DHS's $11.3M contract for business continuity support awarded to Booz Allen Hamilton Inc

Contract Overview

Contract Amount: $11,296,963 ($11.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Homeland Security

Start Date: 2006-02-22

End Date: 2008-07-31

Contract Duration: 890 days

Daily Burn Rate: $12.7K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SUPPORT SERVICES FOR BUSINESS OPERATIONS / CONTINUITY OF OPERATIONS / EXERCISE PROGRAM PLANNING/OUSP OFFICE OF THE CHIEF INFORMATION OFFICER

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 $11.3 million to BOOZ ALLEN HAMILTON INC for work described as: SUPPORT SERVICES FOR BUSINESS OPERATIONS / CONTINUITY OF OPERATIONS / EXERCISE PROGRAM PLANNING/OUSP OFFICE OF THE CHIEF INFORMATION OFFICER Key points: 1. Contract awarded for critical business continuity and exercise program planning. 2. Booz Allen Hamilton Inc. has a significant track record with federal agencies. 3. The contract duration of 890 days suggests a substantial, ongoing need for these services. 4. Administrative Management and General Management Consulting Services are essential for operational resilience. 5. The contract was awarded as a competitive delivery order, indicating a degree of market engagement. 6. The total award value of $11.3M reflects the scale of support required.

Value Assessment

Rating: good

The contract value of $11.3 million for business continuity and exercise program planning over approximately 2.5 years appears reasonable given the scope of services. Benchmarking against similar large-scale consulting contracts for continuity of operations planning within federal agencies suggests this award falls within a typical range. The 'time and materials' pricing structure, while common, warrants scrutiny to ensure efficient resource utilization and prevent cost overruns. Without specific per-unit cost data, a direct comparison is challenging, but the overall value seems aligned with the complexity of supporting an agency like DHS.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' indicating that it was competed under a broader indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework that allowed for multiple potential bidders. The specific number of bidders for this particular delivery order is not provided, but the 'full-and-open' designation suggests a robust competition process was intended. This competitive approach generally aims to leverage market forces to achieve fair and reasonable pricing and access a range of qualified contractors.

Taxpayer Impact: A competitive award process, even for a delivery order, is beneficial for taxpayers as it increases the likelihood of obtaining services at a more competitive price and ensures that the government is not locked into a single provider without exploring alternatives.

Public Impact

The Department of Homeland Security (DHS) benefits from enhanced operational resilience and preparedness. Services delivered include planning and support for business continuity and exercise programs, crucial for maintaining essential functions during disruptions. The geographic impact is primarily within the District of Columbia, where the Office of the Chief Information Officer is located. Workforce implications include the engagement of specialized consulting expertise to bolster internal government capabilities in critical planning areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in time and materials contracts if not closely managed.
Reliance on external consultants may not build long-term internal capacity if knowledge transfer is insufficient.
The 'full-and-open' competition for the IDIQ contract may not translate to intense competition for every individual delivery order.

Positive Signals

Award to a well-established contractor like Booz Allen Hamilton suggests a high likelihood of successful service delivery.
Focus on business continuity and exercise planning addresses a critical government function, enhancing national security and operational stability.
Competitive award mechanism provides a degree of assurance regarding value for money.

Sector Analysis

This contract falls within the professional services sector, specifically management and administrative consulting. The federal market for these services is substantial, with agencies consistently seeking expertise in areas like IT management, strategic planning, and operational continuity. Booz Allen Hamilton is a major player in this space, often competing for and winning large-scale federal contracts. This award represents a typical engagement for a large, established consulting firm supporting a critical government function.

Small Business Impact

The contract was awarded to Booz Allen Hamilton Inc., a large business. There is no indication of a small business set-aside for this specific contract. Given the nature of the services and the prime contractor, it is possible that small businesses could be involved as subcontractors, but this information is not detailed in the provided data. The impact on the small business ecosystem would depend on the extent of any subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Homeland Security's Office of Procurement Operations and the Office of the Chief Information Officer. Performance reviews, regular reporting, and adherence to the contract's terms and conditions would be key accountability measures. Transparency is generally maintained through contract databases like FPDS, though detailed performance metrics are often internal.

Related Government Programs

Federal Continuity Directive 1
Continuity of Operations (COOP) Planning
Federal Information Security Management Act (FISMA) Compliance Support
IT Modernization Initiatives
Government Management Consulting Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Risk of insufficient knowledge transfer from contractor to government personnel.
Dependence on a single large contractor for critical support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $11.3 million to BOOZ ALLEN HAMILTON INC. SUPPORT SERVICES FOR BUSINESS OPERATIONS / CONTINUITY OF OPERATIONS / EXERCISE PROGRAM PLANNING/OUSP OFFICE OF THE CHIEF INFORMATION OFFICER

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 $11.3 million.

What is the period of performance?

Start: 2006-02-22. End: 2008-07-31.

What is Booz Allen Hamilton's track record with similar continuity of operations contracts?

Booz Allen Hamilton Inc. has a long and extensive history of providing professional services, including continuity of operations (COOP) planning and support, to various federal agencies. They are a prime contractor on numerous large IDIQ vehicles that encompass these types of services. Their track record includes supporting agencies like the Department of Defense, NASA, and other civilian departments in developing and testing their COOP plans, disaster recovery strategies, and overall business resilience frameworks. This experience suggests a deep understanding of federal requirements and best practices in this domain, making them a frequent choice for complex government support needs.

How does the $11.3 million award compare to other federal spending on business continuity consulting?

The $11.3 million award for business continuity and exercise program planning over approximately 890 days (roughly 2.5 years) is a significant but not extraordinary sum for a large federal agency like DHS. Federal spending on management and administrative consulting services, which includes COOP planning, often runs into the tens or hundreds of millions of dollars annually across various agencies. Contracts of this size are typical for comprehensive support that involves strategic planning, risk assessment, plan development, and exercise facilitation. Benchmarking against similar contracts for agencies of comparable size and complexity indicates this award is within the expected range for such critical services.

What are the primary risks associated with this type of 'time and materials' contract?

The primary risks associated with 'time and materials' (T&M) contracts, like this one, revolve around cost control and contractor efficiency. Since the contractor is reimbursed for direct labor hours at specified rates and for the cost of materials, there is a potential incentive for inefficiencies or extended timelines if not rigorously managed. Scope creep can also be a significant risk, where the project's objectives expand without a corresponding increase in the contract ceiling or a formal modification. Effective oversight, detailed work breakdown structures, and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value.

How effective are competitive delivery orders in ensuring value for money for taxpayers?

Competitive delivery orders, when executed properly, are generally effective in ensuring value for money for taxpayers. By allowing multiple qualified vendors to bid on a specific task order issued under a broader contract vehicle, the government can leverage competition to drive down prices and improve service quality. This process encourages vendors to offer their best pricing and solutions to win the work. However, the effectiveness is contingent on the number and capability of bidders, the clarity of the solicitation, and the fairness of the evaluation process. A truly competitive environment fosters price discovery and ensures that taxpayer funds are used efficiently.

What is the historical spending trend for administrative management and general management consulting services at DHS?

Historical spending trends for administrative management and general management consulting services at DHS, and across the federal government, have generally shown a consistent demand. Agencies frequently procure these services to address complex challenges in areas such as strategic planning, organizational efficiency, IT modernization, and program management. While specific year-over-year figures for DHS fluctuate based on agency priorities and budget allocations, the overall trend indicates a sustained reliance on external expertise to supplement internal capabilities. This particular contract, awarded in 2006 and ending in 2008, reflects a period where such support was deemed essential for operational continuity.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

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

Address: 8283 GREENSBORO DRIVE, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,239,385

Exercised Options: $11,296,963

Current Obligation: $11,296,963

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F9755H

IDV Type: FSS

Timeline