GSA awards $646M IT services contract to Booz Allen Hamilton for 5 years

Contract Overview

Contract Amount: $646,439,399 ($646.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2020-11-01

End Date: 2025-12-03

Contract Duration: 1,858 days

Daily Burn Rate: $347.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: THIS REPRESENTS AN ADMINISTRATIVE CONTINUANCE OF GSA FEDSIM TASK ORDER 47QFCA20F0009. THIS EFFORT WILL BE ADMINISTERED BY GSA FAS REGION 1 UNDER TO NUMBER 47QFNA21F0001 BEGINNING ON THE EFFECTIVE AWARD DATE OF 1 NOVEMBER 2020.

Place of Performance

Location: ROME, ONEIDA County, NEW YORK, 13441

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $646.4 million to BOOZ ALLEN HAMILTON INC for work described as: THIS REPRESENTS AN ADMINISTRATIVE CONTINUANCE OF GSA FEDSIM TASK ORDER 47QFCA20F0009. THIS EFFORT WILL BE ADMINISTERED BY GSA FAS REGION 1 UNDER TO NUMBER 47QFNA21F0001 BEGINNING ON THE EFFECTIVE AWARD DATE OF 1 NOVEMBER 2020. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. IT services are critical for government operations, indicating a need for specialized expertise. 3. The contract's duration of over 5 years suggests a long-term need for these services. 4. Cost-plus award fee structure incentivizes performance but requires careful oversight. 5. The contract is for computer systems design services, a key area within IT. 6. Awarded by GSA, a central procurement agency, indicating potential for broader government use.

Value Assessment

Rating: good

The contract value of $646.4 million over approximately five years averages to about $129 million annually. Benchmarking this against similar large-scale IT services contracts awarded by GSA or other federal agencies for computer systems design and integration services suggests this is within a reasonable range for complex, long-term engagements. The cost-plus award fee structure allows for flexibility and performance incentives, but the final cost will depend on achieved award fees, making a direct price comparison challenging without knowing the awarded fees.

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 a bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The use of full and open competition suggests that the government sought the best value from a wide range of potential contractors.

Taxpayer Impact: Full and open competition is the most taxpayer-friendly approach as it maximizes the pool of potential offerors, driving down prices and improving the quality of services received.

Public Impact

Federal agencies requiring advanced computer systems design and integration services will benefit from this contract. The contract supports the modernization and maintenance of critical IT infrastructure. Services are likely to be delivered across various federal agencies managed by GSA. This contract supports a significant number of IT professionals employed by Booz Allen Hamilton.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus award fee contracts can lead to cost overruns if not managed diligently.
The long duration of the contract may not adapt quickly to rapidly changing technology.
Lack of specific bidder numbers makes it difficult to assess the true level of competition.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Booz Allen Hamilton is a large, established contractor with extensive federal experience.
The contract aims to provide essential IT services, supporting government functions.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. This is a broad category encompassing the design, development, and integration of complex IT systems. The federal IT services market is substantial, with agencies consistently investing in upgrading and maintaining their technological infrastructure. This contract with GSA, a major procurement vehicle, positions Booz Allen Hamilton to support various federal IT needs, aligning with broader government efforts towards digital transformation and cybersecurity.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major prime contractor, it is possible that subcontracting opportunities may exist for small businesses. However, without specific subcontracting plans or goals outlined in the award details, the direct impact on the small business ecosystem is uncertain. Large prime contractors often utilize small businesses for specialized services or to meet small business subcontracting goals, but this is not guaranteed.

Oversight & Accountability

The contract is administered by GSA FAS Region 1, which implies oversight from this specific GSA office. As a Cost Plus Award Fee (CPAF) contract, performance metrics and award fee determinations are crucial oversight mechanisms. The General Services Administration (GSA) has an Office of Inspector General (OIG) that provides audit and investigative oversight for GSA programs and contracts, including those administered by FAS. Transparency would be enhanced by public reporting on award fee determinations and performance outcomes.

Related Government Programs

GSA IT Schedule 70 (now IT Professional Services)
Defense Information Systems Agency (DISA) IT contracts
NASA SEWP (Solutions for Enterprise-Wide Procurement)
Alliant Government Services contracts

Risk Flags

Potential for cost overruns due to CPAF structure
Risk of technology obsolescence over contract duration
Dependency on contractor performance for critical IT functions
Need for robust government oversight to ensure value for money

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $646.4 million to BOOZ ALLEN HAMILTON INC. THIS REPRESENTS AN ADMINISTRATIVE CONTINUANCE OF GSA FEDSIM TASK ORDER 47QFCA20F0009. THIS EFFORT WILL BE ADMINISTERED BY GSA FAS REGION 1 UNDER TO NUMBER 47QFNA21F0001 BEGINNING ON THE EFFECTIVE AWARD DATE OF 1 NOVEMBER 2020.

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 $646.4 million.

What is the period of performance?

Start: 2020-11-01. End: 2025-12-03.

What is Booz Allen Hamilton's track record with similar GSA IT services contracts?

Booz Allen Hamilton is a major federal contractor with a long history of providing IT and management consulting services across numerous government agencies, including significant work with GSA. They frequently hold prime positions on large IT services vehicles and task orders, often competing successfully for complex, high-value contracts. Their track record includes a wide range of services such as systems engineering, cybersecurity, data analytics, and cloud migration. While specific performance details for this particular task order are not publicly detailed in the provided data, their consistent presence and success in winning large federal IT contracts suggest a strong capability and established relationship with agencies like GSA. Past performance evaluations, often available through contract databases or agency reports, would provide more granular insights into their specific performance on previous, similar engagements.

How does the $646 million value compare to other GSA IT services contracts?

The $646.4 million total value for this 5-year contract, averaging approximately $129 million per year, places it among significant IT services awards. GSA's IT Schedule and other large vehicles frequently see contracts in the hundreds of millions, and sometimes billions, of dollars. For instance, major IT modernization efforts, enterprise resource planning implementations, or large-scale cloud services procurements often reach these figures. Compared to smaller, more specialized IT support contracts, this award is substantial, reflecting a broad scope of computer systems design services. However, it is not exceptionally large when considering the largest IT contracts awarded across the federal government, which can exceed several billion dollars over their lifetimes. Its value is consistent with a major, long-term IT systems design and integration effort managed by a central agency like GSA.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract structure?

The primary risks associated with a Cost Plus Award Fee (CPAF) contract structure revolve around cost control and potential for contractor inefficiency. In a CPAF arrangement, the contractor is reimbursed for allowable costs plus a fee that is composed of a fixed base fee and an award amount determined by the government based on performance against stated criteria. The risk for the government is that the contractor may have less incentive to control costs rigorously compared to a fixed-price contract, as costs are reimbursed. Furthermore, the subjective nature of determining the award fee can lead to disputes or perceptions of unfairness if not managed with clear, objective metrics and robust oversight. For the contractor, the risk lies in not achieving the performance targets necessary to earn the full award fee, impacting their overall profit margin.

How effective is GSA in managing large IT services contracts like this one?

GSA has a long-standing role and significant expertise in managing large IT services contracts for the federal government, primarily through its IT Schedule (now IT Professional Services) and other procurement vehicles. Agencies like GSA are designed to leverage economies of scale and procurement best practices. Their management effectiveness is generally considered good, particularly in establishing contract vehicles and ensuring compliance with procurement regulations. However, the effectiveness of managing individual task orders, like this one, depends heavily on the specific contracting officers, program managers, and the clarity of performance requirements. While GSA provides a framework, the ultimate success hinges on diligent oversight, performance monitoring, and proactive management by the administering office (GSA FAS Region 1 in this case) and the requiring agency's technical team. Challenges can arise in ensuring contractors remain innovative and cost-effective over long durations.

What is the historical spending trend for computer systems design services by GSA?

GSA's spending on computer systems design services has historically been substantial and generally increasing, reflecting the government's continuous need for IT modernization and support. As a central procurement agency, GSA facilitates IT spending across numerous departments and agencies. Data from sources like the Federal Procurement Data System (FPDS) typically show billions of dollars obligated annually across various IT service categories, including systems design. Spending trends are influenced by factors such as federal IT budget allocations, modernization initiatives (e.g., cloud adoption, cybersecurity enhancements), and the lifecycle of existing systems. GSA's role as a primary IT solutions provider means its spending in this area is a strong indicator of overall federal IT investment patterns. While specific historical figures for this exact task order's predecessor aren't detailed here, GSA's overall IT procurement volume suggests a consistent and significant market for these services.

What are the implications of this contract being administered by GSA FAS Region 1?

The administration of this contract by GSA Federal Acquisition Service (FAS) Region 1 signifies that this specific regional office is responsible for the day-to-day management, oversight, and potentially modification of the task order. GSA FAS plays a crucial role in providing procurement and acquisition solutions to federal agencies. Having a regional office administer the contract means that the primary points of contact for contractual matters, performance monitoring, and issue resolution will likely reside within that office. This can offer benefits such as localized expertise and potentially more direct communication channels for the contractor. However, it also means that the oversight capacity and specific management practices of Region 1 are key determinants of the contract's success and adherence to federal acquisition regulations.

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

Solicitation ID: 47QFCA19R0039

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: $736,396,783

Exercised Options: $736,396,783

Current Obligation: $646,439,399

Subaward Activity

Number of Subawards: 210

Total Subaward Amount: $2,340,810,202

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0004

IDV Type: GWAC

Timeline