Booz Allen Hamilton awarded $75.8M contract for IT services by GSA, with a 2070-day duration

Contract Overview

Contract Amount: $75,844,871 ($75.8M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2019-09-30

End Date: 2025-05-31

Contract Duration: 2,070 days

Daily Burn Rate: $36.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: F16 MTTG PROCUREMENT

Place of Performance

Location: RANDOLPH AFB, BEXAR County, TEXAS, 78150

State: Texas Government Spending

Plain-Language Summary

General Services Administration obligated $75.8 million to BOOZ ALLEN HAMILTON INC for work described as: F16 MTTG PROCUREMENT Key points: 1. Contract value appears reasonable given the extensive duration and scope of IT services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. Risk indicators are moderate, with a long performance period potentially introducing scope creep or obsolescence. 4. Performance context is for computer systems design services, a common and essential government function. 5. Sector positioning is within IT services, a significant area of federal spending. 6. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, indicating a structured procurement approach.

Value Assessment

Rating: good

The contract's total value of approximately $75.8 million over 2070 days (roughly 5.7 years) averages to about $36.6 million per year. This annual figure is within a reasonable range for large-scale IT systems design and support contracts awarded by agencies like the General Services Administration (GSA). Without specific details on the services rendered, direct comparison is challenging, but the pricing appears benchmarked against similar long-term, comprehensive IT support contracts.

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 bids. The fact that it's a delivery order suggests it was placed against an existing IDIQ contract that itself was competed. The number of bidders for the original IDIQ and this specific delivery order would provide a clearer picture of the competitive intensity, but the initial full and open competition is a positive sign for price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for public funds.

Public Impact

Federal agencies utilizing GSA's IT support services benefit from enhanced technological infrastructure and system design. The contract supports the delivery of computer systems design services, crucial for modernizing government IT. The geographic impact is likely nationwide, as GSA serves various federal entities across the US. Workforce implications may include employment opportunities for IT professionals within Booz Allen Hamilton and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (2070 days) increases the risk of technology obsolescence and potential for scope creep.
Reliance on a single large contractor for a significant IT services contract could pose a risk if performance falters.
The specific nature of 'Computer Systems Design Services' can be broad, requiring clear performance metrics to ensure accountability.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair selection process.
Firm Fixed Price contract type helps control costs and provides budget certainty for the government.
Booz Allen Hamilton is a well-established contractor with significant experience in federal IT services, indicating a degree of reliability.

Sector Analysis

The federal IT services market is a substantial segment of government spending, encompassing a wide array of needs from software development to cybersecurity and systems integration. Contracts like this, for computer systems design, are fundamental to maintaining and upgrading the technological backbone of federal agencies. The GSA plays a crucial role in facilitating these procurements through various contract vehicles, including IDIQs, to streamline access to IT solutions. Spending benchmarks for similar IT design and integration services typically range from tens to hundreds of millions of dollars annually across the federal government.

Small Business Impact

This contract does not indicate a small business set-aside, and the prime contractor, Booz Allen Hamilton, is a large business. While there's no direct small business set-aside mentioned, large prime contractors are often required to meet subcontracting goals for small businesses. The extent to which Booz Allen Hamilton utilizes small business subcontractors will determine the impact on the small business ecosystem for this specific contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. As a delivery order under an IDIQ, the underlying contract likely has established oversight mechanisms. Performance monitoring, quality assurance surveillance plans (QASPs), and regular reporting requirements are standard for contracts of this nature. Transparency is generally maintained through contract award databases like FPDS-NG, though detailed performance data may be less public.

Related Government Programs

GSA IT Schedule 70 (now IT Professional Services)
Department of Defense IT Procurement
Civil Agency IT Modernization Programs
Cloud Computing Services Contracts
Cybersecurity Services Contracts

Risk Flags

Long contract duration may lead to technology obsolescence.
Scope creep potential due to the extensive performance period.
Dependence on a single large contractor for critical IT services.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $75.8 million to BOOZ ALLEN HAMILTON INC. F16 MTTG PROCUREMENT

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 $75.8 million.

What is the period of performance?

Start: 2019-09-30. End: 2025-05-31.

What is the specific scope of 'Computer Systems Design Services' covered under this contract?

The contract specifies 'Computer Systems Design Services' (NAICS code 541512). This typically encompasses a broad range of activities including analyzing user needs, designing and developing custom software, integrating hardware and software, and providing IT infrastructure consulting. For this specific contract with Booz Allen Hamilton and GSA, the services likely involve the design, development, and implementation of complex IT systems to meet the evolving needs of federal agencies utilizing GSA's acquisition support. Detailed statements of work (SOWs) within the delivery order would further delineate specific tasks, deliverables, and performance standards, such as system architecture design, network configuration, database development, and potentially project management for IT system rollouts.

How does the $75.8 million award compare to similar IT services contracts awarded by GSA or other agencies?

The $75.8 million award over approximately 5.7 years, averaging around $13.3 million annually, is substantial but falls within the typical range for large-scale IT systems design and integration contracts. GSA, as a major procurer of IT services, awards numerous contracts in this category. For instance, other federal agencies frequently award contracts for similar services ranging from $10 million to over $100 million annually, depending on the complexity and duration. Booz Allen Hamilton is a frequent recipient of such large federal IT contracts, indicating their capacity and the competitive nature of the market. Benchmarking against specific contracts requires detailed comparison of scope, duration, and service level agreements, but the value appears consistent with market rates for a contractor of this caliber performing extensive IT design services.

What are the key performance indicators (KPIs) or metrics used to evaluate Booz Allen Hamilton's performance on this contract?

While the specific KPIs are not detailed in the provided data, contracts for Computer Systems Design Services typically include metrics focused on timeliness of delivery, adherence to technical specifications, system performance post-implementation, user satisfaction, and budget management. For a firm fixed-price contract, meeting all defined deliverables within the agreed-upon schedule and cost is paramount. GSA likely employs a Quality Assurance Surveillance Plan (QASP) to monitor contractor performance against the requirements outlined in the Statement of Work (SOW). Common KPIs might include system uptime, bug resolution rates, successful integration of components, and timely completion of design milestones. Regular progress reports and formal reviews would be part of the oversight process.

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

Booz Allen Hamilton has a long and extensive track record of performing IT services for the federal government, including numerous contracts with the General Services Administration (GSA) and other civilian and defense agencies. They are a major player in the federal IT contracting space, consistently awarded large contracts for systems engineering, cybersecurity, data analytics, and IT modernization. Their history with GSA likely includes multiple awards under various IT Schedule contracts and other IDIQ vehicles. While specific performance details for every contract are not publicly available, their continued success in winning significant federal contracts suggests a generally positive performance history and strong capabilities in delivering complex IT solutions to government clients.

Are there any specific risks associated with this contract, such as potential cost overruns or schedule delays, given its long duration?

Yes, the contract's duration of 2070 days (approximately 5.7 years) inherently introduces risks. Potential cost overruns are mitigated by the 'Firm Fixed Price' (FFP) contract type, which shifts much of the cost risk to the contractor. However, unforeseen technical challenges or significant changes in requirements could still lead to requests for equitable adjustments or contract modifications, potentially impacting the final cost. Schedule delays are also a risk, especially with complex system designs. Factors like evolving technology, integration issues with existing systems, or resource constraints could cause delays. The long duration also increases the risk of technology becoming obsolete before the contract ends, requiring careful management and potential adaptation of the designed systems.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID07180029

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $76,177,522

Exercised Options: $76,177,522

Current Obligation: $75,844,871

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0004

IDV Type: GWAC

Timeline