Booz Allen Hamilton awarded $20M for Computer Systems Design Services by the Department of the Air Force

Contract Overview

Contract Amount: $19,995,414 ($20.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2012-10-19

End Date: 2014-09-30

Contract Duration: 711 days

Daily Burn Rate: $28.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: IT

Official Description: JTEO/GBS BRIDGE

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.0 million to BOOZ ALLEN HAMILTON INC for work described as: JTEO/GBS BRIDGE Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 711 days indicates a medium-term engagement for services. 3. The contract type is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The award was made to a single contractor, Booz Allen Hamilton, a large established firm. 5. The services fall under Computer Systems Design, a common category within IT services. 6. The contract was awarded by the Department of the Air Force, indicating a defense-related need.

Value Assessment

Rating: fair

Benchmarking the value of this specific delivery order is challenging without knowing the parent IDIQ contract's overall value and scope. However, the total award amount of approximately $20 million for over 700 days of service suggests a moderate daily rate. Without access to the specific services rendered and comparable market rates for similar systems design projects, a definitive value-for-money assessment is difficult. The 'COST NO FEE' contract type also warrants scrutiny, as it typically means the government reimburses the contractor for allowable costs plus a pre-negotiated fee, which can sometimes lead to less cost control if not managed tightly.

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 specific number of bidders is not provided, but this designation generally implies a robust competitive environment. A full and open competition is the preferred method for federal procurements as it aims to maximize competition and achieve the best value for the government.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to more cost-effective solutions.

Public Impact

The Department of the Air Force benefits from specialized computer systems design services to support its operations. This contract likely supports critical Air Force missions by ensuring the functionality and efficiency of its IT infrastructure. The geographic impact is primarily within the Department of the Air Force's operational areas, potentially worldwide. Workforce implications may include the employment of skilled IT professionals by Booz Allen Hamilton to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST NO FEE' contract type can sometimes lead to less incentive for cost control by the contractor if not rigorously monitored.
Lack of specific performance metrics or outcomes makes it difficult to assess the true effectiveness and efficiency of the services provided.
The limited information on the parent IDIQ contract makes it hard to benchmark this delivery order's value comprehensively.

Positive Signals

Awarded through full and open competition, suggesting a fair and competitive process.
Booz Allen Hamilton is a well-established contractor with a significant presence in government contracting, implying experience and capability.
The contract addresses a clear need for computer systems design services within the Department of the Air Force.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically in computer systems design services. The federal IT market is substantial, with agencies consistently investing in modernizing and maintaining their complex systems. This contract likely supports the Air Force's efforts to manage, upgrade, or develop its information systems, which are critical for command, control, intelligence, and logistics. Comparable spending benchmarks would typically involve analyzing other contracts for similar IT services awarded to large system integrators within the Department of Defense.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Booz Allen Hamilton is a large business. Therefore, this contract does not directly benefit small businesses through a set-aside. However, as a large prime contractor, Booz Allen Hamilton may engage small businesses as subcontractors, contributing indirectly to the small business ecosystem. The extent of such subcontracting is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of the Air Force. As a delivery order under a potential IDIQ, oversight would also be influenced by the terms of the parent contract. Transparency is generally facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Services
Air Force Systems Engineering Contracts
Computer Systems Design and Integration
Information Technology Support Services

Risk Flags

Cost Control Risk (Cost No Fee)
Performance Measurement Difficulty (Lack of Specifics)
Potential for Scope Creep (Standard for Design Services)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.0 million to BOOZ ALLEN HAMILTON INC. JTEO/GBS BRIDGE

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 $20.0 million.

What is the period of performance?

Start: 2012-10-19. End: 2014-09-30.

What specific computer systems design services were provided under this contract?

The provided data indicates the contract is for 'Computer Systems Design Services' (NAICS code 541512) awarded to Booz Allen Hamilton by the Department of the Air Force. However, the specific nature of these services is not detailed. Typically, computer systems design services can encompass a wide range of activities, including analyzing user needs, designing system architecture, developing software specifications, integrating hardware and software components, and providing technical consulting for IT systems. Without further documentation, such as the Statement of Work (SOW) or contract modifications, the precise deliverables and technical scope remain unspecified. This lack of detail makes it challenging to fully assess the contract's impact or value.

How does the $20 million award compare to similar contracts for computer systems design services within the Department of Defense?

Comparing this $20 million award for a 711-day duration requires context regarding the complexity and scope of the systems designed. The Department of Defense (DoD) procures a vast array of IT services, with contract values ranging from small, specialized tasks to multi-billion dollar enterprise-wide solutions. For computer systems design, a $20 million contract over approximately two years is a significant but not exceptionally large award within the DoD. Larger contracts often involve enterprise resource planning (ERP) implementations, major cybersecurity overhauls, or the design of complex command and control systems. To benchmark effectively, one would need to analyze contracts with similar NAICS codes (541512) awarded by the Air Force or other DoD branches over comparable timeframes, considering factors like the number of bidders and the specific technical requirements.

What is the track record of Booz Allen Hamilton in performing similar government contracts?

Booz Allen Hamilton is a major government contractor with extensive experience across various sectors, including defense and IT services. They have a long history of performing complex system design, integration, and consulting services for federal agencies, including the Department of Defense and the Air Force. Their track record generally includes large-scale projects involving IT modernization, cybersecurity, data analytics, and strategic planning. While specific performance details for every contract are not publicly available, their sustained presence and significant contract awards suggest a consistent ability to meet government requirements. However, like any large contractor, they may have faced past performance reviews or contract disputes on specific engagements, which would typically be documented in government performance databases.

What are the potential risks associated with a 'COST NO FEE' contract type for computer systems design?

The 'COST NO FEE' (CNF) contract type, while less common for complex design services than other cost-reimbursement types, presents specific risks. In a CNF contract, the government reimburses the contractor for all allowable costs incurred in performing the work, but the contractor receives no additional fee beyond the recovery of costs. This can reduce the contractor's incentive to control costs aggressively, as their profit margin is fixed at zero (or based on pre-negotiated overhead rates). The primary risk for the government is potential cost overruns if the contractor does not diligently manage expenses. Effective oversight, robust cost accounting standards, and clear definitions of allowable costs are crucial to mitigate these risks and ensure the government does not pay more than necessary for the services rendered.

How has federal spending on computer systems design services evolved over the past decade?

Federal spending on computer systems design services has generally seen a steady increase over the past decade, driven by the continuous need for agencies to modernize aging IT infrastructure, enhance cybersecurity, adopt cloud computing, and leverage data analytics. The Department of Defense, in particular, represents a significant portion of this spending due to the complexity and critical nature of its systems. While specific figures fluctuate annually based on budget appropriations and strategic priorities, the overall trend reflects a growing reliance on advanced IT solutions. Factors such as digital transformation initiatives, the rise of artificial intelligence, and the ongoing need for secure and efficient systems have sustained demand for these services across the federal government.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST NO FEE (S)

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: $21,986,719

Exercised Options: $19,996,284

Current Obligation: $19,995,414

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $2,113,941

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: GS00Q09BGD0019

IDV Type: GWAC

Timeline