DoD's $53.7M Computer Systems Design Services Contract with Booz Allen Hamilton Faces Scrutiny

Contract Overview

Contract Amount: $53,742,760 ($53.7M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2015-02-04

End Date: 2020-08-03

Contract Duration: 2,007 days

Daily Burn Rate: $26.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::CT::IGF TEST AND EVALUATION

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $53.7 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::CT::IGF TEST AND EVALUATION Key points: 1. Significant contract value of $53.7M for computer systems design. 2. Booz Allen Hamilton Inc. is the sole contractor. 3. Potential risks associated with single-source awards and cost-plus contracts. 4. Spending falls within the IT sector, specifically Defense Information Systems Agency. 5. Contract duration spans over 5 years.

Value Assessment

Rating: questionable

The contract's Cost Plus Fixed Fee (CPFF) structure, combined with a sole contractor, raises concerns about potential cost overruns and value for money. Benchmarking against similar CPFF contracts for computer systems design services is crucial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Although the award was made under full and open competition, the specific nature of the delivery order and the contractor's role may limit future competitive opportunities. The pricing mechanism (CPFF) can impact price discovery.

Taxpayer Impact: The CPFF structure necessitates robust oversight to ensure taxpayer funds are used efficiently and effectively, especially given the contract's substantial value.

Public Impact

Defense Information Systems Agency relies on these services for critical IT infrastructure. Potential for technology advancements or service improvements may be limited by a single provider. Taxpayers are exposed to potential cost inefficiencies inherent in CPFF contracts without strong oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type
  • Single contractor award
  • Lack of small business participation

Positive Signals

  • Awarded under full and open competition
  • Long-term contract providing stable support

Sector Analysis

This contract falls under the Information Technology sector, specifically computer systems design services, a critical area for defense operations. Benchmarks for similar IT services contracts within the DoD can vary widely based on complexity and duration.

Small Business Impact

The data indicates no small business participation in this contract. This is a missed opportunity to foster small business growth within the federal contracting space, particularly in the IT sector.

Oversight & Accountability

The CPFF contract type requires diligent oversight from the Defense Information Systems Agency to manage costs and ensure performance objectives are met. Regular audits and performance reviews are essential for accountability.

Related Government Programs

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

Risk Flags

  • Cost Plus Fixed Fee contract type
  • Single contractor award
  • Lack of small business participation
  • Long contract duration (over 5 years)

Tags

computer-systems-design-services, department-of-defense, md, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $53.7 million to BOOZ ALLEN HAMILTON INC. IGF::CT::IGF TEST AND EVALUATION

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 $53.7 million.

What is the period of performance?

Start: 2015-02-04. End: 2020-08-03.

What was the competitive landscape during the initial full and open competition that led to this specific delivery order?

While the contract was initially awarded under full and open competition, the specifics of this delivery order's competitive process are not detailed. Understanding the number of bidders and the evaluation criteria used for this particular order would provide insight into the price discovery achieved and whether the government secured the best value.

How effectively has the CPFF structure been managed to control costs and mitigate risks for this contract?

The Cost Plus Fixed Fee structure inherently carries risks of cost escalation if not rigorously managed. Effective oversight by the Defense Information Systems Agency, including detailed cost tracking, performance monitoring, and adherence to contract terms, is crucial to mitigate these risks and ensure taxpayer funds are used efficiently.

What is the long-term strategic value of relying on a single contractor for these critical computer systems design services?

Relying on a single contractor can ensure continuity and deep institutional knowledge, potentially leading to efficient service delivery. However, it also poses risks such as vendor lock-in, reduced innovation, and potential price increases over time. A strategic assessment of the long-term benefits versus the risks is warranted.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $53,742,760

Exercised Options: $53,742,760

Current Obligation: $53,742,760

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $123,720

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0019

IDV Type: GWAC

Timeline

Start Date: 2015-02-04

Current End Date: 2020-08-03

Potential End Date: 2020-08-03 00:00:00

Last Modified: 2023-12-06

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