USDA's $40M Risk Management System Contract Awarded to Booz Allen Hamilton Under Full and Open Competition

Contract Overview

Contract Amount: $40,168,604 ($40.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Agriculture

Start Date: 2015-11-25

End Date: 2017-05-10

Contract Duration: 532 days

Daily Burn Rate: $75.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IGF::OT::IGF SUPPORT FOR PRODUCTION ADJUSTMENT RISK MANAGEMENT SYSTEMS

Place of Performance

Location: KANSAS CITY, JACKSON County, MISSOURI, 64141

State: Missouri Government Spending

Plain-Language Summary

Department of Agriculture obligated $40.2 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF SUPPORT FOR PRODUCTION ADJUSTMENT RISK MANAGEMENT SYSTEMS Key points: 1. The contract, valued at $40.17 million, focuses on IT systems design for agricultural risk management. 2. Booz Allen Hamilton, a large established contractor, secured this award. 3. The use of full and open competition suggests a robust price discovery process. 4. The sector is IT services, specifically computer systems design, supporting the agricultural domain.

Value Assessment

Rating: fair

The contract was awarded via a delivery order, indicating it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Without knowing the original IDIQ's pricing structure and the specific services rendered under this order, a precise value assessment is difficult. However, the benchmark for similar IT services contracts can provide context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, which typically allows for the widest possible range of bidders and fosters competitive pricing. This method suggests that multiple vendors had the opportunity to propose solutions, leading to a potentially more efficient price discovery.

Taxpayer Impact: Taxpayer funds were utilized through a competitive process, aiming for value for money in IT system development for agricultural risk management.

Public Impact

Farmers and agricultural stakeholders may benefit from improved risk management tools and systems. The Department of Agriculture enhances its operational capabilities through advanced IT solutions. Investment in IT infrastructure supports the efficiency and stability of the agricultural sector. Transparency in government contracting is maintained through competitive award processes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design, which is a significant area of government spending. Benchmarks for similar IT services contracts often vary widely based on complexity, duration, and specific technologies employed.

Small Business Impact

The data indicates the award went to Booz Allen Hamilton, a large business. There is no information provided to suggest that small businesses were involved as subcontractors or prime contractors in this specific award.

Oversight & Accountability

The contract was awarded via a delivery order, suggesting it might be part of a larger IDIQ contract. Oversight would typically involve monitoring performance against the delivery order's scope, adherence to schedule, and quality of services provided by the contractor.

Related Government Programs

Risk Flags

Tags

computer-systems-design-services, department-of-agriculture, mo, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $40.2 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF SUPPORT FOR PRODUCTION ADJUSTMENT RISK MANAGEMENT SYSTEMS

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Farm Service Agency).

What is the total obligated amount?

The obligated amount is $40.2 million.

What is the period of performance?

Start: 2015-11-25. End: 2017-05-10.

What was the specific nature of the 'production adjustment risk management systems' developed or supported under this contract, and how did they improve agricultural risk management?

The provided data does not detail the specific functionalities or outcomes of the 'production adjustment risk management systems.' Further analysis would require examining contract performance reports, system documentation, or agency assessments to understand the system's impact on agricultural risk management, such as its effectiveness in predicting yields, managing price volatility, or optimizing resource allocation for farmers.

Given the $40 million value and the use of a large contractor, what were the key factors that justified this expenditure and ensured it represented good value for taxpayers?

The justification for the $40 million expenditure likely stems from the complexity and critical nature of agricultural risk management systems. The use of a large, experienced contractor like Booz Allen Hamilton suggests a need for specialized expertise. Value for taxpayers would be assessed through the competitive bidding process, ensuring fair pricing, and by evaluating the system's effectiveness in achieving its intended risk mitigation goals for the agricultural sector.

How effectively did the 'full and open competition' process ensure competitive pricing and identify the most capable vendor for these specialized IT services?

Full and open competition is designed to maximize the pool of potential bidders, thereby fostering a competitive environment that drives down prices and encourages innovation. For this contract, its effectiveness would be measured by the number of bids received, the range of proposed solutions and prices, and whether the selected vendor, Booz Allen Hamilton, demonstrably offered the best technical approach and value proposition compared to other qualified offerors.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)

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: $40,168,604

Exercised Options: $40,168,604

Current Obligation: $40,168,604

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $2,069,128

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0019

IDV Type: GWAC

Timeline

Start Date: 2015-11-25

Current End Date: 2017-05-10

Potential End Date: 2017-05-10 00:00:00

Last Modified: 2020-06-10

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