Booz Allen Hamilton contract for computer systems design services awarded $25.6M by NIH

Contract Overview

Contract Amount: $25,660,552 ($25.7M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2016-06-01

End Date: 2020-11-30

Contract Duration: 1,643 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $25.7 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Full and open competition suggests a competitive bidding process. 3. Potential risks include contractor performance and alignment with NIH objectives. 4. Services provided are critical for supporting NIH's research and development initiatives. 5. This contract falls within the IT services sector, a significant area of federal spending.

Value Assessment

Rating: good

The contract value of $25.6 million over approximately four years for computer systems design services appears to be within a reasonable range for a firm of Booz Allen Hamilton's size and expertise. Benchmarking against similar large-scale IT service contracts awarded by agencies like NIH would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract suggests a degree of cost certainty for the government.

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. The presence of two bidders suggests a moderate level of competition for this specific contract. While more bidders could potentially drive prices lower, the existing competition likely provided a basis for fair pricing.

Taxpayer Impact: Taxpayers benefit from the assurance that the contract was not awarded without exploring a competitive marketplace, which generally leads to more efficient use of public funds.

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH), receiving essential computer systems design services. These services support NIH's mission to advance biomedical research and public health. The geographic impact is primarily within Virginia, where the contractor is located, but the services support national health initiatives. The contract supports a segment of the IT professional workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical IT systems design could pose a risk if performance falters.

Positive Signals

Award to a well-established contractor with a track record in government IT services.
Firm fixed-price contract provides cost predictability.
Full and open competition indicates a structured procurement process.

Sector Analysis

The IT services sector is a substantial component of federal spending, encompassing a wide range of activities from software development to systems integration and cybersecurity. Contracts like this one, for computer systems design, are crucial for maintaining and modernizing the technological infrastructure that supports agency operations. Comparable spending benchmarks in this area are often in the tens to hundreds of millions of dollars annually for large agencies like HHS.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Booz Allen Hamilton is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. The absence of a set-aside suggests that the primary focus was on obtaining the best value from the overall market, rather than specifically targeting small business participation.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the National Institutes of Health (NIH) contracting officers and program managers. The Department of Health and Human Services (HHS) also has an Office of Inspector General (OIG) that conducts audits and investigations into federal contracts to ensure accountability and prevent fraud, waste, and abuse. Transparency is facilitated through contract databases like FPDS-NG, where basic award information is publicly available.

Related Government Programs

NIH IT Modernization Efforts
HHS Chief Information Officer (CIO) Initiatives
Biomedical Research Support Services
Federal Civilian IT Services Contracts

Risk Flags

Contract Duration
Contract Value
Contractor Performance History

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $25.7 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF

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 $25.7 million.

What is the period of performance?

Start: 2016-06-01. End: 2020-11-30.

What is Booz Allen Hamilton's track record with the federal government, particularly with NIH?

Booz Allen Hamilton is a long-standing and prominent government contractor with extensive experience across various federal agencies, including the Department of Health and Human Services (HHS) and its sub-agency, the National Institutes of Health (NIH). They have a broad portfolio of contracts spanning IT services, management consulting, cybersecurity, and engineering. Their history with NIH includes numerous awards for complex projects related to health IT, data analytics, and research support. While generally considered a reliable performer, like any large contractor, they have faced scrutiny and reviews on specific projects. Analyzing past performance evaluations and any significant disputes or corrective actions related to their NIH contracts would provide a more granular view of their specific track record for this type of service.

How does the $25.6 million value compare to similar computer systems design contracts at NIH?

The $25.6 million contract value for computer systems design services awarded to Booz Allen Hamilton by NIH over approximately four years is a significant but not extraordinary amount for a large federal IT services contract. To benchmark effectively, one would need to compare it against other contracts for similar services (e.g., systems integration, IT modernization, software development support) awarded by NIH or comparable agencies (like CDC, FDA) during a similar timeframe. Factors such as contract duration, specific deliverables, complexity of systems involved, and the level of contractor expertise required heavily influence pricing. Without direct comparisons of scope and duration, it's difficult to definitively state if this represents exceptional value, but it falls within the expected range for a prime contractor of Booz Allen's caliber supporting a major federal health agency.

What are the primary risks associated with this contract for the government?

The primary risks associated with this contract include potential contractor underperformance, where Booz Allen Hamilton might fail to deliver the required computer systems design services to the agreed-upon standards or timelines. Another risk is cost overrun if the firm fixed-price contract doesn't adequately account for unforeseen complexities, although this is mitigated by the contract type. There's also a risk of vendor lock-in if the designed systems become highly proprietary or difficult to transition to another vendor. Furthermore, ensuring the security and integrity of NIH's data and systems throughout the design process is a critical risk area. Finally, misalignment between the contractor's proposed solutions and NIH's evolving strategic objectives could lead to suboptimal outcomes.

How effective are computer systems design services in supporting NIH's overall mission?

Computer systems design services are fundamental to supporting NIH's mission of advancing biomedical research and improving public health. Modern biomedical research relies heavily on sophisticated IT infrastructure for data management, analysis, collaboration, and dissemination of findings. Effective systems design ensures that researchers have access to reliable, scalable, and secure platforms for managing vast datasets (genomics, clinical trials, etc.), utilizing advanced computational tools, and collaborating across institutions. When these systems are well-designed, they accelerate the pace of discovery, enhance data integrity, and facilitate the translation of research into clinical practice. Conversely, poorly designed systems can create bottlenecks, compromise data security, and hinder scientific progress.

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

Historical spending trends for computer systems design services at NIH, and the broader HHS, have generally shown a consistent and often increasing demand over the past decade. This reflects the growing reliance on digital infrastructure to support research, manage health data, and implement new public health initiatives. Agencies like NIH continuously invest in upgrading and modernizing their IT systems to keep pace with technological advancements and evolving research needs. While specific figures fluctuate year-to-year based on major projects and budget allocations, the overall trajectory indicates a sustained need for these services. Analyzing detailed historical spending data would reveal specific peaks and troughs related to major system implementations or upgrades.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

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: $25,660,552

Exercised Options: $25,660,552

Current Obligation: $25,660,552

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0306J

IDV Type: FSS

Timeline