Treasury's $28M IRS IT Contract with Booz Allen Hamilton Awarded Competitively
Contract Overview
Contract Amount: $27,996,167 ($28.0M)
Contractor: Booz Allen Hamilton Inc.
Awarding Agency: Department of the Treasury
Start Date: 2006-07-02
End Date: 2014-08-01
Contract Duration: 2,952 days
Daily Burn Rate: $9.5K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: TIPSS-3, TTS #2089 BAH
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20224
Plain-Language Summary
Department of the Treasury obligated $28.0 million to BOOZ ALLEN HAMILTON INC. for work described as: TIPSS-3, TTS #2089 BAH Key points: 1. Contract value: $27.99 million over 8 years. 2. Competition: Awarded via a competitive delivery order. 3. Risk: Moderate risk due to cost-plus-fixed-fee structure. 4. Sector: Information Technology (Computer Systems Design Services).
Value Assessment
Rating: fair
The contract uses a Cost Plus Fixed Fee (CPFF) pricing structure, which can lead to cost overruns if not managed carefully. Benchmarking CPFF contracts for similar IT services is challenging without detailed scope and performance data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
This contract was awarded as a competitive delivery order under a larger contract vehicle (TIPSS-3). This indicates that multiple vendors likely competed for this specific order, promoting price discovery and potentially better value.
Taxpayer Impact: The competitive award process suggests efforts to secure reasonable pricing for taxpayers, though the CPFF structure warrants ongoing scrutiny.
Public Impact
Supports critical IRS IT infrastructure and systems design. Ensures continuity of essential government IT services. Potential for long-term IT modernization efforts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee pricing can incentivize higher costs.
- Long contract duration (8 years) may limit flexibility.
- No small business participation noted.
Positive Signals
- Awarded competitively, suggesting potential for value.
- Supports essential IRS operations.
- Experienced contractor (Booz Allen Hamilton).
Sector Analysis
This contract falls within the IT sector, specifically Computer Systems Design Services. Spending in this area is substantial across government, with typical contract values varying widely based on scope and duration. Benchmarks are difficult without specific service details.
Small Business Impact
The data indicates this contract was not awarded to a small business (ss: false, sb: false). There is no indication of small business subcontracting goals or participation.
Oversight & Accountability
Awarded under the TIPSS-3 vehicle, which likely has its own oversight mechanisms. The IRS contracting office and program managers are responsible for monitoring performance and costs, especially given the CPFF structure.
Related Government Programs
- Computer Systems Design Services
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Cost-plus-fixed-fee pricing.
- Long contract duration.
- No small business participation.
- Potential for cost overruns.
- Limited transparency on specific performance metrics.
Tags
computer-systems-design-services, department-of-the-treasury, dc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $28.0 million to BOOZ ALLEN HAMILTON INC.. TIPSS-3, TTS #2089 BAH
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 $28.0 million.
What is the period of performance?
Start: 2006-07-02. End: 2014-08-01.
What was the competitive landscape for this specific delivery order, and how did it influence the final price?
While awarded competitively, the exact number of bidders and the specific pricing strategies employed are not detailed in this summary. Competitive delivery orders generally foster price discovery by allowing multiple vendors to propose solutions and pricing. However, the CPFF structure means the final price is tied to actual costs plus a fixed fee, so the competitive aspect primarily influences the efficiency and reasonableness of those costs and the fixed fee itself.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) structure for this IRS IT contract?
The main risk of CPFF is that the contractor may have less incentive to control costs, as the government pays for allowable costs plus a predetermined profit (the fixed fee). This can lead to cost overruns if not rigorously managed and audited. Scope creep can also inflate costs without a corresponding increase in the fixed fee, but the government bears the risk of increased cost.
How effectively does this contract support the IRS's mission, and what are the key performance indicators?
This contract supports the IRS's mission by providing essential computer systems design services, likely for critical tax processing and IT infrastructure. Effectiveness is measured by meeting performance standards, delivering services on time, and staying within the estimated cost ceiling. Specific KPIs would be defined in the contract's Statement of Work and performance metrics.
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: $31,859,210
Exercised Options: $28,482,663
Current Obligation: $27,996,167
Parent Contract
Parent Award PIID: TIRNO06D00026
IDV Type: IDC
Timeline
Start Date: 2006-07-02
Current End Date: 2014-08-01
Potential End Date: 2014-08-01 00:00:00
Last Modified: 2014-08-12
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