Booz Allen Hamilton awarded $17.4M for custom computer programming services by the Department of Defense

Contract Overview

Contract Amount: $17,424,263 ($17.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2017-09-28

End Date: 2023-03-29

Contract Duration: 2,008 days

Daily Burn Rate: $8.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF LABOR

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $17.4 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF LABOR Key points: 1. Contract value of $17.4M over its period of performance suggests a significant engagement. 2. The contract was awarded under full and open competition, indicating a broad market search. 3. Fixed-price contract type generally transfers risk to the contractor, potentially benefiting the government. 4. The duration of the contract (2008 days) points to a long-term need for these services. 5. Services fall under custom computer programming, a critical area for defense modernization. 6. The award was made by the Defense Information Systems Agency, a key IT provider for the DoD.

Value Assessment

Rating: good

The contract value of $17.4M for custom computer programming services appears reasonable given the 2008-day performance period. Benchmarking against similar large-scale IT services contracts within the Department of Defense suggests that pricing is likely competitive, especially considering the full and open competition. The firm-fixed-price structure further supports value for money by incentivizing contractor efficiency and cost control. Without specific details on the scope of work, a precise value-for-money assessment is challenging, but the competitive award process and contract type are positive indicators.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, encouraging multiple bidders to vie for the contract. The presence of robust competition is expected to drive down prices and improve the quality of services offered, leading to better value for the government. The specific number of bidders is not provided, but the method of award itself signifies a commitment to exploring the widest possible market.

Taxpayer Impact: Full and open competition generally leads to more favorable pricing for taxpayers by ensuring that the government receives proposals from a diverse range of capable contractors, thereby driving down costs through market forces.

Public Impact

The Department of Defense benefits from enhanced custom computer programming capabilities, crucial for maintaining technological superiority. Services delivered likely support critical defense information systems and operational requirements. The geographic impact is primarily within the Department of Defense's operational footprint, potentially worldwide. Workforce implications include the employment of skilled IT professionals by Booz Allen Hamilton to fulfill the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of the programming services.
The long contract duration could lead to potential cost overruns if not managed tightly.
Scope creep is a potential risk in long-term custom programming contracts if not clearly defined and managed.

Positive Signals

Firm-fixed-price contract type shifts cost risk to the contractor.
Awarded under full and open competition, suggesting a competitive pricing environment.
Booz Allen Hamilton is a well-established contractor with significant experience in government IT services.

Sector Analysis

Custom computer programming services are a vital component of the IT sector, particularly for government agencies requiring specialized software solutions. The market for these services is large and competitive, with numerous firms offering expertise in areas like software development, system integration, and IT consulting. This contract fits within the broader trend of defense agencies outsourcing complex IT development to specialized contractors to leverage external expertise and focus on core mission functions. Comparable spending benchmarks in this area are highly variable, depending on the complexity and scale of the programming required.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. Therefore, its direct impact on small business set-asides is minimal. However, as a large prime contractor, Booz Allen Hamilton may engage small businesses as subcontractors to fulfill specific aspects of the contract, contributing indirectly to the small business ecosystem. The extent of subcontracting to small businesses would depend on the specific requirements and Booz Allen Hamilton's subcontracting strategy.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA) or the Defense Contract Audit Agency (DCAA), depending on the nature of the services and oversight needs. The firm-fixed-price nature of the contract provides a degree of accountability by fixing the total cost. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency IT Services
Department of Defense Software Development Contracts
Custom Computer Programming Services
IT Support Services for Federal Agencies

Risk Flags

Long contract duration may increase risk of scope creep or obsolescence.
Lack of specific performance metrics makes outcome assessment difficult.
Potential for cost overruns if initial estimates are inaccurate, despite fixed-price nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.4 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF LABOR

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 $17.4 million.

What is the period of performance?

Start: 2017-09-28. End: 2023-03-29.

What specific custom computer programming services were delivered under this contract?

The provided data indicates the contract was for 'Custom Computer Programming Services' (NAICS 541511) awarded to Booz Allen Hamilton Inc. by the Department of Defense. However, the specific nature of these services, such as the type of software developed, systems integrated, or programming languages used, is not detailed in the summary data. These services likely supported critical defense information systems, operational requirements, or internal IT infrastructure. Further details would typically be found in the contract's Statement of Work (SOW) or Performance Work Statement (PWS), which are not publicly available in this context. The broad category suggests a wide range of potential programming activities, from developing new applications to modifying existing ones or providing specialized coding expertise.

How does the $17.4M contract value compare to similar custom programming contracts awarded by the DoD?

The $17.4 million contract value for custom computer programming services awarded to Booz Allen Hamilton by the Department of Defense over a period of 2008 days (approximately 5.5 years) falls within a common range for significant IT service contracts within the federal government. Large-scale IT development and programming projects for agencies like the DoD often run into tens or even hundreds of millions of dollars. Given that Booz Allen Hamilton is a major federal contractor specializing in IT and consulting, and the contract was awarded under full and open competition, this value suggests a substantial but not exceptionally large or outlier award for the scope and duration. Benchmarking requires access to detailed contract databases and specific service descriptions, but the amount is consistent with the scale of IT needs within a major federal agency.

What is Booz Allen Hamilton's track record with similar DoD contracts?

Booz Allen Hamilton Inc. has an extensive and long-standing track record of performing IT and professional services contracts for the Department of Defense and other federal agencies. They are a prime contractor on numerous large-scale programs across various defense and intelligence components. Their portfolio typically includes areas such as cybersecurity, data analytics, systems engineering, software development, and IT modernization. The DoD represents a significant portion of their federal business. While this specific contract for custom computer programming is one of many, Booz Allen's general performance history with the DoD is characterized by a high volume of awards and a broad range of capabilities, indicating substantial experience in delivering complex technical solutions to military and civilian defense organizations.

What are the potential risks associated with a firm-fixed-price contract of this duration?

Firm-fixed-price (FFP) contracts are designed to provide price certainty for the government, transferring most of the cost risk to the contractor. For a contract of 2008 days (over 5 years), the primary risk for the government is ensuring the initial price accurately reflects the scope of work and that the contractor remains efficient throughout the performance period. Potential risks include the contractor potentially cutting corners on quality to maintain profitability if costs escalate unexpectedly, or conversely, the government potentially overpaying if the initial price was set too high due to incomplete understanding of requirements. Scope creep, if not managed through formal change order processes, can also erode the benefits of FFP. However, the FFP structure incentivizes the contractor to manage costs effectively and deliver the defined scope within budget.

How does the 'Custom Computer Programming Services' classification impact the type of work performed?

The North American Industry Classification System (NAICS) code 541511, 'Custom Computer Programming Services,' specifically defines establishments primarily engaged in writing, modifying, testing, and supporting software to meet the needs of a particular customer. This contrasts with off-the-shelf software sales or general IT support. Contracts under this code typically involve the design and development of new software applications, customization of existing software, database programming, and the creation of specialized algorithms or code. The work is highly tailored to the client's unique requirements, often involving close collaboration between the client and the programming service provider to define specifications, develop solutions, and ensure they meet performance objectives. This implies a focus on bespoke software creation rather than the resale or broad implementation of pre-existing software products.

Industry Classification

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MC LEAN, 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: $17,424,263

Exercised Options: $17,424,263

Current Obligation: $17,424,263

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102817A0003

IDV Type: BPA

Timeline