Transportation contract for airport systems reporting awarded to Booz Allen Hamilton for over $24 million

Contract Overview

Contract Amount: $24,038,187 ($24.0M)

Contractor: Booz Allen Hamilton Inc.

Awarding Agency: Department of Transportation

Start Date: 2013-02-01

End Date: 2024-12-31

Contract Duration: 4,351 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TASK ORDER 3 O&M AND ACAIS MAILINGS, OFFICE OF AIRPORTS AND BOOZE ALLEN HAMILTON IDIQ CONTRACT FOR THE SYSTEM OF AIRPORTS REPORTING(SOAR) PROGRAM TAS::69 8106::TAS IGF::OT::IGF

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19103

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Transportation obligated $24.0 million to BOOZ ALLEN HAMILTON INC. for work described as: TASK ORDER 3 O&M AND ACAIS MAILINGS, OFFICE OF AIRPORTS AND BOOZE ALLEN HAMILTON IDIQ CONTRACT FOR THE SYSTEM OF AIRPORTS REPORTING(SOAR) PROGRAM TAS::69 8106::TAS IGF::OT::IGF Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract spans over a decade, indicating a long-term need for these services. 3. Services include operations, maintenance, and IT support for airport reporting systems. 4. The firm-fixed-price contract type helps manage cost certainty for the government. 5. The contract is a delivery order under an IDIQ contract, common for ongoing IT services. 6. The contractor, Booz Allen Hamilton, is a large, established firm with significant federal contracting experience.

Value Assessment

Rating: good

The contract value of over $24 million spread across more than a decade suggests a moderate annual expenditure for IT support and system maintenance. Benchmarking this against similar IT services contracts for large-scale government programs would be necessary for a precise value-for-money assessment. However, the firm-fixed-price structure provides a degree of cost predictability. The duration of the contract implies a sustained need and potentially a stable price point over time, assuming market conditions remain relatively consistent.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The use of an IDIQ contract with subsequent delivery orders allows for flexibility while ensuring competitive pricing for each task order.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through a robust bidding process, encouraging multiple vendors to offer their best prices and solutions.

Public Impact

Benefits the Federal Aviation Administration (FAA) by ensuring the operational integrity of airport reporting systems. Supports the System of Airports Reporting (SOAR) program, crucial for aviation safety and efficiency. Likely impacts airport operations and management across the United States. Requires skilled IT professionals for system maintenance, operations, and potential upgrades. Contributes to the overall functioning and modernization of the national airspace system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to potential cost increases if market rates rise significantly over time.
Reliance on a single large contractor for critical IT infrastructure might pose risks if performance degrades.
Scope creep in subsequent task orders could increase the overall contract value beyond initial expectations.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract type provides cost certainty for the government.
Contractor has extensive experience in federal IT services, indicating a lower risk of performance issues.
Long-term contract allows for stable planning and resource allocation for the FAA.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and related services for government programs. The market for federal IT services is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract supports a critical function within the Department of Transportation's aviation sector, ensuring the smooth operation of airport reporting systems. Comparable spending benchmarks would involve analyzing other large-scale IT support contracts awarded by the FAA or similar transportation agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large IDIQ contract with a significant delivery order, it is likely that the prime contractor, Booz Allen Hamilton, will manage the majority of the work. However, there may be opportunities for small businesses to participate as subcontractors, depending on the specific requirements of the task orders and the prime contractor's subcontracting plan. The absence of a small business set-aside suggests the primary focus was on obtaining the most capable vendor through open competition.

Oversight & Accountability

Oversight for this contract is likely managed by the Federal Aviation Administration (FAA) contracting officers and program managers. As a delivery order under an IDIQ, each task order would have specific deliverables and performance metrics. The firm-fixed-price nature of the contract provides a clear financial framework. Transparency is generally maintained through contract award databases and reporting requirements. The Department of Transportation's Inspector General may also conduct audits or investigations related to this contract to ensure compliance and identify any potential waste, fraud, or abuse.

Related Government Programs

FAA IT Modernization Programs
Airport Operations and Management Systems
Federal Aviation Systems IT Support
Government IT Services Contracts
IDIQ Contract Vehicles

Risk Flags

Long contract duration
Potential for scope creep
Reliance on a single large contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $24.0 million to BOOZ ALLEN HAMILTON INC.. TASK ORDER 3 O&M AND ACAIS MAILINGS, OFFICE OF AIRPORTS AND BOOZE ALLEN HAMILTON IDIQ CONTRACT FOR THE SYSTEM OF AIRPORTS REPORTING(SOAR) PROGRAM TAS::69 8106::TAS IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $24.0 million.

What is the period of performance?

Start: 2013-02-01. End: 2024-12-31.

What is the historical spending trend for this specific contract or the SOAR program under Booz Allen Hamilton?

The provided data shows a total award amount of $24,038,186.68 for Task Order 3, which is a delivery order under an IDIQ contract. The start date is February 1, 2013, and the end date is December 31, 2024, indicating a duration of over 11 years. Without access to historical disbursement data for all task orders issued under the parent IDIQ contract, it's difficult to provide a precise spending trend. However, the total award amount suggests an average annual spending of approximately $2 million over the contract's life. Further analysis would require examining individual delivery orders and their respective values to understand fluctuations in spending over time, which could be influenced by system upgrades, maintenance cycles, or changes in operational requirements.

How does the cost per unit or annual cost of this contract compare to similar IT support contracts for aviation systems?

Benchmarking the cost-effectiveness of this contract requires comparing its annual expenditure (approximately $2 million based on total award and duration) against similar IT support and system maintenance contracts within the aviation sector or for large-scale government IT programs. Factors such as the complexity of the SOAR system, the scope of services (O&M, ACAIS mailings), and the specific technologies involved would need to be considered. Without access to a database of comparable contract costs, a precise per-unit cost comparison is challenging. However, given Booz Allen Hamilton's established reputation and the long-term nature of the contract, the pricing is likely competitive within the federal IT services market, especially considering the firm-fixed-price structure which caps potential cost overruns for the government.

What are the key performance indicators (KPIs) used to measure the success of this contract?

While specific KPIs are not detailed in the provided data, typical performance indicators for IT Operations and Maintenance (O&M) contracts like this would likely include system uptime and availability, response times for issue resolution, successful completion of maintenance tasks, adherence to security protocols, and timely delivery of required reports or system updates. For the ACAIS mailings component, KPIs might focus on accuracy, timeliness, and volume processed. The Federal Aviation Administration (FAA) contracting officers would monitor these metrics throughout the contract period. Performance evaluations are crucial for ensuring the SOAR program functions effectively and meets the agency's operational needs, potentially influencing future contract awards or renewals.

What is Booz Allen Hamilton's track record with the Federal Aviation Administration and similar agencies?

Booz Allen Hamilton is a major federal contractor with a long history of providing a wide range of services, including IT, consulting, and systems engineering, to various government agencies, including the Department of Transportation and the FAA. They have consistently secured large contracts across different sectors. Their extensive experience suggests a strong understanding of government procurement processes and operational requirements. While specific performance details for this particular SOAR program contract are not provided, Booz Allen Hamilton's overall track record indicates they are a capable provider of complex IT solutions for federal clients. Past performance evaluations and contract award histories are typically reviewed during the procurement process.

What are the potential risks associated with the long duration (over 11 years) of this contract?

The extended duration of this contract, spanning from 2013 to 2024, presents several potential risks. Firstly, technology evolves rapidly; the systems and services required today might become outdated or require significant adaptation over such a long period, potentially leading to increased costs for modernization or scope creep. Secondly, market rates for IT services can fluctuate significantly over more than a decade, potentially making the initial fixed prices less advantageous for the government if market costs decrease, or conversely, leading to contractor requests for adjustments if costs rise substantially. Thirdly, long-term reliance on a single contractor can reduce flexibility and potentially lead to complacency or reduced innovation if not actively managed and incentivized. Finally, changes in agency priorities or federal budget constraints could impact the contract's continued relevance or funding.

How does this contract contribute to the overall mission of the Federal Aviation Administration?

This contract is crucial for the Federal Aviation Administration's (FAA) mission to ensure the safety, efficiency, and capacity of the U.S. airspace system. The System of Airports Reporting (SOAR) program, supported by this contract's IT operations, maintenance, and ACAIS mailing services, provides essential data and functionality for managing airport operations. This includes collecting and processing information vital for air traffic control, airport infrastructure planning, safety compliance, and regulatory reporting. By ensuring these systems are operational and well-maintained, the contract directly supports the FAA's ability to monitor airport performance, identify potential issues, and make informed decisions that enhance aviation safety and efficiency nationwide.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 1818 MARKET ST STE 2700, PHILADELPHIA, PA, 19103

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,751,543

Exercised Options: $24,038,187

Current Obligation: $24,038,187

Actual Outlays: $11,738,598

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $293,298

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DTFAWA12D00060

IDV Type: IDC

Timeline