HHS FDA awards $12.3M non-competitive contract to Booz Allen Hamilton for CBER Submissions Program
Contract Overview
Contract Amount: $12,354,274 ($12.4M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2005-04-01
End Date: 2010-05-31
Contract Duration: 1,886 days
Daily Burn Rate: $6.6K/day
Competition Type: NON-COMPETITIVE DELIVERY ORDER
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: CBER SUBMISSIONS PROG
Place of Performance
Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20875, UNITED STATES OF AMERICA
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $12.4 million to BOOZ ALLEN HAMILTON INC for work described as: CBER SUBMISSIONS PROG Key points: 1. Contract awarded to a single, well-known vendor, suggesting potential lack of market research. 2. Long contract duration (5 years) for a non-competitive award warrants scrutiny. 3. Cost-plus-fixed-fee structure can incentivize cost overruns if not managed tightly. 4. The program supports the Center for Biologics Evaluation and Research, a critical health function.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure, combined with its non-competitive nature, raises questions about value for money. Benchmarking against similar IT support contracts for regulatory agencies is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This was a non-competitive delivery order, indicating a sole-source award. The lack of competition likely limited price discovery and may have resulted in a higher price than could have been achieved through a competitive process.
Taxpayer Impact: Taxpayer funds are being spent without the benefit of competitive bidding, potentially leading to a less efficient use of resources.
Public Impact
Ensures continued operation of the CBER Submissions Program, vital for drug and biologic approvals. Potential for higher costs due to lack of competition impacts overall healthcare spending. Reliance on a single contractor for a critical function could pose continuity risks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Non-competitive award
- Cost-plus-fixed-fee contract type
- Long contract duration
Positive Signals
- Supports critical FDA function
- Experienced contractor
Sector Analysis
This contract falls within the IT services sector, supporting a critical regulatory function within the Department of Health and Human Services. Spending benchmarks for similar IT support contracts within government agencies vary widely based on scope and complexity.
Small Business Impact
The contract was awarded to Booz Allen Hamilton, a large business. There is no indication that small businesses were involved as subcontractors or had an opportunity to compete for this work.
Oversight & Accountability
The non-competitive nature of this award suggests a potential gap in market research or a justification for sole-sourcing that requires thorough oversight. The long duration necessitates ongoing monitoring of performance and costs.
Related Government Programs
- Department of Health and Human Services Contracting
- Food and Drug Administration Programs
Risk Flags
- Lack of competition may lead to inflated costs.
- Cost-plus-fixed-fee structure can incentivize higher spending.
- Long contract duration increases risk of vendor lock-in and missed opportunities for better pricing.
- Potential for insufficient market research leading to missed competitive opportunities.
Tags
department-of-health-and-human-services, md, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $12.4 million to BOOZ ALLEN HAMILTON INC. CBER SUBMISSIONS PROG
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 $12.4 million.
What is the period of performance?
Start: 2005-04-01. End: 2010-05-31.
Was a thorough market research analysis conducted to justify the sole-source award and ensure no viable small business or other large business competitors existed?
The data indicates a non-competitive delivery order, suggesting that formal market research may have been bypassed or deemed insufficient to identify alternative sources. A comprehensive review would be needed to confirm if adequate steps were taken to explore competitive options before resorting to a sole-source award.
What specific deliverables and performance metrics were established to ensure the 'fixed fee' portion of the Cost Plus Fixed Fee contract was justified and that costs remained controlled?
The provided data does not detail specific deliverables or performance metrics. For a Cost Plus Fixed Fee contract, especially one awarded non-competitively, robust oversight is crucial. Agencies must define clear milestones and quality standards to ensure the fixed fee aligns with the value delivered and to prevent cost overruns.
How does the overall cost of this contract compare to similar IT support services for regulatory functions within other federal agencies, considering the program's criticality?
Direct cost comparison is challenging without detailed scope and service level agreements. However, non-competitive awards, particularly Cost Plus Fixed Fee, often carry a premium compared to competitively bid fixed-price contracts. The criticality of the CBER program necessitates reliable support, but efficiency should still be a key consideration.
Competition & Pricing
Extent Competed: NON-COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)
Address: 8283 GREENSBORO DR # 700, MC LEAN, VA, 22102
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $12,826,053
Exercised Options: $12,354,274
Current Obligation: $12,354,274
Parent Contract
Parent Award PIID: 26301D0072
IDV Type: IDC
Timeline
Start Date: 2005-04-01
Current End Date: 2010-05-31
Potential End Date: 2010-05-31 00:00:00
Last Modified: 2016-02-26
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