Booz Allen Hamilton contract for MHS/HRO PIO support services valued at over $67M

Contract Overview

Contract Amount: $67,285,179 ($67.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2016-08-22

End Date: 2021-11-21

Contract Duration: 1,917 days

Daily Burn Rate: $35.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IGF::OT::IGF MILITARY HEALTH SYSTEM (MHS) REVIEW&HIGH RELIABILITY ORGANIZATION (HRO) PROGRAM INTEGRATION OFFICE (PIO) SUPPORT SERVICES

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $67.3 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF MILITARY HEALTH SYSTEM (MHS) REVIEW&HIGH RELIABILITY ORGANIZATION (HRO) PROGRAM INTEGRATION OFFICE (PIO) SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of approximately 5 years (1917 days) indicates a significant, long-term engagement. 3. The firm-fixed-price contract type generally shifts risk to the contractor, potentially stabilizing costs. 4. Awarded to a single contractor, Booz Allen Hamilton, for specialized administrative and management consulting. 5. The contract falls under the Administrative Management and General Management Consulting Services NAICS code. 6. The contract was awarded as a BPA Call, indicating it was likely part of a pre-existing agreement.

Value Assessment

Rating: fair

The contract value of over $67 million for approximately five years of support for the Military Health System and High Reliability Organization Program Integration Office appears substantial. Benchmarking this against similar large-scale consulting contracts within the Department of Defense is challenging without more specific service details. However, the firm-fixed-price nature suggests an attempt to control costs, but the overall value for money depends heavily on the quality and impact of the services delivered. Further analysis would require understanding the specific deliverables and outcomes achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bids suggests a moderate level of competition for this significant contract. While multiple bidders participated, the specific number (4) doesn't necessarily guarantee the most competitive pricing without knowing the bid amounts and the perceived value of each offer. The agency likely sought a broad range of qualified contractors to ensure a competitive selection process.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value by encouraging multiple companies to offer their services at competitive prices.

Public Impact

The primary beneficiaries are the Military Health System (MHS) and the High Reliability Organization (HRO) Program Integration Office (PIO), receiving critical administrative and management consulting support. Services delivered likely include strategic planning, process improvement, organizational development, and program management to enhance the efficiency and effectiveness of military healthcare. The geographic impact is likely nationwide, supporting the MHS which operates globally, and potentially impacting military personnel, their families, and veterans who utilize these health services. Workforce implications could involve supporting the integration of HRO principles into the MHS, potentially leading to improved patient safety and operational performance within military medical facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term consulting contracts if not managed tightly.
Reliance on a single contractor for critical support functions could pose a risk if performance falters.
The effectiveness of the consulting services is difficult to quantify without clear performance metrics and outcome data.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm-fixed-price contract type helps to control costs and manage budget predictability.
The contractor, Booz Allen Hamilton, is a well-established firm with significant experience in government contracting.

Sector Analysis

This contract falls within the management consulting sector, a significant segment of the professional services industry supporting government operations. The market for federal consulting services is large and competitive, with agencies like the Department of Defense being major clients. This specific contract supports the Defense Health Agency, a critical component of the U.S. military's healthcare infrastructure, aiming to improve its operational efficiency and reliability through specialized management expertise. Comparable spending benchmarks would typically be found within other large-scale, multi-year consulting engagements for federal health or defense agencies.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal. However, the prime contractor, Booz Allen Hamilton, may engage small businesses as subcontractors for specialized services, which would indirectly benefit them. Further investigation into subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Health Agency's contracting officers and program managers. Performance reviews, regular reporting, and adherence to contract terms would be key accountability measures. Transparency is generally maintained through contract award databases and public reporting mechanisms. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Military Health System (MHS) Operations
High Reliability Organization (HRO) Initiatives
Program Integration Office (PIO) Support
Department of Defense Consulting Services
Healthcare Management Consulting

Risk Flags

Long contract duration may increase risk of scope creep or performance degradation.
Reliance on a single contractor for critical support functions.
Need for clear performance metrics to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $67.3 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF MILITARY HEALTH SYSTEM (MHS) REVIEW&HIGH RELIABILITY ORGANIZATION (HRO) PROGRAM INTEGRATION OFFICE (PIO) 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 Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $67.3 million.

What is the period of performance?

Start: 2016-08-22. End: 2021-11-21.

What specific services did Booz Allen Hamilton provide under this contract?

The contract data indicates that Booz Allen Hamilton provided 'Administrative Management and General Management Consulting Services' to the Military Health System (MHS) and the High Reliability Organization (HRO) Program Integration Office (PIO). While the NAICS code (541611) specifies the general category, the precise nature of the services would encompass areas such as strategic planning, organizational assessment, process improvement, program management support, policy development, and implementation assistance aimed at enhancing the efficiency, effectiveness, and reliability of military healthcare operations. These services are crucial for integrating HRO principles and optimizing the MHS's complex administrative functions.

How does the $67.2 million contract value compare to similar MHS or HRO support contracts?

Benchmarking the $67.2 million contract value requires comparing it to similar large-scale, multi-year consulting engagements specifically for the Military Health System or related defense health initiatives. Without access to a comprehensive database of historical MHS/HRO contracts and their specific scopes of work, a precise comparison is difficult. However, given the duration of approximately five years and the critical nature of supporting the MHS, this value appears substantial and is likely within the expected range for major consulting support to such a large and complex federal health system. It suggests a significant investment in improving operational performance and strategic direction.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for administrative and management consulting services supporting the MHS and HRO PIO, KPIs would be defined in the contract's Performance Work Statement (PWS). These could include metrics related to the successful implementation of HRO principles, improvements in patient safety incident reporting or reduction, enhanced operational efficiency within specific MHS facilities, successful integration of new programs or policies, stakeholder satisfaction (e.g., from MHS leadership), and timely delivery of reports and recommendations. The effectiveness of the contractor's performance would be assessed against these agreed-upon metrics.

What is Booz Allen Hamilton's track record with the Defense Health Agency or similar agencies?

Booz Allen Hamilton is a large and established government contractor with extensive experience serving various agencies within the Department of Defense, including the Defense Health Agency (DHA). They have a long history of providing a wide range of services, including management consulting, IT support, and strategic planning, to military and federal health organizations. Their track record generally includes successful execution of complex, high-value contracts. Specific performance details for past DHA contracts would require further research into contract databases and performance reports, but their continued success in winning competitive bids suggests a generally positive performance history.

What are the potential risks associated with a firm-fixed-price contract of this magnitude and duration?

While firm-fixed-price (FFP) contracts are designed to provide cost certainty, risks can still arise, especially for long-duration contracts like this one (approx. 5 years). A primary risk is that the contractor may cut corners on quality or service delivery to maximize profit if the initial price was underestimated or if unforeseen challenges arise. Conversely, if the scope of work significantly changes or expands beyond what was anticipated, the contractor may face financial losses if contract modifications are not adequately negotiated. For the government, the risk lies in ensuring the contractor remains motivated to deliver high-quality services throughout the contract's life and that the fixed price remains fair value as market conditions or requirements evolve.

How does this contract contribute to the broader goals of the Military Health System's transformation or modernization efforts?

This contract directly supports the Military Health System's (MHS) broader goals by providing essential administrative and management consulting expertise. The focus on High Reliability Organization (HRO) principles suggests an effort to enhance patient safety, reduce medical errors, and improve overall operational performance within military healthcare facilities. By integrating HRO concepts and optimizing program integration, the contract aims to modernize MHS operations, making them more efficient, effective, and resilient. This support is crucial for the MHS as it navigates complex healthcare challenges and strives to provide high-quality care to service members, veterans, and their families.

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HT001115T0022

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $70,349,655

Exercised Options: $67,285,179

Current Obligation: $67,285,179

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $198,773

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS10FDA003

IDV Type: BPA

Timeline