Booz Allen Hamilton contract for IT services valued at $69M over 4 years, awarded by GSA

Contract Overview

Contract Amount: $69,044,732 ($69.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2015-04-16

End Date: 2019-10-15

Contract Duration: 1,643 days

Daily Burn Rate: $42.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::CL::IGF

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $69.0 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::CL::IGF Key points: 1. The contract's value of $69M over four years suggests a significant investment in IT services. 2. Competition dynamics for this contract were characterized by full and open competition, indicating a potentially robust bidding process. 3. The use of a Time and Materials pricing model introduces potential cost escalation risks if not closely managed. 4. Performance context is crucial given the duration and value, requiring ongoing monitoring of service delivery. 5. This contract positions Booz Allen Hamilton as a key provider within the federal IT services sector. 6. The award was a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

Benchmarking this $69M contract against similar IT services contracts awarded by GSA requires detailed analysis of scope and deliverables. The Time and Materials (T&M) pricing structure, while flexible, can lead to higher costs compared to fixed-price contracts if not managed diligently. Without specific performance metrics or comparison data, assessing the true value-for-money is challenging, but the duration and scale suggest a substantial engagement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This typically fosters a competitive environment, potentially leading to better pricing and service offerings for the government. The presence of 4 bids suggests a reasonable level of interest, though the exact number of bidders doesn't always correlate directly with the intensity of competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of vendors to compete, which can drive down prices and improve the quality of services received.

Public Impact

Federal agencies requiring computer systems design services benefit from the expertise provided under this contract. The services delivered likely support critical IT infrastructure and operations within the government. The contract's impact is primarily national, supporting federal IT needs across various departments or agencies. Workforce implications include potential job creation and utilization of skilled IT professionals by Booz Allen Hamilton.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Risk of cost overruns due to Time and Materials pricing model.
Potential for scope creep if requirements are not clearly defined and managed.
Dependency on a single contractor for critical IT services.
Ensuring consistent service quality over the contract's multi-year duration.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Booz Allen Hamilton is a well-established federal contractor with a track record in IT services.
The contract duration indicates a long-term need for these services.
Delivery order structure implies it's part of a potentially larger, pre-vetted framework.

Sector Analysis

The federal IT services market is a substantial sector, with agencies consistently investing in systems design, integration, and maintenance. This contract falls within the Computer Systems Design Services category (NAICS 541512), a segment characterized by high demand for specialized expertise. Spending in this area is driven by the need for modernization, cybersecurity, and efficient digital service delivery. Comparable benchmarks would involve analyzing other large-scale IT service contracts awarded by agencies like GSA, DOD, and civilian departments.

Small Business Impact

This contract does not appear to have a small business set-aside component (SB=false). While Booz Allen Hamilton is a large business, the implications for small businesses would depend on subcontracting opportunities. If Booz Allen Hamilton actively seeks small business subcontractors for specialized tasks, it could provide valuable experience and revenue streams for smaller firms within the IT ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the awarding agency (General Services Administration). Performance monitoring, invoicing review, and adherence to contract terms are standard accountability measures. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Professional Services
Computer Systems Design Services
General Services Administration Contracts
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts
Time and Materials Contracts

Risk Flags

Potential for cost overruns due to T&M pricing.
Need for strong contract oversight to manage scope and performance.
Contract duration requires sustained monitoring.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $69.0 million to BOOZ ALLEN HAMILTON INC. 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 $69.0 million.

What is the period of performance?

Start: 2015-04-16. End: 2019-10-15.

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 extensive experience in information technology services. They have a significant history of securing and performing on large-scale IT contracts across various government agencies, including defense, intelligence, and civilian sectors. Their portfolio often includes areas such as systems engineering, cybersecurity, data analytics, and IT modernization. While specific performance ratings for individual contracts are not always publicly detailed, their continued success in winning competitive bids suggests a generally positive track record and capability to meet federal IT requirements. However, like any large contractor, they may have faced past performance issues or protests on specific awards, which would require deeper investigation into individual contract histories.

How does the $69M contract value compare to similar IT services contracts awarded by GSA?

A $69 million contract for computer systems design services over approximately four years is a substantial award, indicative of a significant IT requirement. To benchmark this value, one would compare it against other IT services contracts awarded by the General Services Administration (GSA) or similar agencies for comparable services (e.g., systems integration, IT support, software development). GSA awards numerous IT contracts, ranging from small task orders to multi-billion dollar IDIQs. A contract of this magnitude suggests it likely supports a critical function or a broad set of IT needs for one or more federal entities. Without access to a detailed database of comparable contract scopes and durations, precise benchmarking is difficult, but it places this award in the upper tier of individual delivery orders or smaller prime contracts.

What are the primary risks associated with a Time and Materials (T&M) contract of this size?

The primary risk associated with a Time and Materials (T&M) contract, especially one valued at $69 million, is cost control. T&M contracts pay the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure provides flexibility but lacks the cost certainty of fixed-price contracts. Risks include potential for cost overruns if labor hours are not efficiently managed, scope creep where requirements expand without formal change orders, and difficulty in accurately forecasting the total expenditure. Effective oversight, detailed tracking of labor hours and material costs, and robust change management processes are crucial to mitigate these risks and ensure the government receives value for its investment.

How effective is 'full and open competition' in ensuring competitive pricing for federal IT services?

Full and open competition is generally considered the most effective method for ensuring competitive pricing in federal IT services. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive proposals. This broad competition can drive down prices as contractors vie for the award. Furthermore, it encourages innovation and allows the government to select the best value solution, which may not always be the lowest price but offers superior technical merit or performance. The presence of four bidders, as indicated in this case, suggests a reasonable level of competition, but the true measure of effectiveness lies in whether the resulting price is competitive relative to market rates and the scope of work.

What are the implications of this contract being a 'delivery order'?

This contract being a 'delivery order' signifies that it was issued under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract. IDIQs establish a framework agreement with one or more contractors for supplies or services over a period of time. Delivery orders are then used to procure specific quantities of supplies or services at specific prices and delivery dates within the scope of the parent IDIQ. The implications are that the foundational contract vehicle (the IDIQ) likely underwent its own competitive process. This delivery order represents a specific task or project awarded under that established vehicle. It suggests that the initial competition for the IDIQ was robust, and this order is a subsequent call against that established agreement, potentially streamlining the procurement process for specific needs.

How does the NAICS code 541512 (Computer Systems Design Services) define the scope of this contract?

The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' defines the scope of this contract as encompassing establishments primarily engaged in planning and designing computer systems that integrate hardware, software, and communication technologies. This includes activities such as systems analysis, systems integration, implementation of software and hardware, and IT consulting and troubleshooting. Contracts under this code typically involve providing expertise to help organizations leverage technology to meet their business objectives. Services can range from developing custom software solutions to designing complex network infrastructures and advising on IT strategy. The $69M value suggests a comprehensive and potentially long-term engagement within this domain.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID02150009

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

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: $90,221,344

Exercised Options: $89,940,208

Current Obligation: $69,044,732

Subaward Activity

Number of Subawards: 66

Total Subaward Amount: $33,100,412

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q09BGD0019

IDV Type: GWAC

Timeline