Booz Allen Hamilton awarded $43.7M for FDA electronic submissions support, raising value-for-money questions

Contract Overview

Contract Amount: $43,729,877 ($43.7M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2017-09-11

End Date: 2020-07-17

Contract Duration: 1,040 days

Daily Burn Rate: $42.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IGF::OT::IGF CTP ELECTRONIC SUBMISSIONS DEVELOPMENT AND MAINTENANCE SUPPORT

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $43.7 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF CTP ELECTRONIC SUBMISSIONS DEVELOPMENT AND MAINTENANCE SUPPORT Key points: 1. Contract value appears high relative to duration, suggesting potential for cost efficiencies. 2. Full and open competition was utilized, which typically fosters competitive pricing. 3. The contract's performance period spans over two years, indicating a need for sustained support. 4. This contract falls within IT services, a sector with significant government spending. 5. The award was a BPA Call, a method that can streamline procurement but may limit initial competition. 6. No small business set-aside was applied, suggesting large business prime performance.

Value Assessment

Rating: fair

The contract's total value of $43.7 million over approximately 1040 days (roughly 3 years) averages to about $42,000 per day. While specific deliverables are not detailed, this daily rate for IT support services, particularly for complex systems like electronic submissions, warrants benchmarking against similar contracts. Without more granular data on the scope of work and the specific services provided, it is difficult to definitively assess value for money. However, the duration and total value suggest a substantial investment that should yield significant improvements in FDA's electronic submission capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This method is generally preferred for maximizing competition and achieving the best possible prices for the government. The fact that it was a BPA Call means it was likely competed among pre-qualified vendors on an existing Blanket Purchase Agreement, which can expedite the process. The number of bidders is not specified, but the full and open nature suggests a robust competitive environment was intended.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces, ensuring federal dollars are used more efficiently.

Public Impact

The Food and Drug Administration (FDA) benefits from enhanced capabilities in managing electronic submissions. This contract supports the critical function of processing and maintaining electronic data for regulatory purposes. The primary beneficiaries are the FDA staff who rely on these systems for their daily operations. Improved electronic submission systems can lead to faster review times for regulated products, indirectly benefiting the public and industry. The contract supports IT professionals, likely contributing to the workforce in the IT services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work expands beyond initial estimates.
Reliance on a single large contractor could create vendor lock-in.
The BPA Call mechanism might limit the initial pool of competitors compared to a direct solicitation.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The contract supports essential FDA functions, indicating strategic alignment with agency goals.
Longer performance period allows for sustained development and integration of IT solutions.

Sector Analysis

The IT services sector is a major area of federal spending, encompassing a wide range of support, development, and maintenance activities. Contracts like this, focused on specialized systems design and maintenance, are common within agencies like the FDA that handle vast amounts of data. The market for such services is competitive, with many large and small businesses offering expertise. Benchmarking this contract's value would involve comparing its total value and duration against other IT support contracts awarded by health and human services agencies or other regulatory bodies.

Small Business Impact

This contract was not set aside for small businesses, and the prime contractor, Booz Allen Hamilton, is a large business. This indicates that the primary award went to a large entity, likely due to the scale and complexity of the requirement. There is no explicit information on subcontracting plans for small businesses within the provided data. However, large prime contractors often utilize small business subcontractors to fulfill specific aspects of their contracts, which could still provide opportunities for the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the Food and Drug Administration's contracting officers and program managers. The Department of Health and Human Services' Office of Inspector General (OIG) may also conduct audits or investigations into the contract's performance and financial management. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and detailed spending breakdowns may not always be publicly accessible.

Related Government Programs

FDA IT Modernization Initiatives
Health IT Services
Federal Civilian IT Support Contracts
Electronic Records Management Systems
Government IT Consulting Services

Risk Flags

Potential for cost overruns due to scope creep.
Reliance on a single large contractor.
Complexity of integrating new systems with existing infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $43.7 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF CTP ELECTRONIC SUBMISSIONS DEVELOPMENT AND MAINTENANCE SUPPORT

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 $43.7 million.

What is the period of performance?

Start: 2017-09-11. End: 2020-07-17.

What specific IT systems and functionalities are covered under the 'Electronic Submissions Development and Maintenance Support' contract?

The contract, awarded to Booz Allen Hamilton, focuses on supporting the development and maintenance of systems crucial for the Food and Drug Administration's (FDA) handling of electronic submissions. This likely includes the infrastructure and software required for receiving, processing, storing, and managing data submitted electronically by regulated industries. Specific functionalities could encompass user interface development, database management, system security enhancements, data validation tools, and ensuring compliance with evolving regulatory standards for electronic data. The goal is to ensure the FDA's IT systems are robust, secure, and efficient in managing the increasing volume and complexity of electronic submissions, which are vital for the review and approval of products like pharmaceuticals and medical devices.

How does the $43.7 million contract value compare to similar IT support contracts for regulatory agencies?

Benchmarking the $43.7 million contract value requires comparing it against similar IT support and system development contracts awarded to regulatory bodies like the FDA, Environmental Protection Agency (EPA), or Securities and Exchange Commission (SEC). Given the contract duration of approximately three years (September 2017 to July 2020), the average annual value is roughly $14.6 million. This figure needs to be assessed in the context of the specific services rendered. Contracts for complex system development, cybersecurity, and large-scale data management within regulatory environments can range significantly. If this contract involved extensive custom software development, integration of multiple legacy systems, or significant cybersecurity enhancements, the value might be considered within a reasonable range. However, if it primarily covered routine maintenance and standard IT support, it could be on the higher end, warranting closer scrutiny of efficiency and necessity.

What are the key performance indicators (KPIs) used to measure the success of this contract?

While the specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data, typical metrics for IT development and maintenance support contracts include system uptime and availability, response times for issue resolution, successful deployment of new features or updates, data integrity and security compliance rates, and user satisfaction surveys. For a contract supporting electronic submissions, KPIs might also focus on the efficiency of submission processing, the reduction in manual data entry or processing errors, and the timeliness of system updates to meet new regulatory requirements. Performance would likely be monitored through regular progress reports, technical reviews, and potentially service level agreements (SLAs) that define acceptable performance thresholds.

What is Booz Allen Hamilton's track record with the FDA and similar government agencies for IT services?

Booz Allen Hamilton is a major government contractor with a long history of providing IT and management consulting services across numerous federal agencies, including the Department of Health and Human Services (HHS) and its sub-agencies like the FDA. They have consistently secured large contracts for complex IT solutions, cybersecurity, data analytics, and system modernization. Their track record with the FDA specifically includes support for various IT initiatives. While specific performance details on past contracts are not provided here, Booz Allen's extensive experience and significant presence in the federal IT market suggest a substantial capability to handle large-scale projects. However, like any large contractor, they have also faced scrutiny and reviews on specific contracts regarding performance and cost-effectiveness.

Were there any identified risks or challenges associated with this contract during its performance period?

Without access to internal government performance reviews or contractor reports, identifying specific risks and challenges encountered during this contract's performance period is difficult. However, common risks in IT development and maintenance contracts include scope creep, where project requirements expand beyond the original agreement, leading to cost overruns and schedule delays. Technical challenges, such as integrating new systems with legacy infrastructure or addressing unforeseen software bugs, are also frequent. Furthermore, changes in regulatory requirements or agency priorities could necessitate significant adjustments to the project scope. Dependence on key personnel or potential cybersecurity vulnerabilities could also pose risks. The contract's duration and value suggest a complex undertaking where managing these potential issues would have been critical.

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: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $47,977,360

Exercised Options: $43,961,346

Current Obligation: $43,729,877

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: HHSF223201510017B

IDV Type: BPA

Timeline