NIH's $34M IT Support Contract Awarded to Booz Allen Hamilton for Computer Systems Design Services

Contract Overview

Contract Amount: $33,960,198 ($34.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2012-09-20

End Date: 2018-05-04

Contract Duration: 2,052 days

Daily Burn Rate: $16.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: TASK ORDER C-3073 "OD EO/OIT IT SUPPORT AND SERVICES CONTRACT"

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $34.0 million to BOOZ ALLEN HAMILTON INC for work described as: TASK ORDER C-3073 "OD EO/OIT IT SUPPORT AND SERVICES CONTRACT" Key points: 1. Contract value represents a significant investment in IT infrastructure and support. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract duration of 2052 days (approx. 5.6 years) indicates a long-term need for these services. 4. The Cost Plus Fixed Fee (CPFF) contract type may allow for flexibility but requires careful oversight to manage costs. 5. The contract was awarded to a single vendor, Booz Allen Hamilton, for a specific task order. 6. The services fall under Computer Systems Design, a critical area for federal IT operations.

Value Assessment

Rating: good

Benchmarking the value of this specific task order against similar IT support contracts is challenging without more granular data on the scope of services. However, the total award of approximately $34 million over nearly six years suggests a substantial, but potentially reasonable, investment for comprehensive IT support. The CPFF pricing structure necessitates close monitoring of costs to ensure value for money, as it can incentivize cost increases if not managed effectively. Comparing this to other large-scale IT support contracts within HHS or NIH would provide a clearer picture of its relative cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a 'full and open competition' procurement method, indicating that all responsible sources were permitted to submit a bid. The data does not specify the number of bids received, but this method generally fosters a competitive environment. A competitive process is expected to drive down prices and encourage innovation from offerors seeking to win the contract. The fact that it was competed openly suggests that the agency sought the best value available in the market.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive prices, thereby maximizing the efficient use of public funds.

Public Impact

The primary beneficiaries are the various departments and agencies within the National Institutes of Health (NIH) that rely on robust IT infrastructure and support. The services delivered include computer systems design, integration, and ongoing IT support, crucial for the operational efficiency of NIH's research and administrative functions. The geographic impact is primarily within the locations where NIH operates, likely concentrated in Maryland and other research facilities. The contract supports a workforce of IT professionals, both directly employed by the contractor and potentially through subcontracting opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not rigorously managed, potentially increasing the final cost to taxpayers.
Lack of specific details on the number of bidders in the full and open competition makes it difficult to fully assess the intensity of competition and its impact on pricing.
The long duration of the contract (over 5 years) may pose a risk if technology needs change significantly, potentially leading to a contract that is not fully aligned with future requirements.

Positive Signals

Awarded through full and open competition, which typically results in better pricing and service quality.
The contract addresses critical IT support needs for a major federal health research agency, ensuring operational continuity.
Booz Allen Hamilton is a well-established contractor with significant experience in government IT services, suggesting a lower risk of performance issues.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The federal IT services market is vast, with agencies consistently investing in maintaining and upgrading their technological infrastructure. Contracts like this are essential for supporting the complex data processing, research, and administrative functions of agencies like NIH. Comparable spending benchmarks would involve looking at other large IT support and systems integration contracts awarded by agencies such as HHS, DOD, or GSA, which often run into tens or hundreds of millions of dollars.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) was not a specific set-aside criterion for this contract. Therefore, the direct impact on small businesses through set-asides is likely minimal. However, large prime contractors like Booz Allen Hamilton often engage small businesses as subcontractors to fulfill specific requirements or bring specialized expertise. The extent of subcontracting to small businesses would depend on the contractor's strategy and the specific needs of the task order, and is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within NIH responsible for IT services. The CPFF structure necessitates robust financial oversight to ensure costs are reasonable and allocable to the contract. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected or identified.

Related Government Programs

HHS IT Support Contracts
NIH IT Modernization Efforts
Federal Civilian Agency IT Services
Computer Systems Design and Integration Services
Large-Scale IT Task Orders

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage potential cost escalations.
Long contract duration may not fully align with rapidly evolving technological needs.
Specific number of bidders not provided, limiting full assessment of competition intensity.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $34.0 million to BOOZ ALLEN HAMILTON INC. TASK ORDER C-3073 "OD EO/OIT IT SUPPORT AND SERVICES CONTRACT"

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 (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $34.0 million.

What is the period of performance?

Start: 2012-09-20. End: 2018-05-04.

What is the track record of Booz Allen Hamilton in delivering similar IT support services to federal agencies?

Booz Allen Hamilton is a major government contractor with extensive experience in providing IT support, systems engineering, and digital transformation services across various federal agencies, including the Department of Defense, civilian agencies, and intelligence community. They have a long history of managing large, complex IT contracts. Their performance on similar contracts is generally well-documented in federal procurement databases, often reflecting a capacity to handle significant scope and scale. However, like any large contractor, specific performance on individual contracts can vary, and a detailed review of past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would be necessary for a comprehensive assessment of their track record on this specific type of service.

How does the total contract value of $34 million compare to other IT support contracts of similar scope and duration?

The total contract value of approximately $34 million over roughly 5.6 years equates to an average annual value of about $6 million. This figure is moderate for large-scale IT support contracts within federal agencies, particularly for an organization like NIH. Major IT modernization or comprehensive support contracts can often range from tens to hundreds of millions of dollars annually. For instance, large enterprise IT service contracts for agencies like the Department of Veterans Affairs or the Social Security Administration frequently exceed this annual average. Therefore, while substantial, this contract's value appears to be within a reasonable range for specialized IT support services, assuming the scope is well-defined and aligns with the agency's needs.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this IT support task order?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is incentivized to control costs to protect their fixed fee, the government bears the risk of increased costs beyond the initial estimate. This structure requires robust oversight from the contracting officer and technical team to ensure that all costs incurred are reasonable, allocable, and allowable. Without diligent monitoring, contractors may not exert sufficient cost control, leading to a higher final price than anticipated. Another risk is that the fixed fee, while negotiated, might not adequately compensate the contractor for unforeseen complexities, potentially leading to performance issues or requests for equitable adjustments.

How effective is 'full and open competition' in ensuring value for money for IT services contracts?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting. By allowing all responsible sources to compete, it maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. This broad competition increases the likelihood that the government will receive the best combination of price and performance. For IT services, where technology evolves rapidly and solutions can vary widely, open competition allows agencies to explore diverse approaches and select the most suitable and cost-effective option available in the market. The rigor of the evaluation process is also key to realizing these benefits.

What is the historical spending pattern for similar IT support services at NIH or HHS?

Historical spending patterns for IT support services at NIH and HHS are generally characterized by consistent and significant investment. Agencies like NIH, which are at the forefront of biomedical research, rely heavily on advanced IT infrastructure, data management, and specialized support. Spending in this area typically includes contracts for systems design, integration, cybersecurity, cloud services, and end-user support. Over the years, there has been a trend towards consolidating IT services under larger, more comprehensive contracts, often awarded through competitive processes. The total IT spending for HHS and its sub-agencies like NIH runs into billions of dollars annually, reflecting the critical role technology plays in their mission.

What are the potential implications of this contract on the IT workforce, both within the government and the contractor side?

This contract likely supports a significant number of IT professionals on the contractor's side, including systems designers, engineers, help desk personnel, and project managers. The duration and scope suggest a stable, long-term employment opportunity for these individuals. For the government side, such contracts allow federal employees to focus on strategic IT planning, policy, and oversight, rather than day-to-day technical operations. It can also lead to a reduced need for federal IT staff in certain operational roles. The specific impact on the government workforce depends on how NIH structures its internal IT management and whether this contract supplements or replaces existing federal capabilities.

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: 3

Pricing Type: COST PLUS FIXED FEE (U)

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: $33,960,198

Exercised Options: $33,960,198

Current Obligation: $33,960,198

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 263010072

IDV Type: IDC

Timeline