Booz Allen Hamilton awarded $17.1M for computer systems design, highlighting significant IT support for the Department of Defense

Contract Overview

Contract Amount: $17,115,200 ($17.1M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2018-11-29

End Date: 2021-11-30

Contract Duration: 1,097 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: LABOR

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $17.1 million to BOOZ ALLEN HAMILTON INC for work described as: LABOR Key points: 1. Contract value of $17.1M for computer systems design services indicates substantial investment in IT infrastructure. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. A duration of 1097 days points to a long-term need for these services. 4. The Cost Plus Fixed Fee (CPFF) contract type may present cost control challenges if not closely managed. 5. The primary contractor, Booz Allen Hamilton, is a major player in the government contracting space. 6. Services are categorized under Computer Systems Design, a critical area for defense operations. 7. The contract was awarded by the Defense Contract Management Agency, indicating a focus on defense-related IT needs.

Value Assessment

Rating: good

The $17.1 million award for computer systems design services appears reasonable given the contract's duration of nearly three years and the nature of IT support for a large agency like the Department of Defense. Benchmarking against similar contracts for IT consulting and systems integration services would provide a more precise value assessment. However, the CPFF structure necessitates careful oversight to ensure costs remain within expected parameters and deliver good value.

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. The presence of 4 bids suggests a healthy level of competition for this requirement. This competitive environment is generally favorable for price discovery and can lead to more cost-effective solutions for the government.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible price and quality for essential IT services, reducing the risk of overpayment.

Public Impact

The Department of Defense benefits from enhanced computer systems design and support, crucial for operational effectiveness. This contract likely supports various defense initiatives requiring advanced IT infrastructure and expertise. The geographic impact is primarily within the United States, supporting defense operations nationwide. The contract supports a workforce skilled in computer systems design and IT services, potentially including specialized defense IT roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can lead to cost overruns if not meticulously managed and monitored.
The long duration of the contract increases the risk of scope creep or evolving technological needs not being adequately addressed.
Reliance on a single large contractor for critical IT services could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process and potential for competitive pricing.
The contractor, Booz Allen Hamilton, has extensive experience in government IT services, suggesting a high likelihood of successful performance.
The contract addresses a clear need for computer systems design services within the Department of Defense, a critical sector.

Sector Analysis

The IT services sector, particularly within government contracting, is highly competitive and essential for modern defense operations. This contract for computer systems design services falls within the broader IT consulting and systems integration market, which is valued in the billions annually. Booz Allen Hamilton is a significant player in this space, often competing for and winning large-scale government IT contracts. This specific award represents a portion of the Department of Defense's substantial IT spending, which is critical for maintaining technological superiority.

Small Business Impact

This contract does not appear to have a specific small business set-aside component, as indicated by 'sb': false. While the primary award is to a large business, there may be opportunities for small businesses to participate as subcontractors. Further analysis would be needed to determine the extent of small business subcontracting planned or achieved under this contract.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures would be embedded within the contract terms, including performance metrics and reporting requirements. Transparency is generally facilitated through contract award databases, though specific performance details may be sensitive.

Related Government Programs

Department of Defense IT Modernization Programs
Defense Information Systems Agency (DISA) Contracts
Federal Civilian IT Services Contracts
IT Consulting and Professional Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
Long contract duration increases the risk of scope creep and evolving technological requirements.
Reliance on a single large contractor for critical IT functions could present performance risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.1 million to BOOZ ALLEN HAMILTON INC. LABOR

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 Contract Management Agency).

What is the total obligated amount?

The obligated amount is $17.1 million.

What is the period of performance?

Start: 2018-11-29. End: 2021-11-30.

What is Booz Allen Hamilton's track record with similar Department of Defense IT contracts?

Booz Allen Hamilton has a long and extensive history of securing and performing IT services contracts with the Department of Defense. They are a prime contractor on numerous large-scale IT initiatives, including systems design, integration, cybersecurity, and data analytics. Their track record generally indicates successful performance, though like any large contractor, they have faced scrutiny on specific projects regarding cost and performance. The company's deep understanding of defense requirements and established relationships within the DoD contribute to their consistent success in winning competitive bids for complex IT solutions.

How does the $17.1 million value compare to other computer systems design contracts awarded by the DoD?

The $17.1 million value for this contract is within a common range for significant IT support services awarded by the Department of Defense. Larger, more complex system development or enterprise-wide IT overhauls can reach hundreds of millions or even billions of dollars. However, contracts in the tens of millions are frequent for specialized design services, system upgrades, or ongoing support for specific defense platforms or agencies. The duration of nearly three years also contributes to the overall value, making it a substantial, but not exceptionally large, award in the context of DoD's vast IT spending.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this nature?

The primary risk with a CPFF contract is that the 'cost-plus' element can incentivize the contractor to incur higher costs, as their fee is a fixed percentage of those costs. This can lead to budget overruns if not managed diligently. For the government, effective oversight is crucial to ensure that costs are reasonable and allocable to the contract's objectives. Scope creep is another significant risk; as the project evolves, additional costs may be incurred. The fixed fee provides some incentive for efficiency, but the government bears the primary risk of cost escalation. Robust monitoring of expenditures and regular performance reviews are essential to mitigate these risks.

How effective are full and open competitions in ensuring value for money in IT services for the DoD?

Full and open competitions are generally considered the most effective method for ensuring value for money in IT services for the DoD. By allowing all responsible sources to compete, the government maximizes the pool of potential offerors, fostering robust competition. This competition drives down prices and encourages innovation as contractors strive to offer the most compelling technical solutions at the best possible price. While the process can be more time-consuming and resource-intensive than other methods, the potential for significant cost savings and access to a wider range of capabilities typically outweighs these drawbacks, leading to better overall value for taxpayers.

What is the typical duration for computer systems design services contracts within the federal government?

The typical duration for computer systems design services contracts within the federal government can vary significantly based on the project's scope, complexity, and the agency's needs. Contracts can range from short-term, project-specific engagements lasting a few months to multi-year, enterprise-wide support agreements that extend for five years or more, often with option periods. A duration of 1097 days (approximately three years) for a contract like this is quite common, especially for services that require sustained effort, ongoing development, or long-term system integration and support. Shorter durations are more typical for specific, well-defined tasks, while longer periods are common for strategic IT initiatives or continuous support services.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0018918RZ031

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

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: $18,125,875

Exercised Options: $18,125,875

Current Obligation: $17,115,200

Actual Outlays: $1,657,775

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $2,056,276

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0018918DZ067

IDV Type: IDC

Timeline