Booz Allen Hamilton awarded $12.8M for Computer Systems Design Services by the Department of the Air Force

Contract Overview

Contract Amount: $12,813,899 ($12.8M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2007-07-01

End Date: 2008-03-31

Contract Duration: 274 days

Daily Burn Rate: $46.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: BRIDGE TO

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $12.8 million to BOOZ ALLEN HAMILTON INC for work described as: BRIDGE TO Key points: 1. Contract value of $12.8M for a duration of 274 days indicates a significant investment in IT services. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The use of a Time and Materials contract type may present cost control challenges if not closely managed. 4. The contractor, Booz Allen Hamilton, is a large, established firm with extensive experience in government contracting. 5. This award falls within the broad category of IT services, a critical area for defense operations. 6. The contract's relatively short duration suggests a focused scope of work or a bridge to a larger effort.

Value Assessment

Rating: good

The contract value of $12.8 million for 274 days, averaging approximately $46,766 per day, appears reasonable for complex computer systems design services. Benchmarking against similar contracts for IT systems design and integration by large prime contractors in the defense sector suggests this pricing is within expected ranges. The Time and Materials (T&M) pricing structure, while offering flexibility, requires diligent oversight to ensure cost efficiency and prevent scope creep. Without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging, but the established contractor and competitive award provide some assurance.

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 a bid. The presence of multiple bidders, though not explicitly stated in the provided data, is implied by the nature of full and open competition. This competitive environment generally leads to better price discovery and encourages contractors to offer their most competitive terms and innovative solutions to win the award.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and higher quality services as contractors vie for the contract. This process helps ensure that government funds are used efficiently by selecting the best value offer.

Public Impact

The Department of the Air Force benefits from enhanced computer systems design and integration capabilities. This contract supports the modernization and operational efficiency of Air Force IT infrastructure. The services delivered are crucial for maintaining and improving the technological backbone of defense operations. The geographic impact is primarily within the operational sphere of the Department of the Air Force, potentially supporting bases or units nationwide or globally. Workforce implications may include the utilization of highly skilled IT professionals employed by Booz Allen Hamilton.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not managed rigorously.
Lack of specific performance metrics in the summary data makes it difficult to assess efficiency.
The short duration might indicate a temporary solution or a precursor to a larger, potentially more expensive, contract.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
Contractor is a well-established entity with a proven track record in government IT services.
The contract addresses critical IT needs for a major branch of the U.S. military.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The IT services market for the federal government is substantial, with significant spending allocated annually to software development, systems integration, cybersecurity, and IT support. Comparable spending benchmarks for IT services within the Department of Defense often run into billions of dollars annually, reflecting the critical role technology plays in national security. This specific contract, while a fraction of the total IT spend, contributes to the broader objective of maintaining and advancing the Air Force's technological capabilities.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). As a large prime contractor, Booz Allen Hamilton may have subcontracting opportunities for small businesses, but this is not explicitly detailed. The absence of a small business set-aside suggests the primary focus was on obtaining the best technical solution and value through open competition, rather than specifically targeting small business participation at the prime contract level.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Air Force. Accountability measures are inherent in the contract terms, including delivery schedules and performance expectations. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense IT Modernization Programs
Air Force Command and Control Systems
Enterprise Resource Planning (ERP) Systems Support
Cloud Computing Services for Defense
Cybersecurity Services for Military Networks

Risk Flags

Potential for cost overruns due to T&M contract type.
Need for robust government oversight to manage T&M costs.
Scope definition clarity for T&M contracts is crucial.
Short contract duration may imply a need for follow-on work.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.8 million to BOOZ ALLEN HAMILTON INC. BRIDGE TO

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

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 $12.8 million.

What is the period of performance?

Start: 2007-07-01. End: 2008-03-31.

What is the specific nature of the computer systems design services provided under this contract?

The provided data categorizes this contract under NAICS code 541512, which signifies 'Computer Systems Design Services'. This broad category typically encompasses a range of activities including analyzing and designing computer systems, integrating hardware and software, and providing consulting services related to IT infrastructure. For the Department of the Air Force, these services could involve designing new systems, upgrading existing ones, ensuring interoperability between different platforms, or developing custom software solutions to meet specific operational requirements. The Time and Materials (T&M) contract type suggests that the scope might have been less defined upfront, allowing for flexibility in addressing evolving needs during the contract period, which could range from system architecture development to implementation support.

How does the $12.8 million award compare to typical spending on similar IT services by the Department of the Air Force?

The $12.8 million award for computer systems design services is a moderate-sized contract within the vast IT spending portfolio of the Department of the Air Force. The Air Force, like other branches of the DoD, invests billions annually in IT modernization, sustainment, and new capabilities. Contracts of this magnitude are common for specific projects, system upgrades, or specialized design efforts. While not a mega-contract, it represents a significant investment for the defined period (274 days). To provide a precise comparison, one would need to analyze the specific nature of the services (e.g., cloud migration, network design, software development) and benchmark against contracts with similar scopes, durations, and technical requirements awarded to large system integrators within the DoD.

What are the potential risks associated with the Time and Materials (T&M) contract type used for this award?

The primary risk associated with a Time and Materials (T&M) contract is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the project scope is not well-defined, or if there is scope creep, the total cost can escalate beyond initial estimates. For the government, this necessitates robust oversight, diligent tracking of labor hours, and strict management of material purchases to ensure that costs remain reasonable and that the contractor is not incentivized to prolong the effort. Without strong government project management, T&M contracts can be less cost-effective than other contract types.

What is Booz Allen Hamilton's track record with the Department of Defense and specifically the Air Force?

Booz Allen Hamilton is a major government contractor with an extensive and long-standing track record of providing a wide array of services, including IT, consulting, and engineering, to the Department of Defense (DoD) and its various branches, including the Air Force. They are consistently among the top prime contractors for the DoD, receiving billions of dollars in awards annually across numerous contract vehicles. Their experience spans complex system integration, cybersecurity, data analytics, and strategic planning. Given their size and deep involvement with defense agencies, it is highly probable that they have successfully executed numerous contracts similar in nature and scale to this computer systems design award for the Air Force.

How does the competition level (full and open) typically influence the pricing and quality of services for IT contracts?

Full and open competition generally leads to more favorable pricing and potentially higher quality services for IT contracts. When multiple qualified companies are allowed to bid, they are compelled to offer competitive prices to win the contract. This competitive pressure can drive down costs for the government. Furthermore, companies are motivated to showcase their best technical capabilities and innovative approaches to differentiate themselves from rivals. This environment fosters a market where the government can select the offer that provides the best overall value, balancing cost, technical merit, and risk, rather than being limited to a single source or a restricted pool of bidders.

What does the contract duration of 274 days suggest about the project's scope or purpose?

A contract duration of 274 days (approximately 9 months) suggests a project with a defined, relatively short-term objective. This could indicate several possibilities: it might be a bridge contract to maintain services while a larger, long-term contract is being procured; it could be for a specific phase of a larger system development lifecycle; or it might address a particular, well-defined IT need or upgrade. The duration implies that the scope of work is likely contained and achievable within this timeframe, rather than a multi-year, comprehensive system overhaul. This focused approach can sometimes be more efficient for specific tasks, but it also means that ongoing support or further development would require subsequent contract actions.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)

Address: 8283 GREENSBORO DR, MCLEAN, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,813,899

Exercised Options: $12,813,899

Current Obligation: $12,813,899

Parent Contract

Parent Award PIID: GS35F0306J

IDV Type: FSS

Timeline