GSA awards $40.6M IT services contract to Booz Allen Hamilton for IDMT systems development

Contract Overview

Contract Amount: $40,559,849 ($40.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2003-09-30

End Date: 2007-01-31

Contract Duration: 1,219 days

Daily Burn Rate: $33.3K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SYSTEMS DEVLOPMENT, ENGINEERING AND OPTIONAL DEPLOYMENT FOR IDMT

Place of Performance

Location: FORT MONMOUTH, MONMOUTH County, NEW JERSEY, 07703

State: New Jersey Government Spending

Plain-Language Summary

General Services Administration obligated $40.6 million to BOOZ ALLEN HAMILTON INC for work described as: SYSTEMS DEVLOPMENT, ENGINEERING AND OPTIONAL DEPLOYMENT FOR IDMT Key points: 1. Contract value represents a significant investment in IT modernization. 2. Booz Allen Hamilton's extensive experience likely contributed to winning this award. 3. The Time and Materials pricing model introduces potential cost escalation risks. 4. Performance period spans over three years, indicating a substantial project. 5. This contract falls within the Computer Systems Design Services category. 6. The award was made by the General Services Administration's Federal Acquisition Service.

Value Assessment

Rating: fair

The contract value of $40.6 million for IT systems development and deployment over approximately three years appears within a reasonable range for complex projects of this nature. However, the Time and Materials (T&M) pricing structure warrants scrutiny. While T&M can offer flexibility, it also carries inherent risks of cost overruns if not meticulously managed and monitored. Benchmarking against similar large-scale IT development contracts would be necessary for a definitive value-for-money assessment, but the T&M model suggests a need for vigilant oversight to ensure efficient resource utilization and prevent scope creep from inflating costs beyond initial expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a competitive delivery order under a full and open competition. The specific number of bidders is not detailed, but the 'full-and-open' designation implies that all responsible sources were permitted to submit offers. This competitive approach is generally expected to foster price discovery and encourage multiple vendors to propose their best terms and technical solutions, potentially leading to a more favorable outcome for the government.

Taxpayer Impact: A full and open competition suggests that taxpayers benefit from a potentially more competitive pricing environment, as multiple firms vied for the contract, driving down costs through market forces.

Public Impact

Federal agencies, specifically those utilizing the Integrated Materiel Management System (IDMT), will benefit from enhanced IT systems. Services delivered include systems development, engineering, and optional deployment, aiming to improve operational efficiency. The contract's geographic impact is primarily within New Jersey, where the contractor is located. The contract supports the IT services sector workforce, likely involving skilled software engineers, developers, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) pricing structure can lead to cost overruns if not closely managed, as it incentivizes labor hours rather than fixed outcomes.
Lack of specific performance metrics or outcome-based deliverables in the provided data makes it difficult to assess the true effectiveness and efficiency of the services.
The duration of the contract (1219 days) is substantial, increasing the risk of technological obsolescence or changing requirements over time without clear mechanisms for adaptation.

Positive Signals

The contract was awarded through a full and open competition, indicating a robust bidding process that likely yielded competitive pricing.
Booz Allen Hamilton is a well-established contractor with significant experience in government IT services, suggesting a lower risk of execution failure.
The contract addresses critical IT infrastructure needs for the Integrated Materiel Management System (IDMT), implying a strategic importance for the agency.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Systems Design Services (NAICS 541512). This sector is characterized by a high demand for specialized skills in software development, system integration, and IT consulting. The market size for federal IT services is substantial, with agencies continually investing in modernizing their systems. This contract with the General Services Administration (GSA) for IDMT systems development aligns with broader government initiatives to improve IT infrastructure and operational efficiency, representing a typical engagement for large IT service providers.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (SB=false) and does not specify any small business subcontracting requirements. Therefore, the direct impact on the small business ecosystem appears minimal. However, as a large prime contractor, Booz Allen Hamilton may engage small businesses as subcontractors, though this is not explicitly detailed in the award information. The absence of a small business set-aside suggests the requirement was likely beyond the scope or capacity typically addressed by small business set-aside programs.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the General Services Administration (GSA), specifically its Federal Acquisition Service. As a delivery order under a larger contract vehicle, the oversight mechanisms would likely mirror those of the parent contract, including contract performance reviews, financial monitoring, and adherence to terms and conditions. Transparency is generally facilitated through contract award databases and reporting requirements. While specific Inspector General (IG) jurisdiction isn't detailed, the GSA IG typically oversees agency spending and contract performance to ensure accountability and prevent fraud, waste, and abuse.

Related Government Programs

IT Systems Modernization
Computer Systems Design Services
Federal IT Services
Software Development Contracts
General Services Administration Contracts

Risk Flags

Time and Materials Pricing Risk
Potential for Cost Overruns
Lack of Specific Performance Metrics
Contract Duration Risk

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $40.6 million to BOOZ ALLEN HAMILTON INC. SYSTEMS DEVLOPMENT, ENGINEERING AND OPTIONAL DEPLOYMENT FOR IDMT

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 $40.6 million.

What is the period of performance?

Start: 2003-09-30. End: 2007-01-31.

What is the track record of Booz Allen Hamilton with the General Services Administration for similar IT services?

Booz Allen Hamilton has a long-standing and extensive track record of performing IT services for the General Services Administration (GSA) and other federal agencies. They are a major government contractor specializing in a wide array of services including systems development, cybersecurity, data analytics, and IT modernization. Their history with GSA likely includes numerous contracts under various contract vehicles, demonstrating their familiarity with GSA's procurement processes and requirements. While specific details for this particular IDMT contract's performance are not provided, Booz Allen's general profile suggests a capacity to handle complex IT projects. Their extensive experience often translates to a lower perceived risk for agencies, though performance can vary significantly on a contract-by-contract basis.

How does the $40.6 million contract value compare to other IT systems development contracts awarded by GSA?

The $40.6 million contract value for IT systems development and deployment over approximately three years is a substantial but not uncommon figure for large-scale federal IT projects. GSA, as a major procurer of IT services, awards contracts that can range from a few million to hundreds of millions of dollars. Contracts for complex system design, engineering, and deployment often fall into this mid-to-high value range, especially when involving established contractors like Booz Allen Hamilton. To provide a precise benchmark, one would need to compare this award against similar 'Computer Systems Design Services' (NAICS 541512) contracts awarded by GSA within the same timeframe, considering factors like contract duration, scope of work, and specific agency needs. However, in the context of federal IT spending, $40.6 million represents a significant investment.

What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract?

The primary risk associated with the Time and Materials (T&M) pricing structure is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials used. This can incentivize contractors to bill for more hours or use more expensive materials than strictly necessary, especially if oversight is lax. For the government, this means that the final cost can exceed initial estimates, making budget forecasting more challenging. Effective risk mitigation requires robust monitoring of labor hours, detailed tracking of materials, clear definition of 'materials,' and strong contract management to ensure that the work performed is efficient and directly related to the contract's objectives. Without stringent oversight, T&M contracts can become significantly more expensive than anticipated.

What is the expected program effectiveness or outcome based on the contract details?

The provided contract details focus on the award itself (value, contractor, dates, type) rather than specific performance metrics or expected outcomes for the IDMT systems. The stated purpose is 'SYSTEMS DEVELOPMENT, ENGINEERING AND OPTIONAL DEPLOYMENT FOR IDMT.' Therefore, the expected effectiveness hinges on the successful completion of these development and engineering tasks, leading to improved functionality, reliability, or efficiency of the IDMT systems. The 'optional deployment' suggests flexibility in rollout. Without access to the detailed Statement of Work (SOW), performance work statements (PWS), or key performance indicators (KPIs), a concrete assessment of expected program effectiveness is not possible. Success would be measured by the contractor meeting technical specifications, delivering on time, and staying within a managed budget, ultimately enhancing the IDMT's capabilities.

How has federal spending on Computer Systems Design Services (NAICS 541512) trended in recent years?

Federal spending on Computer Systems Design Services (NAICS 541512) has shown a consistent upward trend over the past decade, reflecting the government's ongoing reliance on technology and the increasing complexity of its IT infrastructure. Agencies across the board, from defense to civilian, continually invest in modernizing legacy systems, developing new software solutions, integrating disparate IT platforms, and enhancing cybersecurity. This category encompasses a broad range of services, including custom software development, IT consulting, system integration, and IT project management. Factors driving this growth include digital transformation initiatives, the need for advanced data analytics capabilities, cloud migration efforts, and the continuous evolution of cyber threats. Consequently, contracts within this NAICS code represent a significant portion of the federal IT budget.

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: COMPETITIVE DELIVERY ORDER

Solicitation ID: 02FM213725

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

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

Address: 8283 GREENSBORO DR # 700, MC LEAN, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $140,507,820

Exercised Options: $80,486,151

Current Obligation: $40,559,849

Parent Contract

Parent Award PIID: GS35F0306J

IDV Type: FSS

Timeline