Interior's $12.4M OCS CONNECT contract awarded to Booz Allen Hamilton for IT support

Contract Overview

Contract Amount: $12,443,407 ($12.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of the Interior

Start Date: 2004-10-01

End Date: 2006-10-06

Contract Duration: 735 days

Daily Burn Rate: $16.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: OCS CONNECT T/O 6

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $12.4 million to BOOZ ALLEN HAMILTON INC for work described as: OCS CONNECT T/O 6 Key points: 1. Contract value appears reasonable for the duration and scope of IT support services. 2. Full and open competition suggests a healthy market for these services. 3. Contract type (Time and Materials) may pose cost control risks if not managed closely. 4. Performance period of two years is relatively short for complex IT projects. 5. This contract falls within the broader IT services sector for federal agencies. 6. Booz Allen Hamilton is a large, established contractor with significant federal experience.

Value Assessment

Rating: good

The contract's total value of $12.4 million over approximately two years suggests a moderate annual spend. Benchmarking against similar IT support contracts for federal agencies of this size indicates that the pricing is likely within a competitive range. However, the Time and Materials (T&M) contract type requires diligent oversight to ensure costs remain controlled and do not escalate beyond the anticipated value. Without specific details on labor categories and rates, a precise value-for-money assessment is challenging, but the overall award amount does not immediately raise red flags.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This process typically fosters a competitive environment, driving down prices and encouraging innovation. The presence of a single award suggests that Booz Allen Hamilton presented the most advantageous offer based on the evaluation criteria. The level of competition is a positive indicator for price discovery and ensuring taxpayer funds are used efficiently.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by allowing a wide range of capable contractors to vie for the work, thereby driving down costs through market forces.

Public Impact

The Bureau of Ocean Energy Management (BOEM) benefits from enhanced IT infrastructure and support. Services likely include IT system maintenance, development, and operational support. The geographic impact is primarily within BOEM's operational locations, likely concentrated in Virginia. Workforce implications include the potential for IT specialists employed by Booz Allen Hamilton to support federal operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
The relatively short duration of the contract may limit long-term strategic IT planning.
Lack of specific performance metrics in the provided data makes it difficult to assess effectiveness.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Booz Allen Hamilton is a reputable contractor with extensive experience in federal IT services.
The contract supports a critical function within the Department of the Interior.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on IT support and potentially system modernization for a government agency. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. Contracts like this are common as agencies rely on external expertise for specialized IT functions. Comparable spending benchmarks would typically involve analyzing other IT support contracts awarded by agencies of similar size and mission.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. As a large prime contractor, Booz Allen Hamilton may have opportunities to engage small businesses for subcontracting, but this is not guaranteed by the contract's structure as presented. The impact on the small business ecosystem would depend on whether subcontracting opportunities are actively pursued and awarded.

Oversight & Accountability

Oversight for this contract would typically be managed by the Bureau of Ocean Energy Management (BOEM) contracting officers and technical points of contact. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and payment schedules tied to deliverables. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal IT Services
Department of the Interior IT Contracts
Bureau of Ocean Energy Management Support
Information Technology Professional Services

Risk Flags

Cost Overrun Risk (T&M Contract)
Limited Contract Duration
Potential for Insufficient Oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $12.4 million to BOOZ ALLEN HAMILTON INC. OCS CONNECT T/O 6

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 (Bureau of Ocean Energy Management).

What is the total obligated amount?

The obligated amount is $12.4 million.

What is the period of performance?

Start: 2004-10-01. End: 2006-10-06.

What specific IT services were encompassed by the OCS CONNECT TO 6 contract?

The provided data indicates the contract was for 'OCS CONNECT T/O 6' awarded to Booz Allen Hamilton by the Bureau of Ocean Energy Management (BOEM) within the Department of the Interior. While the specific task order details are not fully elaborated, the contract type (Time and Materials) and the contractor's specialization suggest services likely included IT support, system maintenance, potentially software development, network management, and other IT operational functions necessary for BOEM's mission. The 'OCS' likely refers to Outer Continental Shelf, indicating IT support related to BOEM's management of offshore energy resources.

How does the $12.4 million award compare to other IT support contracts for similar agencies?

The $12.4 million total award for approximately two years of service places this contract in the mid-range for federal IT support. Agencies like BOEM, which manage complex regulatory and operational functions, often require significant IT resources. Comparing this to other contracts awarded to large IT service providers for similar agencies (e.g., other bureaus within Interior, or agencies with comparable data management needs) would show that this amount is not unusually high. However, a precise comparison requires detailed analysis of the scope of work, labor categories, and specific deliverables, which are not fully detailed in the provided summary data.

What are the primary risks associated with a Time and Materials (T&M) contract for IT services?

The primary risk with Time and Materials (T&M) contracts, like OCS CONNECT T/O 6, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure places a greater burden on the government to closely monitor contractor effort and ensure that work is necessary and efficient. Without robust oversight, contractors may be incentivized to extend work hours or use more expensive materials than necessary, leading to costs exceeding initial estimates. For IT services, this can manifest as prolonged development cycles or extended support periods.

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

Booz Allen Hamilton is a major government contractor with a long and extensive history of providing IT and management consulting services across numerous federal agencies. They consistently rank among the top contractors for IT services, holding numerous large contracts with departments such as Defense, Health and Human Services, and Homeland Security, in addition to the Department of the Interior. Their track record includes managing complex system integrations, cybersecurity solutions, data analytics, and general IT support. While specific performance details for every contract vary, their sustained presence and significant contract awards indicate a generally strong capability and acceptance within the federal IT landscape.

How has federal spending on IT support services evolved, and where does this contract fit?

Federal spending on IT support services has been a consistently large and growing segment of the overall federal budget for decades, driven by the increasing reliance on technology for agency operations, data management, and citizen services. Spending has evolved from basic infrastructure maintenance to encompass complex areas like cloud computing, cybersecurity, data analytics, and artificial intelligence. This $12.4 million contract for BOEM fits within the traditional IT support category, focusing on maintaining and potentially enhancing existing systems. While not at the cutting edge of emerging technologies, it represents a crucial component of ensuring the stable functioning of essential government IT infrastructure, a category that continues to represent a significant portion of federal IT expenditures.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Contractor Details

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

Address: BOOZ ALLEN HAMILTON INC., MC LEAN, VA, 90

Financial Breakdown

Contract Ceiling: $12,443,407

Exercised Options: $12,443,407

Current Obligation: $12,443,407

Parent Contract

Parent Award PIID: INM0403BP72268

IDV Type: BPA

Timeline