SEC Awards Booz Allen Hamilton $185M for IT Testing and Compliance Support

Contract Overview

Contract Amount: $185,468,725 ($185.5M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Securities and Exchange Commission

Start Date: 2019-12-12

End Date: 2027-12-11

Contract Duration: 2,921 days

Daily Burn Rate: $63.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: INFORMATION SYSTEMS TESTING AND COMPLIANCE SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20549

State: District of Columbia Government Spending

Plain-Language Summary

Securities and Exchange Commission obligated $185.5 million to BOOZ ALLEN HAMILTON INC for work described as: INFORMATION SYSTEMS TESTING AND COMPLIANCE SUPPORT SERVICES Key points: 1. Significant contract value of $185.5 million over nearly 8 years. 2. Booz Allen Hamilton, a large established firm, holds the contract. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract falls under Computer Systems Design Services, a key IT sector.

Value Assessment

Rating: good

The contract's total value is substantial, but specific pricing details per task order are not provided. Benchmarking against similar large-scale IT support contracts is difficult without more granular data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives fair value.

Taxpayer Impact: Taxpayer funds are being used for essential IT support services, with competition aiming to optimize cost-effectiveness.

Public Impact

Ensures the SEC's IT systems are secure and compliant with regulations. Supports critical functions of a major financial regulatory body. Potential for impact on market stability through reliable IT infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is long (nearly 8 years).
No small business participation noted.

Positive Signals

Full and open competition utilized.
Contract supports a vital government agency.

Sector Analysis

This contract is within the IT sector, specifically focusing on computer systems design and support services. Spending in this area is crucial for government operations, with benchmarks varying widely based on complexity and duration.

Small Business Impact

The contract data indicates no small business participation. This suggests that the prime contractor, Booz Allen Hamilton, is handling the entirety of the work, potentially missing opportunities for subcontracting to smaller, specialized firms.

Oversight & Accountability

The contract was awarded through full and open competition, which implies a degree of oversight in the bidding process. However, ongoing oversight of performance and cost management by the SEC is critical for accountability.

Related Government Programs

Computer Systems Design Services
Securities and Exchange Commission Contracting
Securities and Exchange Commission Programs

Risk Flags

Long contract duration may lead to price escalation or obsolescence.
No small business participation noted.
Lack of granular pricing data makes detailed value assessment challenging.
Reliance on a single large contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Securities and Exchange Commission awarded $185.5 million to BOOZ ALLEN HAMILTON INC. INFORMATION SYSTEMS TESTING AND COMPLIANCE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Securities and Exchange Commission (Securities and Exchange Commission).

What is the total obligated amount?

The obligated amount is $185.5 million.

What is the period of performance?

Start: 2019-12-12. End: 2027-12-11.

What is the average hourly rate for labor hours under this contract, and how does it compare to industry benchmarks for similar IT support services?

The provided data does not specify the average hourly rate for labor hours. To assess value, a detailed analysis of the awarded labor categories, their rates, and comparison against GSA schedules or other government-wide contract vehicles for comparable IT services would be necessary. Without this, a precise benchmark is not possible.

What are the key performance indicators (KPIs) for this contract, and how is Booz Allen Hamilton's performance being measured against them?

The data does not detail the specific KPIs or performance metrics established for this contract. Effective oversight would involve the SEC defining clear, measurable KPIs related to system uptime, compliance adherence, security incident response times, and user satisfaction. Regular performance reviews against these KPIs are essential for ensuring contract effectiveness and accountability.

Given the nearly 8-year duration, what mechanisms are in place to ensure the contract remains relevant and cost-effective as technology evolves?

The long duration of the contract necessitates built-in flexibility and review mechanisms. The SEC should have provisions for regular contract reviews, potential re-negotiations of rates or scope based on technological advancements, and clear exit strategies or transition plans. Without these, the contract risks becoming outdated or overpaying for services that can be procured more efficiently through newer technologies.

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

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: $226,000,000

Exercised Options: $185,468,725

Current Obligation: $185,468,725

Actual Outlays: $157,569,168

Subaward Activity

Number of Subawards: 36

Total Subaward Amount: $50,721,919

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 50310218D0025

IDV Type: IDC

Timeline