DHS spent $19M on IT support services, with Booz Allen Hamilton Inc. securing a Time and Materials contract

Contract Overview

Contract Amount: $19,010,853 ($19.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Homeland Security

Start Date: 2005-05-20

End Date: 2007-11-30

Contract Duration: 924 days

Daily Burn Rate: $20.6K/day

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: INFRASTRUCTURE TRANSFORMATION PROGRAM OFFICE SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $19.0 million to BOOZ ALLEN HAMILTON INC for work described as: INFRASTRUCTURE TRANSFORMATION PROGRAM OFFICE SUPPORT Key points: 1. Contract awarded for IT support services, indicating a need for specialized technical assistance. 2. The Time and Materials contract type suggests potential for cost overruns if not closely managed. 3. Awarded to a single contractor, raising questions about the extent of competition. 4. The duration of the contract (924 days) suggests a long-term need for these services. 5. Services fall under Computer Systems Design, a common area for federal IT spending. 6. The contract was awarded under the 'Other' category for contract type, which warrants further investigation.

Value Assessment

Rating: fair

The contract value of approximately $19 million for IT support services over two years is within a typical range for federal agencies. However, the Time and Materials (T&M) pricing structure inherently carries a higher risk of cost escalation compared to fixed-price contracts. Without detailed breakdowns of labor hours and rates, a precise value-for-money assessment is challenging. Benchmarking against similar T&M contracts for computer systems design services would be necessary to determine if the pricing was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data indicates the contract was awarded to Booz Allen Hamilton Inc. with a 'DO' award type, which typically signifies a Delivery Order. The number of bids received is listed as 2. However, the specific competition method (e.g., full and open, sole source, limited competition) is not explicitly stated. If only two bids were received, it suggests a potentially limited competitive environment, which could impact price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: A limited number of bidders can mean less pressure on contractors to offer the lowest possible price, potentially resulting in higher spending for taxpayers.

Public Impact

The Department of Homeland Security (DHS) benefits from enhanced IT support, crucial for its operational effectiveness. Services delivered likely include system design, integration, and maintenance to support DHS's mission. The geographic impact is centered in the District of Columbia, where DHS headquarters is located. Workforce implications may involve the utilization of specialized IT professionals employed by Booz Allen Hamilton.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases risk of cost overruns.
Limited number of bidders (2) may indicate reduced competition and potentially higher prices.
Lack of specific details on service deliverables makes performance assessment difficult.

Positive Signals

Award to a large, established contractor like Booz Allen Hamilton suggests potential for reliable service delivery.
Contract duration indicates a sustained need and commitment to IT infrastructure.

Sector Analysis

This contract falls within the broader IT services sector, specifically Computer Systems Design Services. The federal government is a significant consumer of these services, with spending often driven by the need to modernize legacy systems, enhance cybersecurity, and support complex mission requirements. Comparable spending benchmarks for similar IT support contracts within DHS or other large federal agencies would provide context for the $19 million award. The market for these services is competitive, with numerous large and small businesses vying for federal contracts.

Small Business Impact

The data indicates that small business participation (ss and sb fields) was not a specific set-aside for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. However, as a large prime contractor, Booz Allen Hamilton may engage small businesses as subcontractors, contributing indirectly to the small business economy.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Homeland Security. Accountability measures would be tied to the performance standards outlined in the contract's statement of work and the T&M reporting requirements. Transparency is facilitated through contract databases like FPDS, which provide basic award information. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

DHS IT Modernization Programs
Federal Civilian IT Services
Computer Systems Design Services Contracts
Department of Homeland Security Procurement

Risk Flags

Time and Materials Contract Type
Limited Competition Indicated
Lack of Detailed Service Deliverables

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $19.0 million to BOOZ ALLEN HAMILTON INC. INFRASTRUCTURE TRANSFORMATION PROGRAM OFFICE SUPPORT

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 $19.0 million.

What is the period of performance?

Start: 2005-05-20. End: 2007-11-30.

What specific IT support services were provided under this contract?

The contract specifies 'Computer Systems Design Services' (NAICS code 541512). While the exact deliverables are not detailed in the provided summary, this category typically encompasses a range of services including IT consulting, systems integration, network design, software development support, and IT infrastructure management. For the Department of Homeland Security, these services would likely support critical mission functions, cybersecurity initiatives, or the modernization of existing IT systems. A deeper dive into the contract's Statement of Work (SOW) would be necessary to ascertain the precise nature and scope of the services rendered by Booz Allen Hamilton Inc.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change. They reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. Compared to fixed-price contracts, T&M offers more flexibility but carries a higher risk of cost overruns for the government if not managed diligently. For IT support services, fixed-price contracts are generally preferred when requirements are well-understood, as they provide greater cost certainty. However, for research, development, or rapidly evolving technical support needs, T&M can be appropriate, provided robust oversight is in place to control costs and ensure efficient performance.

What is Booz Allen Hamilton Inc.'s track record with federal IT contracts?

Booz Allen Hamilton Inc. is a major federal contractor with extensive experience in providing IT and management consulting services across various government agencies. They have a long history of securing and performing on large-scale federal contracts, including significant work within the Department of Defense and Homeland Security. Their track record generally includes a broad range of IT services, from cybersecurity and data analytics to systems engineering and cloud migration. While specific performance metrics for individual contracts vary, their consistent presence and substantial contract awards suggest a generally positive standing, though like any large contractor, they may have faced performance challenges on specific projects that would be detailed in past performance reviews.

What was the total spending on Computer Systems Design Services by DHS during the contract period?

To determine the total DHS spending on Computer Systems Design Services during the contract period (May 2005 - November 2007), one would need to query federal procurement databases (like FPDS) for all contracts awarded under NAICS code 541512 by the Department of Homeland Security within that timeframe. This specific contract represented $19,010,853.42 of that spending. Aggregating all similar contracts would provide a comprehensive view of DHS's investment in this service category during that period, allowing for a comparison of this contract's magnitude relative to the agency's overall IT support expenditures.

Were there any performance issues or disputes associated with this specific contract?

The provided summary data does not contain information regarding performance issues, disputes, or contract modifications for this specific award to Booz Allen Hamilton Inc. Such details are typically found in more comprehensive contract files, performance reports, or contract dispute resolution records. Without access to these deeper records, it is impossible to definitively state whether any performance issues arose during the contract's lifecycle. Federal contract databases often lack granular detail on day-to-day performance unless a significant dispute or termination occurred.

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

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: $19,010,853

Exercised Options: $19,010,853

Current Obligation: $19,010,853

Parent Contract

Parent Award PIID: GS35F0306J

IDV Type: FSS

Timeline