GSA Awards $116.7M Contract to Booz Allen Hamilton for DFAS ELAN Re-architecture

Contract Overview

Contract Amount: $116,677,306 ($116.7M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2005-01-10

End Date: 2009-12-31

Contract Duration: 1,816 days

Daily Burn Rate: $64.3K/day

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: RE-ARCHITECTING AND RE-ENGINEERING THE DFAS ELAN

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $116.7 million to BOOZ ALLEN HAMILTON INC for work described as: RE-ARCHITECTING AND RE-ENGINEERING THE DFAS ELAN Key points: 1. Contract value of $116.7 million over 1816 days. 2. Booz Allen Hamilton Inc. is the sole awardee. 3. Potential risks associated with sole-source awards and cost-plus contracts. 4. Services fall under Computer Systems Design, a key IT sector.

Value Assessment

Rating: fair

The contract is a Cost Plus Award Fee (CPA F) type, which can lead to higher costs if not managed carefully. Benchmarking is difficult without specific performance data and comparison to similar re-architecture projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This was a sole-source award, limiting competition and potentially impacting price discovery. The justification for sole-source needs careful review to ensure necessity and best value.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers if competition is foregone without strong justification.

Public Impact

Impacts the Defense Finance and Accounting Service (DFAS) IT infrastructure. Ensures modernization of critical financial systems. Potential for cost overruns due to contract type and sole-source nature.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost Plus Award Fee contract type
Long contract duration

Positive Signals

Addresses critical IT re-architecture needs
Awarded to a known contractor

Sector Analysis

This contract falls within the IT sector, specifically computer systems design services. Spending in this area is substantial across government, with benchmarks varying widely based on project complexity and scope.

Small Business Impact

No indication of small business participation is provided in the data. Sole-source awards often limit opportunities for small businesses.

Oversight & Accountability

Oversight is crucial for Cost Plus Award Fee contracts, especially sole-source ones, to ensure performance meets objectives and costs remain controlled. The General Services Administration (GSA) is responsible for the contracting vehicle.

Related Government Programs

Computer Systems Design Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Potential for cost overruns due to CPA F structure
Lack of competition due to sole-source award
Limited transparency on performance and cost controls
Long contract duration increases risk exposure

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $116.7 million to BOOZ ALLEN HAMILTON INC. RE-ARCHITECTING AND RE-ENGINEERING THE DFAS ELAN

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 $116.7 million.

What is the period of performance?

Start: 2005-01-10. End: 2009-12-31.

What was the specific justification for awarding this contract on a sole-source basis, and was a full and open competition truly not feasible?

The justification for a sole-source award is critical for understanding the necessity of bypassing competitive processes. Without this information, it's difficult to assess if taxpayers received the best possible value. A thorough review would examine if market research was conducted and if any specific capabilities were uniquely held by Booz Allen Hamilton Inc. that precluded other vendors.

How effectively was the Cost Plus Award Fee structure managed to control costs and incentivize performance for this complex re-architecture project?

The CPA F structure requires robust performance metrics and diligent oversight to prevent cost overruns. Understanding the award fee criteria and how performance was measured against them is key. Without detailed performance reports, it's challenging to determine if the fee structure successfully drove desired outcomes or simply increased the overall contract cost.

What was the ultimate impact of this re-architecture on DFAS's operational efficiency and IT system reliability?

The success of the re-architecture hinges on its tangible benefits to DFAS operations. Measuring improvements in system uptime, processing speed, security enhancements, and user satisfaction would indicate the effectiveness of the investment. Post-contract analysis is essential to quantify these benefits and justify the significant expenditure.

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: $136,063,262

Exercised Options: $116,677,306

Current Obligation: $116,677,306

Parent Contract

Parent Award PIID: GS00T99ALD0202

IDV Type: GWAC

Timeline