HHS Awards Booz Allen Hamilton $84M for Cloud Marketplace System Integration
Contract Overview
Contract Amount: $84,019,493 ($84.0M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2025-07-23
End Date: 2026-07-22
Contract Duration: 364 days
Daily Burn Rate: $230.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: MARKETPLACE SYSTEM INTEGRATOR (MSI) SHALL PERFORM SYSTEM INTEGRATION ACTIVITIES RELEASE AND ENVIRONMENT MANAGEMENT AND COMMUNICATION AND PARTICIPATE IN THE CHANGE CONTROL PROCESS FOR EXCHANGE ENVIRONMENTS THAT ARE HOSTED IN A CLOUD PLATFORM.
Place of Performance
Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $84.0 million to BOOZ ALLEN HAMILTON INC for work described as: MARKETPLACE SYSTEM INTEGRATOR (MSI) SHALL PERFORM SYSTEM INTEGRATION ACTIVITIES RELEASE AND ENVIRONMENT MANAGEMENT AND COMMUNICATION AND PARTICIPATE IN THE CHANGE CONTROL PROCESS FOR EXCHANGE ENVIRONMENTS THAT ARE HOSTED IN A CLOUD PLATFORM. Key points: 1. Contract focuses on cloud-hosted exchange environments, a growing area for government IT. 2. Booz Allen Hamilton, a large established contractor, secured this delivery order. 3. The contract value is significant, requiring careful oversight of performance and costs. 4. Computer Systems Design Services (NAICS 541512) is a competitive sector.
Value Assessment
Rating: good
The contract is a Time and Materials type, which can lead to cost overruns if not managed closely. Benchmarking against similar system integration contracts is recommended to ensure fair pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, suggesting a competitive bidding process. The delivery order structure implies it's part of a larger IDIQ, but the specific price discovery for this order is not detailed.
Taxpayer Impact: Taxpayer funds are being used for essential IT system integration services, with the potential for value derived from efficient cloud environment management.
Public Impact
Ensures continuity and management of critical healthcare exchange environments. Supports the operational stability of cloud-based government IT infrastructure. Impacts users and stakeholders relying on the integrity of these systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type requires diligent monitoring to control costs.
- Potential for scope creep in system integration projects.
- Reliance on a single vendor for critical integration tasks.
Positive Signals
- Awarded through full and open competition.
- Experienced contractor with a strong track record.
- Focus on cloud environments aligns with modern IT strategy.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending in this area is substantial across federal agencies, with a trend towards cloud migration and integration services.
Small Business Impact
The contract was awarded to Booz Allen Hamilton, a large business. There is no indication of small business participation in this specific delivery order, which could be an area for future consideration.
Oversight & Accountability
Oversight will be critical to manage the Time and Materials aspect of the contract, ensuring that the work performed aligns with the stated objectives and that costs remain within reasonable bounds.
Related Government Programs
- Computer Systems Design Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Time and Materials contract type
- Potential for vendor lock-in
- Lack of explicit small business participation
- Reliance on cloud platform stability
Tags
computer-systems-design-services, department-of-health-and-human-services, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $84.0 million to BOOZ ALLEN HAMILTON INC. MARKETPLACE SYSTEM INTEGRATOR (MSI) SHALL PERFORM SYSTEM INTEGRATION ACTIVITIES RELEASE AND ENVIRONMENT MANAGEMENT AND COMMUNICATION AND PARTICIPATE IN THE CHANGE CONTROL PROCESS FOR EXCHANGE ENVIRONMENTS THAT ARE HOSTED IN A CLOUD PLATFORM.
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 Medicare and Medicaid Services).
What is the total obligated amount?
The obligated amount is $84.0 million.
What is the period of performance?
Start: 2025-07-23. End: 2026-07-22.
How will the government ensure cost-effectiveness with a Time and Materials contract for system integration?
The government will likely employ robust oversight mechanisms, including detailed work breakdown structures, regular progress reviews, and independent cost estimates. Strict adherence to contract ceilings and vigilant monitoring of labor hours and rates will be crucial to prevent cost overruns and ensure value for money.
What are the primary risks associated with relying on a single integrator for cloud environment management?
The primary risks include vendor lock-in, potential for reduced innovation if the vendor's solutions become proprietary, and a single point of failure. If the integrator experiences financial difficulties or strategic shifts, it could disrupt critical services. Diversification of expertise or clear exit strategies can mitigate these risks.
How does this contract contribute to the overall effectiveness of the Centers for Medicare and Medicaid Services' IT infrastructure?
This contract is vital for maintaining and enhancing the operational effectiveness of CMS's cloud-hosted exchange environments. By ensuring seamless system integration, release management, and communication, it supports the reliable delivery of services to beneficiaries and healthcare providers, underpinning the agency's mission.
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
Solicitation ID: 75FCMC25RJ025
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, 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: $84,019,493
Exercised Options: $84,019,493
Current Obligation: $84,019,493
Actual Outlays: $35,928,837
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $11,450,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HHSM500201600015I
IDV Type: IDC
Timeline
Start Date: 2025-07-23
Current End Date: 2026-07-22
Potential End Date: 2026-07-22 00:00:00
Last Modified: 2026-01-06
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