EPA awards Booz Allen Hamilton $36.7M for Superfund Enterprise Management System support through full and open competition

Contract Overview

Contract Amount: $36,678,595 ($36.7M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2018-09-24

End Date: 2024-04-23

Contract Duration: 2,038 days

Daily Burn Rate: $18.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EPA OFFICE OF LAND AND EMERGENCY MANAGEMENT (OLEM), OFFICE OF SUPERFUND REMEDIATION AND TECHNOLOGY INNOVATION (OSRTI) TASK ORDER FOR SUPERFUND ENTERPRISE MANAGEMENT SYSTEM (SEMS) APPLICATION SUPPORT ACTION: AWARD OF TASK ORDER IN RESPONSE TO E-GOS SOLICITATION C-45368-0 (EPA SOLICITATION 68HE0S18Q0001).

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $36.7 million to BOOZ ALLEN HAMILTON INC for work described as: EPA OFFICE OF LAND AND EMERGENCY MANAGEMENT (OLEM), OFFICE OF SUPERFUND REMEDIATION AND TECHNOLOGY INNOVATION (OSRTI) TASK ORDER FOR SUPERFUND ENTERPRISE MANAGEMENT SYSTEM (SEMS) APPLICATION SUPPORT ACTION: AWARD OF TASK ORDER IN RESPONSE TO E-GOS SOLICITATION C-45368-0 (EPA SOLI… Key points: 1. Contract focuses on critical IT application support for the Superfund program, indicating a need for specialized technical expertise. 2. The duration of the task order (over 5 years) suggests a long-term requirement for system maintenance and development. 3. Awarded under a firm-fixed-price contract type, which shifts cost risk to the contractor. 4. The task order was issued against a broader EPA solicitation, suggesting potential for future task orders under the same contract vehicle. 5. The contractor, Booz Allen Hamilton, is a large, established firm with significant federal contracting experience. 6. The contract value is substantial, reflecting the complexity and importance of the SEMS application. 7. No small business set-aside was utilized, indicating the competition was open to all eligible offerors.

Value Assessment

Rating: good

The contract value of approximately $36.7 million over roughly 5.5 years for IT application support appears reasonable given the scope of supporting a critical federal system like SEMS. Benchmarking against similar large-scale IT support contracts for environmental agencies or complex data management systems would provide further context. The firm-fixed-price structure is generally favorable for the government when requirements are well-defined, as it caps costs. However, without detailed breakdowns of labor categories and hours, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under a full and open competition, meaning all responsible sources were permitted to submit an offer. The solicitation was EPA Solicitation 68HE0S18Q0001, and this task order was issued against that solicitation. The presence of four bids (no=4) indicates a healthy level of competition for this requirement, which is generally positive for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Full and open competition with multiple bidders typically leads to better pricing for taxpayers by fostering a competitive environment. This approach helps ensure that the selected contractor offers the most advantageous terms and pricing for the services required.

Public Impact

The primary beneficiaries are the EPA's Office of Land and Emergency Management (OLEM) and the Office of Superfund Remediation and Technology Innovation (OSRTI), who rely on the SEMS application for managing Superfund sites. The contract delivers essential IT application support, ensuring the functionality, reliability, and potential enhancement of the SEMS system. This system is crucial for tracking and managing hazardous waste sites across the United States, impacting environmental protection nationwide. The successful execution of this contract supports the EPA's mission to protect human health and the environment, indirectly benefiting the public through cleaner land and water resources.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not tightly managed over the long contract duration.
Reliance on a single large contractor for critical system support could pose risks if performance falters.
The complexity of the SEMS application may present challenges in knowledge transfer and contractor dependency.

Positive Signals

Award to an experienced contractor with a strong track record in federal IT services.
Firm-fixed-price contract type provides cost certainty for the government.
Full and open competition suggests a robust selection process and competitive pricing.
Long-term nature of the contract allows for sustained expertise and system development.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. The Environmental Protection Agency (EPA) is a major consumer of IT services, particularly for managing complex environmental data and regulatory compliance systems like SEMS. The market for such specialized application support is characterized by a mix of large, established federal contractors and niche IT service providers. Spending benchmarks for similar large-scale IT support contracts within federal agencies can range from tens to hundreds of millions of dollars, depending on the system's criticality and scope.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses explicitly detailed in the provided data. The award to a large prime contractor like Booz Allen Hamilton suggests that subcontracting opportunities for small businesses may exist, but these would depend on the prime's own subcontracting plan and needs. The absence of a set-aside indicates that the competition was open to all eligible firms, potentially limiting direct opportunities for small businesses to compete as prime contractors on this specific award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Environmental Protection Agency (EPA), specifically the contracting officer and program managers within OLEM and OSRTI. The contract type (firm-fixed-price) implies that performance standards and deliverables will be closely monitored to ensure compliance. Transparency is facilitated through public contract databases like FPDS. While specific Inspector General (IG) jurisdiction is not detailed here, the EPA's Office of Inspector General typically oversees agency contracts to prevent fraud, waste, and abuse.

Related Government Programs

EPA Superfund Program IT Support
Federal Environmental Data Management Systems
IT Application Development and Maintenance Services
Large-scale Federal IT Contracts
Environmental Regulatory Compliance Systems

Risk Flags

Long-term contract duration may increase risk of performance degradation or cost escalation if not managed proactively.
Sole reliance on one large contractor for critical system support could create vendor lock-in.
Complexity of the SEMS application requires specialized knowledge, potentially limiting contractor pool for future competitions.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $36.7 million to BOOZ ALLEN HAMILTON INC. EPA OFFICE OF LAND AND EMERGENCY MANAGEMENT (OLEM), OFFICE OF SUPERFUND REMEDIATION AND TECHNOLOGY INNOVATION (OSRTI) TASK ORDER FOR SUPERFUND ENTERPRISE MANAGEMENT SYSTEM (SEMS) APPLICATION SUPPORT ACTION: AWARD OF TASK ORDER IN RESPONSE TO E-GOS SOLICITATION C-45368-0 (EPA SOLICITATION 68HE0S18Q0001).

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $36.7 million.

What is the period of performance?

Start: 2018-09-24. End: 2024-04-23.

What is the historical spending trend for Superfund Enterprise Management System (SEMS) application support by the EPA?

Analyzing historical spending on SEMS application support is crucial for understanding the long-term investment in this critical system. While this specific task order represents a significant award of $36.7 million from 2018 to 2024, it's important to examine prior contracts and task orders related to SEMS. This would involve reviewing data from previous years to identify trends in annual spending, potential increases or decreases, and whether the support was consistently provided by the same contractors or through competitive processes. Understanding this history can reveal patterns of investment, potential cost efficiencies or escalations, and the overall lifecycle cost of maintaining and enhancing the SEMS application, providing context for the current award's value and duration.

How does the per-unit cost or hourly rate for Booz Allen Hamilton on this contract compare to industry benchmarks for similar IT support services?

A detailed comparison of per-unit costs or hourly rates for Booz Allen Hamilton on this SEMS support contract against industry benchmarks is challenging without access to the specific labor categories, rates, and estimated hours included in the firm-fixed-price proposal. However, Booz Allen Hamilton is a large, established federal contractor known for providing high-level IT services. Their rates are generally expected to be competitive within the large prime contractor space but may be higher than smaller, specialized firms. Benchmarking would involve comparing the proposed rates for roles like project managers, system administrators, developers, and analysts against government-wide IT schedule rates (e.g., GSA Schedules) or data from similar large-scale IT support contracts awarded to other major federal IT vendors. A higher-than-average rate might be justified by specialized expertise or a comprehensive service offering, while a lower rate could indicate efficiency or aggressive bidding.

What are the key performance indicators (KPIs) used to measure the success of Booz Allen Hamilton's support for the SEMS application?

The success of Booz Allen Hamilton's support for the SEMS application under this contract is likely measured through a set of Key Performance Indicators (KPIs) defined in the Performance Work Statement (PWS). These KPIs would typically focus on aspects such as system availability and uptime, response times for issue resolution, successful implementation of system updates and enhancements, adherence to security protocols, and user satisfaction. For instance, KPIs might include maintaining a 99.9% system uptime, resolving critical bugs within 24 hours, and completing scheduled maintenance without significant disruption. The firm-fixed-price nature of the contract implies that meeting these defined performance standards is crucial for the contractor to receive full payment and avoid penalties, ensuring accountability for the quality and reliability of the IT services provided.

What is the track record of Booz Allen Hamilton in supporting similar large-scale, mission-critical IT systems for federal agencies?

Booz Allen Hamilton has a substantial and well-documented track record of supporting large-scale, mission-critical IT systems for numerous federal agencies, including the Department of Defense, intelligence community, and civilian agencies like the EPA. They are known for their expertise in areas such as systems engineering, cybersecurity, data analytics, and application development and sustainment. Their experience often involves managing complex projects with significant budgets and long durations, similar to the SEMS support contract. Past performance evaluations and contract awards data would typically show their ability to deliver on complex requirements, manage risks, and meet performance objectives. This extensive experience provides a degree of confidence in their capability to handle the technical and programmatic demands of supporting the EPA's Superfund Enterprise Management System.

How does the competition level (4 bidders) for this task order potentially impact the overall cost-effectiveness for the EPA?

The fact that this task order received four bids under a full and open competition is a positive indicator for cost-effectiveness. A higher number of bidders generally intensifies competition, pushing contractors to offer more competitive pricing and potentially more innovative solutions to win the contract. With four distinct offers, the EPA had a reasonable pool from which to evaluate technical capabilities and pricing. This level of competition helps ensure that the selected price is not excessively high and reflects a fair market value for the required services. It reduces the risk of the EPA overpaying due to a lack of viable alternatives, thereby enhancing the overall cost-effectiveness of the award for the agency and taxpayers.

What are the potential risks associated with relying on a single contractor (Booz Allen Hamilton) for over five years of critical system support?

Relying on a single contractor like Booz Allen Hamilton for over five years of critical system support for SEMS presents several potential risks. One primary risk is contractor dependency; the EPA could become overly reliant on Booz Allen's specific knowledge and processes, making it difficult and costly to transition to another vendor if needed. Performance degradation is another risk; over time, contractor performance might decline due to complacency, staffing changes, or evolving internal priorities. Furthermore, a lack of sustained competitive pressure could potentially lead to less innovation or less aggressive cost management compared to a scenario with more frequent re-competition. Finally, unforeseen issues like contractor financial instability or major strategic shifts could disrupt service delivery, although Booz Allen's size and stability mitigate some of these concerns.

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: 68HE0S18Q0001

Offers Received: 4

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: $38,745,733

Exercised Options: $38,745,733

Current Obligation: $36,678,595

Actual Outlays: $26,052,047

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $37,598

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200008W

IDV Type: GWAC

Timeline