HHS awarded Booz Allen Hamilton $36.6M for IT services, with 21 bids received

Contract Overview

Contract Amount: $36,652,948 ($36.7M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2010-09-01

End Date: 2015-04-15

Contract Duration: 1,687 days

Daily Burn Rate: $21.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TAS::75 0872::TAS CIO-SP2I TASK ORDER AUTHORIZATION NUMBER: C-2673

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $36.7 million to BOOZ ALLEN HAMILTON INC for work described as: TAS::75 0872::TAS CIO-SP2I TASK ORDER AUTHORIZATION NUMBER: C-2673 Key points: 1. Value for money appears reasonable given the competitive nature of the award. 2. Strong competition dynamics suggest potential for favorable pricing. 3. No immediate risk indicators are apparent from the contract data. 4. Performance context is for IT systems design, a common federal requirement. 5. This contract falls within the IT services sector for the NIH. 6. The contract duration of nearly 5 years indicates a significant project.

Value Assessment

Rating: good

The contract value of $36.6 million over approximately 4.7 years suggests a moderate annual spend. Benchmarking against similar IT services contracts awarded by NIH or other HHS agencies would provide a clearer picture of value. The 'Time and Materials' pricing structure can sometimes lead to cost overruns if not closely managed, but the competitive award may have mitigated this risk. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the competitive landscape is a positive sign.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that 21 bids were received suggests a healthy level of interest and competition for this requirement. A high number of bidders generally leads to better price discovery and can drive down costs for the government, as contractors compete to offer the most attractive terms.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely resulted in a more competitive price than a sole-source or limited competition award. This ensures that federal dollars are used more efficiently.

Public Impact

The primary beneficiary is the National Institutes of Health (NIH), a component of HHS, which receives IT systems design services. The services delivered are crucial for the operational efficiency and technological infrastructure of the NIH. The geographic impact is primarily within Maryland, where the contractor is located and likely where services are performed. Workforce implications include employment opportunities for IT professionals within Booz Allen Hamilton and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep with Time and Materials pricing if not managed diligently.
Reliance on a single large contractor for critical IT services could pose a risk if performance falters.

Positive Signals

Awarded under full and open competition with a significant number of bidders.
Contractor (Booz Allen Hamilton) is a well-established entity in the federal contracting space.
Contract duration is substantial, suggesting a stable and ongoing need for these services.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically Computer Systems Design Services. This is a large and dynamic sector within the federal market, with significant annual spending across various agencies. Comparable spending benchmarks for IT services at NIH and HHS are typically in the billions annually, making this contract a moderate-sized award within that context. The market is characterized by a mix of large prime contractors and specialized small businesses.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Booz Allen Hamilton is a large business. There is no specific information provided regarding subcontracting plans or goals for small businesses on this particular award. Therefore, the direct impact on the small business ecosystem from this specific contract is likely limited, though large prime contractors often utilize small business subcontractors for specialized services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the National Institutes of Health. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is generally facilitated through contract databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HHS IT Services Contracts
NIH IT Modernization Efforts
Computer Systems Design Services
Large Business IT Contracts
Time and Materials Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Need for robust government oversight to manage scope and ensure efficiency.
Contractor performance history with HHS should be reviewed for potential risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $36.7 million to BOOZ ALLEN HAMILTON INC. TAS::75 0872::TAS CIO-SP2I TASK ORDER AUTHORIZATION NUMBER: C-2673

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 $36.7 million.

What is the period of performance?

Start: 2010-09-01. End: 2015-04-15.

What is the track record of Booz Allen Hamilton with the Department of Health and Human Services?

Booz Allen Hamilton has a substantial track record with the Department of Health and Human Services (HHS), having received numerous awards across various task orders and contracts. Their engagements often span a wide range of services, including IT modernization, cybersecurity, data analytics, and management consulting. For instance, prior to this specific contract, they likely held other significant IT-related awards with agencies under HHS, such as the Centers for Medicare & Medicaid Services (CMS) or the Food and Drug Administration (FDA). Analyzing their historical performance data within HHS, including past performance evaluations and any documented issues, would provide a comprehensive view of their reliability and effectiveness in serving the department's mission-critical needs.

How does the awarded price compare to similar IT services contracts at NIH?

The awarded value of approximately $36.6 million over nearly five years for computer systems design services at NIH represents an average annual value of roughly $7.8 million. To benchmark this effectively, one would compare it to other 'Computer Systems Design Services' contracts (NAICS 541512) awarded by NIH during a similar timeframe (2010-2015). Factors such as contract type (Time and Materials vs. Firm-Fixed-Price), specific deliverables, and the level of competition would need to be considered. Given that this contract saw 21 bids under full and open competition, the pricing is likely competitive. However, a detailed analysis would involve comparing the per-hour rates or total project costs for comparable scopes of work to determine if this award represents excellent, good, or fair value.

What are the primary risks associated with a Time and Materials contract of this magnitude?

Time and Materials (T&M) contracts, like the one awarded to Booz Allen Hamilton, carry inherent risks, primarily related to cost control. The government pays for the actual labor hours and materials used, plus a fixed fee or நிர்ணயிக்கப்பட்ட markup. The main risk is that costs can escalate beyond initial estimates if project scope creeps, inefficiencies arise, or labor rates are higher than anticipated. Without robust oversight and clear task definitions, T&M contracts can become more expensive than fixed-price alternatives. For this $36.6 million contract, effective project management, detailed tracking of hours and expenses, and strong government oversight are crucial to mitigate the risk of cost overruns and ensure value for taxpayer money.

How effective was the competition for this specific contract in driving down costs?

The fact that this contract received 21 bids under a full and open competition is a strong indicator of effective competition. A larger number of bidders generally increases the likelihood that contractors will offer more competitive pricing to win the award. This scenario suggests that the market had sufficient capacity and interest in providing the required computer systems design services to NIH. While the specific cost savings cannot be quantified without knowing the baseline or alternative bids, the high level of competition strongly implies that the government secured a favorable price point compared to what might have been achieved through a sole-source or limited competition procurement. This competitive pressure is a key mechanism for ensuring taxpayer value.

What is the historical spending trend for computer systems design services at NIH?

Historical spending trends for computer systems design services (NAICS 541512) at the National Institutes of Health (NIH) have generally shown consistent and significant investment over the years. Agencies like NIH rely heavily on IT infrastructure and system development to support their research, administrative, and public health missions. Spending in this category typically fluctuates based on specific modernization initiatives, research project needs, and overall budget allocations. While this specific $36.6 million contract represents a notable award, it fits within a broader pattern of substantial federal spending on IT services. Analyzing NIH's overall IT budget and procurement history for similar services would reveal trends related to the growth or decline in demand and the average cost of such services over time.

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: 21

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: $36,652,948

Exercised Options: $36,652,948

Current Obligation: $36,652,948

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 263010072

IDV Type: IDC

Timeline