Booz Allen Hamilton awarded $20M for IT services, with 2 bids received

Contract Overview

Contract Amount: $19,955,402 ($20.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2019-06-01

End Date: 2024-05-31

Contract Duration: 1,826 days

Daily Burn Rate: $10.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENCORE III IT SOLUTIONS - LABOR

Place of Performance

Location: SUFFOLK, SUFFOLK CITY County, VIRGINIA, 23435

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.0 million to BOOZ ALLEN HAMILTON INC for work described as: ENCORE III IT SOLUTIONS - LABOR Key points: 1. Value for money appears fair given the fixed-price nature of the contract. 2. Competition was limited, with only two bidders, potentially impacting price discovery. 3. Risk indicators are moderate, with a long duration and fixed-price structure. 4. Performance context is within IT support services for the Department of Defense. 5. Sector positioning is in IT services, a common area for federal procurement.

Value Assessment

Rating: fair

The contract value of approximately $20 million over five years suggests a moderate annual spend. Benchmarking against similar IT support contracts is challenging without more granular data on the specific services provided. However, the firm-fixed-price structure generally aims to control costs for the government, implying an effort towards value for money. The number of bids received (2) is on the lower side for a contract of this size, which could indicate less competitive pricing than might be achieved with broader competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under full and open competition, but only two bids were received. This suggests that while the opportunity was broadly advertised, only a limited number of contractors were either interested or qualified to bid. The limited competition may have resulted in a higher price than if more vendors had participated, as the incumbent or winning contractor faced less pressure to offer the most aggressive pricing.

Taxpayer Impact: With only two bidders, taxpayers may have paid a premium compared to a scenario with more robust competition. This highlights the importance of understanding market dynamics and ensuring sufficient contractor interest for future procurements.

Public Impact

The Department of Defense benefits from essential IT support services. Services delivered likely include system maintenance, network support, and potentially software development or integration. The geographic impact is primarily within the Department of Defense's operational areas, likely concentrated in Virginia. Workforce implications include employment for IT professionals within Booz Allen Hamilton and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to higher costs for taxpayers.
Long contract duration (5 years) may reduce flexibility to adopt new technologies or services.
Fixed-price contract might disincentivize contractor innovation if not carefully scoped.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to an established contractor like Booz Allen Hamilton suggests a degree of confidence in their capabilities.
Contract supports critical IT infrastructure for national defense.

Sector Analysis

The IT services sector is a significant component of federal spending, encompassing a wide range of support, development, and maintenance activities. This contract falls within the 'Other Computer Related Services' NAICS code (541519), indicating a broad scope of potential IT functions. The federal government is a major consumer of IT services, with spending often benchmarked against large-scale IT modernization efforts and ongoing operational support contracts. Comparable spending can be found across various agencies requiring similar technical expertise.

Small Business Impact

The data indicates that small business participation was not a specific set-aside requirement for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or mandated small business set-asides to analyze. The primary contractor, Booz Allen Hamilton, is a large business, and any subcontracting would be at their discretion, not driven by specific small business goals within this contract's structure.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Information Systems Agency (DISA) IT Support Contracts
Department of Defense IT Modernization Programs
Federal Civilian IT Services Procurement
IT Professional Services Contracts

Risk Flags

Limited Competition
Long Contract Duration
Potential for Cost Overruns if Scope Creep Occurs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.0 million to BOOZ ALLEN HAMILTON INC. ENCORE III IT SOLUTIONS - 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 $20.0 million.

What is the period of performance?

Start: 2019-06-01. End: 2024-05-31.

What is the historical spending trend for similar IT services contracts awarded by the Defense Information Systems Agency?

Analyzing historical spending trends for DISA's IT services contracts reveals a consistent and substantial investment in maintaining and modernizing its technological infrastructure. Over the past decade, DISA has awarded billions of dollars in contracts for a variety of IT services, including network operations, cybersecurity, cloud computing, and enterprise IT support. Spending patterns often reflect evolving defense requirements, such as increased demand for secure communication capabilities, data analytics, and agile software development. While specific contract values fluctuate based on scope and duration, the overall trend indicates a sustained need for advanced IT solutions to support military operations globally. Benchmarking this $20 million contract against DISA's broader IT portfolio suggests it represents a mid-sized award for specialized IT support, fitting within the agency's ongoing operational expenditures rather than a large-scale modernization initiative.

How does the price per unit or hourly rate for this contract compare to industry benchmarks for similar IT labor categories?

Determining a precise per-unit cost or hourly rate comparison for this contract is challenging without access to the detailed labor categories and rates negotiated within the Booz Allen Hamilton proposal. The contract is a Delivery Order under an IDIQ (Indefinite Delivery, Indefinite Quantity) contract, and the $20 million represents the total value awarded, not necessarily the full value of the underlying IDIQ. However, Booz Allen Hamilton is a large, established contractor known for providing high-level IT expertise. Their rates are generally expected to be at the higher end of the market spectrum, reflecting their reputation, overhead, and the complexity of services often provided. To perform a true benchmark, one would need to compare specific labor categories (e.g., senior systems engineer, cybersecurity analyst) against government-wide IT schedules (like GSA MAS) or other competitive solicitations for similar skill sets and experience levels in the Virginia region.

What are the key performance indicators (KPIs) used to measure the success of this contract, and what has been the contractor's performance against them?

The specific Key Performance Indicators (KPIs) for this ENCORE III IT SOLUTIONS - LABOR contract are not publicly detailed in the provided data. However, for IT support services contracts of this nature, typical KPIs often include system uptime percentages, response times for issue resolution, successful implementation of software updates or patches, adherence to security protocols, and user satisfaction ratings. Performance against these KPIs would be monitored by the Defense Information Systems Agency (DISA) through regular reporting, service level agreement (SLA) reviews, and potentially site visits. Contractor performance is generally assessed through contract performance evaluations, such as the Contractor Performance Assessment Reporting System (CPARS). Without access to CPARS data or specific contract documentation, it's impossible to definitively state Booz Allen Hamilton's performance against the KPIs for this particular award.

What is the track record of Booz Allen Hamilton in delivering similar IT services to the Department of Defense?

Booz Allen Hamilton has a long and extensive track record of delivering a wide array of IT services to the Department of Defense (DoD) and other federal agencies. They are a major incumbent contractor across numerous defense IT programs, providing expertise in areas such as cybersecurity, systems engineering, data analytics, cloud migration, and enterprise IT modernization. Their history with the DoD includes supporting critical missions and complex technological infrastructures. While specific performance details for every contract are not always public, Booz Allen Hamilton generally holds a strong reputation for technical capability and program execution. However, like any large contractor, they have also faced scrutiny and challenges on certain contracts over the years. Their overall engagement level with the DoD suggests a deep understanding of military requirements and operational environments.

What are the potential risks associated with a sole-source or limited-competition award for IT services, and how were they mitigated in this case?

The primary risks associated with sole-source or limited-competition awards for IT services include potentially higher costs due to reduced market pressure, less innovation from a lack of diverse approaches, and a greater dependence on a single vendor, which can create lock-in. In this specific case, the award was made under 'FULL AND OPEN COMPETITION,' but only two bids were received, making it a case of limited competition rather than sole-source. Mitigation strategies for limited competition often involve robust market research beforehand to encourage broader participation, clear and well-defined performance work statements to ensure all bidders understand requirements, and strong negotiation tactics by the government contracting team. The firm-fixed-price contract type also helps mitigate cost risks by establishing a ceiling. However, the inherent risk of paying a premium due to limited bids remains a consideration.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: HC102815R0030

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

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: $27,270,210

Exercised Options: $19,980,402

Current Obligation: $19,955,402

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102818D0006

IDV Type: IDC

Timeline