FBI's $26.4M ELSUR Operations Support contract awarded to Booz Allen Hamilton for critical system maintenance

Contract Overview

Contract Amount: $26,358,401 ($26.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Justice

Start Date: 2015-05-01

End Date: 2020-04-30

Contract Duration: 1,826 days

Daily Burn Rate: $14.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF THE TICTU REQUESTS INITIATION OF CONTRACTING FOR ELSUR OPERATIONS SUPPORT SERVICES. THE CONTRACT WILL PROVIDE ENGINEERING SERVICES AND LIMITED OTHER DIRECT COSTS (ODC) TO MAINTAIN AND EXTEND THE CURRENT DCS3000X SYSTEM, HAWKEYE SYSTEM, QPHONE DEVELO

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $26.4 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF THE TICTU REQUESTS INITIATION OF CONTRACTING FOR ELSUR OPERATIONS SUPPORT SERVICES. THE CONTRACT WILL PROVIDE ENGINEERING SERVICES AND LIMITED OTHER DIRECT COSTS (ODC) TO MAINTAIN AND EXTEND THE CURRENT DCS3000X SYSTEM, HAWKEYE SYSTEM, QPHONE DEVELO Key points: 1. Contract provides essential engineering and operational support for the DCS3000X and HAWKEYE systems. 2. Sole-source award raises questions about potential cost efficiencies and market alternatives. 3. Long contract duration (5 years) suggests a need for sustained, specialized expertise. 4. Focus on maintaining existing systems rather than developing new capabilities. 5. Geographic concentration in Virginia for service delivery. 6. Firm Fixed Price contract type aims to control costs, but scope creep could be a risk.

Value Assessment

Rating: fair

The contract's value of $26.4 million over five years for engineering services is difficult to benchmark without more detailed cost breakdowns. Given it was a sole-source award, there's limited public data to compare pricing against competitive bids. The inclusion of 'Other Direct Costs' (ODC) could introduce variability. However, the firm fixed-price structure suggests an attempt to cap costs. Further analysis would require understanding the specific technical requirements and the market rate for such specialized engineering support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicating that the FBI determined only one vendor, Booz Allen Hamilton, could provide the required specialized services. This approach bypasses the standard competitive bidding process, which typically involves multiple proposals and a thorough evaluation. While sole-source awards can be justified for unique capabilities or urgent needs, they limit price discovery and may not always result in the most cost-effective outcome for the government.

Taxpayer Impact: Sole-source awards mean taxpayers may not benefit from the cost savings typically achieved through a competitive bidding process, potentially leading to higher overall expenditures for these services.

Public Impact

The FBI benefits directly through the continued operation and maintenance of its ELSUR systems. Services delivered include engineering support and limited other direct costs for system upkeep. Geographic impact is concentrated in Virginia, where the contractor is located and services are likely performed. Workforce implications involve specialized engineering roles required for maintaining sensitive government systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs than a competed contract.
Sole-source nature limits transparency in pricing and vendor selection.
Long-term reliance on a single contractor could create vendor lock-in.
Potential for scope creep within the 'limited other direct costs' category.
Dependence on contractor expertise for critical systems poses a risk if the contractor relationship sours.

Positive Signals

Booz Allen Hamilton is a well-established contractor with significant experience in government IT and engineering services.
Firm Fixed Price contract type provides cost certainty for the base services.
Contract focuses on maintaining existing, critical infrastructure, ensuring operational continuity.
The award specifies engineering services, suggesting a need for specialized, high-skill labor.

Sector Analysis

This contract falls within the Engineering Services (NAICS 541330) sector, a critical component of the professional, scientific, and technical services industry. This sector supports a wide range of government functions, particularly in areas requiring specialized technical expertise. The market for such services is competitive, but contracts for maintaining highly specific, legacy government systems can often lean towards sole-source or limited competition due to unique knowledge requirements. Comparable spending benchmarks are difficult to establish without knowing the exact nature of the DCS3000X and HAWKEYE systems.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. As a sole-source award to a large prime contractor, it is unlikely to directly benefit small businesses through prime contract opportunities. Subcontracting opportunities may exist at the discretion of Booz Allen Hamilton, but they are not mandated by the contract terms. This limits the direct impact on the small business ecosystem for this specific procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Federal Bureau of Investigation (FBI) contracting and program management offices. As a purchase order, it may be subject to internal FBI review processes. The Department of Justice's Office of the Inspector General (OIG) would have jurisdiction for audits and investigations if any concerns regarding waste, fraud, or abuse arise. Transparency is limited due to the sole-source nature, but contract performance data should be available internally.

Related Government Programs

FBI IT Modernization Programs
Law Enforcement Systems Support
Critical Infrastructure Maintenance Contracts
Government Engineering Services
Sole-Source IT Procurements

Risk Flags

Sole-source award limits competition and price discovery.
Lack of detailed cost breakdown hinders value assessment.
Potential for scope creep in 'Other Direct Costs'.
Long-term reliance on a single vendor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $26.4 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF THE TICTU REQUESTS INITIATION OF CONTRACTING FOR ELSUR OPERATIONS SUPPORT SERVICES. THE CONTRACT WILL PROVIDE ENGINEERING SERVICES AND LIMITED OTHER DIRECT COSTS (ODC) TO MAINTAIN AND EXTEND THE CURRENT DCS3000X SYSTEM, HAWKEYE SYSTEM, QPHONE DEVELO

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $26.4 million.

What is the period of performance?

Start: 2015-05-01. End: 2020-04-30.

What is the specific nature of the ELSUR Operations Support services provided under this contract?

The ELSUR Operations Support Services contract provides engineering services and limited Other Direct Costs (ODC) to maintain and extend the operational life of the DCS3000X system and the HAWKEYE system, as well as support for the QPHONE development. This implies a focus on ensuring the continued functionality, reliability, and potentially the security of these existing technological systems. The 'engineering services' likely encompass tasks such as system diagnostics, troubleshooting, software/hardware updates, performance optimization, and potentially minor modifications or upgrades to keep the systems operational within their intended lifespan.

Why was this contract awarded on a sole-source basis instead of through full and open competition?

The provided data indicates this contract was awarded as 'NOT COMPETED' and is classified as sole-source. Justifications for sole-source awards typically include situations where only one responsible source can provide the required supplies or services, such as when a unique capability, proprietary technology, or urgent need exists that cannot be met by other vendors. For this specific contract, the FBI likely determined that Booz Allen Hamilton possessed unique knowledge, expertise, or access related to the DCS3000X, HAWKEYE, and QPHONE systems, making them the only viable option for providing the necessary engineering and support services without unacceptable delays or costs.

How does the $26.4 million contract value compare to similar engineering support contracts for federal law enforcement systems?

Benchmarking the $26.4 million value is challenging without specific details on the scope and complexity of the DCS3000X and HAWKEYE systems, and the exact services rendered. However, for a five-year contract (1826 days) providing specialized engineering support to critical federal systems, this figure represents an average annual cost of approximately $5.27 million. This is within a plausible range for complex IT and engineering support contracts, especially those involving legacy systems requiring specialized knowledge. Without competitive data or more granular cost breakdowns, a definitive value-for-money assessment is difficult, but it doesn't appear immediately excessive for the duration and stated purpose.

What are the potential risks associated with a sole-source contract for critical system maintenance?

Sole-source contracts carry inherent risks, primarily related to cost and innovation. Without competition, there is less pressure on the contractor to offer the lowest possible price, potentially leading to higher expenditures for taxpayers. Furthermore, the lack of competitive proposals can stifle innovation, as the incumbent contractor may have less incentive to develop more efficient or cost-effective solutions. There's also a risk of vendor lock-in, where the government becomes overly dependent on a single provider, making it difficult and costly to switch vendors in the future. Finally, oversight becomes even more critical to ensure performance standards are met and costs are managed appropriately.

What is Booz Allen Hamilton's track record with the FBI and similar federal agencies for IT and engineering services?

Booz Allen Hamilton is a major government contractor with extensive experience providing IT, engineering, and management consulting services across numerous federal agencies, including the Department of Defense, intelligence community, and civilian agencies like the FBI. They have a long history of supporting complex systems and critical missions. Their track record generally includes successful delivery on large-scale contracts, though like any large firm, they have faced scrutiny and challenges on specific projects. For the FBI, they have likely been involved in various IT modernization, cybersecurity, and operational support initiatives, leveraging their broad technical capabilities and security clearances.

How does the contract's firm fixed-price (FFP) structure impact cost control and risk for this specific service?

The Firm Fixed Price (FFP) contract type is generally favored for its cost control benefits. Under an FFP structure, the contractor agrees to a set price for the defined scope of work, absorbing any cost overruns. This shifts the risk of cost increases to the contractor. For engineering services like those provided here, an FFP contract provides budget certainty for the FBI. However, the effectiveness of FFP depends heavily on how well the scope of work is defined. If the 'limited other direct costs' (ODC) are not tightly managed or if unforeseen technical challenges arise that significantly expand the required effort beyond the initial scope, the FFP structure could still lead to issues, potentially through change orders or disputes, although the base service cost remains fixed.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $26,358,401

Exercised Options: $26,358,401

Current Obligation: $26,358,401

Actual Outlays: $1,846,368

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline