GSA Awards $93.7M Cost-Plus Contract to Booz Allen Hamilton for Consulting Services

Contract Overview

Contract Amount: $93,685,181 ($93.7M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2017-09-22

End Date: 2019-04-22

Contract Duration: 577 days

Daily Burn Rate: $162.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: AWARD OF CONTRACT GS00Q17AJC0032 IGF::CL::IGF

Place of Performance

Location: FAIRFAX, FAIRFAX County, VIRGINIA, 22030

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $93.7 million to BOOZ ALLEN HAMILTON INC for work described as: AWARD OF CONTRACT GS00Q17AJC0032 IGF::CL::IGF Key points: 1. Contract awarded to a single, well-known large business. 2. Significant contract value for 'Other Scientific and Technical Consulting Services'. 3. Cost-Plus contract type can lead to higher costs if not managed closely. 4. No small business participation noted.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, carries inherent risk of cost overruns if not rigorously managed. The total award amount of $93.7M is substantial, and the fixed fee component needs careful scrutiny to ensure it aligns with the value delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs compared to a competitive environment. The justification for the sole-source award is critical for assessing fairness.

Taxpayer Impact: The lack of competition for a nearly $94 million contract raises concerns about potential overspending of taxpayer funds. Without competitive bidding, the government may not have secured the best possible price for these consulting services.

Public Impact

Taxpayers may be paying a premium due to the lack of competition. The specific services provided under this contract are not detailed, making public assessment difficult. Reliance on a single large contractor for critical consulting services could pose a risk.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost-plus contract type
No small business participation

Positive Signals

Award to established contractor
Contract duration aligns with potential project needs

Sector Analysis

The 'Other Scientific and Technical Consulting Services' sector is broad and can encompass a wide range of activities. Benchmarking spending in this specific sub-sector is challenging without more detail on the services rendered. However, $93.7M is a significant investment.

Small Business Impact

This contract was not awarded to any small businesses, either as prime or subcontractor. This represents a missed opportunity to support small business growth and innovation within the federal contracting landscape.

Oversight & Accountability

The sole-source nature of this award necessitates robust oversight from the General Services Administration (GSA) to ensure costs are controlled and the services delivered are essential and effective. Accountability for performance and spending is paramount.

Related Government Programs

Other Scientific and Technical Consulting Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Lack of competition may lead to inflated costs.
Cost-plus contract type increases risk of overspending.
No small business participation.
Limited transparency on specific services procured.
Potential for contractor lock-in due to sole-source award.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $93.7 million to BOOZ ALLEN HAMILTON INC. AWARD OF CONTRACT GS00Q17AJC0032 IGF::CL::IGF

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $93.7 million.

What is the period of performance?

Start: 2017-09-22. End: 2019-04-22.

What was the justification for awarding this contract on a sole-source basis, and how was the fixed fee determined to ensure fair pricing?

The justification for a sole-source award typically involves specific circumstances, such as the urgency of the need, the unique capabilities of the contractor, or the lack of other responsible sources. The fixed fee in a CPFF contract is negotiated upfront and represents the contractor's profit. Its determination should be based on the complexity of the work, the risks involved, and market rates for similar services to ensure it is fair and reasonable.

What specific consulting services were procured under this contract, and how do they align with GSA's mission and strategic goals?

Understanding the precise nature of the 'Other Scientific and Technical Consulting Services' is crucial for assessing value and effectiveness. If these services are directly tied to GSA's core mission, such as improving government efficiency, modernizing IT infrastructure, or supporting agency procurements, then the contract's strategic alignment is strong. Without this detail, it's difficult to ascertain the necessity and impact.

What mechanisms are in place to monitor the cost-plus aspects of this contract and prevent potential cost overruns?

Effective oversight of cost-plus contracts requires stringent monitoring of all incurred costs, regular audits, and clear performance metrics. GSA should have established procedures for reviewing contractor expenditures, validating the necessity of each cost, and ensuring that the fixed fee is not inflated due to inefficient performance. Regular progress reports and milestone reviews are essential.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: GSC-QF0B-33155

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

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: $96,349,199

Exercised Options: $96,349,199

Current Obligation: $93,685,181

Actual Outlays: $525,275

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $3,151,683

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline