Booz Allen Hamilton awarded $22.4M contract for IT and infrastructure support to counter-IED operations

Contract Overview

Contract Amount: $19,696,211 ($19.7M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2010-12-21

End Date: 2011-09-20

Contract Duration: 273 days

Daily Burn Rate: $72.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THIS AWARDS CONTRACT NO GST0011AJ0017 TO BOOZ ALLEN HAMILTON TO PROVIDE IT AND INFRASTRUCTURE SUPPORT TO JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT (IED) ORGANIZATION (JIEDDO) COUNTER-IED OPERATIONS INTEGRATION CENTER (COIC) ADVANCED TECHNOLOGY APPLICATION CENTER (ATAC). THE TOTAL ESTIMATED VALUE OF THE CONTRACT, IF ALL OPTIONS ARE EXERCISED IS $22,428,114. SEE ATTACHED AWARDED CONTRACT NO. GST0011AJ0017, DD254, REQUEST TO INITIATE PURCHASE, AND CONTRACTING OFFICER REPRESENTATIVE APPOINTMENT LETTER

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $19.7 million to BOOZ ALLEN HAMILTON INC for work described as: THIS AWARDS CONTRACT NO GST0011AJ0017 TO BOOZ ALLEN HAMILTON TO PROVIDE IT AND INFRASTRUCTURE SUPPORT TO JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT (IED) ORGANIZATION (JIEDDO) COUNTER-IED OPERATIONS INTEGRATION CENTER (COIC) ADVANCED TECHNOLOGY APPLICATION CENTER (ATAC). THE TOTAL … Key points: 1. Contract focuses on critical IT and infrastructure support for counter-IED operations. 2. Awarded to Booz Allen Hamilton, a major government contractor. 3. Contract duration is approximately 9 months. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 5. This contract was not competed, raising questions about potential cost savings. 6. The specific North American Industry Classification System (NAICS) code is 541613, Marketing Consulting Services, which may not fully align with IT and infrastructure support.

Value Assessment

Rating: questionable

The contract value of $22.4 million for a 9-month period of performance appears high, especially given the NAICS code suggests marketing consulting rather than extensive IT infrastructure. Without comparable contracts for similar IT and infrastructure support services for counter-IED operations, it is difficult to benchmark the value effectively. The Cost Plus Fixed Fee (CPFF) contract type also introduces risk, as it allows for reimbursement of costs plus a fixed fee, potentially leading to higher overall expenditures if costs are not tightly controlled.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This approach bypasses the competitive bidding process, which typically drives down prices and encourages innovation. The lack of competition means there was no opportunity to solicit offers from multiple vendors, potentially leading to a higher price than if the contract had been open to a wider pool of qualified contractors.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of a competitive bidding process. Without competition, there is less pressure on the contractor to offer the most cost-effective solution.

Public Impact

The primary beneficiaries are the Joint Improvised Explosive Device Defeat Organization (JIEDDO) and its Counter-IED Operations Integration Center (COIC), receiving essential IT and infrastructure support. The services delivered are crucial for the operational effectiveness of counter-IED efforts, directly impacting national security. The geographic impact is primarily within the District of Columbia, where the Advanced Technology Application Center (ATAC) is located. The contract supports a specialized workforce within Booz Allen Hamilton, likely comprising IT professionals, engineers, and analysts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
The NAICS code (541613 - Marketing Consulting Services) appears misaligned with the stated IT and infrastructure support services, raising questions about the contract's scope and justification.
Cost Plus Fixed Fee contract type can incentivize cost overruns if not rigorously managed.
Limited transparency due to sole-source award and potential for less scrutiny.

Positive Signals

Booz Allen Hamilton is a well-established contractor with significant experience in government IT services.
The contract supports a critical national security mission (counter-IED operations).
The contract has a defined period of performance, limiting long-term financial commitment.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically IT and management consulting. The market for government IT support and specialized defense services is substantial, with major players like Booz Allen Hamilton dominating a significant share. This award represents a small portion of overall federal IT spending, but it is critical for the specialized mission of counter-IED operations. Benchmarking is difficult due to the specialized nature and sole-source award.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses in the provided data. Therefore, it is unlikely to have a direct positive impact on the small business ecosystem. The focus appears to be on a large, established prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the Contracting Officer's Representative (COR) appointed by the agency, as indicated by the provided documentation. The General Services Administration (GSA) as the awarding agency, and potentially the Department of Defense (as JIEDDO is a DoD entity), would have oversight responsibilities. Transparency is limited due to the sole-source nature of the award.

Related Government Programs

JIEDDO Operations Support
Counter-IED Technology Development
Federal IT Infrastructure Services
Defense IT Support Contracts
Management and Consulting Services

Risk Flags

Sole-source award
Potential NAICS code misclassification
Cost Plus Fixed Fee contract type risk
Lack of transparency in procurement

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $19.7 million to BOOZ ALLEN HAMILTON INC. THIS AWARDS CONTRACT NO GST0011AJ0017 TO BOOZ ALLEN HAMILTON TO PROVIDE IT AND INFRASTRUCTURE SUPPORT TO JOINT IMPROVISED EXPLOSIVE DEVICE DEFEAT (IED) ORGANIZATION (JIEDDO) COUNTER-IED OPERATIONS INTEGRATION CENTER (COIC) ADVANCED TECHNOLOGY APPLICATION CENTER (ATAC). THE TOTAL ESTIMATED VALUE OF THE CONTRACT, IF ALL OPTIONS ARE EXERCISED IS $22,428,114. SEE ATTACHED AWARDED CONTRACT NO. GST0011AJ0017, DD254, REQUEST TO INITIATE PURCHASE, AND CONTRACTING OFFICER REPRESENTATIVE APPOINTMENT LETT

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 $19.7 million.

What is the period of performance?

Start: 2010-12-21. End: 2011-09-20.

What is the track record of Booz Allen Hamilton with similar IT and infrastructure support contracts for defense organizations?

Booz Allen Hamilton has a long and extensive track record of providing IT, cybersecurity, and management consulting services to various U.S. federal agencies, including significant support to defense organizations. They are a prime contractor on numerous large-scale government contracts, often involving complex technological solutions and strategic advisory services. Their experience spans across different branches of the military and intelligence community, addressing critical national security needs. While specific performance metrics for this particular contract are not detailed, Booz Allen Hamilton's general performance history with the government is characterized by a high volume of work and a significant presence in the federal contracting landscape. However, like many large contractors, they have faced scrutiny and contract disputes in the past, underscoring the importance of robust oversight and performance management for any contract they undertake.

How does the estimated value of this contract compare to similar IT support contracts for specialized defense units?

Benchmarking the estimated value of $22.4 million for this contract is challenging due to its specialized nature and the sole-source award. However, for IT and infrastructure support to defense organizations, contract values can range significantly based on scope, duration, and complexity. Contracts for similar durations (approximately 9 months) providing comprehensive IT infrastructure, cybersecurity, and operational support to specialized units could potentially fall within this range, especially if they involve high-level technical expertise and sensitive operations like counter-IED efforts. Without more specific details on the exact services rendered and the level of technical expertise required, a direct comparison is difficult. However, the absence of competition suggests that the government may not have secured the most competitive pricing available in the market.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT services?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT services revolve around cost control and potential for overruns. In a CPFF arrangement, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. This structure can incentivize contractors to incur higher costs, as their profit margin (the fixed fee) remains constant regardless of the actual costs. If the government's oversight and cost-monitoring mechanisms are not robust, the total contract cost can escalate beyond initial estimates. For IT services, where requirements can evolve and unforeseen technical challenges may arise, the risk of cost increases is particularly relevant. Effective management requires stringent cost tracking, detailed audits, and clear definition of scope to mitigate these risks.

What is the significance of the NAICS code 541613 (Marketing Consulting Services) for a contract described as IT and infrastructure support?

The assignment of NAICS code 541613, 'Marketing Consulting Services,' to a contract primarily described as providing 'IT and Infrastructure Support' is a significant point of concern and potential misalignment. This code typically covers services related to market research, advertising, public relations, and marketing program development. IT and infrastructure support usually falls under different NAICS codes, such as 541512 (Computer Systems Design Services) or 541611 (Administrative Management and General Management Consulting Services). The discrepancy raises questions about the contract's true scope, the justification for this specific code, and whether the procurement process accurately reflected the services being procured. It could indicate a misclassification, a broad interpretation of 'support,' or potentially a less transparent procurement strategy.

What are the implications of this contract being sole-sourced for the JIEDDO COIC's operational capabilities?

The sole-source nature of this contract means that the JIEDDO COIC's IT and infrastructure support is being provided by a single contractor, Booz Allen Hamilton, without a competitive bidding process. While this can expedite the award process and ensure continuity of service if the incumbent is highly specialized, it limits the potential for the JIEDDO COIC to benefit from a wider range of innovative solutions or potentially lower prices that could emerge from a competitive environment. The reliance on a single source also concentrates risk; if Booz Allen Hamilton underperforms or faces issues, the JIEDDO COIC has fewer immediate alternatives. For critical operational capabilities like counter-IED efforts, ensuring robust, cost-effective, and technologically advanced support is paramount, and a sole-source award warrants careful scrutiny to confirm it truly serves the best interests of the mission and the taxpayer.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Marketing Consulting Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

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: $20,417,739

Exercised Options: $20,361,969

Current Obligation: $19,696,211

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline