GSA Awards Booz Allen Hamilton $616M IT Services Contract for CDM Defend Group BD Bridge Task Order

Contract Overview

Contract Amount: $615,926,911 ($615.9M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2024-05-01

End Date: 2026-04-30

Contract Duration: 729 days

Daily Burn Rate: $844.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: CDM DEFEND GROUP BD BRIDGE TASK ORDER

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $615.9 million to BOOZ ALLEN HAMILTON INC for work described as: CDM DEFEND GROUP BD BRIDGE TASK ORDER Key points: 1. Contract awarded to a single, large incumbent contractor, raising questions about potential lack of competitive pressure. 2. Significant contract value suggests a critical need for these IT services within the agency. 3. The cost-plus award fee structure allows for performance incentives but requires careful monitoring to ensure value. 4. Task order awarded under a broader indefinite-delivery/indefinite-quantity (IDIQ) contract, indicating a pre-established relationship. 5. The duration of the task order (729 days) suggests a long-term need for sustained IT support. 6. Focus on Computer Systems Design Services highlights the agency's reliance on specialized IT expertise.

Value Assessment

Rating: fair

The contract's value of $615.9 million over approximately two years represents a substantial investment in IT services. Benchmarking this specific task order against comparable contracts is challenging without more detailed scope information. However, the cost-plus award fee (CPAF) pricing structure, while common for complex IT services, necessitates rigorous oversight to ensure that costs are reasonable and that the award fee is earned through demonstrated performance. Without specific performance metrics and comparison data, it's difficult to definitively assess value for money, but the scale of the award suggests a significant operational requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under a full and open competition, indicating that multiple bidders were likely considered. The specific number of bidders for this particular task order is not provided, but the fact that it was competed broadly suggests an opportunity for market-driven pricing. The use of a broad competition mechanism for this significant award is a positive indicator for price discovery and potentially achieving better value.

Taxpayer Impact: A full and open competition for a contract of this magnitude is generally favorable for taxpayers, as it encourages a wider range of potential providers to compete, which can lead to more competitive pricing and innovative solutions.

Public Impact

Federal agencies requiring advanced computer systems design and integration services will benefit from the support provided under this contract. The contract aims to deliver critical IT infrastructure and support services, enhancing operational capabilities. Services are likely to be delivered within the General Services Administration's operational footprint, primarily in Virginia. The contract may support a workforce of IT professionals, including systems designers, engineers, and support staff, potentially through Booz Allen Hamilton's employees and subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus award fee contracts can incentivize cost overruns if not managed tightly.
Reliance on a single large contractor for a significant task order may limit future competitive flexibility.
The broad scope of 'Computer Systems Design Services' could lead to scope creep if not clearly defined and managed.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
The task order is part of a larger IDIQ contract, implying a structured and potentially efficient procurement process.
The use of an award fee structure can incentivize high performance and successful delivery of services.

Sector Analysis

The IT services sector is a vast and critical component of federal spending, encompassing everything from basic infrastructure support to advanced cybersecurity and cloud computing. This contract falls under Computer Systems Design Services, a segment focused on the design, development, and integration of complex IT systems. The federal government is a major consumer of these services, with spending often driven by the need to modernize legacy systems, enhance data security, and improve operational efficiency. Comparable spending benchmarks in this area are typically measured by the total IT spending of agencies like GSA, which often runs into billions of dollars annually.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). As a large contract awarded to a major incumbent, the primary impact on small businesses would likely be through subcontracting opportunities. Booz Allen Hamilton, as the prime contractor, may engage small businesses for specialized services or support roles. However, without explicit subcontracting goals or reporting, the extent of small business participation remains uncertain and dependent on the prime contractor's strategy.

Oversight & Accountability

The General Services Administration (GSA) typically employs various oversight mechanisms for its contracts, including contract officer representatives (CORs) who monitor performance and ensure compliance. The cost-plus award fee structure inherently requires detailed performance monitoring and evaluation to determine the award fee. Transparency is generally maintained through contract databases like FPDS, which provide public access to contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

GSA Federal Acquisition Service Contracts
IT Services for Federal Agencies
Computer Systems Design Services
Cost-Plus Award Fee Contracts
Large IT Services Task Orders

Risk Flags

Potential for cost overruns due to CPAF structure.
Risk of scope creep in complex IT projects.
Dependency on incumbent contractor may limit future competition.
Cybersecurity risks inherent in CDM program.
Transition risks if this is a bridge task order.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $615.9 million to BOOZ ALLEN HAMILTON INC. CDM DEFEND GROUP BD BRIDGE TASK ORDER

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 $615.9 million.

What is the period of performance?

Start: 2024-05-01. End: 2026-04-30.

What is the historical spending pattern for Booz Allen Hamilton with the General Services Administration, particularly for IT services?

Booz Allen Hamilton has a significant and long-standing relationship with the General Services Administration (GSA), frequently securing contracts for a wide array of services, including IT. Historical data indicates substantial annual spending by GSA on IT services, with Booz Allen Hamilton often being a key recipient. Analyzing past awards reveals a pattern of multi-million dollar contracts for tasks ranging from systems integration and cybersecurity to management consulting and data analytics. The current $616 million task order is consistent with the scale of work previously awarded to the contractor by GSA, suggesting a continued reliance on their expertise for complex IT requirements. Further analysis would involve examining the specific types of IT services previously contracted, the performance history on those contracts, and the competitive landscape for similar awards over time to fully contextualize this new task order.

How does the pricing structure (Cost Plus Award Fee) for this contract compare to industry standards for similar IT services?

The Cost Plus Award Fee (CPAF) structure is a common pricing model used by the federal government for complex IT services where the scope of work may evolve or is difficult to define precisely upfront. Under CPAF, the contractor is reimbursed for allowable costs plus a fee that is composed of a fixed base fee and an award fee. The award fee is contingent upon the contractor meeting or exceeding specific performance objectives, which are typically defined in the contract. Compared to fixed-price contracts, CPAF offers more flexibility but also carries a higher risk of cost overruns if not managed diligently. Industry standards suggest that for services requiring innovation, adaptability, and high performance, CPAF can be an effective mechanism for aligning contractor incentives with government objectives. However, the effectiveness hinges on well-defined performance metrics and robust government oversight to ensure that costs remain reasonable and the award fee is truly earned.

What are the key performance indicators (KPIs) that will be used to determine the award fee for this contract?

The specific Key Performance Indicators (KPIs) used to determine the award fee for this $616 million task order are not publicly detailed in the provided data. However, for a contract focused on Computer Systems Design Services under a Cost Plus Award Fee (CPAF) structure, typical KPIs would likely revolve around system performance, reliability, security compliance, timely delivery of milestones, user satisfaction, and adherence to technical specifications. The General Services Administration (GSA) would establish a performance evaluation plan outlining these metrics and their associated rating scales. The award fee would then be calculated based on how well Booz Allen Hamilton performs against these defined objectives. Without access to the contract's Performance Work Statement (PWS) or evaluation criteria, a precise list of KPIs cannot be provided, but they would be designed to incentivize the contractor to deliver high-quality IT solutions that meet the agency's evolving needs.

What is the potential impact of this large contract award on competition within the IT services market for GSA?

The award of a $616 million task order to an incumbent contractor like Booz Allen Hamilton, even under full and open competition, can have a significant impact on the IT services market dynamics for the General Services Administration (GSA). While full and open competition theoretically allows all eligible bidders to participate, the sheer size and scope of this task order may favor large, established companies with proven track records and the capacity to manage such extensive projects. This could potentially create a barrier to entry for smaller or newer firms looking to compete for large-scale GSA contracts. Furthermore, if Booz Allen Hamilton has historically performed well on similar contracts, their established relationship and demonstrated capabilities might give them a competitive edge in future procurements. The long-term effect could be a concentration of large IT service contracts among a few prime contractors, necessitating proactive GSA strategies to ensure continued market diversity and innovation.

Are there any specific risks associated with the 'CDM DEFEND GROUP BD BRIDGE TASK ORDER' that warrant close monitoring?

The designation 'CDM DEFEND GROUP BD BRIDGE TASK ORDER' suggests this contract is part of the Continuous Diagnostics and Mitigation (CDM) program, which is a large-scale cybersecurity initiative. Risks associated with such programs often include the complexity of integrating diverse systems, the evolving threat landscape requiring constant adaptation, and the potential for scope creep as new cybersecurity needs emerge. A 'bridge' task order typically implies it's intended to maintain continuity of services while a more permanent solution or follow-on contract is being procured, which can introduce risks related to transition management and potential service gaps if not handled smoothly. Given the critical nature of cybersecurity, risks also include potential vulnerabilities in the deployed systems, data breaches, and ensuring compliance with stringent federal security mandates. Close monitoring would be essential to ensure the program's objectives are met, costs are controlled, and security posture is continuously strengthened.

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

Solicitation ID: 47QFRA24R0002

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: $1,124,011,032

Exercised Options: $793,458,310

Current Obligation: $615,926,911

Subaward Activity

Number of Subawards: 296

Total Subaward Amount: $285,262,631

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 47QTCK18D0004

IDV Type: GWAC

Timeline