Booz Allen Hamilton awarded $25.3M for Task Area 2, a custom computer programming services contract

Contract Overview

Contract Amount: $25,290,877 ($25.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2021-10-01

End Date: 2026-05-31

Contract Duration: 1,703 days

Daily Burn Rate: $14.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TASK AREA 2

Place of Performance

Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225

State: Illinois Government Spending

Plain-Language Summary

Department of Defense obligated $25.3 million to BOOZ ALLEN HAMILTON INC for work described as: TASK AREA 2 Key points: 1. The contract's value of $25.3 million over its period of performance suggests a significant investment in specialized IT services. 2. As a firm-fixed-price contract, the government has defined the scope and cost, shifting performance risk to the contractor. 3. The award was made under full and open competition, indicating a broad market search and potential for competitive pricing. 4. The duration of 1703 days (approximately 4.6 years) points to a long-term need for these programming services. 5. The contract is categorized under Custom Computer Programming Services, highlighting its focus on bespoke software development or integration. 6. The contractor, Booz Allen Hamilton, is a large, established firm with extensive experience in government contracting.

Value Assessment

Rating: good

Benchmarking the value of this contract requires detailed comparison to similar custom programming services procured by the Department of Defense and other agencies. Given the firm-fixed-price structure and the duration, the $25.3 million total value appears reasonable for a large, established contractor like Booz Allen Hamilton. However, without specific details on the deliverables and complexity of 'Task Area 2,' a precise value-for-money assessment is challenging. The number of bids received (10) suggests a healthy level of interest, which can contribute to fair 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 bids. Ten offers were received, indicating a competitive environment for this requirement. The open competition process is designed to ensure that the government receives the best possible value by allowing multiple vendors to propose solutions and pricing, thereby fostering price discovery and potentially driving down costs.

Taxpayer Impact: Taxpayers benefit from full and open competition as it increases the likelihood of obtaining services at a fair and reasonable price. It also promotes a wider range of innovative solutions and prevents potential price gouging associated with limited or sole-source procurements.

Public Impact

The primary beneficiaries are likely Department of Defense components requiring custom computer programming services for specific operational needs. The services delivered will focus on developing or enhancing software solutions tailored to the agency's unique requirements. The geographic impact is centered around the contractor's operational base and the agency's deployment locations, with Illinois noted as the state of contract award. This contract supports a workforce of skilled IT professionals, including programmers, developers, and potentially project managers, employed by Booz Allen Hamilton.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if 'Task Area 2' is not precisely defined, leading to cost overruns despite the fixed-price nature.
Dependence on a single large contractor for critical programming services could pose a risk if performance falters.
The long contract duration might lead to technology obsolescence if not managed proactively.

Positive Signals

Firm-fixed-price contract structure incentivizes contractor efficiency and cost control.
Award to a reputable contractor like Booz Allen Hamilton suggests a high likelihood of successful performance.
Full and open competition indicates a robust procurement process that likely yielded competitive pricing.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically custom computer programming services. This is a critical area for government operations, supporting everything from administrative functions to advanced defense systems. The market for IT services is large and highly competitive, with numerous large and small businesses vying for government contracts. Benchmarks for similar custom programming services vary widely based on complexity, required expertise, and security clearances, but contracts in the tens of millions of dollars are common for significant development efforts.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false, sb=false). While the primary award is to a large business, Booz Allen Hamilton may engage small businesses as subcontractors. However, without specific subcontracting plans or goals outlined in the award data, the direct impact on the small business ecosystem is unclear. The absence of set-aside provisions means that opportunities for small businesses were likely pursued through the prime contractor's subcontracting efforts or were not prioritized for this specific procurement.

Oversight & Accountability

Oversight for this contract would typically be managed by the U.S. Transportation Command (USTRANSCOM) contracting office within the Department of Defense. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon cost and schedule. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Custom Computer Programming Services
Information Technology Services
Department of Defense IT Procurement
USTRANSCOM Contracts
Task Order Contracts

Risk Flags

Long contract duration may increase risk of technology obsolescence.
Firm-fixed-price structure shifts performance risk to contractor.
Lack of specific deliverable details limits immediate value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.3 million to BOOZ ALLEN HAMILTON INC. TASK AREA 2

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 (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $25.3 million.

What is the period of performance?

Start: 2021-10-01. End: 2026-05-31.

What is the specific nature of 'Task Area 2' and what are the key deliverables expected under this contract?

The provided data identifies 'Task Area 2' as a custom computer programming services requirement. However, the specific nature of these services and the key deliverables are not detailed in the summary data. Typically, such contracts involve the design, development, implementation, testing, and maintenance of software solutions tailored to unique government needs. Deliverables could range from new application development, system integration, database management, to cybersecurity enhancements. A thorough review of the contract statement of work (SOW) would be necessary to understand the precise scope and expected outcomes.

How does the $25.3 million value compare to similar custom programming contracts awarded by the DoD or USTRANSCOM?

The $25.3 million value for a contract spanning approximately 4.6 years (1703 days) for custom computer programming services is substantial but not unusual for a large prime contractor like Booz Allen Hamilton within the Department of Defense. Similar contracts for complex software development, system integration, or specialized IT support can range from several million to hundreds of millions of dollars, depending on the scope, duration, and criticality of the services. USTRANSCOM, like other major DoD components, frequently awards large IT contracts to support its global logistics and transportation missions. Without specific details on the technical requirements and complexity of 'Task Area 2,' a precise benchmark is difficult, but the award size is consistent with significant IT service procurements.

What are the primary risks associated with a firm-fixed-price contract of this duration for custom programming services?

The primary risks with a firm-fixed-price contract of this duration (over 4 years) for custom programming services revolve around scope definition and technological evolution. If 'Task Area 2' is not meticulously defined, scope creep can occur, forcing the contractor to absorb additional work within the fixed price, potentially impacting quality or leading to disputes. Conversely, if the government's needs evolve significantly due to technological advancements or changing mission requirements, the fixed-price nature might make it difficult or costly to adapt the software. The contractor bears the risk of cost overruns due to unforeseen technical challenges or inefficiencies. Additionally, maintaining relevance and avoiding technology obsolescence over such a long period requires proactive management and potential contract modifications.

What is Booz Allen Hamilton's track record with similar DoD IT contracts?

Booz Allen Hamilton is a major incumbent contractor for the Department of Defense and numerous other federal agencies, with a long and extensive track record in providing IT services, including custom computer programming. They consistently win large-value contracts across various domains, demonstrating a strong capability to meet complex government requirements. Their history includes significant work in areas such as systems engineering, cybersecurity, data analytics, and software development. While specific performance details for every contract are not publicly available, their continued success in winning competitive bids suggests a generally positive performance history and a deep understanding of the DoD's IT needs and procurement processes.

How does the competition level (10 offers) influence the value and innovation for this contract?

Receiving 10 offers under a full and open competition indicates a healthy and robust market response for this custom computer programming requirement. A higher number of bidders generally leads to more competitive pricing as companies strive to differentiate themselves and secure the contract. This increased competition can drive down costs for the government and potentially lead to more innovative solutions as contractors propose unique approaches to meet the stated requirements. The diversity of bidders could also bring a wider range of technical expertise and perspectives, benefiting the overall outcome of 'Task Area 2'.

What are the potential implications of this contract on future IT spending trends within USTRANSCOM?

This contract award signifies USTRANSCOM's continued investment in specialized IT capabilities, specifically custom programming. It suggests that the agency relies on bespoke software solutions to meet unique operational demands, rather than solely off-the-shelf products. The success and execution of 'Task Area 2' could influence future IT spending by demonstrating the value of tailored solutions. If this contract proves highly effective, USTRANSCOM might continue to prioritize similar custom development efforts. Conversely, challenges or cost overruns could prompt a re-evaluation of custom development versus COTS (Commercial Off-The-Shelf) solutions or SaaS (Software as a Service) models in future procurements.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 10

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: $25,615,471

Exercised Options: $25,385,877

Current Obligation: $25,290,877

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F386DA

IDV Type: FSS

Timeline