Booz Allen Hamilton awarded $26.5M for USARC audit readiness and GFEBS sustainment support

Contract Overview

Contract Amount: $26,542,329 ($26.5M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2017-04-27

End Date: 2020-04-26

Contract Duration: 1,095 days

Daily Burn Rate: $24.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL::IGF USARC AUDIT READINESS AND GFEBS SUSTAINMENT SUPPORT

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310

State: North Carolina Government Spending

Plain-Language Summary

General Services Administration obligated $26.5 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::CL::IGF USARC AUDIT READINESS AND GFEBS SUSTAINMENT SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract value of $26.5M over three years indicates a significant investment in financial management systems. 3. The North Carolina location for performance may have implications for local economic impact and workforce. 4. The firm fixed-price contract type shifts performance risk to the contractor. 5. This contract supports critical audit readiness and financial system sustainment for the US Army Reserve Command (USARC). 6. The NAICS code 541219 (Other Accounting Services) places this contract within a specialized professional services sector.

Value Assessment

Rating: good

The contract value of $26.5M over three years, averaging approximately $8.8M annually, appears reasonable for specialized audit readiness and financial system sustainment support. Benchmarking against similar large-scale government IT and financial management contracts suggests this pricing is within expected ranges. The firm fixed-price structure incentivizes contractor efficiency, potentially leading to better value for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of two bidders suggests a moderate level of competition for this specialized service. While not a large number of bidders, full and open competition generally promotes price discovery and ensures the government receives offers from capable sources.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovation.

Public Impact

The primary beneficiaries are the US Army Reserve Command (USARC), which receives essential support for its financial operations and audit readiness. Services delivered include audit readiness support and sustainment of the General Fund Enterprise Business System (GFEBS). Performance is located in North Carolina, potentially impacting the local economy and creating or sustaining jobs in the region. The contract supports the operational and financial integrity of a significant military branch.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if audit requirements evolve significantly beyond initial projections.
Reliance on a single contractor for critical financial system sustainment could pose a risk if performance falters.

Positive Signals

Firm fixed-price contract type transfers cost overrun risk to the contractor.
Awarded through full and open competition, indicating a competitive process.
Contractor Booz Allen Hamilton has a significant track record in government contracting, suggesting experience and capability.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically accounting and financial management support. The market for government audit readiness and financial system sustainment is substantial, driven by regulatory requirements and the complexity of federal financial operations. Comparable spending benchmarks for large IT and financial system support contracts often run into tens or hundreds of millions of dollars annually, making this $26.5M contract a significant, but not exceptionally large, investment within this domain.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major prime contractor, it is possible that subcontracting opportunities may exist for small businesses, particularly in specialized areas of accounting or IT support. However, without specific subcontracting plans or goals detailed in the award, the direct impact on the small business ecosystem is not explicitly defined.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the General Services Administration (GSA) and the US Army Reserve Command (USARC). The firm fixed-price nature of the contract provides a degree of accountability by linking payment to performance. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

GFEBS Sustainment
Army Audit Readiness
Federal Financial Management Systems
Accounting and Auditing Services
Professional Services Contracts

Risk Flags

Potential for contractor performance issues.
Risk of scope creep impacting budget and timeline.
Dependency on a single vendor for critical system sustainment.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $26.5 million to BOOZ ALLEN HAMILTON INC. IGF::CL::IGF USARC AUDIT READINESS AND GFEBS SUSTAINMENT SUPPORT

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 $26.5 million.

What is the period of performance?

Start: 2017-04-27. End: 2020-04-26.

What is Booz Allen Hamilton's track record with similar government contracts, particularly in audit readiness and financial systems?

Booz Allen Hamilton is a well-established government contractor with extensive experience in IT consulting, systems engineering, and professional services. They have a significant history of supporting federal agencies, including the Department of Defense, with complex financial management systems and audit readiness initiatives. Their portfolio often includes large-scale contracts involving enterprise resource planning (ERP) systems like GFEBS, as well as cybersecurity and data analytics. This specific contract aligns with their core competencies and past performance in providing mission-critical support to military branches and other federal entities, suggesting a strong capability to meet the requirements.

How does the $26.5M contract value compare to other federal spending on audit readiness and financial system sustainment?

The $26.5M contract value, spread over three years, represents a substantial investment but is within the typical range for large, complex federal IT and financial management support contracts. Many federal agencies, particularly within the Department of Defense, allocate tens to hundreds of millions of dollars annually for similar services, including ERP sustainment, audit remediation, and financial system modernization. For instance, contracts supporting systems like the Defense Enterprise Accounting and Management System (DEAMS) or other large financial systems often exceed this value. Therefore, while significant, this contract's value is commensurate with the scope and criticality of supporting audit readiness and GFEBS for the USARC.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential performance issues by the contractor, scope creep in requirements, and the inherent dependency on a single vendor for critical sustainment. The firm fixed-price contract type mitigates financial risk for the government by capping costs and incentivizing contractor efficiency. Mitigation for performance and scope creep typically involves robust contract management, clear performance metrics (e.g., Service Level Agreements), regular progress reviews, and defined change control processes. The government also retains oversight through the Contracting Officer's Representative (COR) to monitor performance and manage any necessary contract modifications.

How effective is the GFEBS system, and what is the impact of its sustainment support?

The General Fund Enterprise Business System (GFEBS) is a critical enterprise resource planning (ERP) system used by the Army to manage financial and accounting data, including personnel, equipment, and operational costs. Its effective sustainment is crucial for accurate financial reporting, auditability, and informed decision-making. The sustainment support provided under this contract ensures the system remains operational, secure, and updated with necessary enhancements and patches. Without this support, the Army Reserve Command would face significant challenges in meeting audit requirements, managing its budget, and maintaining financial transparency, potentially leading to audit failures and operational inefficiencies.

What is the historical spending trend for USARC audit readiness and GFEBS sustainment?

Historical spending data for USARC's audit readiness and GFEBS sustainment prior to this specific contract award would provide valuable context. Typically, such support is ongoing, with contracts renewed or re-competed as needs evolve. Agencies often see fluctuating spending based on audit cycles, system upgrade requirements, and broader modernization initiatives. Analyzing previous contract awards for similar services to USARC or comparable Army commands could reveal trends in contract duration, value, and contractor incumbency. This $26.5M award suggests a sustained need and a significant budget allocation for these critical functions over the contract period.

What are the implications of awarding this contract to Booz Allen Hamilton for competition in the accounting services sector?

Awarding a contract of this magnitude to a large incumbent like Booz Allen Hamilton can have mixed implications for competition. On one hand, it signifies the company's continued strength and capability in securing large federal contracts. On the other hand, it can present a high barrier to entry for smaller or newer firms seeking to compete for similar large-scale opportunities. While this specific award resulted from full and open competition, the dominance of large players in specialized sectors like federal financial management can sometimes consolidate market share. However, it also validates the competitive process and ensures the government is working with a proven entity for a critical function.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID06170005

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MC LEAN, 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: $45,267,059

Exercised Options: $26,542,329

Current Obligation: $26,542,329

Actual Outlays: $-490

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU203

IDV Type: IDC

Timeline