Booz Allen Hamilton contract for administrative management services awarded $33.8M by HHS

Contract Overview

Contract Amount: $33,804,197 ($33.8M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2012-09-30

End Date: 2017-05-29

Contract Duration: 1,702 days

Daily Burn Rate: $19.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF SUPPORT- PROFESSIONAL: OTHER

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $33.8 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF SUPPORT- PROFESSIONAL: OTHER Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1702 days indicates a significant, long-term engagement. 3. Awarded as a delivery order, implying it's part of a larger contract vehicle. 4. The North American Industry Classification System (NAICS) code 541611 points to general management consulting services. 5. The contract was awarded to a single, well-established contractor, Booz Allen Hamilton. 6. The contract type is Time and Materials, which can pose cost control challenges if not managed carefully.

Value Assessment

Rating: fair

Benchmarking the value of this $33.8 million contract is challenging without specific deliverables or performance metrics. However, the duration of over four years suggests a substantial investment. The Time and Materials pricing structure, while common for consulting services, requires diligent oversight to ensure costs remain aligned with the value delivered. Comparing this to similar administrative management contracts would require access to detailed scope of work and performance data for other awards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of three bidders (no: 3) suggests a reasonable level of competition for this type of service. A competitive process is generally expected to drive better pricing and service quality as contractors vie for the award.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a marketplace of ideas and services, potentially leading to more cost-effective solutions and preventing price gouging.

Public Impact

The Centers for Medicare and Medicaid Services (CMS) likely benefited from enhanced administrative management and consulting services. The services delivered were related to administrative management and general management consulting. The contract was awarded to a contractor located in Virginia, suggesting a potential geographic focus for service delivery or contractor operations. The contract supported the operational needs of a major federal health agency, impacting its ability to manage programs and services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Lack of specific performance metrics makes it difficult to assess the true value for money.
Reliance on a single large contractor for critical administrative functions may limit flexibility.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
Contract duration suggests a stable, long-term need for the services provided.
Contractor, Booz Allen Hamilton, is a well-established firm with a track record in government contracting.

Sector Analysis

Administrative Management and General Management Consulting Services (NAICS 541611) is a significant sector within the professional services industry. Federal agencies frequently procure these services to improve efficiency, implement new policies, and manage complex operations. The total federal spending in this sector can be substantial, with numerous large and small businesses competing for contracts. This specific contract fits within the broader landscape of federal IT and professional services spending, supporting the operational backbone of agencies like CMS.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses (sb: false). Given the size and nature of the contract, it is unlikely that significant subcontracting opportunities for small businesses were mandated, though the prime contractor may have engaged them. The focus appears to be on a large, established prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. The Inspector General for the Department of Health and Human Services (HHS) would also have jurisdiction to investigate any potential fraud, waste, or abuse. Transparency would be facilitated through contract award databases and reporting requirements, though detailed performance data may not be publicly available.

Related Government Programs

HHS Administrative Support Contracts
CMS Management Consulting Services
Federal Professional Services Procurement
Time and Materials Contracts

Risk Flags

Time and Materials Pricing
Lack of Specific Performance Metrics
Potential for Cost Overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $33.8 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF SUPPORT- PROFESSIONAL: OTHER

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 (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $33.8 million.

What is the period of performance?

Start: 2012-09-30. End: 2017-05-29.

What was the specific scope of work for this administrative management contract?

The provided data indicates the contract falls under NAICS code 541611, 'Administrative Management and General Management Consulting Services.' This suggests the scope likely involved providing expertise and support to improve the efficiency and effectiveness of CMS's administrative operations. This could encompass areas such as organizational structure analysis, process improvement, strategic planning, policy development support, and general management advisory services. Without the specific contract statement of work, the precise deliverables and objectives remain undefined, making a detailed assessment of the services rendered impossible.

How does the $33.8 million award compare to typical spending on similar administrative consulting services by CMS?

Comparing this $33.8 million award to typical spending requires access to historical CMS contract data for similar services. However, for a contract spanning over four years (1702 days), this figure represents an average annual spend of approximately $8.45 million. This is a substantial amount, indicative of a significant engagement. Federal agencies, particularly large ones like CMS, often invest heavily in management consulting to navigate complex regulatory environments and implement large-scale programs. Without specific benchmarks for comparable contracts, it's difficult to definitively state if this represents high or low spending, but it aligns with the scale of major federal consulting engagements.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude?

The primary risk with a Time and Materials contract of this $33.8 million magnitude is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual labor hours and material costs incurred. If not managed with rigorous oversight, including detailed tracking of hours, labor categories, and material expenses, the total cost can escalate beyond initial expectations. For CMS, this means ensuring that the contractor's time is efficiently utilized and that the services provided are directly contributing to program objectives. Effective oversight is crucial to mitigate the risk of the contract exceeding its ceiling or delivering less value than anticipated.

What is Booz Allen Hamilton's track record with federal contracts, particularly with HHS?

Booz Allen Hamilton is a large, well-established government contractor with a long history of serving federal agencies, including the Department of Health and Human Services (HHS). They have a broad portfolio of contracts across various sectors, including defense, intelligence, health, and civilian agencies. Their extensive experience suggests a deep understanding of federal procurement processes and operational requirements. While specific performance details for individual contracts are often not public, their continued success in winning and performing on numerous large federal contracts indicates a generally positive track record. However, like any large contractor, they may have faced past performance reviews or disputes on specific engagements.

How does the 'full and open competition' award mechanism impact the value proposition for taxpayers?

Awarding a contract through 'full and open competition' generally enhances the value proposition for taxpayers. This process allows any responsible source to submit a bid, fostering a competitive environment. When multiple qualified contractors vie for an award, they are incentivized to offer their best pricing and most innovative solutions to win the contract. This competition helps drive down costs and improve the quality of services received compared to sole-source or limited competition scenarios. For this $33.8 million contract, the fact that it was competed openly suggests that the government sought the most advantageous offer, which should translate into better value for taxpayer dollars.

What are the potential performance implications of awarding a delivery order versus a standalone contract?

Awarding this contract as a 'delivery order' implies it is a task order issued under a pre-existing indefinite-delivery, indefinite-quantity (IDIQ) or other type of multiple-award contract vehicle. This approach allows agencies to procure services more rapidly and efficiently, as the foundational contract terms, conditions, and often pricing structures have already been negotiated and competed. For taxpayers, this can mean faster access to needed services and potentially better pricing due to the pre-negotiated terms. However, it also means that the competition for this specific $33.8 million task might have been limited to the awardees of the parent contract vehicle, rather than being open to the entire market.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

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: $33,804,197

Exercised Options: $33,804,197

Current Obligation: $33,804,197

Actual Outlays: $50,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F9755H

IDV Type: FSS

Timeline