Booz Allen Hamilton Inc. awarded $14.7M for Computer Systems Design Services by the Department of Energy
Contract Overview
Contract Amount: $14,679,030 ($14.7M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Energy
Start Date: 2001-11-15
End Date: 2006-11-30
Contract Duration: 1,841 days
Daily Burn Rate: $8.0K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 51
Pricing Type: FIRM FIXED PRICE
Sector: IT
Place of Performance
Location: VIRGINIA
State: Virginia Government Spending
Plain-Language Summary
Department of Energy obligated $14.7 million to BOOZ ALLEN HAMILTON INC for work described as: Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract was competitively awarded, suggesting potential for good value. 3. Duration of 1841 days (approx. 5 years) suggests a significant, ongoing need for services. 4. The North American Industry Classification System (NAICS) code 541512 points to a focus on IT infrastructure and support. 5. The award was a delivery order under a larger contract, implying a structured procurement process. 6. The contractor, Booz Allen Hamilton Inc., is a large, established firm with extensive government contracting experience.
Value Assessment
Rating: good
While specific pricing details are not provided, the firm-fixed-price nature of the contract suggests that costs were determined upfront. Benchmarking against similar Computer Systems Design Services contracts awarded by the Department of Energy would provide a clearer picture of value for money. Given the contractor's size and experience, the pricing is likely competitive within the market for such services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' indicating that it was competed under a broader contract vehicle. The presence of 51 bids suggests a robust level of competition for this specific delivery order. A high number of bidders generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The strong competition for this delivery order is beneficial for taxpayers, as it likely drove down the price and ensured the government received competitive offers for the required computer systems design services.
Public Impact
The Department of Energy benefits from enhanced computer systems design and support, crucial for its operations. Federal employees and contractors within the Department of Energy will likely utilize the improved systems. The geographic impact is primarily within the Department of Energy's operational areas, likely concentrated in Virginia where the contractor is located. The contract supports a workforce skilled in computer systems design and IT services, potentially including specialized roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if the delivered systems are highly proprietary.
- Dependence on a single large contractor for critical IT infrastructure.
- Risk of scope creep if requirements are not clearly defined and managed throughout the contract duration.
Positive Signals
- Award to a well-established contractor with a proven track record in government IT services.
- Competitive award process suggests a fair market price was likely achieved.
- Firm-fixed-price contract provides cost certainty for the government.
- Long contract duration indicates a stable, ongoing need that is being met.
Sector Analysis
The Computer Systems Design Services sector is a significant part of the IT industry, encompassing a wide range of activities from custom software development to IT infrastructure management. Government spending in this area is substantial, supporting critical functions across various agencies. This contract fits within the broader IT services market, where large, experienced firms like Booz Allen Hamilton often compete for complex, long-term engagements. Comparable spending benchmarks would involve looking at other large IT service contracts awarded by federal agencies for similar system design and integration work.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The prime contractor is a large business. There is no explicit information on subcontracting plans for small businesses within the provided data. The focus on a large prime contractor may limit direct opportunities for small businesses unless they are part of the prime's subcontracting team.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of Energy's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, requiring delivery of specified services. Transparency is facilitated by public contract databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- IT Services
- Computer Systems Design
- Department of Energy IT Modernization
- Federal IT Infrastructure Support
- Large Business Prime Contracts
Risk Flags
- Long contract duration may increase risk of technological obsolescence.
- Potential for vendor lock-in with a large, established IT provider.
- Scope creep management is critical for firm-fixed-price IT contracts.
- Cybersecurity risks associated with system design and implementation.
Tags
it-services, computer-systems-design, department-of-energy, competitive-delivery-order, large-business, firm-fixed-price, naics-541512, booz-allen-hamilton, virginia, federal-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $14.7 million to BOOZ ALLEN HAMILTON INC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is BOOZ ALLEN HAMILTON INC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $14.7 million.
What is the period of performance?
Start: 2001-11-15. End: 2006-11-30.
What is Booz Allen Hamilton Inc.'s track record with the Department of Energy and similar IT service contracts?
Booz Allen Hamilton Inc. has a long and extensive history of contracting with the U.S. federal government, including the Department of Energy. They are a major provider of IT and management consulting services. Their track record typically involves large, complex projects across various agencies. For IT service contracts specifically, they are known for their capabilities in systems integration, cybersecurity, cloud computing, and data analytics. While this specific contract award of $14.7 million is significant, it represents one of many engagements Booz Allen holds. Their performance history with the Department of Energy would be detailed in past performance evaluations used during the bidding process for subsequent contracts, and is generally considered strong given their market position and continued awards.
How does the $14.7 million award compare to other Computer Systems Design Services contracts?
The $14.7 million award for Computer Systems Design Services by the Department of Energy is a substantial amount, indicative of a significant project. To benchmark its value, one would compare it to similar contracts awarded by the Department of Energy or other federal agencies for NAICS code 541512 over the contract's duration (approximately 5 years). Contracts of this size often involve complex system design, integration, and implementation. Smaller contracts in this category might range from a few hundred thousand to a few million dollars, focusing on specific system components or shorter-term support. Larger contracts, like this one, typically encompass broader system overhauls or the development of entirely new IT infrastructures, justifying the higher dollar value.
What are the primary risks associated with a contract of this nature and duration?
A contract for Computer Systems Design Services lasting approximately five years carries several potential risks. Firstly, there's the risk of technological obsolescence; the systems designed at the beginning of the contract might be outdated by its end, requiring costly updates or redesigns. Secondly, scope creep is a common risk in long-term IT projects, where requirements may expand beyond the original agreement, leading to cost overruns and schedule delays if not managed effectively. Thirdly, there's a dependency risk, where the Department of Energy becomes reliant on Booz Allen Hamilton for critical IT functions, potentially limiting flexibility or future competitive options. Finally, security risks related to the design and implementation of systems must be continuously managed to protect sensitive government data.
How effective are competitive delivery orders in ensuring value for money for the government?
Competitive delivery orders, like the one awarded to Booz Allen Hamilton Inc., are generally effective mechanisms for ensuring value for money. By allowing multiple qualified vendors to bid on specific requirements under an existing contract vehicle, the government can leverage competition to drive down prices and improve service quality. The fact that 51 bids were received for this order indicates a healthy competitive environment. This process allows the agency to select the offer that provides the best overall value, considering not just price but also technical approach, past performance, and other factors. The firm-fixed-price nature further enhances value by providing cost certainty.
What are the historical spending patterns for Computer Systems Design Services at the Department of Energy?
Historical spending patterns for Computer Systems Design Services at the Department of Energy, and within the federal government broadly, show a consistent and significant investment in IT infrastructure and support. Agencies like the DOE rely heavily on sophisticated IT systems for research, data management, operational control, and administrative functions. Spending in this area often fluctuates based on modernization initiatives, cybersecurity upgrades, and the lifecycle of existing systems. Large, multi-year contracts awarded to major IT service providers are common. The DOE, in particular, has a complex IT environment due to its diverse mission, often leading to substantial and ongoing expenditures in areas like systems design, integration, and maintenance.
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: COMPETITIVE DELIVERY ORDER
Offers Received: 51
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)
Address: 8283 GREENSBORO DR # 700, MC LEAN, VA, 90
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $25,728,665
Exercised Options: $25,728,665
Current Obligation: $14,679,030
Parent Contract
Parent Award PIID: GS35F0306J
IDV Type: FSS
Timeline
Start Date: 2001-11-15
Current End Date: 2006-11-30
Potential End Date: 2006-11-30 00:00:00
Last Modified: 2008-03-10
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