Booz Allen Hamilton Inc. awarded $99.2M IT support contract for Army Chief of Staff

Contract Overview

Contract Amount: $99,230,046 ($99.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2003-11-13

End Date: 2009-09-29

Contract Duration: 2,147 days

Daily Burn Rate: $46.2K/day

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IT SUPPORT OF US ARMY CHIEF OF STAFF

Place of Performance

Location: FAIRFAX, FAIRFAX (CITY) County, VIRGINIA, 22030, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $99.2 million to BOOZ ALLEN HAMILTON INC for work described as: IT SUPPORT OF US ARMY CHIEF OF STAFF Key points: 1. Contract awarded for IT support services, indicating a need for specialized technical expertise. 2. The duration of the contract (over 6 years) suggests a long-term requirement for these services. 3. Awarded by the General Services Administration, this contract likely leverages existing government-wide IT procurement vehicles. 4. The 'Computer Systems Design Services' NAICS code points to a focus on system integration and technical consulting. 5. The contract type (Cost Plus Fixed Fee) can sometimes lead to cost overruns if not closely managed. 6. The absence of small business set-aside flags suggests this was not specifically targeted for smaller enterprises.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The $99.2 million total value over more than six years averages to approximately $15.8 million annually. This figure needs to be assessed against the scope and complexity of IT support for the Army Chief of Staff's office. The Cost Plus Fixed Fee (CPFF) contract type introduces a degree of risk, as costs can escalate beyond initial estimates if not meticulously monitored. Without detailed breakdowns of labor categories, hours, and overhead, a precise value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data does not specify the competition level for this contract. Without information on whether it was competed under full and open competition, a limited competition, or awarded sole-source, it is impossible to assess the dynamics of the bidding process. The number of bidders, if any, and the justification for the chosen procurement method are crucial for understanding how price discovery was achieved and whether the government secured the best possible pricing.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Robust competition typically drives down prices and encourages innovation, leading to better use of public funds. Limited or sole-source awards may result in higher costs for taxpayers if adequate justification for the lack of competition is not present.

Public Impact

The primary beneficiary is the U.S. Army Chief of Staff's office, receiving essential IT support. Services delivered include computer systems design and related technical support, crucial for operational efficiency. The geographic impact is likely concentrated within the Pentagon and related Army command structures. Workforce implications may include the direct employment of IT professionals by Booz Allen Hamilton Inc. to fulfill the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs to increase fee.
Lack of competition data makes it difficult to assess if taxpayers received best value.
Long contract duration may lead to vendor lock-in and reduced flexibility for the agency.

Positive Signals

Award to a well-established contractor like Booz Allen Hamilton suggests a level of confidence in their capabilities.
Contract awarded by GSA indicates adherence to established government procurement processes.
The specific NAICS code suggests a focus on specialized IT services aligned with agency needs.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically in computer systems design and related services. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. Contracts like this are common as departments rely on external expertise for complex IT functions. Benchmarks for similar IT support contracts vary widely based on scope, duration, and specific services, but large, long-term engagements often represent significant investments.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (ss=false) and there is no indication of specific small business subcontracting goals being a primary driver (sb=false). This suggests that the primary focus was on securing the required IT expertise, potentially from larger, established firms. While this may not directly benefit small businesses through set-asides, large prime contractors are often required to have subcontracting plans, which could indirectly involve small businesses in the supply chain.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the General Services Administration (GSA) and the supported Army entity. Performance monitoring, financial reviews, and adherence to contract terms are standard oversight mechanisms. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Army IT Modernization Programs
GSA IT Schedule Contracts
Department of Defense IT Services
Computer Systems Design Services Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Lack of detailed competition information hinders assessment of best value.
Potential for vendor lock-in due to long contract duration.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $99.2 million to BOOZ ALLEN HAMILTON INC. IT SUPPORT OF US ARMY CHIEF OF STAFF

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 $99.2 million.

What is the period of performance?

Start: 2003-11-13. End: 2009-09-29.

What was the specific justification for using a Cost Plus Fixed Fee (CPFF) contract type for this IT support requirement?

The justification for using a Cost Plus Fixed Fee (CPFF) contract type often stems from situations where the scope of work is not precisely defined at the outset, or where there is a high degree of uncertainty regarding the costs involved. For IT support of a high-level office like the Army Chief of Staff, requirements might evolve, or the specific technical challenges could be difficult to predict fully. CPFF contracts aim to provide the contractor with an incentive to control costs by fixing the fee (profit) while allowing for the recovery of allowable costs. However, this structure requires rigorous oversight to prevent cost overruns and ensure that the government is not paying excessively for services rendered. Without the specific contract file documentation, the precise rationale remains speculative, but it likely relates to managing uncertainty in a complex IT environment.

How does the annual spending on this contract compare to other similar IT support contracts within the Department of Defense?

Comparing the annual spending of approximately $15.8 million for this contract to other IT support contracts within the Department of Defense (DoD) requires access to a broader dataset of comparable awards. The DoD is a vast organization with diverse IT needs, ranging from enterprise-wide system development to localized technical support. Contracts for similar services can vary significantly in price based on factors such as the specific systems supported, the level of security clearance required, the geographic location of services, and the complexity of the IT environment. To make a meaningful comparison, one would need to identify contracts with similar NAICS codes (e.g., 541512), similar contract types (e.g., CPFF, FFP), and serving comparable organizational levels or functions. Without such a comparative analysis, it is difficult to definitively state whether this contract's annual spending is high, low, or average relative to its peers within the DoD.

What are the key performance indicators (KPIs) used to measure the success and effectiveness of Booz Allen Hamilton Inc.'s IT support services under this contract?

Key Performance Indicators (KPIs) for IT support contracts typically focus on service delivery, system availability, response times, and user satisfaction. For a contract supporting the Army Chief of Staff, critical KPIs might include system uptime percentages for essential communication and information systems, the average time to resolve IT incidents (Mean Time To Repair - MTTR), the success rate of implementing system updates or new technologies, and adherence to cybersecurity protocols. User satisfaction surveys or feedback mechanisms could also be employed. The specific KPIs would be detailed in the contract's Performance Work Statement (PWS) or Statement of Objectives (SOO). Effective monitoring of these KPIs is crucial for ensuring that Booz Allen Hamilton Inc. is meeting the demanding requirements of supporting a senior military leader's IT infrastructure and for justifying the contract's value.

What is the historical spending trend for IT support services for the Army Chief of Staff's office prior to this contract award?

Analyzing the historical spending trend for IT support services for the Army Chief of Staff's office prior to this contract (awarded November 2003) would involve examining prior contract awards for similar services. This would require searching federal procurement databases for contracts issued by the Army or GSA on behalf of the Army for IT support to this specific office or its predecessors. Understanding past spending levels, contract durations, and incumbent contractors can provide context for the $99.2 million award. For instance, if previous contracts were significantly smaller or shorter in duration, it might indicate an expansion of IT requirements or a shift in procurement strategy. Conversely, if spending has been consistently high, it suggests a stable, long-term need for robust IT support. This historical perspective is vital for assessing the reasonableness of the current contract's value and scope.

What is Booz Allen Hamilton Inc.'s track record with similar large-scale IT support contracts for senior government leadership or critical infrastructure?

Booz Allen Hamilton Inc. has a long and extensive track record of providing IT support and consulting services to various government agencies, including significant engagements with the Department of Defense and other high-level entities. They are known for handling complex, large-scale contracts involving systems integration, cybersecurity, data analytics, and strategic IT planning. Their experience often includes supporting senior leadership and critical infrastructure, given their established presence in the federal contracting space. Evaluating their specific performance on similar contracts would involve reviewing past performance evaluations (if publicly available), contract modifications, and any reported issues or successes. Generally, their ability to secure and maintain such contracts suggests a demonstrated capacity to meet stringent government requirements, though specific performance on any given contract can vary.

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

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)

Address: 8283 GREENSBORO DR # 700, MC LEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $100,679,829

Exercised Options: $99,230,046

Current Obligation: $99,230,046

Contract Characteristics

Multi-Year Contract: Yes

Parent Contract

Parent Award PIID: GS00T99ALD0202

IDV Type: GWAC

Timeline