Booz Allen Hamilton Inc. contract for accounting services awarded $12.2M by Commerce Dept

Contract Overview

Contract Amount: $12,224,943 ($12.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Commerce

Start Date: 2005-04-07

End Date: 2010-12-30

Contract Duration: 2,093 days

Daily Burn Rate: $5.8K/day

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: CONTRACTORS

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Commerce obligated $12.2 million to BOOZ ALLEN HAMILTON INC for work described as: CONTRACTORS Key points: 1. Contract value of $12.2M over 5 years suggests a significant investment in accounting services. 2. The contract was awarded as a delivery order, indicating it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 3. The Time and Materials pricing structure can pose a risk for cost overruns if not closely managed. 4. The contract duration of 2093 days (approx. 5.7 years) indicates a long-term need for these services. 5. The North American Industry Classification System (NAICS) code 541219 for Other Accounting Services places this contract within a specialized segment of the professional services market. 6. The contract was awarded to a single, large, well-established contractor, Booz Allen Hamilton Inc.

Value Assessment

Rating: fair

The contract value of $12.2 million over approximately 5.7 years averages to about $2.1 million per year. Without specific benchmarks for 'Other Accounting Services' for the U.S. Census Bureau, it's difficult to definitively assess value for money. However, the Time and Materials pricing structure, while common, can lead to higher costs compared to fixed-price contracts if not managed diligently. The duration suggests a sustained need, but the lack of competitive bidding in the award phase (as indicated by it being a delivery order) may limit price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The data indicates this was a 'DELIVERY ORDER' awarded to 'BOOZ ALLEN HAMILTON INC'. This suggests it was likely issued under a pre-existing contract vehicle, possibly an IDIQ. The competition level for the original IDIQ is not specified, nor is the competition for this specific delivery order. If it was a sole-source delivery order under an IDIQ, it would limit price competition. If it was competed among multiple awardees of the IDIQ, the level of competition would be higher.

Taxpayer Impact: The level of competition for this delivery order directly impacts taxpayer value. Limited or no competition could result in higher prices than if multiple firms had vied for the work.

Public Impact

The U.S. Census Bureau benefits from these accounting services, likely supporting its mission of collecting and disseminating data about the U.S. population and economy. The services provided are crucial for financial management, budgeting, and reporting within a major federal agency. The geographic impact is primarily within Maryland, where the contractor is located. The contract supports jobs within Booz Allen Hamilton, a large professional services firm.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not carefully monitored.
Lack of transparency regarding the competition for this specific delivery order makes it difficult to assess optimal value.
The long duration of the contract could indicate a lack of flexibility to adapt to changing needs or market conditions.

Positive Signals

Awarded to a reputable contractor with a significant presence in government contracting.
The contract supports essential functions of the U.S. Census Bureau.
The delivery order structure implies it was part of a potentially pre-vetted and established contracting mechanism.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically 'Other Accounting Services'. This is a broad category encompassing a range of financial and accounting support. The federal government is a significant consumer of such services, often utilizing them for complex financial management, auditing, and advisory functions. Benchmarking requires comparison to similar accounting service contracts awarded by federal agencies, considering the scope and duration.

Small Business Impact

The data indicates this contract was awarded to Booz Allen Hamilton Inc. and that small business set-aside flags are false ('ss': false, 'sb': false). This suggests the contract was not specifically set aside for small businesses. There is no information provided on subcontracting plans or performance, so the impact on the small business ecosystem is not directly discernible from this data alone.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Census Bureau's contracting and financial management offices. As a delivery order under a larger contract, oversight might also be tied to the parent contract's management. Transparency is limited by the available data, particularly regarding the competitive process for this specific order. Inspector General jurisdiction would depend on the specific nature of any potential issues investigated.

Related Government Programs

Federal Financial Management Services
Government Accounting and Auditing
Professional Services Contracts
U.S. Census Bureau Operations Support

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of transparency regarding competition for this specific delivery order.
Long contract duration may limit adaptability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $12.2 million to BOOZ ALLEN HAMILTON INC. CONTRACTORS

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (U.S. Census Bureau).

What is the total obligated amount?

The obligated amount is $12.2 million.

What is the period of performance?

Start: 2005-04-07. End: 2010-12-30.

What was the competitive process for the original IDIQ contract under which this delivery order was issued?

The provided data does not specify the competitive process for the original indefinite-delivery/indefinite-quantity (IDIQ) contract. Delivery orders are typically issued against pre-existing IDIQ contracts. The competition for the IDIQ itself could have been full and open, limited, or sole-source. Understanding the original competition is crucial for assessing the overall value and fairness of the contracting vehicle used for this $12.2 million delivery order. Without this information, we cannot fully evaluate the price discovery mechanisms that were in place.

How does the Time and Materials (T&M) pricing structure compare to other accounting service contracts of similar size and duration?

Time and Materials (T&M) contracts, like this one, pay the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee or profit. While flexible, T&M contracts carry a higher risk of cost overruns compared to fixed-price contracts, as the final cost is not predetermined. For accounting services, especially those with evolving requirements or undefined scopes, T&M can be appropriate. However, for well-defined tasks, fixed-price contracts often offer better value and cost certainty for the government. Benchmarking against similar contracts would reveal if T&M was the most cost-effective approach for the services rendered by Booz Allen Hamilton.

What specific accounting services were provided under this contract?

The NAICS code 541219 indicates 'Other Accounting Services'. This is a broad category that can include a wide range of financial support functions beyond basic bookkeeping or auditing. Examples could include financial analysis, budget formulation and execution support, accounting system implementation or maintenance, cost accounting, financial reporting, and advisory services related to financial management. The specific services would be detailed in the contract's statement of work (SOW), which is not provided in the summary data. Understanding the precise services is key to evaluating the contract's necessity and effectiveness.

What is the track record of Booz Allen Hamilton Inc. in delivering similar accounting services to the federal government?

Booz Allen Hamilton Inc. is a large and established government contractor with extensive experience across various sectors, including professional services and IT. They have a long history of performing complex contracts for federal agencies. While specific performance metrics for this particular contract are not detailed here, the company generally possesses the resources and expertise to handle significant government contracts. Past performance evaluations and contract award histories available through federal procurement databases would provide a more granular view of their track record in delivering accounting and financial management services.

What were the total spending trends for 'Other Accounting Services' (NAICS 541219) by the Department of Commerce in the years surrounding this contract's performance?

To assess spending trends, one would need to query federal procurement databases (like FPDS or USASpending.gov) for all contracts awarded under NAICS code 541219 by the Department of Commerce between 2005 and 2010. Analyzing this data would reveal the total annual spending, the number of contracts awarded, and the primary contractors receiving funds. This context would help determine if the $12.2 million awarded to Booz Allen Hamilton represented a significant portion of the department's spending in this category or if it was in line with historical patterns.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting Services

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

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR # 700, MC LEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,224,943

Exercised Options: $12,224,943

Current Obligation: $12,224,943

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F0109L

IDV Type: FSS

Timeline