Booz Allen Hamilton Inc. contract for IT transformation support exceeds $131M, awarded via full and open competition

Contract Overview

Contract Amount: $131,009,505 ($131.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2015-09-30

End Date: 2021-03-29

Contract Duration: 2,007 days

Daily Burn Rate: $65.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF THE PURPOSE OF THIS TO IS TO PROVIDE SUPPORT TO THE AFCEC FMO IN GUIDING CE IT TRANSFORMATION EFFORTS ASSOCIATED WITH CE IT SYSTEMS TO SUPPORT FUNCTIONAL PROGRAMS

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $131.0 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF THE PURPOSE OF THIS TO IS TO PROVIDE SUPPORT TO THE AFCEC FMO IN GUIDING CE IT TRANSFORMATION EFFORTS ASSOCIATED WITH CE IT SYSTEMS TO SUPPORT FUNCTIONAL PROGRAMS Key points: 1. The contract focuses on guiding IT transformation efforts for the Air Force Civil Engineer Center (AFCEC) Functional Management Office (FMO). 2. Services include support for IT systems crucial to functional programs within AFCEC. 3. The contract was awarded by the General Services Administration (GSA) through its Federal Acquisition Service. 4. It was competed on a full and open basis, suggesting a broad range of potential bidders. 5. The contract type is Cost Plus Fixed Fee (CPFF), which allows for cost reimbursement plus a fixed fee. 6. The duration of the contract spans from September 30, 2015, to March 29, 2021, totaling approximately 5.5 years. 7. The North American Industry Classification System (NAICS) code is 541512, indicating Computer Systems Design Services. 8. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

The total value of $131 million over approximately 5.5 years for IT transformation support services appears to be within a reasonable range for complex government IT projects. However, without specific details on the deliverables and the scope of work, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher costs if not managed tightly, as it incentivizes cost incurrence. Benchmarking against similar large-scale IT transformation contracts for defense agencies would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, which can lead to better pricing and a wider selection of qualified contractors. The specific number of bidders is not provided, but the 'full and open' designation suggests that the government sought the best possible solution through broad market engagement.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it maximizes the potential for cost savings through robust bidding and encourages contractors to offer competitive pricing to win the award.

Public Impact

The primary beneficiaries are the Air Force Civil Engineer Center (AFCEC) and its Functional Management Office (FMO), who receive enhanced IT support. The services delivered aim to modernize and improve the efficiency of IT systems supporting AFCEC's functional programs. The geographic impact is primarily within the United States, supporting federal IT infrastructure. The contract supports a workforce of IT professionals and potentially impacts the broader federal IT services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type requires careful oversight to ensure costs remain reasonable and do not escalate beyond initial projections.
Lack of specific performance metrics makes it difficult to assess the true impact and value of the IT transformation efforts.
The long duration of the contract (over 5 years) necessitates ongoing monitoring to ensure continued relevance and effectiveness of IT solutions.

Positive Signals

Awarded through full and open competition, suggesting a robust and fair bidding process.
The contractor, Booz Allen Hamilton, is a well-established firm with significant experience in government IT services.
The contract addresses critical IT transformation needs for a key defense agency, indicating strategic importance.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on computer systems design and IT transformation. The federal IT services market is substantial, with agencies continually investing in modernizing their systems to improve efficiency and security. This contract represents a significant investment in upgrading the IT infrastructure for a critical component of the Air Force's civil engineering operations. Comparable spending benchmarks for large-scale IT modernization projects within the Department of Defense can range from tens to hundreds of millions of dollars, depending on the scope and complexity.

Small Business Impact

The 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 benefits for small businesses stemming from a set-aside provision. The prime contractor, Booz Allen Hamilton, is a large business, and any subcontracting opportunities would be at their discretion, not mandated by a small business set-aside.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA) and the Air Force Civil Engineer Center (AFCEC). As a Cost Plus Fixed Fee (CPFF) contract, robust financial oversight is crucial to monitor expenditures and ensure the fixed fee is justified. Transparency is facilitated through contract reporting mechanisms, and the Inspector General for the Department of the Air Force and GSA would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

Air Force IT Modernization Programs
GSA IT Schedule Contracts
Defense-wide IT Transformation Initiatives
AFCEC Operations and Maintenance Support
Computer Systems Design Services Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent cost oversight.
Potential for scope creep in IT transformation projects.
Need for clear performance metrics to assess value.
Long contract duration necessitates ongoing relevance checks.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $131.0 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF THE PURPOSE OF THIS TO IS TO PROVIDE SUPPORT TO THE AFCEC FMO IN GUIDING CE IT TRANSFORMATION EFFORTS ASSOCIATED WITH CE IT SYSTEMS TO SUPPORT FUNCTIONAL PROGRAMS

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 $131.0 million.

What is the period of performance?

Start: 2015-09-30. End: 2021-03-29.

What specific IT transformation efforts are being supported under this contract, and what are the key performance indicators (KPIs) for success?

The provided data indicates the purpose is to 'provide support to the AFCEC FMO in guiding CE IT transformation efforts associated with CE IT systems to support functional programs.' However, specific details on the transformation efforts (e.g., cloud migration, cybersecurity enhancements, system integration) and their associated KPIs are not available in the provided snippet. Typically, such contracts would outline specific objectives like improving system uptime, reducing operational costs, enhancing data security, or enabling new functionalities for AFCEC's functional programs. Without these details, a thorough assessment of the contract's effectiveness and value is limited. The success would be measured against the defined objectives and deliverables within the contract's statement of work.

How does the total contract value of $131 million compare to similar IT transformation contracts for defense agencies of comparable size and scope?

The total value of $131 million over approximately 5.5 years for IT transformation support is substantial but falls within the expected range for large-scale IT modernization projects within the Department of Defense. Agencies like the Air Force often undertake complex IT initiatives that require significant investment. For instance, major enterprise resource planning (ERP) system implementations, cloud migration strategies, or cybersecurity overhauls can easily reach or exceed this figure. Benchmarking requires comparing the specific services, scope, duration, and complexity against similar contracts. Given that this contract supports IT transformation for a specific center (AFCEC) within the Air Force, its value appears commensurate with the strategic importance and technical demands of such an undertaking, assuming the scope of work is comprehensive.

What is the track record of Booz Allen Hamilton Inc. in delivering similar IT transformation services to federal agencies, particularly within the defense sector?

Booz Allen Hamilton Inc. is a well-established and experienced government contractor with a long history of providing IT consulting and transformation services across various federal agencies, including significant work within the Department of Defense. They have a strong reputation for expertise in areas such as digital transformation, cybersecurity, data analytics, and systems engineering. Their track record includes numerous large-scale IT projects for defense clients, often involving complex system modernization and strategic guidance. While specific performance details for this particular contract are not provided, Booz Allen's general profile suggests a high capability to undertake and deliver on IT transformation initiatives. Past performance reviews and contract award histories would offer more granular insights into their specific successes and challenges.

Given the Cost Plus Fixed Fee (CPFF) contract type, what are the primary risks associated with cost overruns and how are they mitigated?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. If costs escalate beyond initial estimates, the government may end up paying more than anticipated, even though the fee remains fixed. Mitigation strategies typically involve stringent oversight of incurred costs, detailed audits, and clear definitions of allowable expenses in the contract. The government contracting officer and technical team must actively monitor the contractor's spending, review invoices meticulously, and ensure that all costs are reasonable, allocable, and necessary for contract performance. Robust reporting requirements and regular progress meetings also help in identifying potential cost issues early on.

What does the 'full and open competition' designation imply about the pricing and potential for innovation in this contract?

A 'full and open competition' designation implies that the contract was awarded after soliciting proposals from all interested and responsible sources, without restrictions. This broad solicitation is intended to maximize competition, which generally leads to more competitive pricing as contractors vie for the award. It also provides the government with a wider pool of potential solutions, increasing the likelihood of receiving innovative approaches. By allowing any qualified vendor to bid, the government can leverage the best available technologies and methodologies in the market, potentially fostering greater innovation than a more restricted procurement process might allow. The ultimate impact on pricing and innovation depends on the specific requirements and the number and quality of bids received.

How has federal spending on IT systems design and integration services evolved over the period of this contract (2015-2021)?

Federal spending on IT systems design and integration services generally saw a steady increase between 2015 and 2021, driven by the government's ongoing efforts towards digital modernization, cybersecurity enhancements, and cloud adoption. Agencies across the board, including the Department of Defense, have prioritized IT investments to improve operational efficiency, enhance national security, and deliver better services. This period coincided with initiatives like the Modernizing Government Technology (MGT) Act, which aimed to accelerate IT modernization. Consequently, the demand for services like those provided under this contract (NAICS 541512) remained robust, with significant contract awards across various agencies. Spending patterns reflected a shift towards cloud-based solutions, data analytics, and agile development methodologies.

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 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: $145,843,348

Exercised Options: $145,843,348

Current Obligation: $131,009,505

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0019

IDV Type: GWAC

Timeline