Booz Allen Hamilton awarded $116M IT support contract by NSF, highlighting need for specialized application services

Contract Overview

Contract Amount: $116,276,535 ($116.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: National Science Foundation

Start Date: 2024-01-01

End Date: 2026-12-31

Contract Duration: 1,095 days

Daily Burn Rate: $106.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: INFORMATION TECHNOLOGY MISSION APPLICATION SUPPORT

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

National Science Foundation obligated $116.3 million to BOOZ ALLEN HAMILTON INC for work described as: INFORMATION TECHNOLOGY MISSION APPLICATION SUPPORT Key points: 1. Contract addresses critical IT mission application support, indicating a significant need for specialized services. 2. The full and open competition suggests a healthy market for these services, potentially leading to competitive pricing. 3. The contract duration of three years allows for sustained support and development of NSF's IT infrastructure. 4. Focus on Computer Systems Design Services points to complex IT requirements beyond basic maintenance. 5. The award value of over $116 million underscores the scale and importance of the IT services required by NSF.

Value Assessment

Rating: good

The contract value of $116.3 million over three years for IT mission application support appears reasonable given the scope of services. Benchmarking against similar large-scale IT support contracts for federal agencies suggests that the pricing is within expected ranges. The specific services, such as computer systems design, often command significant investment. Without detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive nature of the award provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified vendors were able to bid. The presence of two bids suggests a competitive environment, though more bidders would typically indicate stronger price discovery. The agency likely received proposals that offered a range of technical solutions and pricing structures, allowing for selection of the best value.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality.

Public Impact

The National Science Foundation (NSF) benefits directly through enhanced IT mission application support, crucial for its research and scientific endeavors. Services delivered include computer systems design and related IT support, ensuring the smooth operation of critical NSF applications. The geographic impact is primarily centered around NSF's operations, likely in Virginia, supporting its national and international research initiatives. The contract supports a workforce skilled in IT mission application support and computer systems design, contributing to the federal IT sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specific proprietary systems are developed or heavily relied upon.
Risk of scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
Dependence on a single contractor for critical IT functions could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process and potential for competitive pricing.
The contract duration allows for stability and continuity in essential IT services for NSF.
Booz Allen Hamilton is a large, established contractor with significant experience in federal IT services, indicating a lower risk of performance issues.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive and specialized. This contract falls under computer systems design services, a segment focused on analyzing and designing IT systems to meet specific organizational needs. The market for such services is substantial, with agencies like the NSF requiring sophisticated solutions to manage vast amounts of data and complex research applications. Benchmarks for similar IT support contracts often range from tens to hundreds of millions of dollars, depending on the scope and duration.

Small Business Impact

This contract was not set aside for small businesses and the prime contractor, Booz Allen Hamilton, is a large business. There is no explicit indication of small business subcontracting goals in the provided data. The impact on the small business ecosystem is likely minimal unless specific subcontracting opportunities arise, which are not detailed here. Larger contracts awarded to prime contractors often do not prioritize small business set-asides for the prime award itself.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Science Foundation's contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction may apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

IT Application Development Services
Computer Systems Design Services
IT Professional Services
Cloud Computing Services
Cybersecurity Services

Risk Flags

Potential for vendor lock-in
Risk of scope creep
Cybersecurity vulnerabilities
Performance degradation risk

Frequently Asked Questions

What is this federal contract paying for?

National Science Foundation awarded $116.3 million to BOOZ ALLEN HAMILTON INC. INFORMATION TECHNOLOGY MISSION APPLICATION SUPPORT

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: National Science Foundation (National Science Foundation).

What is the total obligated amount?

The obligated amount is $116.3 million.

What is the period of performance?

Start: 2024-01-01. End: 2026-12-31.

What is Booz Allen Hamilton's track record with the National Science Foundation and similar agencies?

Booz Allen Hamilton has a substantial track record of performing IT and professional services for the National Science Foundation and numerous other federal agencies. Their history includes numerous large-scale contracts for systems engineering, application development, cybersecurity, and IT modernization. For NSF specifically, they have likely held contracts related to supporting scientific research infrastructure and administrative systems. Their extensive experience suggests a deep understanding of federal procurement processes and the unique requirements of scientific and research organizations. This long-standing presence indicates a generally positive relationship and a proven ability to deliver on complex IT requirements within the federal space.

How does the $116.3 million contract value compare to other IT support contracts awarded by NSF?

The $116.3 million contract value for IT mission application support is a significant award, placing it among the larger IT service contracts issued by the National Science Foundation. NSF, like many federal agencies, relies heavily on IT to manage research grants, data, and scientific initiatives. While specific historical data for comparable contracts would be needed for a precise comparison, awards in the tens to over a hundred million dollars are not uncommon for comprehensive IT support, systems design, and application development over multi-year periods. This value reflects the complexity and critical nature of the IT services required to support NSF's mission.

What are the primary risks associated with this type of IT mission application support contract?

Primary risks for this IT mission application support contract include potential scope creep, where project requirements expand beyond the initial agreement, leading to cost overruns and schedule delays. Another significant risk is vendor lock-in, particularly if the contractor develops or implements proprietary solutions that make it difficult or costly to transition to a new vendor later. Performance degradation is also a risk; if the contractor fails to meet service level agreements or deliver quality work, it could disrupt NSF's critical operations. Furthermore, cybersecurity vulnerabilities introduced or not adequately managed by the contractor pose a substantial risk to sensitive research data and agency systems.

How effective is full and open competition in ensuring value for money for IT services like these?

Full and open competition is generally considered the most effective method for ensuring value for money in federal IT services. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. This broad competition puts pressure on vendors to offer their best technical capabilities and most cost-effective proposals to win the contract. While it requires more effort from the agency to evaluate numerous proposals, the potential for cost savings and superior service quality typically outweighs these administrative burdens, ultimately benefiting taxpayers.

What is the typical duration for contracts of this nature and value?

Contracts for comprehensive IT mission application support, especially those valued in the tens or hundreds of millions of dollars, typically have durations ranging from one to five years. This specific contract has a duration of three years (1095 days), which is a common and practical timeframe. This duration allows for sufficient time to implement, manage, and sustain complex IT services without being excessively long, which could lead to outdated technology or inflexible pricing. It also provides stability for the contractor to invest in resources and personnel while giving the agency flexibility to re-evaluate its needs at the end of the term.

What are the implications of this contract being for 'Computer Systems Design Services'?

This contract being categorized under 'Computer Systems Design Services' (NAICS code 541512) implies that the scope extends beyond routine IT maintenance or support. It suggests the contractor will be involved in analyzing client requirements, designing, developing, and implementing IT systems and solutions. This could include activities like software development, system integration, network design, and IT infrastructure planning. Such services are often complex, requiring specialized expertise and a deep understanding of both technology and the organization's operational needs. It indicates a focus on creating or significantly modifying IT systems to meet specific mission objectives, rather than just providing off-the-shelf solutions.

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: 2

Pricing Type: LABOR HOURS (Z)

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: $419,341,814

Exercised Options: $154,938,141

Current Obligation: $116,276,535

Actual Outlays: $99,789,329

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $568,305

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCK18D0004

IDV Type: GWAC

Timeline