Booz Allen Hamilton contract for IT services awarded $46.5M by HHS, spanning over 5 years

Contract Overview

Contract Amount: $46,539,531 ($46.5M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2010-09-24

End Date: 2015-12-29

Contract Duration: 1,922 days

Daily Burn Rate: $24.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TAS::75 0600::TAS 074 OIM CDRH-CTP CESUB BPA NEW ELMS69999ND25ADMC3510CESUB3510

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $46.5 million to BOOZ ALLEN HAMILTON INC for work described as: TAS::75 0600::TAS 074 OIM CDRH-CTP CESUB BPA NEW ELMS69999ND25ADMC3510CESUB3510 Key points: 1. The contract's value of $46.5 million over five years suggests a significant investment in IT services. 2. Awarded under full and open competition, this indicates a broad market solicitation for the services. 3. The Time and Materials pricing model introduces potential cost variability, requiring close monitoring. 4. The contract duration of 1922 days (approx. 5.2 years) aligns with long-term IT support needs. 5. The North American Industry Classification System (NAICS) code 541519 points to a broad range of computer-related services. 6. The contract was awarded to a single entity, Booz Allen Hamilton, for a substantial sum.

Value Assessment

Rating: fair

The contract's total value of $46.5 million over approximately 5.2 years averages to about $8.9 million annually. Without specific performance metrics or a detailed breakdown of services rendered, it is challenging to benchmark this against similar contracts. The Time and Materials (T&M) pricing structure, while flexible, can lead to cost overruns if not managed diligently. The absence of a fixed price or cost-plus-fixed-fee structure makes direct value-for-money assessment difficult without further data on labor hours and rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' suggesting that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings. The agency sought proposals from the widest possible range of vendors, aiming to secure the best value through market forces.

Taxpayer Impact: A full and open competition process is generally favorable for taxpayers as it maximizes the potential for competitive pricing and encourages a wider pool of contractors to offer their best terms.

Public Impact

The primary beneficiary is the Department of Health and Human Services (HHS), specifically the Food and Drug Administration (FDA), receiving IT services. The services delivered likely encompass a range of computer-related support, potentially including system maintenance, development, or consulting. The contract's geographic impact is centered around the agency's operations, likely within Maryland where the awardee is located. Workforce implications include the employment of IT professionals by Booz Allen Hamilton to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) pricing model can lead to unpredictable costs if not closely managed, potentially exceeding initial budget expectations.
Lack of specific details on the services rendered makes it difficult to assess if the full value of the $46.5 million was realized.
The contract's duration of over five years might indicate a long-term reliance on the contractor, potentially limiting future flexibility or opportunities for new vendors.

Positive Signals

Awarded under full and open competition, suggesting a robust process to identify the best value.
The contract was awarded to a well-established contractor, Booz Allen Hamilton, known for its extensive government contracting experience.
The significant investment indicates the critical nature of the IT services to the agency's mission.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically 'Other Computer Related Services' (NAICS 541519). This broad category includes services like computer systems design, integration, and IT consulting. The federal IT services market is substantial, with agencies across the government investing heavily in technology to support their operations. Comparable spending benchmarks would typically involve analyzing IT service contracts of similar scope and duration awarded to large system integrators within the federal government.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Booz Allen Hamilton is a large business. Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, large prime contractors are often encouraged or required to have small business subcontracting plans, which could potentially benefit small businesses if such a plan was in place for this contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Health and Human Services (HHS) and the Food and Drug Administration (FDA). Specific oversight mechanisms would likely include contract officers, program managers, and potentially an Inspector General's office to ensure compliance with terms, conditions, and performance expectations. Transparency is facilitated through contract award databases, though detailed performance reports are often internal.

Related Government Programs

HHS IT Modernization Initiatives
FDA Information Technology Support Services
Federal Civilian Agency IT Services
Large Prime IT Contracts

Risk Flags

Time and Materials pricing model risk
Lack of specific service details
Potential for cost overruns without strict oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $46.5 million to BOOZ ALLEN HAMILTON INC. TAS::75 0600::TAS 074 OIM CDRH-CTP CESUB BPA NEW ELMS69999ND25ADMC3510CESUB3510

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $46.5 million.

What is the period of performance?

Start: 2010-09-24. End: 2015-12-29.

What specific IT services did Booz Allen Hamilton provide under this contract?

The provided data indicates the contract falls under NAICS code 541519, 'Other Computer Related Services.' This is a broad category that can encompass a wide array of IT functions, including but not limited to IT consulting, systems integration, custom software development, IT project management, and potentially cybersecurity services. Without access to the specific Statement of Work (SOW) or task orders issued under this contract, the precise nature of the services rendered remains unspecified. However, given the duration and value, it likely involved significant, ongoing IT support critical to the FDA's operations.

How does the $46.5 million contract value compare to other similar IT contracts awarded by the FDA or HHS?

Benchmarking the $46.5 million contract value requires comparing it to similar IT service contracts awarded by the FDA or HHS over comparable timeframes (approximately 5.2 years). Federal contract databases often show IT service awards ranging from a few million to hundreds of millions of dollars, depending on the scope and duration. A $46.5 million award over five years averages roughly $8.9 million annually. This figure is substantial but not exceptionally large within the context of major federal IT procurements, especially for agencies like the FDA which manage complex data systems and regulatory processes. Further analysis would involve identifying contracts with similar NAICS codes and agency components.

What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract?

The primary risk of a Time and Materials (T&M) contract is the potential for cost escalation. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure offers flexibility but lacks a definitive ceiling, making it difficult for the government to predict the total cost upfront. If not managed rigorously through detailed monitoring of labor hours, efficient task execution, and strict adherence to the scope, T&M contracts can result in significantly higher expenditures than initially anticipated. This necessitates robust oversight from the contracting agency to ensure efficient performance and prevent cost overruns.

What is the significance of Booz Allen Hamilton being awarded this contract, considering their track record?

Booz Allen Hamilton is a major government contractor with a long history of providing a wide range of services, including IT, to federal agencies. Their extensive experience and established presence suggest they possess the resources, expertise, and security clearances necessary to handle complex government IT projects. Awarding a significant contract like this to a well-known entity like Booz Allen Hamilton can be seen as a strategic choice by the agency to leverage proven capabilities and reduce the risks associated with onboarding a less experienced contractor. Their track record often includes successful delivery on large-scale IT initiatives, making them a reliable, albeit potentially more expensive, option.

How has federal spending on 'Other Computer Related Services' (NAICS 541519) evolved over the period of this contract (2010-2015)?

Federal spending on 'Other Computer Related Services' (NAICS 541519) generally saw an upward trend during the period of this contract (2010-2015). This era coincided with increased government focus on IT modernization, data management, and cybersecurity. Agencies across the federal government were investing in upgrading legacy systems, implementing new digital services, and enhancing their IT infrastructure. While specific year-over-year figures for this exact NAICS code across all agencies would require detailed analysis of federal procurement data, the overall trajectory indicated a growing demand for a broad spectrum of IT services, including consulting, integration, and support, reflecting the increasing reliance on technology in government operations.

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

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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

Financial Breakdown

Contract Ceiling: $48,365,435

Exercised Options: $46,539,531

Current Obligation: $46,539,531

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSF223200950002I

IDV Type: IDC

Timeline