DHS awarded Booz Allen Hamilton $29.6M for IT support, raising questions about value and competition

Contract Overview

Contract Amount: $29,662,353 ($29.7M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Homeland Security

Start Date: 2014-09-26

End Date: 2017-07-31

Contract Duration: 1,039 days

Daily Burn Rate: $28.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::CL,CT::IGF ENTERPRISE TECHNICAL SUPPORT SERVICES CALL ORDER

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 $29.7 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::CL,CT::IGF ENTERPRISE TECHNICAL SUPPORT SERVICES CALL ORDER Key points: 1. The contract's Time and Materials (T&M) pricing structure may lead to cost overruns without strict oversight. 2. Limited competition and a high per-hour rate suggest potential for suboptimal value for taxpayer dollars. 3. The duration of the contract and its subsequent modifications warrant scrutiny for scope creep and efficiency. 4. Performance context is limited, making it difficult to assess the true impact and effectiveness of services rendered. 5. This contract falls within the IT services sector, specifically computer systems design, a common area for federal spending.

Value Assessment

Rating: questionable

The awarded amount of $29.6 million for IT support services over nearly three years appears high, especially considering the Time and Materials (T&M) contract type. T&M contracts can be prone to cost escalation if not managed rigorously. Benchmarking against similar IT support contracts within DHS or other agencies is difficult without more granular data on the specific services provided and the labor categories involved. However, the lack of a fixed price or performance-based structure raises concerns about achieving optimal value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is a positive indicator. However, the data indicates only two bidders participated in this specific call order. While full and open competition was the initial framework, the low number of actual bidders for this particular award suggests that the competitive landscape might have been narrower than ideal, potentially impacting price discovery and the range of solutions considered.

Taxpayer Impact: A narrow field of bidders, even within a full and open competition, can limit the downward pressure on pricing, potentially resulting in higher costs for taxpayers than if more robust competition had been present.

Public Impact

The Department of Homeland Security (DHS) benefits from enhanced IT infrastructure and technical support. Services delivered include computer systems design and technical support, crucial for agency operations. The geographic impact is primarily within the District of Columbia, where the contract is managed. Workforce implications include support for federal IT personnel and potentially the contractor's own technical staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to uncontrolled cost growth without stringent oversight.
Limited number of bidders (2) in the call order phase may indicate reduced competitive pressure on pricing.
Lack of detailed performance metrics makes it challenging to assess the contractor's effectiveness and value.
The contract's duration and potential for modifications warrant monitoring for scope creep and efficiency.

Positive Signals

Awarded under a full and open competition framework, allowing for broad market participation.
The contractor, Booz Allen Hamilton, is a well-established entity with significant federal contracting experience.
The contract supports critical IT functions for the Department of Homeland Security.

Sector Analysis

This contract falls within the broader IT services sector, specifically Computer Systems Design Services (NAICS 541512). This sector is a significant component of federal IT spending, encompassing a wide range of services from system integration to technical support. The market is characterized by a mix of large, established contractors like Booz Allen Hamilton and numerous smaller specialized firms. Federal spending in this area often focuses on maintaining and modernizing complex IT infrastructures, with contract values varying widely based on scope and duration.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). While the primary award went to a large business, Booz Allen Hamilton, there is no explicit information on subcontracting plans for small businesses within this specific call order. Without this data, it's difficult to assess the direct impact on the small business ecosystem. However, large federal contracts often have subcontracting requirements, which could indirectly benefit small businesses if utilized.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's contracting officers and program managers. The effectiveness of oversight is crucial, particularly given the Time and Materials (T&M) pricing structure, to ensure that costs remain reasonable and that services delivered align with requirements. Transparency is facilitated through contract databases like FPDS, but detailed performance reviews and Inspector General audits would provide deeper insights into accountability and potential issues.

Related Government Programs

IT Enterprise Management Services
Computer Systems Design Services
IT Support Services
Department of Homeland Security IT Contracts
Time and Materials IT Contracts

Risk Flags

Potential for cost overruns due to T&M contract type.
Limited competition observed in the call order phase.
Lack of detailed performance metrics for value assessment.
Contract duration and modification history require scrutiny.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $29.7 million to BOOZ ALLEN HAMILTON INC. IGF::CL,CT::IGF ENTERPRISE TECHNICAL SUPPORT SERVICES CALL ORDER

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 $29.7 million.

What is the period of performance?

Start: 2014-09-26. End: 2017-07-31.

What is the track record of Booz Allen Hamilton with DHS for similar IT support contracts?

Booz Allen Hamilton is a major federal contractor with a long history of providing IT and management consulting services across various government agencies, including DHS. Analyzing their past performance with DHS for similar IT support contracts would involve reviewing contract databases for prior awards, performance evaluations (if publicly available), and any documented issues or successes. Generally, Booz Allen Hamilton has a substantial portfolio, but specific performance on comparable contracts would require a deeper dive into contract-specific data and agency performance reports. Their extensive experience suggests a capacity to handle complex IT requirements, but value and efficiency can vary significantly contract by contract.

How does the per-hour billing rate for this contract compare to market rates for similar IT support services?

Determining the exact per-hour billing rate and comparing it to market rates is challenging without specific details on the labor categories, skill levels, and geographic locations associated with this contract. Time and Materials (T&M) contracts often have a ceiling rate for different personnel types. If this contract's rates are significantly above industry averages for comparable roles (e.g., senior systems analysts, network engineers) in the Washington D.C. area, it could indicate a lack of competitive pricing. Benchmarking would require access to detailed rate structures and comparison with data from other government contracts or commercial IT service providers operating in the same market.

What are the primary risks associated with the Time and Materials (T&M) contract type for this service?

The primary risk with a T&M contract for IT support services is the potential for cost overruns and a lack of incentive for the contractor to control expenses or increase efficiency. Unlike fixed-price contracts, the government pays for the actual labor hours and materials used. If not managed with rigorous oversight, including detailed tracking of hours, validation of tasks performed, and strict controls on material costs, the total cost can exceed initial estimates significantly. This can lead to reduced value for taxpayer money and potential budget unpredictability. Effective oversight, clear task definitions, and strong performance monitoring are critical to mitigate these risks.

How has spending on IGF ENTERPRISE TECHNICAL SUPPORT SERVICES evolved over time?

The provided data represents a single call order under a BPA for 'IGF ENTERPRISE TECHNICAL SUPPORT SERVICES' awarded to Booz Allen Hamilton, totaling $29.6 million with an end date of July 31, 2017. To understand the evolution of spending, one would need to examine the parent BPA (if applicable) and other call orders issued under it, as well as previous contracts for similar services. Without access to historical data for this specific BPA or related contracts, it's impossible to determine spending trends. Analyzing historical spending patterns would require querying contract databases for all related awards over several fiscal years to identify increases, decreases, or shifts in the scope and value of these services.

What is the significance of the 'Computer Systems Design Services' NAICS code in the context of federal IT spending?

The NAICS code 541512, 'Computer Systems Design Services,' is highly significant in federal IT spending as it encompasses a broad range of critical services. This includes designing and integrating hardware and software, developing custom software solutions, and providing IT consulting. Agencies rely heavily on these services to build, maintain, and modernize their complex IT infrastructures. Federal spending under this code often represents a substantial portion of agency IT budgets, reflecting the ongoing need for specialized expertise to manage evolving technological landscapes and cybersecurity threats. Contracts under this code can range from small, specialized projects to large enterprise-wide system overhauls.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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 DR, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,662,353

Exercised Options: $29,662,353

Current Obligation: $29,662,353

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $12,100,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: HSHQDC13A00016

IDV Type: BPA

Timeline