DoD's $16.4M Contract for ADP Services to Booz Allen Hamilton Raises Questions on Value and Competition

Contract Overview

Contract Amount: $16,381,276 ($16.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2005-08-10

End Date: 2008-06-13

Contract Duration: 1,038 days

Daily Burn Rate: $15.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: 200511!050626!9700!HC1047!DISA, NATIONAL CAPITAL REGION !GS35F0306J !C!N! !N!HC104705F4433! !20050810!20060809!006928857!006928857!006928857!N!BOOZ ALLEN HAMILTON INC !8283 GREENSBORO DRIVE !MCLEAN !VA!22102!27200!610!51!FALLS CHURCH !FALLS CHURCH (CITY) !VIRGINIA !+000002745933!N!N!000000000000!D399!OTHER ADP&TELECOMMUNICATION SERVICES !S1 !SERVICES !000 !* !541519!E! !6! ! ! ! ! !20200930!B!E!N! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.4 million to BOOZ ALLEN HAMILTON INC for work described as: 200511!050626!9700!HC1047!DISA, NATIONAL CAPITAL REGION !GS35F0306J !C!N! !N!HC104705F4433! !20050810!20060809!006928857!006928857!006928857!N!BOOZ ALLEN HAMILTON INC !8283 GREENSBORO DRIVE !MCLEAN !VA!22102!27200!610!51!FALLS CHURCH !FALLS CHURCH (CITY) !VIRGINIA !+000002745933!… Key points: 1. The contract awarded to Booz Allen Hamilton Inc. for ADP and Telecommunication Services appears to be a delivery order under a larger contract. 2. The specific services procured are classified under 'Computer Systems Design Services', a broad category. 3. The contract was awarded under 'Full and Open Competition', suggesting a competitive bidding process. 4. The 'Time and Materials' pricing structure can sometimes lead to cost overruns if not closely monitored. 5. The duration of the contract (1038 days) is significant, requiring ongoing oversight.

Value Assessment

Rating: questionable

The contract's value of $16.4 million for ADP and Telecommunication Services needs further scrutiny. Without detailed deliverables and performance metrics, it's difficult to assess if this price is competitive for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition', which is a positive sign for price discovery. However, the specific details of the bidding process and the number of bids received are not provided, making it hard to fully assess the competitive landscape.

Taxpayer Impact: The use of full and open competition suggests an effort to obtain fair market value, but the ultimate taxpayer impact depends on the efficiency and effectiveness of the services provided.

Public Impact

Citizens expect government contracts to be awarded efficiently and at a fair price. Transparency in contract details, including performance metrics and cost breakdowns, is crucial for public trust. The 'Time and Materials' pricing model can be a concern for taxpayers if not managed with strict oversight to prevent cost escalation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific service details
Potential for cost overruns with Time and Materials pricing
Limited insight into the competitive bidding process outcomes

Positive Signals

Awarded under Full and Open Competition
Contract awarded to a well-established firm

Sector Analysis

This contract falls under Information Technology services, specifically Computer Systems Design Services. The IT sector is a significant area of government spending, with benchmarks varying widely based on the complexity and scope of services required.

Small Business Impact

The data does not provide information on whether small businesses were involved as subcontractors or if this contract specifically targeted small business participation. Further analysis would be needed to determine the impact on small businesses.

Oversight & Accountability

The 'Delivery Order' nature suggests this is part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract, which may have its own oversight mechanisms. However, the specific oversight for this particular order needs to be confirmed.

Related Government Programs

Computer Systems Design Services
Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

Lack of detailed service description
Potential for cost overruns due to Time and Materials pricing
Limited transparency on competitive bidding outcomes
Unclear performance metrics and value assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.4 million to BOOZ ALLEN HAMILTON INC. 200511!050626!9700!HC1047!DISA, NATIONAL CAPITAL REGION !GS35F0306J !C!N! !N!HC104705F4433! !20050810!20060809!006928857!006928857!006928857!N!BOOZ ALLEN HAMILTON INC !8283 GREENSBORO DRIVE !MCLEAN !VA!22102!27200!610!51!FALLS CHURCH !FALLS CHURCH (CITY) !VIRGINIA !+000002745933!N!N!000000000000!D399!OTHER ADP&TELECOMMUNICATION SERVICES !S1 !SERVICES !000 !* !541519!E! !6! ! ! ! ! !20200930!B!E!N! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !

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 $16.4 million.

What is the period of performance?

Start: 2005-08-10. End: 2008-06-13.

What specific ADP and Telecommunication services were rendered under this contract, and how do they align with the stated need?

The provided data classifies the service under 'OTHER ADP&TELECOMMUNICATION SERVICES' and 'Computer Systems Design Services'. Without a detailed statement of work or performance reports, it is impossible to ascertain the precise nature of the services provided. This lack of specificity hinders a thorough value assessment and makes it difficult to confirm if the services directly addressed the agency's requirements effectively.

What was the competitive landscape for this delivery order, and were there any significant cost savings achieved through the bidding process?

The contract was awarded under 'Full and Open Competition'. However, the data does not specify the number of bids received or the range of proposed prices. While 'Full and Open Competition' is designed to foster competition and achieve fair pricing, the absence of detailed bidding information prevents an analysis of potential cost savings or whether the winning bid represented the best value.

How effectively was the 'Time and Materials' pricing model managed to control costs and ensure efficient service delivery?

The 'Time and Materials' (T&M) pricing model, used in this contract, carries an inherent risk of cost escalation if not rigorously managed. The data does not include information on the oversight mechanisms in place, such as labor hour tracking, rate ceilings, or performance milestones. Without this oversight data, it's difficult to assess the efficiency of service delivery and the ultimate taxpayer impact of this pricing structure.

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: 1

Pricing Type: TIME AND MATERIALS (Y)

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0306J

IDV Type: FSS

Timeline