Air Force IT support contract awarded to Booz Allen Hamilton for over $41.6 million

Contract Overview

Contract Amount: $41,615,152 ($41.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2009-08-06

End Date: 2015-02-06

Contract Duration: 2,010 days

Daily Burn Rate: $20.7K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IT SUPPORT FOR AIR FORCEFOR MODELING AND SIMULATION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $41.6 million to BOOZ ALLEN HAMILTON INC for work described as: IT SUPPORT FOR AIR FORCEFOR MODELING AND SIMULATION Key points: 1. Contract awarded through a competitive delivery order, suggesting a degree of market vetting. 2. The duration of the contract spans over five years, indicating a long-term need for these services. 3. The contract type is 'Labor Hours', which can sometimes lead to cost overruns if not managed carefully. 4. The specific NAICS code (541330 - Engineering Services) suggests a focus on technical and engineering support. 5. The contract was awarded by the General Services Administration (GSA), a common contracting vehicle. 6. The small business set-aside flag is false, meaning it was not specifically targeted for small businesses.

Value Assessment

Rating: fair

The total value of $41.6 million over approximately six years for IT support and engineering services appears within a reasonable range for large-scale federal contracts of this nature. However, without specific benchmarks for 'IT Support for Air Force Modeling and Simulation,' a precise value-for-money assessment is challenging. The 'Labor Hours' contract type introduces a variable cost component, making it crucial to monitor hours billed against the scope of work to ensure efficiency and prevent overspending. Comparing this to similar contracts for specialized IT and engineering support for defense agencies would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a 'Competitive Delivery Order,' indicating it was likely placed against a pre-existing indefinite-delivery indefinite-quantity (IDIQ) contract that was competed. The term 'competitive' suggests that multiple offerors were considered or that the IDIQ itself was competed. The number of bidders for this specific delivery order is not provided, but the competitive nature of the underlying IDIQ is a positive sign for price discovery. This approach generally allows for a more efficient procurement process while still leveraging competition.

Taxpayer Impact: The competitive award mechanism helps ensure that taxpayer funds are used efficiently by fostering price negotiation and potentially leading to better service delivery at a more reasonable cost compared to sole-source awards.

Public Impact

The primary beneficiaries are the U.S. Air Force units requiring modeling and simulation IT support. Services delivered include crucial IT support for complex modeling and simulation activities, essential for defense planning and operations. The geographic impact is centered in Washington D.C., where the contract was awarded. The contract supports a workforce of IT professionals and engineers, contributing to specialized federal employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep due to 'Labor Hours' contract type if not rigorously managed.
Lack of specific performance metrics in the provided data makes it difficult to assess service quality.
The long contract duration could lead to vendor lock-in if not periodically re-evaluated for competitive alternatives.

Positive Signals

Awarded through a competitive process, indicating some level of market validation.
The contract addresses a critical need for the Air Force's modeling and simulation capabilities.
Booz Allen Hamilton is a well-established contractor with significant experience in government IT services.

Sector Analysis

This contract falls within the Information Technology and Engineering Services sector, specifically supporting defense-related modeling and simulation. The IT services market for the federal government is substantial, with significant spending allocated to maintaining and upgrading complex systems. Contracts like this are common as agencies rely on specialized contractors to provide expertise that may not be available in-house. Benchmarking this spending against similar IT support contracts for defense agencies would be necessary for a comprehensive value analysis.

Small Business Impact

The data indicates that this contract was not a small business set-aside (ss=false, sb=false). This means the procurement was open to all eligible contractors, including large businesses. While this contract did not directly benefit small businesses through a set-aside, large prime contractors like Booz Allen Hamilton often engage small businesses as subcontractors. The extent of subcontracting to small businesses would need further investigation to determine the overall impact on the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting agency (General Services Administration) and the program office within the Air Force that requires the modeling and simulation support. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Air Force IT Modernization Programs
Defense Modeling and Simulation Support Contracts
GSA IT Schedule Contracts
Engineering Services for Federal Agencies
Federal IT Support Services

Risk Flags

Potential for cost overruns due to 'Labor Hours' contract type.
Lack of detailed performance metrics makes quality assessment difficult.
Long contract duration could lead to vendor lock-in.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $41.6 million to BOOZ ALLEN HAMILTON INC. IT SUPPORT FOR AIR FORCEFOR MODELING AND SIMULATION

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 $41.6 million.

What is the period of performance?

Start: 2009-08-06. End: 2015-02-06.

What is the track record of Booz Allen Hamilton in delivering IT support for modeling and simulation to the Air Force or other defense agencies?

Booz Allen Hamilton is a large, established government contractor with extensive experience across various IT and engineering services, including support for defense agencies. They have a long history of holding numerous contracts with the Department of Defense and the Air Force, covering a wide range of requirements from IT infrastructure to advanced analytics and simulation support. While specific performance details for this particular contract are not publicly detailed in terms of quality metrics, their consistent presence and award of significant contracts suggest a generally accepted capability. However, like any large contractor, their performance can vary across different projects and agencies, and a deeper dive into past performance reviews or contract termination data would be needed for a comprehensive assessment.

How does the $41.6 million contract value compare to similar IT support contracts for modeling and simulation within the Air Force or DoD?

The $41.6 million contract value, spread over approximately six years (August 2009 to February 2015), translates to an average annual value of roughly $6.9 million. This figure is moderate for large-scale federal IT support contracts, especially those involving specialized areas like modeling and simulation for a major branch like the Air Force. Comparable contracts can range significantly based on scope, duration, and complexity. For instance, broader IT infrastructure support contracts can reach hundreds of millions or even billions. However, for a focused service like IT support for specific modeling and simulation needs, this value appears reasonable, falling within the mid-tier range for such specialized services. A precise comparison would require identifying contracts with identical or highly similar service descriptions, agencies, and contract types.

What are the primary risks associated with a 'Labor Hours' contract type for this type of service?

The primary risk associated with a 'Labor Hours' contract type, as used in this Air Force IT support contract, is the potential for cost overruns if not managed diligently. Unlike fixed-price contracts, 'Labor Hours' contracts pay for the time spent by personnel at pre-negotiated hourly rates. This means the total cost is directly tied to the number of hours worked. If the scope of work is not clearly defined, or if project management is weak, the contractor may bill for more hours than anticipated or necessary, driving up the total cost beyond initial estimates. This necessitates robust oversight from the government to monitor labor hours, ensure efficient work, and validate that the hours billed align with the actual effort required to meet contract objectives. Scope creep can exacerbate this risk.

What does the contract's duration (over 5 years) imply about the Air Force's long-term needs for modeling and simulation IT support?

The contract's duration of over five years (August 2009 to February 2015) strongly suggests that the Air Force identified a sustained, long-term requirement for the IT support services related to modeling and simulation. Such extended periods indicate that these services are not considered temporary or project-specific but rather integral to ongoing operations, planning, or development within the Air Force's mission. This longevity implies a strategic investment in maintaining and enhancing these critical capabilities. It also suggests that the nature of modeling and simulation technology and its application within the Air Force evolves over time, requiring continuous IT support to adapt and integrate new advancements, rather than a one-time fix.

How does the awarding agency, GSA, typically manage IT support contracts like this for other federal agencies?

The General Services Administration (GSA) acts as a procurement agent for many federal agencies, leveraging its expertise and established contract vehicles to acquire goods and services efficiently. For IT support contracts like this one awarded to Booz Allen Hamilton for the Air Force, GSA often utilizes its IT Schedule contracts (e.g., Schedule 70, now IT-70). These are pre-competed, indefinite-delivery indefinite-quantity (IDIQ) contracts that allow agencies to place orders for IT services. GSA's role involves managing the overall schedule contract, ensuring compliance, and providing acquisition support. The specific task order or delivery order, like the one here, is then managed by the requiring agency (Air Force) in coordination with GSA, focusing on performance monitoring and technical oversight to ensure the services meet their needs.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $336,793,548

Exercised Options: $42,911,494

Current Obligation: $41,615,152

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F0025K

IDV Type: FSS

Timeline