GSA awards $109M contract for IT support services to Booz Allen Hamilton

Contract Overview

Contract Amount: $108,948,680 ($108.9M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2010-12-01

End Date: 2015-11-30

Contract Duration: 1,825 days

Daily Burn Rate: $59.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: USDA FASA PARMO SUPPORT.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20250

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $108.9 million to BOOZ ALLEN HAMILTON INC for work described as: USDA FASA PARMO SUPPORT. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 5 years indicates a long-term need for these services. 3. The award to a large, established contractor like Booz Allen Hamilton suggests a focus on experience and capability. 4. The Computer Systems Design Services NAICS code points to a need for specialized IT expertise. 5. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The contract was not set aside for small businesses, indicating it was open to all qualified bidders.

Value Assessment

Rating: good

The total contract value of approximately $109 million over five years averages to about $21.8 million per year. Without specific benchmarks for 'PARMO SUPPORT' services within GSA, a direct value-for-money assessment is challenging. However, given the contractor's size and the competitive nature of the award, it is likely priced in line with market rates for similar large-scale IT support contracts. Further analysis would require benchmarking against comparable GSA IT support contracts or specific service delivery metrics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this specific award. While two bidders participated, the extent of pre-bid market research and the number of potential bidders who chose not to submit proposals are unknown, which could influence the overall competitiveness.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging competitive pricing and potentially leading to better service quality as contractors vie for the award.

Public Impact

Federal agencies utilizing GSA's Federal Acquisition Service benefit from streamlined IT support procurement. The contract supports computer systems design services, crucial for modernizing and maintaining federal IT infrastructure. The primary geographic impact is in the District of Columbia, where the contract is registered. The contract likely supports a workforce of IT professionals employed by Booz Allen Hamilton, contributing to the IT sector's employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if project scope expands without adequate oversight.
Dependence on a single large contractor could limit flexibility in future service adjustments.
Ensuring consistent service quality across the contract duration requires robust performance monitoring.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent process.
Contractor Booz Allen Hamilton is a well-established firm with a strong track record in government IT services.
The contract duration suggests a stable, long-term requirement, allowing for focused service delivery and potential efficiency gains.

Sector Analysis

This contract falls within the Information Technology sector, specifically Computer Systems Design Services. The federal government is a significant consumer of IT services, with spending in this area often driven by modernization efforts, cybersecurity needs, and the demand for cloud computing and data analytics. Comparable spending benchmarks would typically be found within GSA's IT Schedule or other large IT IDIQ vehicles, where annual IT spending can reach billions of dollars across various agencies and service types.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and any small business participation would likely be through subcontracting opportunities offered by Booz Allen Hamilton, which are not detailed here. The lack of a small business set-aside means direct opportunities for small businesses to compete for the prime contract were not prioritized.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. GSA has established procurement regulations and contract administration processes to ensure compliance and performance. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

GSA IT Schedule
Federal Civilian IT Modernization Programs
IT Support Services Contracts
Computer Systems Design Services

Risk Flags

Potential for scope creep
Vendor lock-in risk
Ensuring consistent service quality
Cybersecurity vulnerabilities

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $108.9 million to BOOZ ALLEN HAMILTON INC. USDA FASA PARMO 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 $108.9 million.

What is the period of performance?

Start: 2010-12-01. End: 2015-11-30.

What is the track record of Booz Allen Hamilton with GSA for similar IT support contracts?

Booz Allen Hamilton is a large, well-established government contractor with extensive experience across various federal agencies, including GSA. They frequently hold prime positions on large IT support and systems integration contracts. Their track record with GSA typically involves providing a wide range of IT services, from strategic planning and systems engineering to cybersecurity and data analytics. While this specific contract is for 'PARMO SUPPORT,' Booz Allen's history suggests they possess the necessary expertise and capacity. Performance data on past GSA contracts would be available through sources like the Contractor Performance Assessment Reporting System (CPARS), which provides insights into their past performance, delivery timeliness, and overall customer satisfaction.

How does the awarded price compare to similar IT support contracts awarded by GSA?

Benchmarking the $109 million contract value against similar GSA IT support contracts requires access to detailed pricing data and service scope definitions, which are not fully provided. However, the average annual value of approximately $21.8 million falls within the range of large-scale IT support contracts managed by GSA. GSA often uses IDIQ vehicles like the IT Schedule 70 (now IT Professional Services) or Alliant Governmentwide Acquisition Contracts (GWACs) for such procurements. The pricing for these contracts is typically negotiated based on labor categories, rates, and fixed-price components. Without specific labor hour rates or fixed-price task orders, a precise comparison is difficult, but the scale of the award suggests it aligns with major IT service providers competing for significant government contracts.

What are the primary risks associated with this contract for the government?

Key risks for the government on this contract include potential cost overruns if the scope of 'PARMO SUPPORT' is not clearly defined and managed, leading to scope creep. There's also a risk of vendor lock-in, as Booz Allen Hamilton is a large, established provider, which might limit future flexibility or innovation if not managed proactively. Ensuring consistent service quality and performance over the five-year duration is another risk; failure to meet performance metrics could impact agency operations. Finally, cybersecurity risks are inherent in IT support contracts, requiring robust security protocols and continuous monitoring to protect sensitive government data.

How effective is the 'full and open competition' approach for IT support services of this magnitude?

The 'full and open competition' approach is generally considered the most effective method for procuring large IT support services as it maximizes the pool of potential bidders, fostering robust price competition and encouraging innovation. For a contract of this size ($109 million), it allows agencies to leverage the capabilities of major IT service providers. While only two bids were received in this instance, the process itself ensures that multiple qualified vendors had the opportunity to compete. This approach helps ensure the government obtains best value by driving down prices and improving service quality through market forces, although the effectiveness can be influenced by the complexity of the requirements and the number of capable vendors in the market.

What is the historical spending trend for Computer Systems Design Services by GSA?

GSA's spending on Computer Systems Design Services has historically been substantial, reflecting the government's continuous need for IT modernization and support. Over the years, GSA has managed numerous contracts under various vehicles, including IT Schedule 70 and GWACs, for services categorized under NAICS code 541512. Annual spending in this category across the federal government often runs into the tens of billions of dollars. GSA, as a major procurement agency, plays a significant role in facilitating this spending by providing acquisition solutions for other agencies. Trends often show increasing investment in areas like cloud computing integration, cybersecurity services, and data management, which fall under the umbrella of computer systems design.

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

Solicitation ID: 5TS12100284

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

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: $131,396,344

Exercised Options: $108,948,680

Current Obligation: $108,948,680

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $34,216,411

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0019

IDV Type: GWAC

Timeline