IT support contract for Navy fleet operations valued at $44.2M, awarded via full and open competition

Contract Overview

Contract Amount: $44,255,861 ($44.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2015-08-27

End Date: 2018-09-01

Contract Duration: 1,101 days

Daily Burn Rate: $40.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF INFORMATION TECHNOLOGY (IT) SUPPORT FOR PSNS&IMF IS A DYNAMIC AND COMPLEX REQUIREMENT THAT SUPPORTS THE IT REQUIREMENTS OF FLEET. THE PRIMARY PURPOSE OF THIS TASK ORDER (TO) IS TO PROVIDE IT OPERATIONS, APPLICATION MANAGEMENT, MAINTENANCE, AND CUSTOMER SUPPORT TO PSNS&IMF INCLUDING REMOTE SITES AND DETACHMENTS IN ORDER TO MEET MISSION REQUIREMENTS

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $44.3 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF INFORMATION TECHNOLOGY (IT) SUPPORT FOR PSNS&IMF IS A DYNAMIC AND COMPLEX REQUIREMENT THAT SUPPORTS THE IT REQUIREMENTS OF FLEET. THE PRIMARY PURPOSE OF THIS TASK ORDER (TO) IS TO PROVIDE IT OPERATIONS, APPLICATION MANAGEMENT, MAINTENANCE, AND CUSTOMER SUPPORT TO P… Key points: 1. Contract provides essential IT operations, application management, and customer support for Naval fleet requirements. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The contract duration of 1101 days indicates a significant, long-term IT support need. 4. Task order was issued under a larger contract vehicle, potentially leveraging existing agreements. 5. The IT support services are critical for maintaining the operational readiness of the fleet.

Value Assessment

Rating: fair

Benchmarking the value of this specific task order against similar IT support contracts is challenging without more granular data on the scope of services and market rates. The Cost Plus Fixed Fee (CPFF) pricing structure means that while the fee is fixed, the cost of labor and materials can fluctuate, requiring careful oversight to ensure cost efficiency. Comparing the total award amount to the contract duration suggests a monthly expenditure of approximately $400,000, which needs to be evaluated against the complexity and criticality of the IT services provided to the Puget Sound Naval Shipyard and Intermediate Maintenance Facility (PSNS&IMF).

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 bids. The presence of two bidders suggests a moderate level of competition for this specific task order. While full and open competition is generally preferred for maximizing price discovery and achieving best value, the limited number of bidders might warrant further investigation into potential barriers to entry or market concentration within this specialized IT support sector.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through a wider pool of potential offerors, leading to more cost-effective service delivery.

Public Impact

Naval fleet operations and personnel benefit from reliable IT infrastructure and support. Ensures the continuity of critical IT services for the PSNS&IMF, supporting maintenance and readiness. The contract supports IT functions across multiple remote sites and detachments, extending its geographic impact. Potential implications for the IT workforce, including the need for skilled personnel to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with CPFF contract type if not closely monitored.
Limited number of bidders may indicate reduced competitive pressure on pricing.
Dependence on a single task order for critical IT functions could pose a risk if not managed effectively.

Positive Signals

Awarded through full and open competition, promoting a fair marketplace.
Contract supports essential functions for national defense and fleet readiness.
Long-term duration suggests a stable and predictable IT support environment.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader IT services industry. The market for IT support services to government agencies is substantial, with significant spending allocated to maintaining and upgrading complex systems. This contract specifically addresses the unique IT needs of a major naval shipyard, highlighting the specialized nature of government IT procurement. Comparable spending benchmarks would typically involve analyzing IT support contracts for other large military installations or federal agencies with similar operational scales and technological requirements.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, Booz Allen Hamilton Inc., is a large business, and any subcontracting opportunities would be at their discretion.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the General Services Administration (GSA) and the Department of the Navy, as the end-user. The contract type (Cost Plus Fixed Fee) necessitates robust financial oversight to ensure that costs incurred are reasonable and allocable to the contract's objectives. Transparency is facilitated through contract reporting mechanisms, and the Inspector General for the Department of Defense and GSA would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

Naval IT Modernization Programs
Fleet Readiness Support Contracts
IT Operations and Maintenance Services
Department of Defense IT Infrastructure

Risk Flags

Potential for cost creep in CPFF contracts.
Dependence on contractor performance for critical IT functions.
Cybersecurity risks inherent in IT support for military systems.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $44.3 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF INFORMATION TECHNOLOGY (IT) SUPPORT FOR PSNS&IMF IS A DYNAMIC AND COMPLEX REQUIREMENT THAT SUPPORTS THE IT REQUIREMENTS OF FLEET. THE PRIMARY PURPOSE OF THIS TASK ORDER (TO) IS TO PROVIDE IT OPERATIONS, APPLICATION MANAGEMENT, MAINTENANCE, AND CUSTOMER SUPPORT TO PSNS&IMF INCLUDING REMOTE SITES AND DETACHMENTS IN ORDER TO MEET MISSION REQUIREMENTS

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 $44.3 million.

What is the period of performance?

Start: 2015-08-27. End: 2018-09-01.

What is the track record of Booz Allen Hamilton Inc. in delivering IT support services to the Department of Defense?

Booz Allen Hamilton Inc. has a long-standing and extensive track record of providing a wide array of services to the Department of Defense (DoD), including IT support, cybersecurity, systems engineering, and management consulting. They are a major contractor across various military branches and agencies. Their performance on IT support contracts is generally characterized by their ability to handle complex, large-scale requirements. However, like any large contractor, specific contract performance can vary. Analyzing past performance reviews, contract awards, and any reported issues or successes on similar DoD IT contracts would provide a more detailed picture of their capabilities and reliability in this specific domain. Their significant presence suggests a deep understanding of military IT environments and requirements.

How does the $44.2M value of this task order compare to other IT support contracts for naval shipyards?

The $44.2 million value for this 1101-day task order (approximately $400,000 per month) for IT support at PSNS&IMF appears to be within a reasonable range for supporting a large naval facility. Naval shipyards are complex operational environments with significant IT infrastructure needs, including systems for maintenance, logistics, personnel management, and cybersecurity. Contracts for similar facilities, such as Norfolk Naval Shipyard or Pearl Harbor Naval Shipyard, often range from tens to hundreds of millions of dollars over several years, depending on the scope of services (e.g., infrastructure management, application development, network operations, cybersecurity). Without specific details on the service level agreements and scope of work for this particular task order, a precise comparison is difficult, but the value is consistent with the scale of operations at a major naval installation.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT services?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for IT services lies in the potential for cost overruns, despite the fixed fee component. While the contractor's profit (the fee) is fixed, the government bears the risk of increased costs for labor, materials, and other direct expenses. If the contractor is inefficient or if unforeseen technical challenges arise, the total cost to the government can escalate significantly. This necessitates robust government oversight to monitor expenditures, ensure cost reasonableness, and verify that all costs are directly allocable to the contract's scope. Effective management and clear performance metrics are crucial to mitigate the risk of the government paying more than necessary for the services rendered.

How critical are the IT services provided under this contract to the overall mission of the PSNS&IMF?

The IT services provided under this contract are critically important to the overall mission of the Puget Sound Naval Shipyard and Intermediate Maintenance Facility (PSNS&IMF). PSNS&IMF is responsible for maintaining and repairing naval vessels, a complex and time-sensitive operation. Reliable IT systems are essential for managing work orders, tracking parts and inventory, coordinating personnel, accessing technical documentation, and communicating across various departments and remote locations. Any disruption or degradation in IT operations, application management, or customer support could directly impact the shipyard's ability to perform maintenance, potentially delaying vessel readiness and affecting fleet operational capabilities. Therefore, the continuity and effectiveness of these IT services are paramount to mission success.

What is the historical spending trend for IT support services at PSNS&IMF or similar naval facilities?

Historical spending on IT support services at PSNS&IMF and similar naval facilities has generally shown a consistent and often increasing trend, driven by the growing complexity of IT systems, cybersecurity requirements, and the need to support advanced naval technologies. While specific historical data for PSNS&IMF's IT support task orders isn't detailed here, large naval shipyards typically receive substantial, multi-year funding for IT operations and maintenance. Spending often fluctuates based on modernization initiatives, system upgrades, and evolving threat landscapes. Over the past decade, federal IT spending, in general, has remained a significant portion of agency budgets, reflecting the indispensable role of technology in modern military operations. Analyzing broader trends in Navy IT procurement and specific shipyard budgets would provide a clearer picture of historical spending patterns.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

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: $67,641,617

Exercised Options: $47,464,381

Current Obligation: $44,255,861

Actual Outlays: $150,822

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $28,560,776

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q09BGD0019

IDV Type: GWAC

Timeline