Booz Allen Hamilton awarded $17.36M for DHS administrative management and general management consulting services

Contract Overview

Contract Amount: $17,360,777 ($17.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Homeland Security

Start Date: 2006-02-27

End Date: 2007-11-30

Contract Duration: 641 days

Daily Burn Rate: $27.1K/day

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: INFORMATION ANALYSIS AND INTELLIGENCE SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20407

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $17.4 million to BOOZ ALLEN HAMILTON INC for work described as: INFORMATION ANALYSIS AND INTELLIGENCE SUPPORT SERVICES Key points: 1. Contract awarded for administrative management and general management consulting services. 2. Services provided to the Department of Homeland Security (DHS). 3. Contract duration spans over 641 days. 4. Awarded as a delivery order under a larger contract. 5. Time and Materials contract type indicates potential for cost overruns. 6. Small business set-aside was not utilized. 7. Contractor has a significant presence in the federal contracting space.

Value Assessment

Rating: fair

The total award amount of $17.36 million for administrative management and general management consulting services appears to be within a reasonable range for a contract of this duration and scope. However, without specific details on the deliverables and the labor hours utilized, a precise value-for-money assessment is challenging. The Time and Materials (T&M) contract type, while offering flexibility, can sometimes lead to higher costs compared to fixed-price contracts if not managed diligently. Benchmarking against similar DHS contracts for management consulting would provide a clearer picture of its cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data does not specify the competition level for this particular delivery order. It is unclear if this was competed as a new solicitation, awarded under a previously competed contract, or if it was a sole-source action. The number of bidders and the procurement method are crucial for understanding the degree of competition and its potential impact on pricing and innovation.

Taxpayer Impact: The level of competition directly influences taxpayer value. Robust competition typically drives down prices and encourages better service offerings, leading to more efficient use of public funds. Limited or no competition can result in higher costs and potentially less optimal outcomes for taxpayers.

Public Impact

The Department of Homeland Security benefits from enhanced administrative management and general management consulting services. These services likely support the operational efficiency and strategic planning of DHS components. The contract's impact is primarily within the federal government's administrative functions. Workforce implications are likely related to the contractor's personnel supporting DHS operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost uncertainty if not closely monitored.
Lack of specific competition details makes it difficult to assess optimal pricing.
The broad nature of 'administrative management and general management consulting' could lead to scope creep if not well-defined.

Positive Signals

Booz Allen Hamilton is a well-established contractor with extensive experience in government services.
The contract supports a critical federal agency (DHS) in its mission.
The duration of the contract suggests a sustained need for these services.

Sector Analysis

This contract falls within the professional services sector, specifically management consulting. The federal government is a significant consumer of these services, utilizing them for strategic planning, operational improvements, and policy development across various agencies. The market for federal management consulting is competitive, with large firms like Booz Allen Hamilton holding substantial market share. Spending in this category is often driven by evolving government needs, regulatory changes, and the desire for external expertise.

Small Business Impact

The data indicates that this contract was not a small business set-aside. Therefore, there are no direct subcontracting implications specifically mandated for small businesses through this award. The absence of a small business set-aside means larger, established firms were likely the primary focus of this procurement. Further analysis would be needed to determine if Booz Allen Hamilton has its own small business subcontracting goals on this contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Homeland Security. The Time and Materials contract type necessitates close monitoring of labor hours and costs to ensure adherence to the contract's ceiling and prevent overspending. Transparency would be enhanced through regular reporting requirements and potentially through public contract databases, though specific oversight mechanisms are not detailed in the provided data.

Related Government Programs

DHS Management Consulting Services
Federal Administrative Support Contracts
Professional Services Contracts
Time and Materials Contracts

Risk Flags

Time and Materials Contract Type
Lack of Competition Details
Broad Service Category

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $17.4 million to BOOZ ALLEN HAMILTON INC. INFORMATION ANALYSIS AND INTELLIGENCE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $17.4 million.

What is the period of performance?

Start: 2006-02-27. End: 2007-11-30.

What specific types of administrative management and general management consulting services were provided under this contract?

The provided data categorizes the contract under NAICS code 541611 (Administrative Management and General Management Consulting Services). This broad category typically encompasses services such as strategic planning, organizational design, process improvement, performance management, and general management advice. However, the specific tasks performed under this $17.36 million award to Booz Allen Hamilton for DHS are not detailed. Without a Statement of Work (SOW) or task orders, it's impossible to ascertain the precise nature of the consulting provided, such as whether it focused on IT management, human capital, financial operations, or overall agency strategy.

How does the $17.36 million award compare to typical spending for similar DHS consulting contracts?

Comparing the $17.36 million award requires context regarding the contract's duration and scope. This award, spanning approximately 20 months (from February 2006 to November 2007), suggests an average annual spend of roughly $10.3 million. This figure is substantial but not necessarily out of line for major consulting engagements with a large federal agency like DHS, which has a vast and complex mission. However, without knowing the specific services rendered and the number of consultants involved, a direct comparison to other DHS contracts is difficult. Benchmarking against contracts for similar management consulting services, considering their duration and complexity, would be necessary for a more precise assessment of its relative scale.

What are the potential risks associated with a Time and Materials (T&M) contract for consulting services?

Time and Materials (T&M) contracts, like the one awarded to Booz Allen Hamilton, carry inherent risks, primarily related to cost control. In a T&M arrangement, the government pays the contractor for the actual labor hours expended at specified hourly rates, plus the cost of materials. The primary risk is that the contractor may not be incentivized to control costs or complete tasks efficiently, as their profit is tied to the time spent. This can lead to cost overruns if the scope is not well-defined or if project management is weak. For the government, effective oversight is crucial to monitor hours, ensure fair pricing of labor categories, and prevent scope creep. The absence of a fixed ceiling or a firm completion date can make budgeting and financial planning more challenging.

What is Booz Allen Hamilton's track record with the Department of Homeland Security?

Booz Allen Hamilton has a long-standing and extensive track record of providing a wide array of services to the Department of Homeland Security (DHS) and its predecessor agencies. Their engagements with DHS have spanned various domains, including cybersecurity, intelligence analysis, IT modernization, management consulting, and program support. Given their significant presence in the federal contracting landscape, particularly within defense and intelligence communities, their relationship with DHS is substantial. This particular $17.36 million award for administrative management and general management consulting is one of many contracts they have held with the agency, reflecting their established position as a key service provider.

How has federal spending on management consulting services evolved over the period this contract was active and subsequently?

During the period this contract was active (2006-2007), federal spending on management consulting services was already significant, driven by needs for efficiency, modernization, and strategic planning in the post-9/11 era, particularly within agencies like DHS. Following this period, federal spending on consulting has generally continued to grow, albeit with shifts in focus. Trends have included increased demand for IT modernization, cybersecurity, data analytics, and cloud computing services. While traditional management consulting remains important, there's a greater emphasis on specialized technical expertise. Overall spending levels fluctuate based on budget appropriations, agency priorities, and national security concerns, but consulting remains a critical tool for federal agencies.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

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: $18,926,746

Exercised Options: $17,360,777

Current Obligation: $17,360,777

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F9755H

IDV Type: FSS

Timeline