Booz Allen Hamilton awarded $44.8M IT support contract for Puget Sound Naval Shipyard

Contract Overview

Contract Amount: $44,791,092 ($44.8M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2010-06-30

End Date: 2015-09-01

Contract Duration: 1,889 days

Daily Burn Rate: $23.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: PUGET SOUND NAVAL SHIPYARD&INTERMEDIATE MAINTENANCE FACILITY (PSNS&IMF) WITH INFORMATION TECHNOLOGY (IT) SUPPORT

Place of Performance

Location: POWAY, SAN DIEGO County, CALIFORNIA, 92064

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $44.8 million to BOOZ ALLEN HAMILTON INC for work described as: PUGET SOUND NAVAL SHIPYARD&INTERMEDIATE MAINTENANCE FACILITY (PSNS&IMF) WITH INFORMATION TECHNOLOGY (IT) SUPPORT Key points: 1. Contract value represents a significant investment in IT infrastructure for a critical naval facility. 2. Competition dynamics suggest a robust market for IT support services in the defense sector. 3. Contract duration of nearly 5 years indicates a need for sustained IT support. 4. The cost-plus-fixed-fee pricing structure may require close monitoring to ensure cost control. 5. This contract aligns with broader government efforts to modernize IT systems for defense operations.

Value Assessment

Rating: good

The contract value of $44.8 million over approximately 5 years for IT support services at PSNS&IMF appears reasonable given the complexity and criticality of naval shipyard operations. Benchmarking against similar IT support contracts for large government facilities suggests that the overall award value is within expected ranges. However, a detailed analysis of the cost-plus-fixed-fee (CPFF) structure would be necessary to fully assess value for money, as it relies on the contractor's ability to manage costs effectively while achieving fixed fee objectives. Without specific per-unit cost data, a precise comparison is challenging, but the total award suggests a substantial scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of 5 bids suggests a healthy level of competition for this IT support services requirement. A competitive bidding process generally leads to better price discovery and can incentivize contractors to offer more favorable terms and pricing to secure the award. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces, ensuring that the government receives competitive pricing for essential services.

Public Impact

Naval personnel and operations at the Puget Sound Naval Shipyard will benefit from enhanced IT support, improving efficiency and readiness. The contract supports the delivery of essential IT services, including computer systems design and related services, crucial for modern naval maintenance and operations. The primary geographic impact is centered around the Puget Sound Naval Shipyard in Washington state, supporting its mission. The contract likely has implications for the IT workforce, potentially creating or sustaining jobs within the IT services sector, particularly for the winning contractor and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize higher spending if not managed diligently, potentially leading to costs exceeding initial estimates.
The long duration of the contract may reduce flexibility to adopt newer technologies or approaches if the contractor's solutions become outdated.
Reliance on a single contractor for critical IT infrastructure could pose risks if the contractor experiences performance issues or financial instability.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a fair price.
The contract's duration indicates a stable, long-term need for IT support, providing continuity for critical naval operations.
Booz Allen Hamilton is a well-established contractor with significant experience in government IT services, suggesting a lower risk of performance failure.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The IT services market for the federal government is substantial, with significant spending allocated to maintaining and modernizing IT infrastructure across various agencies, particularly within the Department of Defense. Comparable spending benchmarks for IT support at large federal facilities indicate that contracts of this magnitude are common, reflecting the ongoing demand for sophisticated IT solutions to manage complex operations and data.

Small Business Impact

The contract data indicates that this was not a small business set-aside, and the prime contractor, Booz Allen Hamilton, is a large business. There is no explicit information regarding subcontracting plans for small businesses within this award. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor actively engages small businesses for subcontracting opportunities. Further investigation into subcontracting goals would be needed to assess the full impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the General Services Administration (GSA) and potentially the Department of the Navy. The cost-plus-fixed-fee structure necessitates robust financial oversight to ensure costs are reasonable and allocable. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office for the Department of Defense or GSA could provide oversight if performance or financial irregularities arise.

Related Government Programs

Naval Sea Systems Command (NAVSEA) IT Support Contracts
Department of Defense IT Modernization Programs
General Services Administration (GSA) IT Schedule Contracts
IT Services for Federal Shipyards
Computer Systems Design Services Contracts

Risk Flags

Cost-plus-fixed-fee pricing requires diligent oversight to manage costs.
Long contract duration may lead to technology obsolescence.
Potential for vendor lock-in with extended reliance on one provider.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $44.8 million to BOOZ ALLEN HAMILTON INC. PUGET SOUND NAVAL SHIPYARD&INTERMEDIATE MAINTENANCE FACILITY (PSNS&IMF) WITH INFORMATION TECHNOLOGY (IT) SUPPORT

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 $44.8 million.

What is the period of performance?

Start: 2010-06-30. End: 2015-09-01.

What is the historical spending pattern for IT support services at the Puget Sound Naval Shipyard and Intermediate Maintenance Facility (PSNS&IMF) prior to this award?

Analyzing historical spending for IT support at PSNS&IMF prior to this $44.8 million award would provide crucial context. Without specific prior contract data, we can infer that the shipyard, as a major naval facility, has consistently required significant IT support. Trends in federal IT spending, particularly within the Department of Defense, have shown a steady increase over the past decade, driven by modernization efforts, cybersecurity needs, and the increasing reliance on digital systems for operational efficiency. If PSNS&IMF's IT needs have grown or remained constant, this award would align with broader trends. A review of previous contracts awarded to Booz Allen Hamilton or other vendors for similar services at this facility would reveal if this award represents an increase, decrease, or stable level of investment in IT support.

How does the pricing structure (Cost Plus Fixed Fee) compare to other IT support contracts of similar scope and duration within the federal government?

The Cost Plus Fixed Fee (CPFF) pricing structure, used in this $44.8 million award, is common for complex IT support services where the scope may evolve or is difficult to define precisely upfront. In CPFF contracts, the government reimburses the contractor for allowable costs plus a fixed fee representing profit. Compared to other federal IT contracts, CPFF is often chosen for research and development or services requiring significant flexibility. Fixed-price contracts might offer better cost certainty if the scope is well-defined, while Time and Materials (T&M) contracts can be more flexible but carry higher risk of cost overruns if not managed. The effectiveness of CPFF hinges on robust government oversight to control costs and ensure the fixed fee remains appropriate for the work performed. Benchmarking the fee percentage against similar CPFF IT contracts would be essential for a thorough value assessment.

What specific IT systems and services are covered under this contract, and how critical are they to the PSNS&IMF's mission?

This contract, awarded to Booz Allen Hamilton for $44.8 million, covers 'Computer Systems Design Services' (NAICS code 541512) for the Puget Sound Naval Shipyard & Intermediate Maintenance Facility (PSNS&IMF). While the specific systems are not detailed in the provided data, this typically encompasses a broad range of IT functions critical to a large industrial and operational facility. These could include network design and management, software development and integration, cybersecurity implementation, IT infrastructure support (servers, workstations, data storage), and potentially specialized systems for managing shipyard operations, logistics, and maintenance scheduling. The criticality of these systems cannot be overstated; modern naval shipyards rely heavily on integrated IT systems for everything from design and planning to production control, inventory management, and communication. Disruptions or inefficiencies in these IT services could directly impact the shipyard's ability to maintain and modernize naval vessels, affecting fleet readiness.

What is Booz Allen Hamilton's track record with similar large-scale IT support contracts for the Department of Defense or other federal agencies?

Booz Allen Hamilton has a long and extensive track record of providing IT support and systems integration services to the Department of Defense (DoD) and other federal agencies. They are a major incumbent contractor across numerous defense programs, known for their expertise in areas such as cybersecurity, data analytics, cloud computing, and enterprise IT modernization. Their experience includes supporting complex operational environments similar to naval shipyards. While specific performance metrics for this particular $44.8 million contract are not available, Booz Allen Hamilton's general reputation and history suggest a high likelihood of successful performance. However, as with any large contractor, past performance reviews and any documented issues on other contracts would be important factors in a comprehensive risk assessment.

What are the potential risks associated with the duration of this contract (nearly 5 years) and the specific IT services being provided?

The nearly 5-year duration of this $44.8 million IT support contract presents several potential risks. Firstly, technology evolves rapidly; systems and solutions implemented early in the contract could become outdated or less efficient by its end, potentially leading to performance degradation or the need for costly upgrades. Secondly, a long-term reliance on a single contractor, even a reputable one like Booz Allen Hamilton, can reduce flexibility and potentially stifle innovation if the contractor is not incentivized or capable of introducing cutting-edge solutions. Thirdly, there's the risk of vendor lock-in, making it difficult and expensive to transition to a new provider or technology stack upon contract expiration. Finally, for Cost Plus Fixed Fee contracts, the extended period increases the opportunity for cost creep if oversight is not consistently rigorous 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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $60,860,195

Exercised Options: $56,769,565

Current Obligation: $44,791,092

Actual Outlays: $-70

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0019

IDV Type: GWAC

Timeline