HHS Awards $58M to Booz Allen Hamilton for DCIPHER Services, Focusing on Computer Systems Design
Contract Overview
Contract Amount: $58,260,870 ($58.3M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2022-03-20
End Date: 2027-03-19
Contract Duration: 1,825 days
Daily Burn Rate: $31.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DCIPHER SERVICES
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $58.3 million to BOOZ ALLEN HAMILTON INC for work described as: DCIPHER SERVICES Key points: 1. Contract Value: $58.26 million over 5 years. 2. Incumbent: Booz Allen Hamilton holds the contract. 3. Risk: Potential for vendor lock-in if competition was limited. 4. Sector: Information Technology (Computer Systems Design Services).
Value Assessment
Rating: good
The contract value of $58.26 million over five years appears reasonable for complex computer systems design services. Benchmarking against similar large-scale IT contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method generally leads to more competitive pricing for the government.
Taxpayer Impact: Full and open competition aims to secure the best value for taxpayers by encouraging multiple bidders to offer competitive prices.
Public Impact
Public health initiatives supported by CDC IT infrastructure. Potential for improved data analysis and disease surveillance. Ensures continuity of critical IT services for public health.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics in provided data.
- Potential for scope creep in long-term IT contracts.
Positive Signals
- Awarded through full and open competition.
- Long-term contract provides stability for critical services.
Sector Analysis
This contract falls within the IT sector, specifically computer systems design services. Spending in this area is crucial for government agencies to maintain and upgrade their technological infrastructure, with benchmarks varying widely based on complexity and duration.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as it went to Booz Allen Hamilton. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
Oversight is typically managed by the contracting officer's representative (COR) within the CDC to ensure adherence to contract terms and performance standards. Accountability rests with Booz Allen Hamilton to deliver services as specified.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Disease Control and Prevention Programs
Risk Flags
- Potential for vendor lock-in.
- Risk of technological obsolescence over contract duration.
- Lack of small business prime awardee.
- Need for detailed performance metrics review.
Tags
computer-systems-design-services, department-of-health-and-human-services, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $58.3 million to BOOZ ALLEN HAMILTON INC. DCIPHER SERVICES
Who is the contractor on this award?
The obligated recipient is BOOZ ALLEN HAMILTON INC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).
What is the total obligated amount?
The obligated amount is $58.3 million.
What is the period of performance?
Start: 2022-03-20. End: 2027-03-19.
What specific IT systems or services does DCIPHER encompass, and how do they directly support the CDC's mission?
DCIPHER likely refers to a program or system critical for data processing, information retrieval, or electronic records management within the CDC. Its specific functions would directly support the agency's mission by enabling efficient disease surveillance, outbreak investigation, public health research, and communication of health information to stakeholders and the public.
Given the 5-year duration, what are the primary risks associated with vendor lock-in or technological obsolescence for this contract?
The primary risk of vendor lock-in stems from the incumbent provider potentially having deep integration and proprietary knowledge, making it difficult and costly to switch. Technological obsolescence is a risk if the contract doesn't include provisions for regular technology refreshes or adaptation to new standards, potentially leaving the CDC with outdated systems.
How does the firm-fixed-price contract type incentivize efficiency and cost control for Booz Allen Hamilton?
A firm-fixed-price contract incentivizes the contractor to manage costs effectively because any expenses exceeding the agreed-upon price are absorbed by the contractor. This structure encourages Booz Allen Hamilton to be efficient in their service delivery and resource allocation to maximize their profit margin, while the government has cost certainty.
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: 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: $67,720,964
Exercised Options: $61,965,318
Current Obligation: $58,260,870
Actual Outlays: $51,795,207
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0004
IDV Type: GWAC
Timeline
Start Date: 2022-03-20
Current End Date: 2027-03-19
Potential End Date: 2027-03-19 00:00:00
Last Modified: 2026-03-18
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