Booz Allen Hamilton awarded $31.5M for CBP IT and Enterprise Business Management Support

Contract Overview

Contract Amount: $31,459,719 ($31.5M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Homeland Security

Start Date: 2021-08-23

End Date: 2025-09-29

Contract Duration: 1,498 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: BPA CALL/TASK ORDER: IT SUPPORT/ENTERPRISE BUSINESS MANAGEMENT SUPPORT SERVICES TO SUPPORT CBP

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $31.5 million to BOOZ ALLEN HAMILTON INC for work described as: BPA CALL/TASK ORDER: IT SUPPORT/ENTERPRISE BUSINESS MANAGEMENT SUPPORT SERVICES TO SUPPORT CBP Key points: 1. Contract awarded via BPA Call, indicating a pre-competed framework. 2. Services include IT support and enterprise business management, crucial for border security operations. 3. Contract duration extends to September 2025, suggesting a need for sustained support. 4. The award is a Time and Materials type, which can pose cost control challenges. 5. No small business set-aside, raising questions about broader economic impact. 6. The contractor, Booz Allen Hamilton, is a large, established player in federal IT services.

Value Assessment

Rating: fair

The contract value of $31.5 million over its period of performance appears to be within a reasonable range for comprehensive IT and business management support services for a large federal agency like CBP. However, without specific benchmarks for similar enterprise-level support contracts within DHS or comparable agencies, a precise value-for-money assessment is difficult. The Time and Materials (T&M) pricing structure, while flexible, can lead to higher costs if not managed diligently, as it directly reimburses labor hours and material costs. Further analysis would require comparing the loaded labor rates and material markups against industry standards and historical CBP contracts for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, likely through a pre-existing Blanket Purchase Agreement (BPA) Call. This suggests that multiple vendors had the opportunity to bid on the underlying BPA, and then potentially on this specific call. The fact that it was full and open competition is positive for price discovery, as it theoretically allows the government to receive competitive offers from a wide range of qualified contractors. However, the specific number of bidders for this BPA Call is not provided, which limits a deeper analysis of the actual competitive intensity.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. It ensures that the government is not limited to a single provider, increasing the likelihood of obtaining services at a fair market price.

Public Impact

Benefits U.S. Customs and Border Protection (CBP) by providing essential IT and business management support. Enhances the operational efficiency and effectiveness of border security and trade facilitation missions. Supports critical infrastructure and systems that manage vast amounts of data and operational workflows. Implications for the federal IT services workforce, potentially involving skilled professionals in the Washington D.C. metro area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Lack of specific competition metrics (number of bidders) for this BPA Call limits assessment of price discovery.
Reliance on a single large contractor for critical IT and business functions could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Contractor (Booz Allen Hamilton) has extensive experience in federal IT and management consulting.
Long contract duration indicates a strategic need for sustained support, potentially leading to efficiencies through continuity.

Sector Analysis

This contract falls within the Information Technology (IT) and professional services sector, specifically focusing on IT support and enterprise business management. The market for these services within the federal government is substantial, with agencies like DHS consistently investing in modernizing systems and improving operational efficiency. Comparable spending benchmarks would involve looking at other large IT support and business systems contracts awarded by agencies such as the Department of Defense, GSA, or other civilian departments. The size of this contract ($31.5M) places it in the mid-to-large tier for individual task orders or BPAs within the federal IT landscape.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting goals for small businesses within the provided data. This means that the primary award went to a large business, Booz Allen Hamilton. While large businesses often have their own small business subcontracting programs, the direct impact on small business set-aside opportunities for this specific procurement is nil. Further investigation into Booz Allen Hamilton's subcontracting plan for this contract would be needed to assess its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Customs and Border Protection (CBP) contracting officer and their representatives (CORs). As a BPA Call, the underlying BPA likely has its own oversight mechanisms. The Time and Materials nature of the contract necessitates rigorous monitoring of labor hours and material costs to ensure compliance and prevent overspending. Transparency is generally facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

DHS IT Modernization Programs
CBP Enterprise Resource Planning (ERP) Systems
Federal Civilian IT Services Contracts
Management and Consulting Services for Federal Agencies
IT Support Services BPA Calls

Risk Flags

Time and Materials pricing structure
Potential for cost overruns
Limited visibility into specific competition metrics (number of bidders)
No explicit small business set-aside noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $31.5 million to BOOZ ALLEN HAMILTON INC. BPA CALL/TASK ORDER: IT SUPPORT/ENTERPRISE BUSINESS MANAGEMENT SUPPORT SERVICES TO SUPPORT CBP

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $31.5 million.

What is the period of performance?

Start: 2021-08-23. End: 2025-09-29.

What is Booz Allen Hamilton's track record with similar IT support and enterprise business management contracts within DHS or CBP?

Booz Allen Hamilton has a long and extensive history of providing IT and management consulting services to the Department of Homeland Security (DHS) and its components, including U.S. Customs and Border Protection (CBP). They are a major federal contractor frequently awarded large-value contracts for complex IT solutions, cybersecurity, data analytics, and enterprise system support. Their track record generally indicates significant experience and capability in handling large-scale federal IT procurements. However, like any large contractor, they have faced scrutiny and audits on specific contracts regarding performance, cost management, and compliance. A detailed review of their past performance ratings and any past performance issues on similar CBP or DHS contracts would provide a more granular understanding of their specific suitability and reliability for this particular requirement.

How does the $31.5 million value compare to other similar IT support contracts awarded by CBP or DHS?

The $31.5 million value for this BPA Call is substantial, reflecting the scope of enterprise-level IT and business management support services required by a large agency like CBP. To benchmark this value effectively, one would need to compare it against other IT support, system integration, and enterprise business management contracts awarded by CBP and other DHS components over similar performance periods (approximately 2 years). For instance, contracts for maintaining and upgrading core operational systems, providing help desk support, or implementing new business process management tools within DHS often range from tens to hundreds of millions of dollars. Without access to a direct comparison of scope, duration, and specific services rendered for other CBP/DHS IT contracts, it's challenging to definitively state if $31.5 million represents excellent, fair, or concerning value. However, it aligns with the typical investment levels for critical IT infrastructure support in large federal agencies.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude for IT services?

The primary risk associated with a Time and Materials (T&M) contract of this magnitude is the potential for cost overruns and a lack of definitive cost control. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the cost of materials. If the scope of work is not precisely defined, or if project management and oversight are insufficient, the contractor may incur more hours or use more expensive materials than anticipated, leading to costs exceeding initial estimates. For IT services, this can manifest as extended development cycles, inefficient troubleshooting, or the use of higher-cost resources. Effective mitigation requires robust government oversight, detailed tracking of labor hours and material usage, clear performance metrics, and strong contract administration to ensure the contractor is working efficiently and that costs remain reasonable and allocable to the defined tasks.

How does the 'full and open competition' method impact price discovery and potential savings for taxpayers on this contract?

A 'full and open competition' method is designed to maximize price discovery and potential savings for taxpayers by allowing any responsible source to submit an offer. This broad competition theoretically drives down prices as multiple vendors vie for the contract, incentivizing them to offer their best pricing and most competitive solutions. The government benefits from a wider pool of potential providers, increasing the likelihood of finding a vendor that offers the best value. However, the actual savings depend on the number of bids received, the competitiveness of those bids, and the government's ability to negotiate effectively. If only a few bids were submitted, or if the bids were not significantly different, the price discovery benefit might be limited. Nonetheless, the principle of full and open competition is a cornerstone of efficient federal procurement, aiming to prevent inflated pricing that could occur under sole-source or limited competition scenarios.

What are the potential performance implications given the contract duration and the nature of IT support services?

The contract duration of approximately 2 years (August 2021 - September 2025) for IT support and enterprise business management services suggests a need for sustained, ongoing support rather than a one-time project. This duration allows for the development of institutional knowledge and a deeper understanding of CBP's complex systems and operational requirements by the contractor. This continuity can lead to improved service delivery, faster issue resolution, and more effective long-term system management. However, a long duration also carries risks, such as potential complacency from the contractor, the need for vigilant performance monitoring to ensure continued high standards, and the possibility of technology or requirements evolving beyond the contract's scope. Regular performance reviews and clear communication channels are crucial to manage these risks and ensure the contractor remains aligned with CBP's evolving needs throughout the contract period.

Are there any specific indicators within the data that suggest potential risks or concerns regarding this contract's value or execution?

Yes, there are a few indicators that suggest potential risks or concerns. Firstly, the contract is a Time and Materials (T&M) type. While flexible, T&M contracts inherently carry a higher risk of cost overruns compared to fixed-price contracts, especially for IT services where scope can be fluid. Effective management and oversight are critical to control costs. Secondly, the data does not specify the number of bidders for this BPA Call, making it difficult to fully assess the level of competition and its potential impact on price discovery. While it was 'full and open,' a low number of actual bids could limit competitive pressure. Lastly, the absence of small business participation indicators (set-aside or subcontracting noted) might be a concern from a broader economic policy perspective, though not directly a risk to contract execution itself.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70B03C21Q00000095

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MC LEAN, 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: $32,177,163

Exercised Options: $31,459,719

Current Obligation: $31,459,719

Actual Outlays: $23,708,707

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,883,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 70B04C19A00000002

IDV Type: BPA

Timeline