud environments); enhanced analytical capabilities leading to better insights; reduction in system downtime or maintenance costs; and successful integration of disparate data sources. The award fee will likely be tied to the contractor's achievement of these predefined metrics, ensuring alignment between contractor incentives and CDC's strategic goals for data modernization and public health impact.

What is the historical spending trend for data modernization initiatives at the CDC or similar public health agencies?

Historical spending on data modernization at the CDC and similar public health agencies has been steadily increasing over the past decade, driven by the growing recognition of data's critical role in public health surveillance, response, and policy. Agencies are moving away from siloed, legacy systems towards integrated, cloud-based platforms capable of handling large volumes of diverse data (e.g., genomic, epidemiological, clinical). Budgets for these initiatives often span multiple years and can range from tens to hundreds of millions of dollars, depending on the agency's size and the scope of modernization. The DMAC award reflects this trend, indicating a significant, multi-year investment consistent with the ongoing digital transformation efforts across the federal health 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 › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFCA23R0028

Offers Received: 4

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: $1,517,729,638

Exercised Options: $667,794,323

Current Obligation: $539,549,841

Subaward Activity

Number of Subawards: 94

Total Subaward Amount: $75,552,690

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0004

IDV Type: GWAC

Timeline