Booz Allen Hamilton awarded $26.3M for IT services, highlighting long-term IT support needs

Contract Overview

Contract Amount: $26,348,691 ($26.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2004-03-29

End Date: 2011-01-14

Contract Duration: 2,482 days

Daily Burn Rate: $10.6K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: OTHER ADP & TELECOMMUNICATIONS SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $26.3 million to BOOZ ALLEN HAMILTON INC for work described as: OTHER ADP & TELECOMMUNICATIONS SERVICES Key points: 1. Contract value indicates significant investment in IT infrastructure and support. 2. Long contract duration suggests a need for sustained IT services. 3. Competition level for this order needs further examination to assess value. 4. Contract type (Cost Plus Fixed Fee) can present cost control challenges. 5. IT services are critical for agency operations and modernization. 6. Geographic focus on Virginia impacts regional IT workforce and economy.

Value Assessment

Rating: fair

The total award of $26.3 million over approximately 2482 days (roughly 6.8 years) suggests a substantial investment. Benchmarking this against similar IT service contracts requires detailed analysis of the specific services rendered. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, can sometimes lead to higher costs if not managed tightly, as contractor overhead and profit are fixed regardless of the actual costs incurred. Without specific per-unit cost data or comparisons to market rates for similar services, a definitive value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data indicates this was a 'COMPETITIVE DELIVERY ORDER' under a larger contract. However, the specific competition details for this particular delivery order are not fully elaborated. It's unclear if it was competed among multiple vendors or if it was a competitive task order under an existing indefinite-delivery indefinite-quantity (IDIQ) contract. The number of bidders and the specific solicitation process would determine the extent of price discovery and potential for cost savings.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Robust competition typically drives down prices and encourages innovation, leading to better service delivery for the government. If this order was competitively sourced, it suggests a better likelihood of fair pricing.

Public Impact

Federal agencies benefit from enhanced IT capabilities and support. The contract supports the delivery of computer systems design services. The primary geographic impact is in Virginia, potentially supporting the local IT workforce. Booz Allen Hamilton, a major IT contractor, benefits from this award. The contract contributes to the operational efficiency and modernization of government IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may lead to less cost certainty for the government.
Lack of detailed competition data for this specific delivery order makes value assessment difficult.
Long contract duration could lead to scope creep or outdated technology if not managed proactively.

Positive Signals

Awarded to a well-established IT services contractor (Booz Allen Hamilton).
Contract type indicates a need for specialized IT services.
Delivery order suggests it's part of a potentially larger, established framework agreement.

Sector Analysis

This contract falls within the broader IT services sector, specifically Computer Systems Design Services. This sector is a significant component of federal IT spending, encompassing a wide range of activities from software development to IT infrastructure management. The federal government is a major consumer of these services, often relying on large, established contractors like Booz Allen Hamilton to support complex IT operations. Comparable spending benchmarks would involve analyzing the total federal expenditure on IT services, particularly those related to systems design and integration.

Small Business Impact

The data indicates that small business participation (sb) was false for this contract. This suggests that small businesses were likely not primary awardees or beneficiaries of this specific delivery order. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses by the prime contractor, Booz Allen Hamilton, and the extent of their participation in the overall contract performance.

Oversight & Accountability

Oversight for this contract would typically fall under the General Services Administration (GSA), specifically the Federal Acquisition Service, which awarded the contract. The contract type (CPFF) necessitates close monitoring of costs and performance to ensure value. Inspector General oversight from GSA would be applicable, focusing on preventing fraud, waste, and abuse. Transparency is generally facilitated through contract databases like FPDS, though detailed performance metrics may not always be publicly available.

Related Government Programs

IT Services
Computer Systems Design Services
General Services Administration Contracts
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts
Cost-Plus Contracts

Risk Flags

Potential for cost overruns due to CPFF contract type.
Risk of technological obsolescence given the long contract duration.
Uncertainty regarding the level of competition for this specific delivery order.
Lack of small business participation indicated.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $26.3 million to BOOZ ALLEN HAMILTON INC. OTHER ADP & TELECOMMUNICATIONS SERVICES

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 $26.3 million.

What is the period of performance?

Start: 2004-03-29. End: 2011-01-14.

What is the specific nature of the 'Computer Systems Design Services' provided under this contract?

The contract falls under NAICS code 541512, which defines Computer Systems Design Services. This typically includes a broad range of IT-related activities such as designing and integrating computer hardware and software systems, providing IT consulting services, and developing custom software solutions. Without access to the detailed statement of work for this specific delivery order, the precise services rendered remain unspecified. However, given the duration and value, it likely involved significant IT support, system integration, or development efforts for a federal agency managed through the GSA.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types in terms of risk and value for the government?

The CPFF contract type is often used when the scope of work is not precisely defined or when there is a high degree of uncertainty in the cost of performance. It allows the contractor to recover all allowable costs plus a fixed fee representing their profit. For the government, the risk lies in potential cost overruns if the contractor's actual costs exceed estimates, although the fixed fee provides some cost certainty regarding profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but less cost certainty. It is generally considered less advantageous for the government than FFP when requirements are well-defined, as FFP places more cost risk on the contractor, incentivizing efficiency.

What is the historical spending pattern for 'OTHER ADP & TELECOMMUNICATIONS SERVICES' by the General Services Administration?

The provided data point represents a single award of $26.3 million for 'OTHER ADP & TELECOMMUNICATIONS SERVICES' (PSC code likely related, though not explicitly stated as 'OTHER ADP & TELECOMMUNICATIONS SERVICES' but rather 'Computer Systems Design Services' NAICS). To assess historical spending patterns, one would need to query federal procurement databases (like FPDS) for all contracts awarded under this or similar categories by the GSA over several fiscal years. This would reveal trends in spending volume, average award values, dominant contract types, and key contractors, providing context for the significance of this particular award within the agency's overall IT procurement landscape.

What does the contractor's track record (Booz Allen Hamilton) suggest about their ability to perform these IT services?

Booz Allen Hamilton is a large, well-established government contractor with extensive experience in providing IT and management consulting services across various federal agencies. Their long history and significant presence in the federal market suggest a strong capability to manage complex IT projects and deliver required services. They typically handle large-scale contracts and possess the resources and expertise necessary for systems design and integration. While past performance is generally positive, specific performance on this particular contract would be detailed in past performance reviews, which are not publicly available in this dataset.

How does the duration of this contract (2482 days) impact its risk profile and potential for technological obsolescence?

A contract duration of 2482 days (approximately 6.8 years) is substantial in the fast-paced IT sector. This extended period increases the risk of technological obsolescence if the contract's scope does not adequately account for evolving technologies. It also presents challenges in maintaining consistent performance and adapting to changing requirements. Effective contract management, including regular reviews and potential modifications, is crucial to mitigate these risks. The government must ensure that the services remain relevant and that the contractor is incentivized to incorporate modern solutions throughout the contract's life.

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

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

Address: 8283 GREENSBORO DR # 700, MC LEAN, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $40,008,127

Exercised Options: $40,008,127

Current Obligation: $26,348,691

Parent Contract

Parent Award PIID: GS00T99ALD0202

IDV Type: GWAC

Timeline