Booz Allen Hamilton awarded $21.2M for MARCS Legacy Systems support, a 3-year contract

Contract Overview

Contract Amount: $21,235,583 ($21.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2007-09-01

End Date: 2010-09-10

Contract Duration: 1,105 days

Daily Burn Rate: $19.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: NEW REQUEST FOR MARCS LEGACY SYSTEMS SOW

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $21.2 million to BOOZ ALLEN HAMILTON INC for work described as: NEW REQUEST FOR MARCS LEGACY SYSTEMS SOW Key points: 1. Contract value appears reasonable for the duration and scope of IT systems support. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type (Cost Plus Fixed Fee) carries inherent risk of cost overruns. 4. Performance period spans over three years, indicating a need for sustained support. 5. The contract falls within Computer Systems Design Services, a common IT sector. 6. The award was a Delivery Order, suggesting it's part of a larger IDIQ contract.

Value Assessment

Rating: fair

The contract value of $21.2 million over approximately three years for IT systems support is within a typical range for such services. However, the Cost Plus Fixed Fee (CPFF) contract type introduces a degree of risk, as it allows for the reimbursement of costs plus a fixed fee, potentially leading to higher final costs than fixed-price contracts if not managed carefully. Benchmarking against similar large-scale IT system support contracts would be necessary for a more precise value-for-money assessment.

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 bids. This method generally fosters a competitive environment, which can lead to better pricing and service offerings. The number of bidders is not specified, but the use of full and open competition suggests a robust process aimed at achieving the best value for the government.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and a wider pool of qualified contractors vying for the work, which can drive down costs and improve service quality.

Public Impact

The Food and Drug Administration (FDA) benefits from continued support for its MARCS Legacy Systems. Essential IT systems supporting regulatory functions are maintained, ensuring operational continuity. The primary geographic impact is within Maryland, where the contractor is located. The contract supports IT professionals and potentially other roles involved in system maintenance and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not closely monitored.
Reliance on legacy systems may indicate potential for technical debt and future modernization challenges.
Limited information on specific performance metrics makes it difficult to assess contractor efficiency.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Contract duration of over three years indicates a stable, long-term need for services.
Contractor Booz Allen Hamilton is a well-established firm with extensive government contracting experience.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the IT industry. The market for government IT support services is substantial, with agencies continually seeking to maintain and modernize their complex systems. This contract for MARCS Legacy Systems support is a typical example of the ongoing need for specialized IT services within federal agencies to ensure the smooth operation of critical infrastructure.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Booz Allen Hamilton voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the Food and Drug Administration's contracting officers and program managers. Accountability measures would be defined in the contract's Statement of Work (SOW) and performance standards. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly available.

Related Government Programs

FDA IT Modernization Efforts
Legacy System Support Contracts
Computer Systems Design Services
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee contract type
Reliance on legacy systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $21.2 million to BOOZ ALLEN HAMILTON INC. NEW REQUEST FOR MARCS LEGACY SYSTEMS SOW

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 $21.2 million.

What is the period of performance?

Start: 2007-09-01. End: 2010-09-10.

What is the track record of Booz Allen Hamilton in supporting similar legacy IT systems for federal agencies?

Booz Allen Hamilton has a long and extensive history of providing IT support services to various federal agencies, including the Department of Health and Human Services (HHS) and its sub-agencies like the FDA. They have experience managing and maintaining complex legacy systems, as well as supporting modernization efforts. Their track record generally includes large-scale IT projects, cybersecurity, data analytics, and systems integration. While specific details on past performance for MARCS legacy systems are not provided here, their broad experience suggests a capability to handle such contracts. However, a deeper dive into past performance evaluations and any past performance issues would be necessary for a comprehensive assessment.

How does the $21.2 million contract value compare to similar IT support contracts for legacy systems?

The $21.2 million contract value over approximately three years for supporting legacy IT systems like MARCS is within a reasonable range for the federal government. Large federal IT support contracts can range from millions to billions of dollars, depending on the complexity, scope, and duration. For a system requiring sustained maintenance, updates, and operational support, this figure suggests a moderate-sized engagement. Benchmarking against contracts for similar FDA systems or other agencies' legacy system support would provide a more precise comparison. Factors like the number of users, criticality of the system, and specific services required (e.g., infrastructure, application support, cybersecurity) heavily influence cost.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT systems support?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. While the fee is fixed, the total cost is not. If the contractor's costs exceed initial estimates, the government pays the actual costs plus the fixed fee. This can lead to the government paying more than anticipated if costs are not meticulously managed and controlled. For IT systems support, risks include unforeseen technical challenges, scope creep, and inefficient resource utilization, all of which can drive up costs beyond initial projections. Robust oversight and clear performance metrics are crucial to mitigate these risks.

What is the potential impact of supporting legacy systems on future IT modernization efforts?

Supporting legacy systems like MARCS can have a dual impact on future IT modernization efforts. On one hand, continued support ensures the ongoing functionality of critical operations that may not yet have modern replacements, preventing disruption. On the other hand, significant investment in maintaining outdated systems can divert resources (funding, personnel) that could otherwise be allocated to developing and implementing new, more efficient, and technologically advanced solutions. Legacy systems often carry technical debt, making integration with modern platforms difficult and costly. Therefore, while necessary for continuity, prolonged reliance on legacy systems can sometimes hinder or delay comprehensive modernization initiatives.

How does the 'Computer Systems Design Services' NAICS code relate to the contract's scope?

The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' accurately reflects the contract's scope. This code encompasses establishments primarily engaged in planning and designing computer systems that integrate hardware, software, and communication technologies. Services include analysis of user needs and system requirements; designing, developing, and testing complete systems; and providing technical expertise in the installation of system software. Supporting legacy systems involves understanding their architecture, ensuring their operational integrity, and potentially advising on upgrades or replacements, all falling squarely within the domain of computer systems design and integration services.

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: 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, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $25,625,856

Exercised Options: $25,625,856

Current Obligation: $21,235,583

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 263010072

IDV Type: IDC

Timeline