Booz Allen Hamilton awarded $18.3M for IT services, highlighting long-term contract for NIH

Contract Overview

Contract Amount: $18,312,815 ($18.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2007-11-04

End Date: 2009-11-04

Contract Duration: 731 days

Daily Burn Rate: $25.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: OTHER (NONE OF THE ABOVE)

Sector: IT

Official Description: MISCELLANEOUS ITEMS

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $18.3 million to BOOZ ALLEN HAMILTON INC for work described as: MISCELLANEOUS ITEMS Key points: 1. Contract value of $18.3M over two years suggests a significant investment in IT support. 2. Awarded under full and open competition, indicating a broad market solicitation. 3. The contract duration of 731 days (2 years) is typical for IT services. 4. Services fall under 'Computer Systems Design Services', a common category for IT support. 5. The award to a large, established contractor like Booz Allen Hamilton is not unusual for complex IT needs. 6. The 'VA' contract type suggests it may be related to Veterans Affairs, though the agency is HHS/NIH. 7. No small business set-aside indicates the primary contractor is not a small business.

Value Assessment

Rating: good

The contract value of $18.3 million over two years averages to $9.15 million per year. This is a substantial amount, but without specific deliverables or scope of work, direct comparison is difficult. However, for IT systems design services provided to a major federal health agency like NIH, this figure is within a reasonable range for a large, experienced contractor. Benchmarking against similar contracts for comparable services would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' meaning all responsible sources were permitted to submit a bid. This typically leads to a more competitive bidding process, potentially resulting in better pricing and service offerings for the government. The fact that it was fully competed suggests that the government sought the best possible solution from the widest possible pool of contractors.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve the quality of services received.

Public Impact

The National Institutes of Health (NIH) benefits from enhanced computer systems design and support. Researchers and administrative staff at NIH will likely experience improved IT infrastructure and services. The contract supports the operational efficiency of a leading federal biomedical research agency. The geographic impact is primarily at NIH facilities, likely in the Washington D.C. metropolitan area. Workforce implications may include the direct employment of IT professionals by Booz Allen Hamilton to fulfill the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor lock-in if services are highly specialized and integrated.
Reliance on a single large contractor could limit future flexibility in IT solutions.
The significant contract value may indicate a complex scope that carries inherent execution risks.

Positive Signals

Award to a well-established contractor with a proven track record in government IT services.
Full and open competition suggests a robust selection process.
The contract duration allows for stability and continuity in critical IT support.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design services. The federal IT market is vast, with agencies consistently investing in maintaining and upgrading their technological infrastructure. Contracts like this are crucial for supporting the operational backbone of agencies such as the NIH, enabling them to conduct research and fulfill their missions. Benchmarks for similar IT services contracts can range widely based on scope, duration, and complexity, but $18.3 million over two years for a major agency is a significant, yet not extraordinary, investment.

Small Business Impact

The contract was not set aside for small businesses, and the prime contractor, Booz Allen Hamilton, is a large corporation. This indicates that the primary focus was on securing the best available services from the broader market rather than specifically targeting small business participation. There is no explicit information on subcontracting plans for small businesses within this data, which could be a missed opportunity for small business engagement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the National Institutes of Health (NIH). Performance reviews, regular reporting, and adherence to contract terms would be key accountability measures. Transparency is generally maintained through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Support Services
Computer Systems Design
Federal IT Modernization
Health IT Services
Management and Consulting Services

Risk Flags

Contract Duration
Contract Value
Contract Type

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $18.3 million to BOOZ ALLEN HAMILTON INC. MISCELLANEOUS ITEMS

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 $18.3 million.

What is the period of performance?

Start: 2007-11-04. End: 2009-11-04.

What is Booz Allen Hamilton's track record with the Department of Health and Human Services (HHS) and its agencies like NIH?

Booz Allen Hamilton has a long and extensive history of contracting with HHS and its various agencies, including the National Institutes of Health (NIH). Their portfolio includes a wide range of services, often encompassing IT modernization, cybersecurity, data analytics, and management consulting. Given their status as a major federal contractor, they have secured numerous awards across different HHS operating divisions over many years. This specific contract for computer systems design services aligns with their core competencies and past performance within the health sector. Analyzing their historical performance on similar contracts within HHS would provide further insight into their reliability and effectiveness in delivering complex IT solutions for health-related research and administration.

How does the $18.3 million contract value compare to other IT services contracts awarded by NIH in recent years?

The $18.3 million contract value for two years of computer systems design services from Booz Allen Hamilton represents an average annual value of $9.15 million. To benchmark this, one would need to compare it against other IT services contracts awarded by NIH for similar scope and duration. NIH, being a large agency with substantial IT needs, awards numerous contracts in this domain. Larger, more comprehensive IT modernization or system development contracts can easily reach tens or hundreds of millions of dollars. Conversely, smaller, more focused support contracts might be in the single-digit millions annually. Therefore, $9.15 million annually for systems design services appears to be a moderate to significant investment, suggesting a substantial scope of work, but not necessarily at the highest end of NIH's IT spending spectrum.

What are the primary risks associated with a contract of this nature and duration?

Key risks for a two-year, $18.3 million IT systems design contract include scope creep, where the project's requirements expand beyond the initial agreement, leading to cost overruns and schedule delays. Another risk is technological obsolescence; IT evolves rapidly, and the designed systems might become outdated before or shortly after implementation. Contractor performance risk is also present; despite Booz Allen Hamilton's experience, there's always a possibility of underperformance, missed deadlines, or failure to meet quality standards. Furthermore, security vulnerabilities in the designed systems could pose a significant risk, especially for an agency like NIH handling sensitive data. Finally, a lack of clear performance metrics or insufficient government oversight could exacerbate these risks.

How effective are 'full and open' competitions in ensuring value for money for IT services at NIH?

Full and open competitions are generally considered the most effective method for ensuring value for money in IT services at NIH. By allowing all responsible sources to compete, the government maximizes the pool of potential bidders, increasing the likelihood of receiving competitive proposals that offer the best combination of technical capability and price. This broad competition drives down costs as contractors vie for the award. Furthermore, it allows NIH to select solutions that are most innovative and best suited to their specific needs, rather than being limited to a pre-qualified list or a sole-source provider. While the administrative effort for full and open competition is higher, the potential for cost savings and superior service delivery typically outweighs these costs for significant IT investments.

What is the historical spending trend for 'Computer Systems Design Services' at NIH?

Historical spending trends for 'Computer Systems Design Services' (NAICS code 541512) at the National Institutes of Health (NIH) have generally shown a consistent and significant investment. As a leading biomedical research agency, NIH relies heavily on sophisticated IT infrastructure and specialized systems to manage vast amounts of data, support research activities, and facilitate collaboration. Spending in this category typically fluctuates based on major modernization initiatives, new research projects requiring unique IT solutions, or upgrades to existing systems. Over the past decade, federal IT spending, including systems design, has been a priority, and NIH's allocation reflects this. While specific year-over-year data would require detailed analysis of federal procurement databases, it's reasonable to assume a sustained level of spending in this area, often in the hundreds of millions of dollars annually across the agency, with individual contracts like the one awarded to Booz Allen Hamilton representing a portion of that overall investment.

Industry Classification

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

Product/Service Code: MISCELLANEOUS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

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: $18,847,388

Exercised Options: $18,847,388

Current Obligation: $18,312,815

Parent Contract

Parent Award PIID: 263010072

IDV Type: IDC

Timeline