Booz Allen Hamilton awarded $12.4M for Enterprise Project Management services to IRS

Contract Overview

Contract Amount: $12,417,205 ($12.4M)

Contractor: Booz Allen Hamilton Inc.

Awarding Agency: Department of the Treasury

Start Date: 2006-05-31

End Date: 2014-08-01

Contract Duration: 2,984 days

Daily Burn Rate: $4.2K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: ENTERPRISE PROJECT MANAGEMENT

Place of Performance

Location: LANHAM, PRINCE GEORGE'S County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $12.4 million to BOOZ ALLEN HAMILTON INC. for work described as: ENTERPRISE PROJECT MANAGEMENT Key points: 1. Contract awarded for critical project management support to the IRS. 2. Services provided by a large, established federal contractor. 3. Contract duration of approximately 8 years indicates long-term need. 4. Cost-plus-fixed-fee contract type allows for flexibility but requires careful oversight. 5. Delivery order under a larger contract vehicle suggests potential for broader IT support. 6. Geographic location in Maryland aligns with federal contractor concentration.

Value Assessment

Rating: fair

The contract value of $12.4 million over nearly 8 years for enterprise project management services appears reasonable given the duration and the nature of the services. However, without specific performance metrics or a detailed breakdown of the services rendered, a precise value-for-money assessment is challenging. Benchmarking against similar project management support contracts for large agencies like the IRS would provide a clearer picture of whether the pricing was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data indicates this was a 'COMPETITIVE DELIVERY ORDER', suggesting it was competed. However, the specifics of the competition, such as the number of bids received or the nature of the original contract vehicle under which this order was placed, are not detailed. A competitive award is generally positive for price discovery, but the level of competition for this specific order needs further investigation.

Taxpayer Impact: A competitive award process, even for a delivery order, is generally beneficial for taxpayers as it aims to secure the best possible pricing and service. Understanding the extent of competition is key to ensuring taxpayer dollars are used efficiently.

Public Impact

The Internal Revenue Service (IRS) benefits from enhanced project management capabilities. Improved efficiency and effectiveness in managing large-scale projects within the IRS. Potential for better resource allocation and project outcomes. Support for critical government functions related to tax administration. Workforce within the IRS may see improved project execution and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize contractors to incur more costs than necessary if not managed tightly.
Long contract duration may lead to complacency or reduced innovation if not actively managed.
Lack of detailed competition information makes it difficult to assess if the best value was achieved.

Positive Signals

Awarded as a competitive delivery order, indicating some level of competition.
Booz Allen Hamilton is a large, experienced contractor with a significant federal presence.
Services are for enterprise project management, a critical function for agency operations.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. The IT services market is highly competitive, with numerous large and small businesses vying for government contracts. This specific contract for project management support is crucial for agencies like the IRS, which manage complex, large-scale IT initiatives. Comparable spending benchmarks for project management support services within large federal agencies can vary widely based on scope and duration.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the 'ss' (small business set-aside) and 'sb' (small business) fields are false. Booz Allen Hamilton is a large business, and while they may engage small businesses as subcontractors, this contract itself was not set aside for small businesses. The impact on the small business ecosystem would depend on subcontracting opportunities, which are not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the contracting agency, the IRS, and potentially the Department of the Treasury's contracting officers and program managers. The cost-plus-fixed-fee structure necessitates robust oversight to ensure costs are reasonable and allocable. Transparency would be enhanced through regular reporting requirements and performance reviews. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IRS IT Modernization Projects
Federal Enterprise Architecture
Government Project Management Support
IT Consulting Services
Department of the Treasury IT Contracts

Risk Flags

Cost-plus-fixed-fee contract type requires careful monitoring of costs.
Long contract duration may present risks if not actively managed.
Limited detail on competition level requires further investigation for optimal value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $12.4 million to BOOZ ALLEN HAMILTON INC.. ENTERPRISE PROJECT MANAGEMENT

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $12.4 million.

What is the period of performance?

Start: 2006-05-31. End: 2014-08-01.

What specific project management methodologies and tools were utilized by Booz Allen Hamilton under this contract?

The provided data does not specify the exact project management methodologies or tools employed by Booz Allen Hamilton. Typically, for enterprise project management services, contractors would leverage a combination of industry-standard frameworks such as Agile, Waterfall, or hybrid approaches, tailored to the specific needs of the IRS. Tools might include project portfolio management (PPM) software, collaboration platforms, and risk management systems. A detailed review of the contract's statement of work (SOW) and performance reports would be necessary to ascertain the specific methodologies and tools used and their effectiveness in managing IRS projects.

How does the $12.4 million contract value compare to similar enterprise project management contracts awarded by the IRS or other large federal agencies?

Benchmarking the $12.4 million contract value requires comparing it against contracts with similar scope, duration, and complexity. Given this contract spanned nearly eight years (2984 days), the annual average is approximately $1.55 million. This figure needs to be assessed against the size and criticality of the projects managed. For instance, large-scale IT modernization efforts within agencies like the IRS often require substantial project management resources. Without access to a comprehensive database of comparable contracts, it's difficult to definitively state if this represents a high, low, or average cost. However, for long-term, comprehensive enterprise project management support, this value appears within a plausible range for a large federal agency.

What were the key performance indicators (KPIs) used to evaluate Booz Allen Hamilton's performance on this contract?

The provided data does not include specific Key Performance Indicators (KPIs) for this contract. In a typical enterprise project management contract, KPIs would likely focus on metrics such as on-time project completion rates, adherence to budget, quality of deliverables, stakeholder satisfaction, risk mitigation effectiveness, and efficiency improvements achieved through better project management. The effectiveness of the contractor's performance would be assessed against these pre-defined metrics, often documented in the contract's Performance Work Statement (PWS) or SOW, and reflected in periodic performance evaluations.

What is Booz Allen Hamilton's track record with the IRS and other federal agencies for similar IT and project management services?

Booz Allen Hamilton is a well-established and large federal contractor with extensive experience providing IT and management consulting services across numerous government agencies, including the IRS. Their track record generally includes managing complex projects and delivering a wide range of technical and strategic solutions. Historically, they have secured significant contracts for IT modernization, cybersecurity, and program management. While specific performance details for every contract are not publicly available, their continued success in winning large federal contracts suggests a generally positive performance history and strong client relationships, though like any large contractor, they may have faced challenges on specific engagements.

Were there any identified risks or challenges associated with this contract, and how were they mitigated?

The provided data does not explicitly list risks or challenges associated with this specific contract. However, general risks for large, long-term IT services contracts include scope creep, budget overruns, technical obsolescence, contractor performance issues, and changes in agency requirements. For a cost-plus-fixed-fee contract, a key risk is the potential for uncontrolled cost growth, which requires diligent oversight. Mitigation strategies typically involve robust contract management, clear communication channels, regular performance reviews, change control processes, and proactive risk identification and management by both the contractor and the government.

How has spending on enterprise project management services at the IRS evolved over time, and does this contract represent a significant shift?

The provided data focuses on a single contract awarded in 2006 and ending in 2014. To understand the evolution of spending on enterprise project management services at the IRS, a broader historical analysis of IRS IT budgets and contract awards would be necessary. This contract, valued at $12.4 million over its duration, represents a significant investment in project management capabilities. Whether it signifies a shift would depend on prior spending levels and the IRS's strategic priorities at the time. It suggests a commitment to professionalizing and supporting its project management functions, which is crucial for managing its complex tax systems and modernization efforts.

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: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

Address: 1953 GALLOWS RD STE 600, VIENNA, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,517,545

Exercised Options: $12,517,545

Current Obligation: $12,417,205

Parent Contract

Parent Award PIID: TIRNO06D00026

IDV Type: IDC

Timeline