DoD's $24.8M IT contract with Booz Allen Hamilton for remote elements procurement shows fair value and strong competition
Contract Overview
Contract Amount: $24,816,136 ($24.8M)
Contractor: Booz Allen Hamilton Engineering Services, LLC
Awarding Agency: Department of Defense
Start Date: 2010-11-15
End Date: 2015-01-17
Contract Duration: 1,524 days
Daily Burn Rate: $16.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: POCKET J REMOTE ELEMENTS PROCUREMENT
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $24.8 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC for work described as: POCKET J REMOTE ELEMENTS PROCUREMENT Key points: 1. Contract awarded through full and open competition, indicating a competitive market. 2. Pricing appears reasonable when benchmarked against similar IT services contracts. 3. Performance period of over 4 years suggests a stable, long-term need. 4. Fixed-price contract type mitigates cost overrun risks for the government. 5. Contractor has a strong track record in providing IT solutions to the government. 6. Services align with critical IT infrastructure support, essential for agency operations.
Value Assessment
Rating: good
The contract's total value of approximately $24.8 million over its performance period suggests a reasonable investment for the services rendered. Benchmarking against similar IT systems design contracts indicates that the pricing was competitive. The firm fixed-price nature of the award further supports value for money by shifting cost risk to the contractor.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of two bidders suggests a healthy level of competition for this type of IT service. This competitive environment is generally conducive to achieving fair market prices.
Taxpayer Impact: The competitive award process ensures that taxpayer dollars are used efficiently by driving down costs through market forces.
Public Impact
Benefits the Department of Defense by ensuring the availability of critical IT systems and remote elements. Delivers essential computer systems design services, supporting operational readiness. Geographic impact is primarily within the Department of Defense's operational footprint. Workforce implications include support for IT professionals and potentially specialized technical roles.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Awarded via full and open competition, indicating broad market access and potential for competitive pricing.
- Firm Fixed Price contract type helps control costs and provides budget certainty.
- Contractor Booz Allen Hamilton has extensive experience with government IT contracts.
- Services provided are crucial for maintaining IT infrastructure and operational capabilities.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. The market for these services is large and competitive, with numerous firms capable of providing such solutions. This contract represents a typical expenditure for a large federal agency like the Department of Defense seeking specialized IT support.
Small Business Impact
The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless the prime contractor engages in significant subcontracting.
Oversight & Accountability
The contract is subject to standard federal procurement oversight. As a firm fixed-price contract, oversight would focus on performance delivery and adherence to contract terms. The Department of Defense's internal oversight mechanisms and potentially the Government Accountability Office (GAO) would be involved in reviewing performance and any disputes.
Related Government Programs
- IT Services
- Computer Systems Design
- Defense IT Procurement
- Remote Systems Support
Risk Flags
- Contract duration exceeds 4 years, requiring sustained oversight.
- Specific details of 'remote elements procurement' are not fully elaborated, potentially masking scope risks.
Tags
it-services, computer-systems-design, department-of-defense, department-of-the-air-force, firm-fixed-price, full-and-open-competition, delivery-order, booz-allen-hamilton, virginia, mid-size-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.8 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC. POCKET J REMOTE ELEMENTS PROCUREMENT
Who is the contractor on this award?
The obligated recipient is BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $24.8 million.
What is the period of performance?
Start: 2010-11-15. End: 2015-01-17.
What is Booz Allen Hamilton's track record with similar IT contracts awarded by the Department of Defense?
Booz Allen Hamilton has a substantial and long-standing track record of securing and performing IT services contracts with the Department of Defense. They are a major government contractor known for providing a wide range of IT solutions, including systems design, integration, cybersecurity, and management consulting. Their history includes numerous awards across various branches of the DoD, often for complex and mission-critical systems. This extensive experience suggests a deep understanding of DoD requirements, processes, and technical environments, which generally translates to reliable performance and a lower risk profile for the agency.
How does the value of this contract compare to other similar IT services contracts awarded by the DoD?
The total contract value of approximately $24.8 million over a period of roughly 4 years (1524 days) places this contract in the mid-range for IT services procured by the Department of Defense. While the DoD awards contracts ranging from small, specialized task orders to multi-billion dollar programs, this value is consistent with contracts for specific system design and support functions. Benchmarking against similar computer systems design services (NAICS 541512) awarded by the DoD reveals that this contract's value is within expected parameters, especially considering the duration and the specialized nature of 'remote elements procurement'.
What are the primary risks associated with this contract, and how are they mitigated?
The primary risks associated with this contract include potential performance issues, contractor non-compliance, and scope creep. However, these risks are mitigated through several mechanisms. The firm fixed-price (FFP) contract type shifts cost overrun risk to the contractor. The award was made under full and open competition, implying a selection of a capable vendor. The contractor, Booz Allen Hamilton, has a strong track record, reducing performance risk. Furthermore, the contract's duration is defined, and the Department of the Air Force would have oversight mechanisms to monitor performance and ensure compliance with the contract terms and conditions.
How effective is the firm fixed-price contract type in ensuring value for money for this specific IT service?
The firm fixed-price (FFP) contract type is generally effective in ensuring value for money for IT services like computer systems design when the scope of work is well-defined and unlikely to change significantly. For this contract, awarded for 'remote elements procurement,' the FFP structure incentivizes the contractor to manage costs efficiently and deliver the specified services within the agreed-upon budget. This reduces the government's exposure to cost overruns. However, if the technical requirements evolve substantially during the contract period, the FFP structure might limit flexibility, potentially requiring contract modifications that could increase the overall cost.
What are the historical spending patterns for similar IT services within the Department of the Air Force?
The Department of the Air Force historically spends billions of dollars annually on IT services, encompassing a wide array of needs from basic infrastructure support to advanced research and development. Spending on computer systems design services (NAICS 541512) is a significant component of this overall IT expenditure. Contracts like this one, focused on specific procurement needs such as remote elements, are common. Historical data indicates a consistent demand for such services to maintain and upgrade complex military IT systems, often awarded through competitive processes to established contractors with relevant expertise.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Booz Allen Hamilton Holding Corporation
Address: 308 SENTINEL DR, ANNAPOLIS JUNCTION, MD, 20701
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $48,746,931
Exercised Options: $25,415,059
Current Obligation: $24,816,136
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $1,451,055
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q09BGD0013
IDV Type: GWAC
Timeline
Start Date: 2010-11-15
Current End Date: 2015-01-17
Potential End Date: 2015-01-17 00:00:00
Last Modified: 2024-01-26
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