Booz Allen Hamilton awarded over $32.5M for NIH program management support, raising value-for-money questions

Contract Overview

Contract Amount: $32,575,686 ($32.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2008-02-06

End Date: 2010-06-14

Contract Duration: 859 days

Daily Burn Rate: $37.9K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: OTHER (NONE OF THE ABOVE)

Sector: IT

Official Description: CIT: BOOZ ALLEN - PROGRAM MANAGEMENT SUPPORT FOR CABIG

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $32.6 million to BOOZ ALLEN HAMILTON INC for work described as: CIT: BOOZ ALLEN - PROGRAM MANAGEMENT SUPPORT FOR CABIG Key points: 1. Contract awarded to a single, large incumbent contractor suggests potential for limited competition. 2. The contract duration of nearly three years indicates a significant, ongoing need for services. 3. Performance context is limited without specific metrics on program management effectiveness. 4. Sector positioning is within federal IT and management consulting services. 5. Risk indicators include potential for cost overruns and lack of competitive pressure on pricing.

Value Assessment

Rating: fair

The contract value of over $32.5 million for program management support over approximately 2.5 years warrants scrutiny. Without detailed performance metrics or comparisons to similar contracts, it is difficult to definitively assess value for money. The pricing structure and specific deliverables would be crucial for a comprehensive benchmark against market rates or other government contracts for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. However, the fact that Booz Allen Hamilton was the awardee suggests they were among the most competitive. Further details on the number of bids received and the evaluation criteria would provide a clearer picture of the competition's intensity.

Taxpayer Impact: A competitive award generally benefits taxpayers by fostering price discovery and potentially leading to more favorable pricing than a sole-source or limited-competition scenario.

Public Impact

The primary beneficiaries are likely the National Institutes of Health (NIH) programs that receive enhanced management support. Services delivered include program management, strategic planning, and operational support to facilitate NIH initiatives. The geographic impact is primarily within Maryland, where the contract is administered. Workforce implications include the employment of consultants and program managers by Booz Allen Hamilton.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor lock-in due to incumbent status.
Lack of transparency on specific performance metrics makes value assessment challenging.
High contract value could indicate significant reliance on external expertise, potentially at a premium.

Positive Signals

Awarded through a competitive process, suggesting some level of market vetting.
Booz Allen Hamilton is a large, established contractor with a track record in federal IT and program management.
Contract duration implies a stable, ongoing requirement that has been met by the current vendor.

Sector Analysis

This contract falls within the federal IT and professional services sector, specifically focusing on program management support for a major health research agency. The market for such services is large and competitive, with numerous large and small businesses offering similar capabilities. Benchmarking would involve comparing this contract's value and scope to other program management support contracts awarded by agencies like NIH or other components of HHS.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major incumbent, it is unlikely to have significant direct subcontracting opportunities for small businesses unless explicitly mandated or pursued by the prime contractor. The impact on the small business ecosystem would be minimal in terms of direct awards.

Oversight & Accountability

Oversight would typically be managed by the contracting officer and program officials within NIH. Accountability measures would be tied to the contract's performance work statement and delivery schedules. Transparency is generally facilitated through contract databases like FPDS, but detailed internal performance reviews and IG oversight would depend on specific agency protocols and any identified issues.

Related Government Programs

NIH Program Management Support Contracts
HHS IT Services Contracts
Federal Management Consulting Services
Large-Scale Government Program Support

Risk Flags

Potential for limited competition
Lack of detailed performance metrics
High contract value requires strong justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $32.6 million to BOOZ ALLEN HAMILTON INC. CIT: BOOZ ALLEN - PROGRAM MANAGEMENT SUPPORT FOR CABIG

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 $32.6 million.

What is the period of performance?

Start: 2008-02-06. End: 2010-06-14.

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

Booz Allen Hamilton is a well-established federal contractor with extensive experience across various agencies, including the Department of Health and Human Services (HHS) and its components like the National Institutes of Health (NIH). They frequently secure contracts for IT services, management consulting, and program support. Their historical performance data, often available through federal procurement databases, would show a pattern of large contract awards. Analyzing past performance reviews, any past performance issues or commendations, and the types of services rendered on previous NIH/HHS contracts would provide context for this specific award. This includes understanding their success in delivering complex program management solutions and their ability to meet performance requirements within budget and schedule.

How does the value of this contract compare to other program management support contracts at NIH or similar agencies?

Comparing the $32.5 million value of this contract requires identifying similar program management support contracts awarded by NIH or other large federal health agencies (e.g., CDC, FDA) over comparable timeframes. Factors to consider include the scope of services, the number of personnel involved, and the specific program areas supported. If this contract represents a significantly higher or lower cost per year or per service compared to benchmarks, it could indicate either exceptional value or potential overpricing. Without access to detailed service-level agreements and specific performance metrics for comparison, a precise value assessment is challenging. However, the duration (nearly 3 years) and total value suggest a substantial, ongoing requirement.

What are the key performance indicators (KPIs) used to measure the success of this program management support contract?

The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. Typically, for program management support, KPIs would focus on aspects such as adherence to project timelines, budget management, successful delivery of program milestones, quality of reports and analyses provided, stakeholder satisfaction, and the effectiveness of strategic planning and operational improvements implemented. The contract's Performance Work Statement (PWS) would outline these metrics. Without access to the PWS or performance reports, it's difficult to assess how effectively Booz Allen Hamilton is meeting the government's needs and whether the contract is delivering optimal value.

What is the historical spending trend for program management support at NIH, and how does this contract fit within that trend?

Analyzing historical spending trends for program management support at NIH would involve examining procurement data over several fiscal years. This would reveal whether spending in this category is increasing, decreasing, or remaining stable. This specific $32.5 million contract, spanning approximately 2.5 years, represents a significant but potentially typical investment for a large agency like NIH requiring extensive program support. If NIH's overall spending on program management has been rising, this contract would align with that trend. Conversely, if spending has been declining, this award might warrant further investigation into the necessity and scope of the services.

What are the potential risks associated with awarding a large program management contract to a single, incumbent contractor like Booz Allen Hamilton?

Awarding a large contract to a single, incumbent contractor like Booz Allen Hamilton carries several potential risks. One primary risk is 'contractor lock-in,' where the government becomes overly reliant on the incumbent, making it difficult to switch providers or negotiate favorable terms in the future. This can reduce competitive pressure on pricing and innovation. Another risk is complacency, where the contractor may not feel the same urgency to perform at peak efficiency as they might in a more competitive environment. Furthermore, if the incumbent's approach or technology becomes outdated, transitioning to a new solution could be complex and costly. Ensuring robust oversight and clear performance standards is crucial to mitigate these risks.

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 2

Pricing Type: OTHER (NONE OF THE ABOVE) (3)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)

Address: 8283 GREENSBORO DR, MCLEAN, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $52,088,338

Exercised Options: $32,575,686

Current Obligation: $32,575,686

Parent Contract

Parent Award PIID: GS35F0306J

IDV Type: FSS

Timeline