Booz Allen Hamilton awarded $24.1M for IT support services, raising value-for-money questions

Contract Overview

Contract Amount: $24,139,549 ($24.1M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of the Interior

Start Date: 2014-12-30

End Date: 2020-06-29

Contract Duration: 2,008 days

Daily Burn Rate: $12.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IGF::CL::IGF PPM SUPPORT SERVICES FOR OCIO

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $24.1 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::CL::IGF PPM SUPPORT SERVICES FOR OCIO Key points: 1. The contract's value-for-money is fair, given the extended duration and the nature of IT support services. 2. Competition dynamics show a full and open competition, which is positive for price discovery. 3. Risk indicators are moderate, with potential for cost overruns in long-term IT support contracts. 4. Performance context suggests a need for ongoing IT support within the Department of the Interior. 5. Sector positioning places this contract within the broader IT services market for federal agencies.

Value Assessment

Rating: fair

The contract awarded to Booz Allen Hamilton for $24.1 million over approximately six years represents a significant investment in IT support. Benchmarking against similar IT support contracts within the federal government is challenging without more granular data on service levels and specific deliverables. However, the per-year cost averages around $4 million, which appears within a reasonable range for comprehensive IT support for a large agency like the Department of the Interior. Further analysis would require comparing the specific services rendered against industry standards and the pricing models of comparable contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of four bids suggests a reasonably competitive environment. Full and open competition is generally expected to yield competitive pricing and encourage innovation as contractors vie for the award. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the best value through an open bidding process.

Public Impact

The Department of the Interior's Office of the Chief Information Officer (OCIO) is the primary beneficiary, receiving essential IT support. Services delivered likely include system maintenance, network support, cybersecurity, and user assistance. The geographic impact is centered in Washington D.C., where the Department of the Interior is headquartered. Workforce implications may involve the direct employment of IT professionals by Booz Allen Hamilton and potential indirect impacts on government IT staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term IT support contracts.
Ensuring consistent service quality over the contract's duration.
Managing vendor performance effectively to meet evolving IT needs.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Booz Allen Hamilton is a large, established contractor with significant federal experience.
The contract duration allows for stable IT support operations.

Sector Analysis

This contract falls within the broader IT services sector, a critical component of federal government operations. The market for IT support services is highly competitive, with numerous large and small businesses vying for federal contracts. Spending in this category is substantial across all federal agencies, reflecting the increasing reliance on technology. Comparable spending benchmarks would involve analyzing IT support contracts across agencies with similar IT infrastructure needs and user bases.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Therefore, its direct impact on small businesses is limited. However, large prime contractors like Booz Allen Hamilton often engage small businesses as subcontractors. Further investigation would be needed to determine if subcontracting opportunities were utilized and to what extent they benefited the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Interior's contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement and delivery orders. Transparency is generally facilitated through contract databases like FPDS. The Inspector General for the Department of the Interior may have jurisdiction for audits and investigations if any concerns regarding waste, fraud, or abuse arise.

Related Government Programs

IT Professional Services
IT Management Consulting
Cloud Computing Services
Cybersecurity Services
Network Infrastructure Support

Risk Flags

Potential for cost overruns in long-term IT contracts.
Need for robust performance monitoring to ensure service quality.
Dependency on a single contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $24.1 million to BOOZ ALLEN HAMILTON INC. IGF::CL::IGF PPM SUPPORT SERVICES FOR OCIO

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 $24.1 million.

What is the period of performance?

Start: 2014-12-30. End: 2020-06-29.

What specific IT services were included under this contract, and how did their scope evolve over its duration?

The contract, identified by award number (not provided), was for 'PPM SUPPORT SERVICES FOR OCIO' (Project Portfolio Management Support Services for the Office of the Chief Information Officer). While the specific details of the scope are not fully elaborated in the provided data, PPM support typically encompasses services related to planning, organizing, securing, and managing resources to bring about the successful completion of IT projects and initiatives. This can include portfolio analysis, strategic planning, resource allocation, risk management, and performance monitoring. Over its duration from December 30, 2014, to June 29, 2020 (approximately 5.5 years), the scope likely adapted to the evolving IT priorities and challenges within the Department of the Interior's OCIO, potentially incorporating new methodologies or technologies as they emerged in the federal IT landscape.

How does the average annual cost of this contract compare to similar IT support contracts awarded by the Department of the Interior or other large federal agencies?

The contract's total value of $24,139,549.42 over a period of approximately 2008 days (roughly 5.5 years) results in an average annual cost of approximately $4.39 million. Comparing this to similar contracts requires access to a broader dataset of federal IT support awards. However, for a large agency like the Department of the Interior, which manages extensive IT infrastructure and supports a significant workforce, this annual expenditure for comprehensive OCIO support services appears to be within a reasonable range. Factors influencing cost include the complexity of the IT environment, the number of users supported, the criticality of the systems, and the specific service-level agreements. Without detailed service breakdowns and comparable contract specifics, a precise benchmark is difficult, but the figure does not immediately suggest overpricing for the scale of support likely provided.

What were the key performance indicators (KPIs) used to evaluate Booz Allen Hamilton's performance under this contract, and were they met?

The provided data does not include specific Key Performance Indicators (KPIs) or performance evaluation reports for this contract. Typically, IT support contracts, especially those involving Project Portfolio Management (PPM), would include KPIs related to project delivery timelines, budget adherence, system uptime, user satisfaction, and the successful implementation of IT strategies. Performance evaluations are usually conducted periodically by the government's Contracting Officer's Representative (COR) or Contracting Officer (CO). To assess whether KPIs were met, one would need to consult internal government performance reviews, contract modifications, or any official documentation related to contract closeout or award fee determinations. The absence of this information in public databases limits a direct assessment of performance quality.

What is Booz Allen Hamilton's track record with the Department of the Interior, particularly in IT support and PPM services?

Booz Allen Hamilton has a long-standing and extensive track record of providing a wide range of services, including IT support and management consulting, to the Department of the Interior and numerous other federal agencies. Their significant presence in the federal contracting space suggests a deep understanding of government operations and procurement processes. For IT support and PPM services specifically, Booz Allen Hamilton is known for its capabilities in areas such as strategic IT planning, cybersecurity, data analytics, and systems engineering. While this specific contract highlights their role in supporting the OCIO's PPM functions, their broader portfolio indicates a consistent ability to secure and execute large-scale IT-related contracts within the federal government. Their extensive experience generally implies a robust understanding of client needs and a capacity to deliver complex solutions.

Were there any contract modifications or significant changes to the scope or value of this contract after its initial award?

The provided data indicates the contract was awarded on December 30, 2014, with an end date of June 29, 2020, and a total value of $24,139,549.42. The data also notes '4' under 'no', which typically refers to the number of Delivery Orders issued against a contract or task order. While this suggests the contract was utilized through multiple orders, it does not explicitly detail any formal contract modifications that would alter the fundamental scope or total value beyond the initial award amount. Significant changes to scope or value would usually be documented through contract modifications (e.g., SF30 forms). Without access to the detailed contract file or modification logs, it's impossible to definitively state whether substantial changes occurred. However, the existence of multiple delivery orders implies ongoing work and potential adjustments within the established framework.

What is the historical spending trend for IT support services within the Department of the Interior's OCIO, and how does this contract fit into that trend?

Analyzing the historical spending trend for IT support services within the Department of the Interior's OCIO requires access to multi-year spending data for that specific office and function. This contract, valued at approximately $24.1 million over 5.5 years, represents a significant but not necessarily anomalous expenditure for comprehensive IT support and PPM services for a major federal agency's central IT office. Federal IT spending is generally characterized by consistent, substantial investments due to the critical nature of technology infrastructure. This contract likely fits into a pattern of ongoing, multi-year procurements for essential IT functions. To understand its place in the trend, one would need to compare its value and duration against previous and subsequent contracts for similar services within the DOI OCIO, looking for patterns in contract types, durations, and total spending levels.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: D15PS00042

Offers Received: 4

Pricing Type: LABOR HOURS (Z)

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: $30,201,818

Exercised Options: $30,201,818

Current Obligation: $24,139,549

Actual Outlays: $5,621,183

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: IND12PC00518

IDV Type: IDC

Timeline