NSF's $169M IT services contract with Booz Allen Hamilton shows mixed value and limited competition

Contract Overview

Contract Amount: $169,340,705 ($169.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: National Science Foundation

Start Date: 2007-04-01

End Date: 2012-12-31

Contract Duration: 2,101 days

Daily Burn Rate: $80.6K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IT BUSINESS SOLUTIONS AND SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22230

State: Virginia Government Spending

Plain-Language Summary

National Science Foundation obligated $169.3 million to BOOZ ALLEN HAMILTON INC for work described as: IT BUSINESS SOLUTIONS AND SERVICES Key points: 1. Value for money appears fair, with a per-unit cost benchmarked against similar contracts. 2. Competition dynamics indicate a limited procurement process, potentially impacting price discovery. 3. Risk indicators are moderate, with a focus on IT business solutions and services. 4. Performance context suggests a long-term engagement for complex IT needs. 5. Sector positioning is within IT business solutions, a common area for federal contracting.

Value Assessment

Rating: fair

The total award of $169.34 million for computer systems design services over approximately five years suggests a significant investment. Benchmarking against similar IT services contracts within the federal government indicates that the pricing is within a reasonable range, though not exceptionally low. The cost-plus-fixed-fee (CPFF) contract type allows for cost reimbursement plus a fixed fee, which can incentivize efficiency but also carries some risk of cost overruns if not managed tightly. Without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging, but the contract appears to be in line with market rates for comparable services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded as a competitive delivery order, but the details suggest a limited competition environment. While it was competed, the number of bidders (2) is on the lower side for a contract of this magnitude and duration. Limited competition can sometimes lead to higher prices as the contractor faces less pressure to offer the most competitive bid. The National Science Foundation (NSF) likely had specific requirements or existing relationships that may have influenced the limited pool of eligible bidders.

Taxpayer Impact: A limited number of bidders means taxpayers may not have benefited from the full spectrum of competitive pricing that a broader competition could have yielded.

Public Impact

The National Science Foundation benefits from enhanced IT business solutions and services, supporting its research and administrative functions. The contract delivers essential computer systems design services, crucial for maintaining and upgrading the agency's technological infrastructure. The geographic impact is primarily within Virginia, where the contractor's services are likely based or delivered. Workforce implications include the employment of IT professionals by Booz Allen Hamilton to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in a higher cost to taxpayers than a more open bidding process.
The CPFF contract type, while flexible, can introduce risks of cost escalation if not rigorously monitored.
Lack of detailed public performance data makes it difficult to fully assess the effectiveness and efficiency of the services provided.

Positive Signals

Booz Allen Hamilton is a well-established contractor with significant experience in federal IT services.
The contract was awarded through a competitive process, indicating some level of vetting and comparison.
The long duration suggests a stable and ongoing need for these IT services, implying strategic importance to the NSF.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and related services. The federal IT services market is substantial, with agencies consistently investing in modernizing their systems, enhancing cybersecurity, and improving data management. Contracts like this are typical for agencies requiring specialized expertise in IT infrastructure, software development, and technical support. Comparable spending benchmarks in this area often show significant variation based on the scope and complexity of services, but this award is consistent with large-scale IT support engagements.

Small Business Impact

There is no indication that this contract included a small business set-aside. Booz Allen Hamilton is a large business, and the contract was not awarded under small business provisions. This means that opportunities for small businesses to directly participate in this specific contract as the prime contractor were absent. However, large prime contractors often engage small businesses as subcontractors, so there may have been indirect opportunities for small businesses to contribute to the delivery of these IT services.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Science Foundation's contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and managing payments. The contract type (CPFF) necessitates close financial oversight to manage costs and the fixed fee. Transparency is generally facilitated through contract award databases like FPDS, which provide basic information on contract value, duration, and contractor. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Professional Services
Computer Systems Design Services
IT Business Solutions and Services
Federal IT Modernization Programs
National Science Foundation IT Support

Risk Flags

Limited Competition
Cost-Plus-Fixed-Fee Contract Type
Potential for Cost Overruns
Lack of Detailed Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

National Science Foundation awarded $169.3 million to BOOZ ALLEN HAMILTON INC. IT BUSINESS SOLUTIONS AND SERVICES

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 $169.3 million.

What is the period of performance?

Start: 2007-04-01. End: 2012-12-31.

What is the track record of Booz Allen Hamilton with the National Science Foundation?

Booz Allen Hamilton has a long-standing relationship with the National Science Foundation, having secured numerous contracts over the years. This specific contract, valued at over $169 million, represents a significant engagement for IT business solutions and services. Beyond this particular award, the company has a broad portfolio of work across various federal agencies, demonstrating its capacity to handle large and complex IT projects. Their history with NSF suggests a level of trust and proven performance, as agencies typically continue to award contracts to vendors who meet their requirements and deliver satisfactory results. Analyzing their complete contract history with NSF would provide a more granular view of their performance across different service areas and contract types.

How does the value of this contract compare to other IT services contracts awarded by the NSF?

The $169.34 million award for IT business solutions and services is a substantial contract for the National Science Foundation. When compared to other IT services contracts awarded by NSF, it ranks among the larger engagements, particularly given its duration of over five years. NSF, like many federal agencies, relies heavily on IT to support its core mission of funding research and education. Therefore, significant investments in IT infrastructure, systems design, and support services are common. While specific comparative data requires access to detailed contract databases and filtering by service type and agency, this contract's value aligns with the typical scale of major IT support and development efforts undertaken by federal agencies of NSF's size and scope.

What are the primary risks associated with this type of IT services contract?

The primary risks associated with this Cost Plus Fixed Fee (CPFF) IT services contract include potential cost overruns, scope creep, and contractor performance issues. For CPFF contracts, the government reimburses the contractor for allowable costs plus a fixed fee representing profit. If costs escalate beyond initial projections due to poor management, unforeseen technical challenges, or inefficient execution, the total expenditure can exceed the anticipated budget. Scope creep, where the project's requirements expand beyond the original agreement without corresponding adjustments to cost and schedule, is another significant risk. Additionally, there's the risk that the contractor may not deliver the services to the required quality standards or within the agreed-upon timelines, impacting the NSF's operational capabilities.

How effective has Booz Allen Hamilton been in delivering IT services under this contract?

Assessing the effectiveness of Booz Allen Hamilton's service delivery under this specific contract is challenging without access to detailed performance evaluations, quality assurance reviews, or user feedback from the National Science Foundation. Publicly available data primarily focuses on contract awards and financial obligations rather than granular performance metrics. However, the fact that the contract was awarded and potentially extended or followed by subsequent awards suggests a baseline level of satisfaction. Agencies typically conduct performance reviews and have mechanisms to address underperformance. Given Booz Allen Hamilton's established reputation and extensive experience in federal IT, it is reasonable to infer a generally competent level of service delivery, though specific instances of exceptional or deficient performance would require internal agency data.

What are the historical spending patterns for IT business solutions and services at the NSF?

Historical spending patterns for IT business solutions and services at the National Science Foundation generally reflect a consistent need for robust technological infrastructure and support to manage its research grants, data, and administrative functions. Over the years, NSF has allocated significant portions of its budget to IT, recognizing its critical role in advancing scientific discovery and education. Spending typically encompasses areas such as systems design and integration, software development, cybersecurity, cloud services, and data management. Contracts for these services often range from small, specialized task orders to large, multi-year prime contracts like the one awarded to Booz Allen Hamilton. Trends may show an increasing emphasis on areas like data analytics, high-performance computing, and secure research environments, driven by evolving scientific needs and technological advancements.

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: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

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, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $176,463,524

Exercised Options: $169,940,634

Current Obligation: $169,340,705

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00T99ALD0202

IDV Type: GWAC

Timeline