Booz Allen Hamilton contract for IT business solutions awarded $36.18M by NSF

Contract Overview

Contract Amount: $36,177,038 ($36.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: National Science Foundation

Start Date: 2005-05-01

End Date: 2007-11-15

Contract Duration: 928 days

Daily Burn Rate: $39.0K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IT BUSINESS SOLUTIONS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22230

State: Virginia Government Spending

Plain-Language Summary

National Science Foundation obligated $36.2 million to BOOZ ALLEN HAMILTON INC for work described as: IT BUSINESS SOLUTIONS Key points: 1. Contract awarded for custom computer programming services, indicating a need for specialized IT solutions. 2. The contract was a competitive delivery order, suggesting a degree of market engagement. 3. The duration of the contract was 928 days, spanning over two years. 4. The contract type was Cost Plus Fixed Fee, which can carry risks of cost overruns if not managed carefully. 5. The contractor, Booz Allen Hamilton, is a large, established firm with significant federal contracting experience. 6. The contract was not set aside for small businesses, nor did it indicate specific subcontracting goals. 7. The primary agency was the National Science Foundation (NSF), suggesting a focus on scientific research support. 8. The contract was awarded in 2005, providing historical context for IT spending at the NSF.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services rendered and comparable market rates at the time. The Cost Plus Fixed Fee (CPFF) contract type, while common, can lead to higher costs compared to fixed-price contracts if not meticulously managed. The total award amount of $36.18 million over approximately two years suggests a substantial investment in IT business solutions. Without data on the specific deliverables and their impact, a definitive value-for-money assessment is difficult, but the duration and cost indicate a significant project.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' indicating that multiple vendors likely had an opportunity to bid. The fact that it was a delivery order under a larger contract vehicle suggests a competitive process was used to establish the initial vehicle, and then this specific order was placed. The number of bidders for this specific delivery order is not provided, but the 'competitive' designation implies more than one offer was considered, which generally aids in price discovery and achieving better value.

Taxpayer Impact: A competitive award process, even for a delivery order, generally benefits taxpayers by fostering a more efficient marketplace and potentially leading to lower prices than a sole-source procurement.

Public Impact

The primary beneficiary of this contract is the National Science Foundation (NSF), which received custom computer programming services to support its operations. The services delivered likely enhanced the NSF's IT infrastructure and business processes, aiding in its mission to support scientific research. The geographic impact is primarily within the United States, where the NSF operates and where the contractor's services would be applied. The workforce implications involve IT professionals and programmers employed by Booz Allen Hamilton, contributing to the federal IT services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can incentivize contractors to increase costs to maximize profit, requiring robust oversight.
Lack of specific details on performance metrics makes it difficult to assess the effectiveness and efficiency of the services provided.
The contract was awarded in 2005, and its relevance to current IT needs and spending benchmarks may be limited.
The absence of small business subcontracting information raises questions about opportunities for smaller firms in this procurement.

Positive Signals

The contract was awarded through a competitive process, suggesting that multiple vendors were considered, which can lead to better pricing.
Booz Allen Hamilton is a well-established contractor with extensive experience in federal IT services, implying a level of reliability.
The contract duration of over two years suggests a sustained need and commitment to the IT solutions being developed.
The award to a large, experienced firm may indicate a complex or critical IT requirement that demanded specialized expertise.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically custom computer programming services. The IT services market for the federal government is substantial, with agencies like the NSF relying heavily on technology to manage research grants, data, and administrative functions. Comparable spending benchmarks for custom programming services vary widely based on complexity, duration, and specific skill sets required. Contracts of this magnitude often involve significant system development, integration, or modernization efforts.

Small Business Impact

This contract does not appear to have been specifically set aside for small businesses, nor is there explicit information regarding small business subcontracting goals. The award to a large prime contractor like Booz Allen Hamilton suggests that subcontracting opportunities might exist, but the extent to which small businesses would participate is not detailed in the provided data. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Science Foundation (NSF) contracting officers and program managers. As a Cost Plus Fixed Fee contract, rigorous oversight of costs incurred and work performed is crucial to ensure value for money and prevent cost overruns. Transparency would depend on the NSF's internal reporting and any public disclosures made regarding contract performance. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Professional Services
Custom Computer Programming Services
Federal IT Contracts
National Science Foundation IT Spending
Cost-Plus Contracts

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Lack of detailed performance metrics hinders assessment of service effectiveness.
Contract awarded in 2005; current relevance and benchmarks may be limited.
No explicit small business subcontracting goals mentioned.

Frequently Asked Questions

What is this federal contract paying for?

National Science Foundation awarded $36.2 million to BOOZ ALLEN HAMILTON INC. IT BUSINESS SOLUTIONS

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: National Science Foundation (National Science Foundation).

What is the total obligated amount?

The obligated amount is $36.2 million.

What is the period of performance?

Start: 2005-05-01. End: 2007-11-15.

What specific custom computer programming services were delivered under this contract?

The provided data indicates the contract was for 'Custom Computer Programming Services' (NAICS 541511) awarded to Booz Allen Hamilton by the National Science Foundation (NSF). However, the specific nature of these services is not detailed. Typically, such services can range from developing new software applications, modifying existing systems, integrating disparate IT platforms, database development, or providing specialized programming expertise for scientific research support systems. Without further documentation, such as the Statement of Work (SOW) or contract modifications, the precise deliverables remain unspecified. The NSF's mission involves supporting scientific research, so these services likely pertained to enhancing or developing IT systems crucial for managing research data, grant applications, or scientific computing resources.

How does the $36.18 million award compare to other IT contracts of similar scope and duration awarded by the NSF or other science agencies around 2005?

Comparing the $36.18 million award requires context regarding the specific IT needs of the NSF in the mid-2000s. During that period, federal agencies were increasingly investing in modernizing IT infrastructure, enhancing cybersecurity, and developing custom solutions for data management and research support. For a contract spanning approximately two years (928 days) for custom programming, $36.18 million represents a significant investment, averaging around $18 million per year. This figure is substantial but not necessarily out of line for complex IT projects undertaken by large federal agencies at the time. To provide a precise benchmark, one would need to analyze similar contracts for custom software development or IT modernization projects awarded by agencies like NASA, NIH, or DOE during the same timeframe, considering factors like contract type (CPFF vs. FFP), scope of work, and contractor rates.

What were the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this specific procurement?

The Cost Plus Fixed Fee (CPFF) contract type, while offering flexibility, carries inherent risks, particularly for the government. The primary risk is that the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure can incentivize the contractor to incur higher costs, as the fee remains constant regardless of the total cost. For the NSF, this means a heightened need for diligent oversight to ensure that all costs claimed are reasonable, allocable, and necessary for the contract's performance. Without robust cost monitoring and control mechanisms, there's a risk of the total project cost exceeding initial estimates or market benchmarks. Additionally, defining the 'fixed fee' appropriately is crucial; if set too high, it could represent excessive profit, while if set too low, it might not adequately compensate the contractor, potentially impacting performance or motivation.

Given Booz Allen Hamilton's track record, what does their selection suggest about the complexity or criticality of the NSF's IT needs?

Booz Allen Hamilton is a large, well-established government contractor with extensive experience across various sectors, including significant IT services. Their selection for a $36.18 million contract by the National Science Foundation (NSF) suggests that the NSF likely perceived the IT requirements as complex, critical, or requiring a high degree of specialized expertise and project management capability. Large contractors like Booz Allen Hamilton are often chosen for projects that demand significant resources, established processes, security clearances, and a proven ability to manage large-scale, long-term engagements. This choice implies the NSF was prioritizing reliability, experience, and the capacity to handle potentially intricate programming tasks, possibly related to sensitive research data or large-scale scientific computing infrastructure, rather than prioritizing cost savings through smaller, less experienced vendors.

How has federal spending on custom computer programming services (NAICS 541511) evolved since this contract was awarded in 2005?

Federal spending on custom computer programming services (NAICS 541511) has seen significant growth and evolution since 2005. In the mid-2000s, agencies were focused on modernizing legacy systems and implementing foundational IT solutions. Since then, there has been a pronounced shift towards cloud computing, agile development methodologies, data analytics, artificial intelligence, and cybersecurity solutions. While the core need for custom programming persists, the nature of the services has become more sophisticated. Spending has generally increased, driven by digital transformation initiatives across government, the need to address evolving cyber threats, and the expansion of data-driven decision-making. Agencies increasingly seek services that leverage modern technologies and architectures, moving away from monolithic, on-premise systems. This trend suggests that while the $36.18 million awarded in 2005 was substantial, current contracts for similar-sounding services might encompass a broader, more technologically advanced scope and potentially higher price points due to increased complexity and demand.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

Address: 8283 GREENSBORO DR # 700, MC LEAN, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $36,401,557

Exercised Options: $36,401,557

Current Obligation: $36,177,038

Parent Contract

Parent Award PIID: 0137908

IDV Type: IDC

Timeline