Booz Allen Hamilton awarded $48.2M for IT services, with a significant portion allocated to computer systems design

Contract Overview

Contract Amount: $48,219,062 ($48.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2015-04-14

End Date: 2018-04-26

Contract Duration: 1,108 days

Daily Burn Rate: $43.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: 700565

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20405

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $48.2 million to BOOZ ALLEN HAMILTON INC for work described as: 700565 Key points: 1. Contract value of $48.2M over its period of performance. 2. Services primarily fall under computer systems design and related services. 3. Awarded by the General Services Administration (GSA) through the Federal Acquisition Service. 4. Contract type is Firm Fixed Price, indicating predictable costs. 5. Utilized a Best Practices Acquisition (BPA) Call, suggesting a streamlined procurement process. 6. The contract duration was 1108 days, spanning from April 2015 to April 2018. 7. The contractor, Booz Allen Hamilton, is a well-established entity in the federal contracting space.

Value Assessment

Rating: good

The contract's value of $48.2 million for IT services, specifically computer systems design, appears reasonable given the contractor's expertise and the duration of the award. Benchmarking against similar large-scale IT service contracts awarded by GSA suggests this pricing is within expected ranges. The firm fixed-price nature of the contract provides cost certainty for the government, mitigating risks associated with scope creep or unexpected cost overruns. Further analysis would require detailed task order breakdowns to assess value for specific deliverables.

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 offers. The presence of 6 bidders suggests a healthy level of competition for this requirement. A competitive process like this generally leads to better price discovery and ensures the government receives offers from a range of qualified contractors, potentially driving down costs and improving the quality of services.

Taxpayer Impact: Taxpayers benefit from a competitive award process that aims to secure the best value for their investment. The multiple bids received suggest that the government was able to leverage market forces to obtain favorable terms and pricing for essential IT services.

Public Impact

Federal agencies requiring computer systems design and related IT support services are the primary beneficiaries. The contract supports the delivery of critical IT infrastructure and operational capabilities. Services are geographically concentrated in the District of Columbia (DC). The contract likely supports a workforce of skilled IT professionals employed by Booz Allen Hamilton.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and integrated.
Reliance on a single large contractor may limit flexibility for future IT needs.
Performance monitoring is crucial to ensure continued value and service quality.

Positive Signals

Award to a reputable contractor with a proven track record in federal IT.
Firm Fixed Price contract provides cost predictability.
Full and open competition ensures a robust selection process.
Contract duration of over three years allows for stable service delivery.

Sector Analysis

The IT services sector, particularly computer systems design, is a significant area of federal spending. This contract fits within the broader category of IT professional services, which encompasses a wide range of support from system design and integration to maintenance and cybersecurity. Federal agencies consistently rely on contractors like Booz Allen Hamilton to augment their internal IT capabilities, manage complex systems, and implement new technologies. Spending in this sector is driven by the continuous need for modernization and operational efficiency across government.

Small Business Impact

This contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. The award to a large prime contractor like Booz Allen Hamilton suggests that small businesses may have participated as subcontractors, but their specific role and the extent of their involvement are not detailed here. Further investigation into subcontracting plans would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the General Services Administration. Performance monitoring, adherence to contract terms, and quality assurance would be key oversight mechanisms. As a GSA contract, it is subject to standard federal procurement regulations and oversight, including potential review by the Government Accountability Office (GAO) or the agency's Inspector General if performance issues arise.

Related Government Programs

IT Professional Services
Computer Systems Design
GSA Schedules
IT Services Contracts

Risk Flags

Contract duration exceeds 3 years, increasing risk of technology obsolescence.
Potential for vendor lock-in due to specialized IT services.
Requires diligent performance monitoring to ensure value delivery.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $48.2 million to BOOZ ALLEN HAMILTON INC. 700565

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 $48.2 million.

What is the period of performance?

Start: 2015-04-14. End: 2018-04-26.

What is Booz Allen Hamilton's track record with the federal government, particularly in IT services?

Booz Allen Hamilton is a long-standing and prominent federal contractor with a substantial history of providing a wide array of services, including IT, cybersecurity, and management consulting, to various government agencies. They have consistently secured large, complex contracts across different sectors. Their track record includes numerous awards for IT modernization, systems integration, and data analytics. While generally viewed as a capable provider, like any large contractor, they have faced scrutiny on specific contracts regarding performance or pricing in the past. However, their overall presence and continued success in winning significant federal awards indicate a strong, albeit sometimes debated, track record.

How does the $48.2 million contract value compare to similar IT services contracts awarded by GSA?

The $48.2 million contract value for computer systems design services awarded to Booz Allen Hamilton by GSA is substantial but falls within the typical range for large-scale IT support contracts managed by the agency. GSA awards numerous IT contracts, many of which are multi-year and valued in the tens or hundreds of millions of dollars, especially those leveraging Indefinite Delivery/Indefinite Quantity (IDIQ) vehicles or large Blanket Purchase Agreements (BPAs). The specific value is influenced by the scope of services, duration, and the number of task orders issued. Compared to other large IT service contracts for system design and integration, this award is significant but not exceptionally outlier, reflecting the ongoing demand for such expertise within the federal government.

What are the primary risks associated with a contract of this nature and duration?

Key risks for a contract of this nature and duration (1108 days) include potential scope creep, where requirements expand beyond the initial agreement, leading to cost overruns if not managed effectively. Vendor lock-in is another risk, as agencies can become heavily reliant on the contractor's specific systems and expertise, making future transitions difficult or costly. Performance degradation over time is also a concern, necessitating robust oversight and performance metrics. Furthermore, changes in technology or agency needs during the contract period could render the services less effective, requiring careful management and potential contract modifications. Cybersecurity risks are inherent in any IT contract, requiring stringent security protocols.

How effective is a Firm Fixed Price (FFP) contract type for IT services like computer systems design?

A Firm Fixed Price (FFP) contract type is generally considered effective for IT services like computer systems design when the scope of work is well-defined and unlikely to change significantly. It provides the government with cost certainty, as the contractor assumes most of the risk for cost overruns. This can incentivize efficiency and careful planning by the contractor. However, for highly complex or evolving IT projects where requirements may shift, an FFP contract can be less flexible and may lead to disputes if changes are needed. In such cases, other contract types like Cost Plus Fixed Fee (CPFF) or Time and Materials (T&M) might be more appropriate, though they carry different risk profiles for the government.

What is the historical spending pattern for computer systems design services by the General Services Administration?

The General Services Administration (GSA) is a major procurer of IT services, including computer systems design, supporting various federal agencies. Historical spending patterns indicate a consistent and significant investment in this category, driven by the need for IT modernization, infrastructure upgrades, and digital transformation initiatives across government. GSA often utilizes large contract vehicles and BPAs to streamline procurement for these services. Spending in this area has generally trended upwards over the years, reflecting the increasing reliance on technology in government operations. Specific spending levels can fluctuate based on agency priorities, budget allocations, and the lifecycle of major IT projects.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $49,320,880

Exercised Options: $49,320,862

Current Obligation: $48,219,062

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,000,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00T13AJA0008

IDV Type: BPA

Timeline