Interior's $29.4M broadband consulting contract awarded to Booz Allen Hamilton shows fair value with moderate competition

Contract Overview

Contract Amount: $29,418,483 ($29.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of the Interior

Start Date: 2012-03-01

End Date: 2015-03-25

Contract Duration: 1,119 days

Daily Burn Rate: $26.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: BROADBAND PROGRAMS - PROGRAM DEVELOPMENT AND ADMINISTRATIVE SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $29.4 million to BOOZ ALLEN HAMILTON INC for work described as: BROADBAND PROGRAMS - PROGRAM DEVELOPMENT AND ADMINISTRATIVE SERVICES Key points: 1. The contract provided essential administrative and management consulting services for broadband program development. 2. Booz Allen Hamilton, a large established firm, was the sole awardee. 3. The contract duration was nearly three years, indicating a need for sustained support. 4. The award was made under full and open competition, suggesting a robust bidding process. 5. The pricing appears reasonable when benchmarked against similar consulting services. 6. The contract's value is moderate within the context of federal IT and management consulting spending.

Value Assessment

Rating: fair

The total value of $29.4 million over approximately three years for administrative management and general management consulting services appears to be within a reasonable range for the scope of work. Benchmarking against similar contracts for management consulting services suggests that the pricing was competitive, especially considering the specialized nature of broadband program development support. While not exceptionally low, the cost does not indicate significant overspending for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of three bids suggests a reasonable level of competition for this type of specialized consulting service. A competitive bidding process generally helps ensure that the government receives fair pricing and the best value for its investment.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective solution for the government's broadband program development needs.

Public Impact

The primary beneficiaries are the Department of the Interior's broadband program initiatives, which received critical administrative and management support. Services delivered included program development, strategic planning, and general management consulting to facilitate broadband expansion efforts. The geographic impact is national, supporting federal broadband initiatives that aim to improve connectivity across the United States. The contract supported a workforce of consultants, contributing to employment in the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in given the sole awardee and duration.
Complexity of broadband program development may lead to scope creep if not managed tightly.

Positive Signals

Awarded through full and open competition, ensuring a fair process.
Booz Allen Hamilton is a reputable contractor with a strong track record in government consulting.
The contract provided specialized expertise crucial for complex federal programs.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The federal government frequently procures these services to support program development, strategic planning, and operational efficiency. Spending in this category is substantial, with billions allocated annually across various agencies for similar consulting needs. This particular contract addresses the growing importance of broadband infrastructure development.

Small Business Impact

There is no indication that this contract included a small business set-aside. As a large contract awarded to a major consulting firm, it is unlikely that significant subcontracting opportunities were mandated for small businesses, though the prime contractor may have engaged them voluntarily. The focus was likely on specialized expertise rather than small business participation.

Oversight & Accountability

Oversight would typically be managed by the contracting officer's representative (COR) within the Department of the Interior, ensuring adherence to contract terms and performance standards. Transparency is facilitated through federal procurement databases like FPDS. Accountability rests with Booz Allen Hamilton to deliver services as specified and with the agency to monitor performance and payment.

Related Government Programs

Federal Broadband Initiatives
Management and Consulting Services
Department of the Interior IT and Program Support

Risk Flags

Contract awarded as Time and Materials, which can carry higher risk of cost overruns if not managed carefully.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $29.4 million to BOOZ ALLEN HAMILTON INC. BROADBAND PROGRAMS - PROGRAM DEVELOPMENT AND ADMINISTRATIVE 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 the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $29.4 million.

What is the period of performance?

Start: 2012-03-01. End: 2015-03-25.

What was the specific nature of the 'Administrative Management and General Management Consulting Services' provided under this contract?

The contract focused on supporting the Department of the Interior's broadband program development. This likely encompassed a range of services such as strategic planning for broadband deployment, policy analysis, program management support, stakeholder engagement, grant administration assistance, and the development of operational frameworks. The goal was to provide the expertise needed to effectively plan, implement, and manage federal broadband initiatives, ensuring they met their objectives for expanding internet access and services.

How does the $29.4 million contract value compare to similar federal consulting contracts for program development?

The $29.4 million value over approximately three years for specialized program development consulting is considered moderate within the federal contracting landscape. Large-scale program management and strategic consulting contracts can range from tens to hundreds of millions of dollars, depending on the agency, scope, and duration. For a contract focused on a critical area like broadband development, this amount suggests a significant but not excessive investment, likely reflecting the complexity and importance of the services required. Benchmarking against similar contracts for management and administrative support services indicates fair market value.

What are the potential risks associated with awarding a multi-year consulting contract to a single large firm like Booz Allen Hamilton?

A primary risk is the potential for vendor lock-in, where the agency becomes heavily reliant on the incumbent contractor, making it difficult to switch providers or negotiate favorable terms in the future. There's also a risk of complacency or reduced innovation if competition is limited in subsequent procurements. Furthermore, the cost-effectiveness might diminish over time if robust performance monitoring and re-competition strategies are not actively pursued. However, the initial award under full and open competition mitigates some of these risks by ensuring a competitive start.

What was the track record of Booz Allen Hamilton with the Department of the Interior prior to this award?

Booz Allen Hamilton has a long-standing and extensive history of contracting with various U.S. federal agencies, including the Department of the Interior. Prior to this specific broadband program contract, the firm had likely been awarded numerous other contracts for a wide array of services, including management consulting, IT support, cybersecurity, and strategic planning. Their established presence and past performance with the agency would have been a significant factor in their ability to win this award, demonstrating a level of trust and familiarity with the Department's needs and processes.

Were there any performance issues or significant challenges reported during the execution of this contract?

Based on the available summary data, there are no explicit flags indicating significant performance issues or major challenges during the execution of this specific contract. Federal procurement data typically highlights major issues through contract modifications, disputes, or termination notices. The completion of the contract within its scheduled timeframe and award value suggests that services were likely delivered satisfactorily, although detailed performance reviews are not publicly available in this format. Continuous monitoring by the COR would have been in place.

How has federal spending on broadband-related consulting services evolved since this contract was awarded?

Since the award of this contract (2012-2015), federal spending on broadband-related consulting and program development has significantly increased. This surge is driven by a greater national focus on digital inclusion, infrastructure investment (e.g., through initiatives like the Broadband Equity, Access, and Deployment (BEAD) program), and the recognition of broadband as essential infrastructure. Agencies like the NTIA and FCC have seen substantial funding increases, leading to a greater demand for the types of administrative, management, and technical consulting services that Booz Allen Hamilton provided.

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

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)

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: $29,418,483

Exercised Options: $29,418,483

Current Obligation: $29,418,483

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F9755H

IDV Type: FSS

Timeline