Booz Allen Hamilton awarded $19M for GBS Integration Support, raising questions on value and competition

Contract Overview

Contract Amount: $19,056,183 ($19.1M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2008-06-30

End Date: 2011-08-31

Contract Duration: 1,157 days

Daily Burn Rate: $16.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: GLOBAL BROADCAST SERVICE (GBS) INTEGRATION SUPPORT

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22101

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $19.1 million to BOOZ ALLEN HAMILTON INC for work described as: GLOBAL BROADCAST SERVICE (GBS) INTEGRATION SUPPORT Key points: 1. Contract value appears moderate for IT systems integration services. 2. Competition dynamics suggest a potentially limited market for specialized integration. 3. Performance risk indicators are not immediately apparent from basic data. 4. Contract duration of over 3 years provides context for the total award. 5. Positioned within the Defense Information Systems Agency's IT modernization efforts. 6. Focus on computer systems design services indicates a technical support role.

Value Assessment

Rating: fair

The $19 million award for Global Broadcast Service (GBS) Integration Support is a significant sum, but without detailed performance metrics or comparison to similar integration projects, assessing its value for money is challenging. The contract type, Time and Materials, can sometimes lead to cost overruns if not managed tightly. Benchmarking against industry standards for similar IT integration services would be necessary for a more definitive value assessment. The specific nature of GBS integration support requires specialized expertise, which may justify a higher cost, but transparency on the breakdown of costs (labor, materials, overhead) is needed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. However, the fact that only two bids were received suggests that the market for this specific type of specialized IT integration support may be limited, or that the requirements were highly specific. This level of competition, while technically 'full and open,' might not have driven the most aggressive pricing due to fewer viable contenders. Further analysis of the bidding process and the nature of the requirements would clarify the extent of effective price discovery.

Taxpayer Impact: While full and open competition is generally favorable for taxpayers, the limited number of bidders suggests that the government may not have achieved the full benefit of a highly competitive environment. This could translate to potentially higher costs than if more firms had actively competed.

Public Impact

The Department of Defense benefits from enhanced Global Broadcast Service integration. Services delivered include computer systems design and integration support. Geographic impact is likely global, supporting DoD's broadcast capabilities. Workforce implications include specialized IT professionals for systems integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep due to Time and Materials contract type.
Limited number of bidders may indicate a constrained market or high barriers to entry.
Lack of detailed performance data makes objective value assessment difficult.

Positive Signals

Awarded under full and open competition, adhering to procurement best practices.
Contract supports critical defense communication infrastructure (GBS).
Booz Allen Hamilton is a well-established contractor with significant government experience.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and integration. The market for defense IT integration is substantial, driven by the need for secure and reliable communication systems. Comparable spending benchmarks would involve looking at other large-scale IT integration projects within the DoD, particularly those related to C4ISR (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) systems. The size of this contract is moderate within the context of major defense IT procurements.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the prime contractor, Booz Allen Hamilton, is a large business. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless significant subcontracting opportunities were mandated or pursued by the prime. Further investigation into subcontracting reports would be needed to assess any indirect benefits to small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Information Systems Agency (DISA) and potentially the Department of Defense's Inspector General. Accountability measures would be embedded in the contract's performance work statement (PWS) and reporting requirements. Transparency is generally maintained through contract award databases like FPDS, though detailed internal performance reviews and cost justifications may not be publicly accessible. The effectiveness of oversight depends on the rigor of DISA's contract management and auditing processes.

Related Government Programs

Global Broadcast Service (GBS)
Defense Information Systems Agency (DISA) IT Modernization Programs
Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance (C4ISR) Systems Support
Department of Defense IT Services Contracts

Risk Flags

Potential for cost overruns due to T&M contract type.
Limited competition may indicate market concentration or high barriers to entry.
Lack of detailed public performance data hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.1 million to BOOZ ALLEN HAMILTON INC. GLOBAL BROADCAST SERVICE (GBS) INTEGRATION SUPPORT

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $19.1 million.

What is the period of performance?

Start: 2008-06-30. End: 2011-08-31.

What is the specific nature of the 'GLOBAL BROADCAST SERVICE (GBS) INTEGRATION SUPPORT' and why was it contracted?

The Global Broadcast Service (GBS) is a satellite-based, high-volume, one-way broadcast system used by the U.S. military to deliver intelligence, operational, and administrative information to various platforms and users worldwide. 'Integration Support' implies services related to connecting, configuring, maintaining, or upgrading components of this complex system. This could involve ensuring interoperability between different GBS terminals, software updates, network enhancements, or troubleshooting issues to maintain the service's operational readiness. The contract was likely awarded to ensure the continued functionality and potential modernization of this critical communication infrastructure, which is vital for disseminating information to deployed forces.

How does the Time and Materials (T&M) contract type potentially impact the final cost and value for money?

Time and Materials (T&M) contracts are used when the extent or duration of the work cannot be determined in advance. They reimburse the contractor for direct labor hours at specified hourly rates and for the actual costs of materials. While flexible, T&M contracts carry a higher risk of cost overruns for the government compared to fixed-price contracts. Without strong oversight and defined ceilings, contractors may have less incentive to control costs or expedite work. For this $19 million contract, the government must diligently monitor labor hours, rates, and material expenses to ensure that the final cost reflects fair market value and that the project stays within budget. The value for money is contingent on effective cost control and the contractor's efficiency.

What does the limited number of bidders (2) in a 'full and open' competition suggest about the market for GBS integration support?

A 'full and open' competition theoretically allows all responsible sources to submit bids. Receiving only two bids suggests that the market for specialized GBS integration support may be concentrated among a few firms, or that the specific technical requirements and security clearances needed were highly restrictive, limiting the pool of qualified bidders. This could indicate a niche market where few companies possess the necessary expertise, or that the solicitation process itself may have inadvertently discouraged broader participation. While the competition was technically open, the low number of bidders might imply less robust price competition than if a larger number of firms had vied for the contract, potentially impacting the final price achieved.

What is Booz Allen Hamilton's track record with similar IT integration and defense communication contracts?

Booz Allen Hamilton is a major government contractor with extensive experience in IT services, systems engineering, and defense-related projects. They have a long history of supporting the Department of Defense across various domains, including C4ISR systems, cybersecurity, and enterprise IT modernization. Their track record includes numerous large-scale contracts involving complex system integration and support. While specific performance details for individual contracts are often proprietary, Booz Allen Hamilton's sustained presence and significant contract awards suggest a generally accepted capability to perform such work. However, a deeper dive into past performance reviews and any documented issues on similar contracts would provide a more nuanced assessment.

Are there any publicly available performance metrics or outcomes associated with this specific $19M GBS Integration Support contract?

Publicly available data, such as that found in the Federal Procurement Data System (FPDS), typically provides contract award details (amount, dates, contractor, agency) but rarely includes granular performance metrics or specific outcomes. Detailed performance evaluations are usually internal government documents, often protected due to contractor confidentiality or national security concerns. Therefore, assessing the specific success or effectiveness of this $19 million GBS Integration Support contract based solely on public data is not feasible. Such information would likely reside within DISA's program management and oversight records.

How does this contract's spending compare to other IT integration or broadcast support contracts within the DoD over a similar period?

Comparing this $19 million contract requires identifying comparable IT integration or specialized broadcast support contracts awarded by the DoD around the 2008-2011 period. Large-scale IT modernization programs within DISA or other military branches often involve contracts ranging from tens to hundreds of millions of dollars. Broadcast support, especially for systems like GBS, is a specialized niche. While $19 million is a substantial amount for a single contract, it might be considered moderate within the broader context of major DoD IT procurements. Benchmarking would involve analyzing contract databases for similar services, considering contract duration, scope, and the specific technologies involved to determine if the pricing and scale are within expected ranges for the time.

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: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

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: $19,056,183

Exercised Options: $19,056,183

Current Obligation: $19,056,183

Parent Contract

Parent Award PIID: GS35F0306J

IDV Type: FSS

Timeline