GSA awards $54.5M IT support contract to Booz Allen Hamilton for 5+ years

Contract Overview

Contract Amount: $54,455,895 ($54.5M)

Contractor: Booz Allen Hamilton Engineering Services, LLC

Awarding Agency: General Services Administration

Start Date: 2012-04-01

End Date: 2017-09-29

Contract Duration: 2,007 days

Daily Burn Rate: $27.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: NCR IADS IT SUPPORT

Place of Performance

Location: NAVAL ANACOST ANNEX, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20373

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $54.5 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC for work described as: NCR IADS IT SUPPORT Key points: 1. Contract provides essential IT support services, crucial for agency operations. 2. Booz Allen Hamilton, a large, established contractor, secured this award. 3. The contract was awarded using full and open competition, suggesting a competitive process. 4. Services are categorized under Computer Systems Design, a common IT sector. 5. The contract duration of over five years indicates a long-term need for these services. 6. Awarded as a delivery order, it represents a specific task within a larger framework.

Value Assessment

Rating: good

The contract value of $54.5 million over five years averages to approximately $10.9 million annually. Without specific benchmarks for 'NCR IADS IT SUPPORT' services, a direct value-for-money assessment is challenging. However, Booz Allen Hamilton is a large, experienced contractor, suggesting they can deliver services competently. The Time and Materials pricing structure, while flexible, can sometimes lead to higher costs if not managed closely. Further analysis would require comparing this rate to similar IT support contracts within the federal government or for comparable private sector services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 3 bidders suggests a moderate level of competition for this specific IT support requirement. While more than one bidder is positive, a higher number of bidders typically leads to more robust price discovery and potentially lower prices for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, potentially driving down costs through competitive pricing. A moderate number of bidders, like the 3 in this case, still offers a degree of price pressure compared to sole-source or limited competition scenarios.

Public Impact

Federal agencies, particularly those within the General Services Administration's purview, benefit from reliable IT infrastructure and support. The contract delivers essential computer systems design and support services. Services are geographically focused on the District of Columbia. The contract supports a workforce skilled in IT systems design and support, likely within the Washington D.C. metropolitan area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not carefully monitored and managed.
The specific nature of 'NCR IADS IT SUPPORT' is broad and could encompass a wide range of services, making precise performance evaluation difficult without further detail.
Reliance on a single large contractor for critical IT support could pose a risk if the contractor's performance degrades or if they face significant business challenges.

Positive Signals

Awarded through full and open competition, indicating a structured and potentially fair bidding process.
Booz Allen Hamilton is a well-established contractor with a significant presence in the federal IT services market, suggesting experience and capability.
The contract duration of over five years implies a stable and ongoing need for these services, which can foster a strong working relationship and efficient service delivery.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically under Computer Systems Design Services. This is a large and critical sector for the federal government, encompassing a wide range of services from software development to IT infrastructure management. The federal government is a significant consumer of IT services, with annual spending in the hundreds of billions. Contracts like this, supporting core IT functions, are common across many agencies. Benchmarking would involve comparing the contract's value and scope to other similar IT support contracts awarded by GSA or other agencies.

Small Business Impact

This contract was not awarded as a small business set-aside, and the prime contractor, Booz Allen Hamilton, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless significant subcontracting opportunities are pursued by the prime contractor. Further investigation into subcontracting goals and achievements would be necessary to fully assess the impact on small businesses.

Oversight & Accountability

The General Services Administration (GSA) Federal Acquisition Service (FAS) is responsible for overseeing this contract. Oversight mechanisms would typically include contract performance reviews, financial audits, and adherence to service level agreements. Transparency is generally facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or identified within the contract's execution.

Related Government Programs

GSA IT Schedule Programs
Federal Civilian IT Modernization Initiatives
Agency-Specific IT Support Contracts
Computer Systems Design Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Risk of technological obsolescence over the contract's five-year duration.
Dependency on a single large contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $54.5 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC. NCR IADS IT SUPPORT

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $54.5 million.

What is the period of performance?

Start: 2012-04-01. End: 2017-09-29.

What is the specific nature of the 'NCR IADS IT SUPPORT' services provided under this contract?

The contract identifier 'NCR IADS IT SUPPORT' suggests services related to Information and Data Systems (IADS) within the National Capital Region (NCR). This likely encompasses a broad range of IT support functions, potentially including help desk operations, network management, system administration, cybersecurity support, and potentially some level of IT infrastructure design or maintenance. The specific details of the services delivered would be outlined in the Statement of Work (SOW) or Performance Work Statement (PWS) associated with the delivery order. Without access to these documents, the precise scope remains somewhat generalized. However, given the contractor and agency, it's reasonable to infer support for critical federal IT systems within the Washington D.C. metropolitan area.

How does the pricing structure (Time and Materials) compare to other IT support contracts of similar scope?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change frequently. While offering flexibility, T&M contracts can be less predictable in terms of final cost compared to fixed-price contracts. For IT support services, T&M can be effective if labor hours and material costs are rigorously tracked and managed. Benchmarking against similar contracts would involve comparing the hourly rates for different labor categories (e.g., senior engineer, technician) and the markups on materials. Generally, agencies aim to negotiate favorable ceiling prices and conduct thorough oversight to prevent cost overruns. If comparable contracts utilize fixed-price models for well-defined IT support tasks, this T&M award might represent a higher risk of cost escalation if not managed diligently.

What is Booz Allen Hamilton's track record with similar IT support contracts for the federal government?

Booz Allen Hamilton is a large and established government contractor with extensive experience in providing IT services across various federal agencies. They frequently hold contracts for IT support, systems integration, cybersecurity, and other technology-related services. Their track record generally includes managing large, complex programs. Performance on specific contracts can vary, but they are typically considered a capable provider. A review of their past performance evaluations (e.g., through the Contractor Performance Assessment Reporting System - CPARS, if publicly accessible) would offer more granular insights into their success rates, areas of strength, and any past performance issues on similar IT support engagements.

What are the potential risks associated with a five-year IT support contract of this magnitude?

A significant risk with a long-term IT support contract like this is technological obsolescence. The IT landscape evolves rapidly, and a five-year contract might see the supported systems or technologies become outdated if not managed proactively. Another risk is vendor lock-in, where the agency becomes heavily reliant on the contractor, making transitions difficult or costly. Performance degradation over time is also a concern; the contractor's ability to maintain service levels may wane. Furthermore, budget fluctuations within the government could impact the funding available for the contract, potentially leading to scope reductions or contract modifications. Finally, cybersecurity threats are a constant risk, and the contractor's ability to adapt and defend against evolving threats is critical.

How does this contract's value compare to overall federal IT spending in the Computer Systems Design Services category?

The $54.5 million awarded to Booz Allen Hamilton for 'NCR IADS IT SUPPORT' represents a specific task order within the broader federal IT spending landscape. Federal IT spending is in the hundreds of billions annually, with a significant portion allocated to IT services, including computer systems design. This particular contract, while substantial for a single award, is a relatively small fraction of the total federal IT budget. For context, the Computer Systems Design Services category (NAICS code 541512) consistently represents billions of dollars in federal contracting annually. Therefore, this contract is a component of a much larger ecosystem of IT service procurements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID04120134

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

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

Address: 308 SENTINEL DR, ANNAPOLIS JUNCTION, MD, 20701

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

Financial Breakdown

Contract Ceiling: $56,984,443

Exercised Options: $56,535,314

Current Obligation: $54,455,895

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $26,525,331

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0013

IDV Type: GWAC

Timeline