Booz Allen Hamilton awarded $14.9M for custom computer programming services by DHS

Contract Overview

Contract Amount: $14,928,339 ($14.9M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Homeland Security

Start Date: 2009-02-07

End Date: 2014-08-06

Contract Duration: 2,006 days

Daily Burn Rate: $7.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: CYBER EXERCISE: CYBER STORM III.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $14.9 million to BOOZ ALLEN HAMILTON INC for work described as: CYBER EXERCISE: CYBER STORM III. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration spans over 5 years, indicating a long-term need for these services. 3. Services fall under custom computer programming, a critical area for government IT infrastructure. 4. The contract was awarded as a delivery order, implying it's part of a larger contract vehicle. 5. The contractor, Booz Allen Hamilton, is a well-established entity in the federal contracting space. 6. The contract type is Time and Materials, which can pose cost control challenges if not managed closely.

Value Assessment

Rating: fair

The total award amount of $14.9 million over approximately 5 years suggests a moderate annual spend. Benchmarking this against similar custom computer programming contracts is difficult without more specific service details. The Time and Materials pricing structure, while flexible, carries inherent risks for cost overruns if not meticulously monitored by the agency. The number of bids received (2) is on the lower side for a full and open competition, which might indicate less aggressive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. However, only two bids were received. This limited number of bidders could suggest that the market for this specific service is concentrated, or that the requirements were highly specialized, potentially limiting the pool of qualified offerors. A low number of bidders can sometimes lead to less competitive pricing.

Taxpayer Impact: While full and open competition is generally beneficial for taxpayers, the low number of bids received in this instance may have limited the potential for significant cost savings that could have been achieved with broader participation.

Public Impact

The Department of Homeland Security (DHS) benefits from enhanced cybersecurity capabilities through this contract. Custom computer programming services are delivered to support critical IT infrastructure and operations within DHS. The primary geographic impact is within the District of Columbia, where DHS operations are often centralized. The contract supports specialized IT workforce needs within the federal government.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed.
Low number of bidders (2) in a full and open competition may indicate limited market competition or specialized requirements.
The contract duration of over 5 years requires ongoing performance monitoring to ensure value.

Positive Signals

Awarded through full and open competition, adhering to principles of broad market access.
Contractor (Booz Allen Hamilton) has a significant presence and experience in federal IT services.
Services provided are crucial for cybersecurity and IT infrastructure, aligning with agency mission needs.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on custom computer programming services. This sub-sector is vital for government agencies to develop and maintain specialized software solutions tailored to unique operational requirements. The market for such services is competitive, with numerous large and small businesses offering expertise. Comparable spending benchmarks would depend heavily on the specific nature of the programming required, but federal IT spending is in the hundreds of billions annually.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, the contractor, Booz Allen Hamilton, is a large business, suggesting that subcontracting opportunities for small businesses may exist but are not mandated by a specific set-aside. The impact on the small business ecosystem would depend on the extent to which Booz Allen Hamilton utilizes small business subcontractors for specialized tasks within this contract.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and program managers within the Department of Homeland Security. As a delivery order under a larger contract vehicle, oversight mechanisms are likely established within the parent contract's terms. Transparency is facilitated through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.

Related Government Programs

DHS Cybersecurity Programs
Federal Custom Software Development
IT Services for Law Enforcement Agencies
Government IT Infrastructure Modernization

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Limited competition indicated by only two bidders.
Long contract duration requires sustained oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $14.9 million to BOOZ ALLEN HAMILTON INC. CYBER EXERCISE: CYBER STORM III.

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 $14.9 million.

What is the period of performance?

Start: 2009-02-07. End: 2014-08-06.

What is the track record of Booz Allen Hamilton with the Department of Homeland Security for similar custom computer programming services?

Booz Allen Hamilton has a substantial history of contracting with the Department of Homeland Security (DHS) across various IT and professional services. For custom computer programming specifically, their track record includes numerous awards, often in support of cybersecurity, intelligence analysis, and mission-critical systems. Analyzing their past performance on similar DHS contracts would involve reviewing metrics such as on-time delivery, adherence to budget, quality of deliverables, and customer satisfaction ratings. Given their size and tenure, they are a frequent awardee for complex IT requirements within DHS, indicating a generally positive working relationship and capability, though specific performance on any single contract can vary.

How does the $14.9 million award compare to other custom computer programming contracts awarded by DHS in the same period?

The $14.9 million award for Cyber Storm III falls within a moderate range for custom computer programming services. DHS awards a wide spectrum of IT contracts, from small, specialized projects to large enterprise-wide solutions. Contracts for complex cybersecurity exercises or the development of new, integrated systems can easily reach tens or hundreds of millions of dollars. This specific award, spread over approximately five years, suggests a significant but not exceptionally large investment for a multi-year, specialized IT service. To provide a precise comparison, one would need to analyze the scope and duration of other DHS custom programming contracts awarded between 2009 and 2014, looking at both Time and Materials and Firm-Fixed-Price vehicles.

What are the primary risks associated with a Time and Materials (T&M) contract for custom computer programming?

The primary risk with a Time and Materials (T&M) contract for custom computer programming is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual labor hours and material costs incurred, plus a fixed fee or overhead. If the scope of work is not clearly defined, or if project management is weak on either the contractor or government side, the contractor may bill for more hours or at higher rates than anticipated. This can lead to the final cost significantly exceeding initial estimates. Effective government oversight, detailed task orders, and vigilant monitoring of hours and rates are crucial to mitigate these risks and ensure fair value for taxpayer money.

What does the low number of bidders (2) in a 'full and open competition' imply about this contract?

A low number of bidders, such as two, in a 'full and open competition' can imply several things. It might suggest that the specific requirements of the contract were highly specialized, limiting the number of companies possessing the necessary technical expertise and clearances. Alternatively, it could indicate that the contract's value or duration was not attractive enough to draw a larger pool of competitors, or that the bidding process itself was perceived as burdensome. In some cases, it might also point to a concentrated market where only a few large, established players can realistically compete for such work. This limited competition could potentially impact price discovery, possibly leading to higher prices than if more bidders had participated.

How has federal spending on custom computer programming services evolved since this contract was awarded?

Federal spending on custom computer programming services has generally seen an upward trend since the period of this contract (2009-2014), driven by increasing digitalization, cybersecurity needs, and the modernization of legacy systems. Agencies continue to require tailored software solutions that off-the-shelf products cannot meet. While specific figures fluctuate annually based on agency priorities and budget allocations, the overall demand for custom development, particularly in areas like cloud computing, data analytics, AI, and cybersecurity, has remained robust. Government-wide IT spending remains a significant portion of the federal budget, with custom programming being a key component.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DRIVE, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,998,404

Exercised Options: $14,928,339

Current Obligation: $14,928,339

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HSHQDC06D00031

IDV Type: IDC

Timeline