Booz Allen Hamilton awarded $18.5M contract for IT support by Pension Benefit Guaranty Corporation

Contract Overview

Contract Amount: $18,479,561 ($18.5M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2005-09-28

End Date: 2010-09-27

Contract Duration: 1,825 days

Daily Burn Rate: $10.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IPS SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Pension Benefit Guaranty Corporation obligated $18.5 million to BOOZ ALLEN HAMILTON INC for work described as: IPS SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 5 years indicates a long-term need for these services. 3. The use of a Cost Plus Fixed Fee (CPFF) pricing structure can introduce cost overrun risks. 4. The contractor, Booz Allen Hamilton, is a large, established firm with significant federal contracting experience. 5. The services provided fall under custom computer programming, a critical area for agency operations. 6. The contract was awarded by the Pension Benefit Guaranty Corporation, a specific federal agency.

Value Assessment

Rating: fair

Benchmarking the value of this $18.5 million contract is challenging without specific performance metrics or comparable contract data. The CPFF structure, while allowing flexibility, can lead to higher costs compared to fixed-price contracts if not managed tightly. The price appears reasonable for a 5-year IT support contract of this nature, given the contractor's size and the complexity typically associated with custom programming services. However, a detailed cost analysis would be needed to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this requirement. While two bidders are better than one, a higher number of bidders would typically lead to more robust price discovery and potentially lower costs for the government.

Taxpayer Impact: The full and open competition process is generally favorable for taxpayers as it aims to secure the best possible price through a wide range of potential providers.

Public Impact

Federal employees within the Pension Benefit Guaranty Corporation benefit from enhanced IT support, enabling smoother operations. The contract delivers custom computer programming services, crucial for the agency's internal systems and data management. The geographic impact is primarily within the District of Columbia, where the agency is headquartered. The contract supports the IT workforce, likely involving skilled programmers and technical staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) pricing can incentivize contractor to increase costs to achieve higher fee.
Long contract duration (5 years) may reduce flexibility to adapt to changing technological needs or market prices.
Limited competition (2 bidders) may have resulted in a higher price than if more vendors had participated.

Positive Signals

Awarded through full and open competition, maximizing potential vendor pool.
Contractor (Booz Allen Hamilton) is a reputable firm with extensive experience in federal IT services.
Contract addresses a core IT support need for the agency.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. The IT services market for the federal government is substantial, with agencies consistently investing in software development, system integration, and IT support. This contract represents a portion of the PBGC's overall IT spending, contributing to its operational efficiency and data management capabilities. Comparable spending benchmarks would typically be found within IT services categories for similar-sized federal agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Booz Allen Hamilton is a large business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. The lack of a set-aside suggests that the primary focus was on obtaining the best technical solution and price from the broader market, rather than specifically promoting small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Pension Benefit Guaranty Corporation. Accountability measures are inherent in the CPFF contract type, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Services
Custom Computer Programming
IT Support Services
Software Development

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure may lead to cost overruns.
Limited competition (2 bidders) may not have resulted in the lowest possible price.
Long contract duration (5 years) could reduce adaptability to evolving needs.

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $18.5 million to BOOZ ALLEN HAMILTON INC. IPS SUPPORT

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Pension Benefit Guaranty Corporation (Pension Benefit Guaranty Corporation).

What is the total obligated amount?

The obligated amount is $18.5 million.

What is the period of performance?

Start: 2005-09-28. End: 2010-09-27.

What is Booz Allen Hamilton's track record with the Pension Benefit Guaranty Corporation?

The provided data indicates Booz Allen Hamilton has a history of contracting with the Pension Benefit Guaranty Corporation, including this specific $18.5 million contract for IT support. Without access to a broader contract database or specific performance reviews, it's difficult to detail their entire track record. However, the award of a significant contract suggests a satisfactory past performance or a competitive proposal that met the agency's needs. Further investigation into other contracts awarded to Booz Allen Hamilton by PBGC, and their respective performance ratings, would provide a more comprehensive view of their relationship and reliability with this agency.

How does the $18.5 million value compare to similar IT support contracts?

Comparing the $18.5 million value requires context regarding the scope, duration, and specific services. This contract spans five years, making the annual value approximately $3.7 million. For a federal agency like the Pension Benefit Guaranty Corporation, this amount is within a typical range for comprehensive IT support and custom programming services, especially considering the contractor is a large firm like Booz Allen Hamilton. However, without specific details on the number of users supported, the complexity of the systems, or the specific deliverables, a precise benchmark is difficult. Contracts for similar services at larger agencies could range from millions to tens of millions annually, while smaller agencies might spend less.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. Unlike fixed-price contracts, the government agrees to pay the contractor's actual allowable costs plus a predetermined fixed fee. This structure can incentivize the contractor to incur higher costs, as their fee remains constant regardless of the final cost. For the government, this means the total expenditure could exceed initial estimates if costs are not meticulously managed and controlled. Effective oversight, detailed cost reporting, and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value.

How effective is full and open competition in ensuring value for money in IT contracts?

Full and open competition is generally considered the most effective method for ensuring value for money in government contracting, including IT contracts. By allowing all responsible sources to compete, it fosters a wider range of solutions and encourages competitive pricing. This broad participation increases the likelihood that the government will receive the best combination of technical capability and cost. However, the effectiveness is contingent on the number of bidders and the clarity of the solicitation. A poorly defined requirement or a lack of meaningful competition (e.g., only one or two bidders) can diminish the value realized, even under a full and open process.

What is the historical spending pattern for IT support at the Pension Benefit Guaranty Corporation?

Analyzing the historical spending patterns for IT support at the Pension Benefit Guaranty Corporation (PBGC) requires access to comprehensive historical contract data. This single contract award of $18.5 million over five years provides a data point, suggesting an average annual IT support expenditure of approximately $3.7 million. To understand the broader pattern, one would need to examine previous and subsequent contracts for similar services, noting any trends in spending levels, contract types, and awarded contractors. This would reveal whether IT support spending has been consistent, increasing, or decreasing, and how it aligns with agency priorities and budget allocations over time.

What are the implications of awarding IT services to a large, established contractor like Booz Allen Hamilton?

Awarding IT services to a large, established contractor like Booz Allen Hamilton typically implies a reliance on their extensive resources, established processes, and proven track record. These firms often possess deep expertise, a wide range of capabilities, and the capacity to handle complex, large-scale projects. For the government, this can translate to higher confidence in project execution and quality. However, large contractors may also command higher price points compared to smaller, more specialized firms. Furthermore, reliance on a single large contractor could potentially limit innovation or create vendor lock-in, making it harder to switch providers or adopt alternative solutions in the future.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: PBGC01-RP-05-0009

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 DRIVE, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $21,404,335

Exercised Options: $18,479,561

Current Obligation: $18,479,561

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline