OPM awards $22.4M for HR support, with Booz Allen Hamilton securing the contract

Contract Overview

Contract Amount: $22,425,205 ($22.4M)

Contractor: Booz Allen Hamilton Inc.

Awarding Agency: Office of Personnel Management

Start Date: 2013-06-10

End Date: 2014-12-31

Contract Duration: 569 days

Daily Burn Rate: $39.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL::IGF HR SUPPORT AND SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20415

State: District of Columbia Government Spending

Plain-Language Summary

Office of Personnel Management obligated $22.4 million to BOOZ ALLEN HAMILTON INC. for work described as: IGF::CL::IGF HR SUPPORT AND SERVICES Key points: 1. Contract value represents a significant investment in federal human resources. 2. Booz Allen Hamilton, a large incumbent, likely leveraged existing expertise. 3. The contract's duration suggests a need for sustained support services. 4. Fixed-price contract type aims to control costs and manage risk. 5. The award falls within a broad category of professional and management development training. 6. Geographic location in Washington D.C. may indicate proximity to agency headquarters.

Value Assessment

Rating: fair

Benchmarking the value of this $22.4 million contract is challenging without specific performance metrics or comparable service contracts. However, the duration of 569 days (approximately 1.5 years) suggests a substantial scope of work. The firm-fixed-price structure indicates an attempt to establish a clear cost ceiling, but the ultimate value depends on the efficiency and effectiveness of the services delivered by Booz Allen Hamilton.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This process is designed to foster a competitive environment, potentially leading to better pricing and service offerings. The number of bidders is not specified, but the 'full and open' designation implies a robust bidding process.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of proposals and potentially driving down costs through market forces.

Public Impact

Federal employees will benefit from improved human resources support and development. Services delivered likely encompass training, consulting, and management development. The primary geographic impact is within Washington D.C., the agency's location. Workforce implications include potential support roles for Booz Allen Hamilton staff and enhanced capabilities for OPM personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized.
Risk of cost overruns if scope creep occurs despite fixed-price.
Dependence on contractor expertise could reduce internal agency capacity over time.

Positive Signals

Leverages established expertise of a large, experienced contractor.
Fixed-price contract provides cost certainty for the agency.
Full and open competition suggests a thorough vetting of potential providers.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on management development training. This sector is characterized by a high degree of specialization and a mix of large, established firms and smaller niche providers. Federal spending in this area supports agency operations, policy implementation, and workforce development, often involving significant investments in consulting and training services.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of the services and the likely scale of the award, it is probable that larger, established firms like Booz Allen Hamilton were the primary focus. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a firm-fixed-price contract, oversight would focus on ensuring deliverables meet specifications and timelines. The Office of Personnel Management's internal controls and potentially the agency's Inspector General would provide accountability. Transparency is generally maintained through federal contract databases.

Related Government Programs

Federal HR Consulting Services
Management and Professional Training
Government-wide HR Support Contracts
Professional Services Schedules (PSS)

Risk Flags

Contract duration exceeds one year
Awarded to a large, established contractor
Fixed-price contract type

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $22.4 million to BOOZ ALLEN HAMILTON INC.. IGF::CL::IGF HR SUPPORT AND SERVICES

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC..

Which agency awarded this contract?

Awarding agency: Office of Personnel Management (Office of Personnel Management).

What is the total obligated amount?

The obligated amount is $22.4 million.

What is the period of performance?

Start: 2013-06-10. End: 2014-12-31.

What specific HR support and management development services were included in this contract?

The provided data indicates the contract falls under NAICS code 611430 (Professional and Management Development Training) and is for 'HR SUPPORT AND SERVICES'. While specific deliverables are not detailed, typical services under such a contract could include strategic HR planning, workforce analysis, leadership development programs, employee training curriculum design and delivery, HR policy development, and change management support. The duration of over 500 days suggests a comprehensive and ongoing need for these services, likely aimed at enhancing the efficiency and effectiveness of OPM's human capital management functions.

How does the $22.4 million award compare to typical spending on similar HR support contracts?

Comparing the $22.4 million award requires context on the contract's scope, duration, and the specific services rendered. Federal spending on HR support and training can vary widely. Contracts for large-scale, multi-year strategic initiatives or comprehensive agency-wide training programs can easily reach tens of millions of dollars. Given that Booz Allen Hamilton is a major federal contractor known for large-scale engagements, this award appears to be within the expected range for a significant, long-term HR support and development contract awarded through full and open competition to a prime contractor of this size.

What is Booz Allen Hamilton's track record with the Office of Personnel Management and similar agencies?

Booz Allen Hamilton is a well-established government contractor with a extensive history of providing professional and management consulting services across numerous federal agencies, including OPM. Their track record typically involves large, complex contracts related to strategy, technology, and human capital. For OPM specifically, Booz Allen Hamilton has likely held various contracts over the years, leveraging their expertise in areas like HR modernization, cybersecurity, and strategic planning. Their consistent presence suggests a strong performance history and a deep understanding of federal agency needs, particularly within the HR domain.

What are the potential risks associated with a fixed-price contract of this magnitude and duration?

While firm-fixed-price contracts aim to control costs, risks can still emerge, especially for a contract valued at $22.4 million over 569 days. One primary risk is scope creep, where the agency may request additional services beyond the original agreement, potentially leading to change orders that increase the total cost. Another risk is that the contractor might cut corners on quality or service delivery to maximize profit under the fixed price, especially if initial cost estimates were too low. Contractor performance issues or unforeseen market changes affecting labor or material costs could also pose risks, although the fixed price is intended to absorb some of these.

How does the 'full and open competition' designation impact the value proposition for taxpayers?

The 'full and open competition' designation is a positive indicator for taxpayers. It signifies that the contract was not restricted to a select few vendors, allowing any qualified company to submit a bid. This broad competition typically drives down prices as contractors vie for the award by offering their best value. It also encourages innovation and ensures that the government selects the most capable and cost-effective solution available in the market. For taxpayers, this process increases the likelihood that their money is being spent efficiently and that the government is receiving high-quality services at a competitive price.

What are the implications of this contract being awarded in Washington D.C.?

The contract's award location in Washington D.C. (ST: DC, SN: DISTRICT OF COLUMBIA) is significant as it is the seat of the federal government and hosts the headquarters of many federal agencies, including the Office of Personnel Management. This proximity likely facilitates easier communication, collaboration, and oversight between OPM officials and the contractor's personnel. It may also suggest that the services required involve direct interaction with agency leadership or policy-making bodies located in the capital. Furthermore, operating in the D.C. area often means higher labor costs compared to other regions, which would have been factored into the bidding process.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 3811 N FAIRFAX DR STE 600, ARLINGTON, VA, 22203

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,425,205

Exercised Options: $22,425,205

Current Obligation: $22,425,205

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: OPM1912C0021

IDV Type: IDC

Timeline