GSA's $9.8M data management contract with Booz Allen Hamilton shows fair value despite limited competition

Contract Overview

Contract Amount: $9,840,151 ($9.8M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2007-05-29

End Date: 2013-01-31

Contract Duration: 2,074 days

Daily Burn Rate: $4.7K/day

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE DATA MANAGEMENT SERVICES FOR THE GENERAL SERVICES ADMINISTRATION, ATLANTA, GA

Place of Performance

Location: ATLANTA, FULTON County, GEORGIA, 30303, UNITED STATES OF AMERICA

State: Georgia Government Spending

Plain-Language Summary

General Services Administration obligated $9.8 million to BOOZ ALLEN HAMILTON INC for work described as: PROVIDE DATA MANAGEMENT SERVICES FOR THE GENERAL SERVICES ADMINISTRATION, ATLANTA, GA Key points: 1. The contract's value appears reasonable given the duration and services provided, though direct comparisons are limited. 2. Competition was restricted, potentially impacting price discovery and overall value for taxpayers. 3. The contractor, Booz Allen Hamilton, has a significant federal presence, suggesting experience but also potential for concentrated market power. 4. Performance context is difficult to assess without specific metrics, but the contract spanned over five years. 5. This contract falls within the 'Other Accounting Services' NAICS code, a broad category. 6. The firm-fixed-price structure generally transfers risk to the contractor, which can be beneficial for the government.

Value Assessment

Rating: fair

The total value of $9.8 million over approximately 5.7 years (2074 days) averages to roughly $1.7 million annually. This figure seems moderate for data management services, especially considering the contractor's established presence. Benchmarking is challenging due to the lack of specific service details and comparable contracts. However, the firm-fixed-price nature suggests a defined cost structure, which can aid in value assessment if the scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under a limited competition, with only two bids received. This suggests that the solicitation may not have reached the broadest possible pool of qualified vendors. While two bidders indicate some level of competition, it is less than ideal for ensuring the most competitive pricing and innovative solutions. The limited nature could stem from specific requirements or the contractor's existing relationship with the agency.

Taxpayer Impact: Limited competition can lead to higher prices for taxpayers as it reduces the pressure on vendors to offer their best pricing. It also means fewer opportunities for new or smaller businesses to compete for government contracts.

Public Impact

The General Services Administration (GSA) benefits from improved data management capabilities, supporting its operational efficiency. The contract facilitated the delivery of essential data management services, crucial for government operations. The primary geographic impact is in Atlanta, Georgia, where the services were likely managed or delivered. While specific workforce implications are not detailed, such contracts typically support a team of data management professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher price than a fully competed contract.
Lack of detailed performance metrics makes it difficult to fully assess the value delivered.
The broad NAICS code 'Other Accounting Services' might obscure the specific nature and complexity of the data management work.

Positive Signals

The contract utilized a firm-fixed-price structure, transferring cost overrun risk to the contractor.
Booz Allen Hamilton is a large, established contractor with significant experience in federal IT and data services.
The contract duration of over five years allowed for continuity of essential data management services.

Sector Analysis

This contract falls under the 'Other Accounting Services' (NAICS 541219) category, which is broad and can encompass various financial and data-related functions. The federal IT services market is substantial, with agencies increasingly relying on contractors for data management, analytics, and cybersecurity. Booz Allen Hamilton is a major player in this sector, often securing large contracts across different agencies. Comparable spending benchmarks are difficult without more specific service details, but data management is a critical and growing area of federal IT expenditure.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and the contractor, Booz Allen Hamilton, is a large business. There is no explicit information on subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award, though large prime contractors often have subcontracting goals as part of broader agency initiatives.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration's Public Buildings Service, which awarded the contract. As a firm-fixed-price contract, oversight would focus on ensuring the contractor met the defined scope of work and deliverables. Transparency is moderate, with basic award details available. The Inspector General's office for GSA would have jurisdiction for audits and investigations if any issues arose.

Related Government Programs

GSA IT Services
Federal Data Management Contracts
Accounting and Financial Services Contracts
Professional Services Contracts

Risk Flags

Limited Competition
Lack of Detailed Performance Metrics
Broad NAICS Code Classification

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $9.8 million to BOOZ ALLEN HAMILTON INC. PROVIDE DATA MANAGEMENT SERVICES FOR THE GENERAL SERVICES ADMINISTRATION, ATLANTA, GA

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 (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $9.8 million.

What is the period of performance?

Start: 2007-05-29. End: 2013-01-31.

What was the specific nature of the 'data management services' provided under this contract?

The provided data identifies the NAICS code as '541219 - Other Accounting Services,' which is quite broad. While the contract title mentions 'PROVIDE DATA MANAGEMENT SERVICES,' the specific tasks, technologies, and data types involved are not detailed in the summary. This could range from database administration and data warehousing to data analysis, migration, or quality assurance. Without further details on the Statement of Work (SOW), it's difficult to ascertain the precise technical scope and complexity of the data management activities performed for the General Services Administration's Public Buildings Service.

How does the average annual cost of approximately $1.7 million compare to similar data management contracts awarded by GSA or other agencies?

Benchmarking the average annual cost of approximately $1.7 million is challenging without more specific details about the contract's scope, duration, and the level of service provided. Federal data management contracts can vary significantly in price based on factors like the volume and sensitivity of data, the required technologies (e.g., cloud vs. on-premise), security protocols, and the specific services (e.g., analytics, storage, integration). While $1.7 million annually might seem moderate for a large contractor like Booz Allen Hamilton, a comprehensive comparison would require analyzing contracts with similar NAICS codes, service descriptions, and agency types, which are not readily available in the provided summary.

What were the primary risks associated with this contract, and how were they managed?

Key risks for this contract likely included scope creep, potential cost overruns (though mitigated by the FFP structure), contractor performance issues, and data security breaches. Given the firm-fixed-price (FFP) nature, the primary risk transferred to the contractor (Booz Allen Hamilton) was financial, related to delivering the agreed-upon services within the fixed price. The government's risk centered on ensuring the contractor met performance standards and maintained data integrity and security. Oversight by GSA's Public Buildings Service would be the primary mechanism for managing these risks, focusing on monitoring deliverables and adherence to the contract terms.

What is Booz Allen Hamilton's track record with GSA and other federal agencies for data management services?

Booz Allen Hamilton is a major federal contractor with extensive experience across numerous agencies, including GSA. They consistently win large contracts related to IT, data analytics, cybersecurity, and management consulting. Their track record generally indicates a capacity to handle complex, large-scale projects. However, like any large contractor, they have faced scrutiny and contract reviews in the past. For this specific contract with GSA's Public Buildings Service, the award itself suggests a positive assessment of their capabilities at the time of bidding, especially given the limited competition.

How has federal spending on 'Other Accounting Services' (NAICS 541219) evolved over the period of this contract (2007-2013)?

Federal spending within the broad NAICS code 541219, 'Other Accounting Services,' likely saw fluctuations between 2007 and 2013, influenced by economic conditions and evolving government needs. This period included the aftermath of the 2008 financial crisis, potentially increasing demand for financial oversight and accounting services, alongside ongoing needs for data management and administrative support. While this specific contract focused on data management, its classification under this code suggests it was part of a larger trend of agencies outsourcing various financial and administrative support functions. Precise spending trends for this specific code would require detailed analysis of federal procurement data from FPDS or USASpending.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting Services

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

Contractor Details

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

Address: 8283 GREENSBORO DR, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $9,840,151

Exercised Options: $9,840,151

Current Obligation: $9,840,151

Parent Contract

Parent Award PIID: GS23F0109L

IDV Type: FSS

Timeline