Booz Allen Hamilton awarded $90M for HR IT systems, including DIMHRS implementation

Contract Overview

Contract Amount: $89,899,135 ($89.9M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2005-08-30

End Date: 2009-07-31

Contract Duration: 1,431 days

Daily Burn Rate: $62.8K/day

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: SUPPORT JR&IO (DOD) HUMAN RESOURCES IT SYSTEMS AND IMPLEMENT AF DEFENSE INTEGRATED MILITARY HUMAN RESOURCES SYSTEM (DIMHRS)

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $89.9 million to BOOZ ALLEN HAMILTON INC for work described as: SUPPORT JR&IO (DOD) HUMAN RESOURCES IT SYSTEMS AND IMPLEMENT AF DEFENSE INTEGRATED MILITARY HUMAN RESOURCES SYSTEM (DIMHRS) Key points: 1. Contract focused on critical human resources IT infrastructure for the Air Force. 2. Significant investment in modernizing military HR systems. 3. Delivery Order contract type suggests a specific task within a larger framework. 4. Performance period spanned nearly four years, indicating a substantial project. 5. The contract was awarded by GSA, leveraging their acquisition expertise. 6. The specific NAICS code points to computer systems design services.

Value Assessment

Rating: fair

The total award of $89.9 million for HR IT systems and the DIMHRS implementation appears to be a significant investment. Benchmarking this against similar large-scale IT modernization projects within the Department of Defense is crucial for a precise value-for-money assessment. Without direct comparisons of scope and complexity, it's challenging to definitively label the pricing as excellent or concerning. The cost-plus award fee structure implies that contractor performance directly influenced the final payment, aiming to incentivize efficiency and effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition level for this specific delivery order is not detailed in the provided data. Delivery orders can be issued under existing indefinite-delivery indefinite-quantity (IDIQ) contracts, which may have varying levels of competition depending on the original solicitation. If this was competed under a broad IDIQ, it could have involved multiple bidders. However, without knowing the specific IDIQ vehicle or if it was a sole-source task order, a definitive assessment of price discovery is not possible.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Robust competition typically drives down prices and encourages innovation, leading to better deals for the government. Limited or sole-source awards may result in higher costs.

Public Impact

Military personnel and their HR data will benefit from modernized systems. Improved efficiency in managing human resources for the Air Force. The implementation of the Defense Integrated Military Human Resources System (DIMHRS) aims to standardize HR processes across the DoD. Potential for a more streamlined and accurate payroll, benefits, and personnel management system. Workforce implications include training and adaptation to new IT systems for HR personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus award fee contracts can sometimes lead to cost overruns if not managed tightly.
The long performance period (nearly 4 years) increases the risk of scope creep or evolving requirements.
Dependence on a single contractor for critical HR IT systems can pose a risk if performance falters.

Positive Signals

Focus on implementing a critical, standardized HR system (DIMHRS) suggests a strategic investment.
The award to a well-established contractor like Booz Allen Hamilton may indicate a level of confidence in their capabilities.
The delivery order structure allows for phased implementation and potential adjustments.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and integration for human resources. The market for defense IT modernization is substantial, with agencies like the DoD consistently investing in upgrading legacy systems to improve efficiency and security. Comparable spending benchmarks would involve looking at other large-scale enterprise resource planning (ERP) or HR system implementations within federal agencies.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Booz Allen Hamilton is a large business. Analysis of subcontracting opportunities for small businesses would require further investigation into the contract's detailed terms and the contractor's subcontracting plan, if applicable.

Oversight & Accountability

As a delivery order issued by the General Services Administration (GSA), oversight would likely involve both GSA contracting officers and the requiring agency (Department of the Air Force). The cost-plus award fee structure necessitates close monitoring of performance against defined criteria to determine award fees. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Integrated Military Human Resources System (DIMHRS)
DoD Human Resources IT Modernization Programs
Air Force IT Infrastructure Contracts
GSA IT Schedule Contracts

Risk Flags

Potential for cost overruns in CPAF contracts
Risk of schedule delays in large IT implementations
Complexity of integrating disparate HR systems

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $89.9 million to BOOZ ALLEN HAMILTON INC. SUPPORT JR&IO (DOD) HUMAN RESOURCES IT SYSTEMS AND IMPLEMENT AF DEFENSE INTEGRATED MILITARY HUMAN RESOURCES SYSTEM (DIMHRS)

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 $89.9 million.

What is the period of performance?

Start: 2005-08-30. End: 2009-07-31.

What was the specific performance criteria used to determine the award fee for Booz Allen Hamilton on this contract?

The provided data does not detail the specific performance criteria used for the award fee determination. Cost-Plus Award Fee (CPAF) contracts typically outline a set of measurable performance objectives related to technical execution, schedule adherence, cost control, and management. The government's contracting officer would evaluate the contractor's performance against these criteria throughout the contract period. The final award fee would be a reflection of how well Booz Allen Hamilton met or exceeded these predefined standards. Without access to the contract's Performance Work Statement (PWS) or the contract award documentation, the exact metrics remain unknown.

How does the $89.9 million total award compare to other large-scale HR IT system implementations within the federal government?

Comparing the $89.9 million award requires context regarding the scope, duration, and complexity of the project. Large-scale HR IT system implementations, such as Enterprise Resource Planning (ERP) systems or integrated HR platforms, can range from tens of millions to hundreds of millions of dollars. For instance, the initial development and rollout of systems like the DoD's Enterprise Resource Planning (ERP) initiatives have often incurred costs well into the billions over their lifecycle. This $89.9 million figure for a nearly four-year project focused on HR IT systems and DIMHRS implementation appears to be within the expected range for a significant modernization effort, but a precise benchmark would necessitate comparing it to projects of highly similar scope, user base, and functional requirements.

What were the primary risks identified during the performance of this contract, and how were they mitigated?

Primary risks associated with a contract of this nature and duration typically include technical challenges in integrating complex HR systems, potential for scope creep as requirements evolve, schedule delays impacting critical HR functions, and contractor performance issues. Given the Cost-Plus Award Fee structure, a key mitigation strategy is the government's active oversight and performance management. The contracting officer and technical team would continuously monitor progress, identify deviations from the plan, and work with the contractor to address issues promptly. Specific mitigation actions could involve regular progress reviews, phased delivery schedules, clear change control processes, and performance incentives tied to the award fee.

What is the current status or legacy of the DIMHRS implementation initiated under this contract?

The Defense Integrated Military Human Resources System (DIMHRS) was intended to be a single, integrated system to manage personnel and pay for all DoD components. This contract with Booz Allen Hamilton was part of the broader effort to develop and implement DIMHRS. However, the DIMHRS program itself faced significant challenges and delays throughout its history. While this specific contract concluded in 2009, the overall DIMHRS initiative experienced further development, testing, and eventual scaling back or modification of its original goals due to complexity and cost. The legacy is one of a major, albeit challenging, attempt at HR system consolidation within the DoD.

How did the GSA's role as the contracting agency influence the acquisition process and outcome?

The General Services Administration (GSA) often acts as a central procurement authority for federal agencies, leveraging its expertise in acquisition and established contract vehicles. By awarding this contract, GSA likely provided contracting support and potentially utilized an existing IT Schedule or other GSA-awarded IDIQ contract. This can streamline the procurement process for the Department of the Air Force, ensuring compliance with federal acquisition regulations. GSA's involvement suggests a standardized and potentially more efficient acquisition approach, aiming to secure competitive pricing and appropriate contract terms, although the specific competition level is not detailed here.

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, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $121,128,525

Exercised Options: $98,147,618

Current Obligation: $89,899,135

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00T99ALD0202

IDV Type: GWAC

Timeline