Booz Allen Hamilton Inc. awarded $31.3M for IT support services by the IRS

Contract Overview

Contract Amount: $31,265,089 ($31.3M)

Contractor: Booz Allen Hamilton Inc.

Awarding Agency: Department of the Treasury

Start Date: 2007-11-07

End Date: 2012-03-14

Contract Duration: 1,589 days

Daily Burn Rate: $19.7K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 103

Pricing Type: COST PLUS INCENTIVE

Sector: IT

Official Description: TOTAL INFORMATION PROCESSING SUPPORT SER

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $31.3 million to BOOZ ALLEN HAMILTON INC. for work described as: TOTAL INFORMATION PROCESSING SUPPORT SER Key points: 1. The contract value represents a significant investment in IT infrastructure and support. 2. Competition dynamics for this contract are not immediately clear from the provided data. 3. The duration of the contract (over 4 years) suggests a need for sustained IT services. 4. The 'Computer Systems Design Services' category indicates a focus on technical solutions. 5. The contract was awarded as a delivery order under a larger contract vehicle. 6. The pricing structure (Cost Plus Incentive) suggests performance-based incentives.

Value Assessment

Rating: fair

Benchmarking the value of this $31.3 million contract is challenging without direct comparisons to similar IT support services contracts from the IRS or other agencies. The Cost Plus Incentive Fee (CPIF) pricing structure, while allowing for flexibility and incentivizing performance, can sometimes lead to higher costs if cost targets are not met or if incentives are heavily utilized. Further analysis would be needed to determine if the pricing is competitive relative to market rates for similar services and if the awarded amount represents good value for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that multiple vendors likely had the opportunity to bid. The presence of 103 bids suggests a robust level of competition for this specific delivery order. A high number of bidders generally supports price discovery and can lead to more favorable pricing for the government, as contractors compete to offer the best value.

Taxpayer Impact: The strong competition for this delivery order is beneficial for taxpayers, as it likely drove down costs and ensured the IRS received competitive pricing for essential IT support services.

Public Impact

Taxpayers benefit from improved efficiency and effectiveness of IRS IT systems. The contract delivers essential computer systems design and support services. Services are likely concentrated in Maryland, where the contractor is located. The contract supports jobs within the IT services sector, particularly in systems design.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with CPIF contracts if not managed closely.
Scope creep could increase the total cost beyond initial estimates.
Dependence on a single contractor for critical IT support could pose risks.

Positive Signals

Competitive award process suggests potential for good value.
Incentive fee structure encourages contractor performance.
Long contract duration indicates a stable and reliable service provider.

Sector Analysis

This contract falls within the Information Technology sector, specifically in computer systems design and related services. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract with the IRS aligns with broader government efforts to modernize IT systems and enhance data processing capabilities. Comparable spending benchmarks would typically involve looking at other large-scale IT support contracts awarded to major federal contractors.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or subcontracting requirements. Given the nature of the services and the prime contractor (Booz Allen Hamilton), it is possible that subcontracting opportunities may exist for specialized IT services. However, without specific information on set-asides, the direct impact on the small business ecosystem is unclear.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the IRS. The Cost Plus Incentive Fee structure implies performance metrics that would be monitored to ensure accountability. Transparency would be facilitated through contract databases like FPDS-NG, which provide details on awarded contracts. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IRS IT Modernization Programs
Federal Civilian Agency IT Support Contracts
Computer Systems Design Services Contracts
Cost Plus Incentive Fee Contracts

Risk Flags

Potential for cost escalation due to CPIF structure.
Dependence on contractor for critical IT functions.
Need for robust performance monitoring and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $31.3 million to BOOZ ALLEN HAMILTON INC.. TOTAL INFORMATION PROCESSING SUPPORT SER

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 $31.3 million.

What is the period of performance?

Start: 2007-11-07. End: 2012-03-14.

What is the track record of Booz Allen Hamilton Inc. in delivering similar IT support services to federal agencies?

Booz Allen Hamilton Inc. has a long and extensive track record of providing IT support, systems design, and consulting services to numerous federal agencies, including the Department of Defense, civilian agencies, and intelligence community. Their experience spans a wide range of IT disciplines, from cybersecurity and data analytics to enterprise architecture and cloud migration. The company is a major federal contractor, consistently awarded significant contracts for complex IT solutions. While specific performance metrics for individual contracts are not always publicly available, their sustained presence and substantial contract awards suggest a generally positive performance history in delivering IT services to the government.

How does the awarded amount of $31.3 million compare to other IT support contracts of similar scope?

The $31.3 million total value for this 1589-day (approximately 4.35 years) contract for computer systems design services is within a typical range for large-scale IT support engagements for federal agencies. However, a precise comparison requires detailed analysis of contract scope, specific services rendered, and the agency's unique requirements. For instance, contracts involving complex system integration, large user bases, or highly specialized technical expertise might command higher values. Conversely, contracts focused on more routine maintenance or support might be lower. Without a direct apples-to-apples comparison of service level agreements and technical requirements, it's difficult to definitively state if $31.3 million represents a high, low, or average value.

What are the primary risks associated with a Cost Plus Incentive Fee (CPIF) contract like this one?

The primary risks associated with a Cost Plus Incentive Fee (CPIF) contract revolve around cost control and the potential for cost overruns. While CPIF contracts incentivize contractors to meet or exceed performance targets and manage costs effectively through shared savings or cost underruns, they also allow for costs to exceed initial estimates if performance incentives are heavily weighted or if targets are challenging. The government bears the risk of paying higher-than-expected costs if the contractor incurs them while achieving desired outcomes. Effective oversight, clear performance metrics, and robust negotiation of target costs and incentive formulas are crucial to mitigate these risks and ensure value for the government.

How effective are competitive delivery orders in ensuring value for taxpayer money in IT services?

Competitive delivery orders, like the one awarded to Booz Allen Hamilton, are generally effective mechanisms for ensuring value for taxpayer money, especially when there is robust competition. The process allows multiple vendors to bid on specific requirements under an existing contract vehicle, fostering price competition. A high number of bidders, as indicated by the 103 bids for this order, suggests that the market is responsive and that contractors are motivated to offer competitive pricing. This competitive pressure helps drive down costs and encourages contractors to propose efficient solutions, ultimately benefiting taxpayers by securing services at favorable rates.

What is the historical spending trend for computer systems design services at the IRS?

Analyzing historical spending trends for computer systems design services at the IRS would require access to comprehensive federal procurement data over several fiscal years. Generally, agencies like the IRS, which manage vast amounts of sensitive taxpayer data and complex operational systems, consistently invest significant resources in IT modernization, maintenance, and support. Spending in this category tends to fluctuate based on major system upgrades, new technological implementations, and evolving cybersecurity threats. Without specific historical data for the IRS in this NAICS code (541512), it's difficult to pinpoint precise trends, but it is reasonable to assume a sustained and potentially increasing investment in IT services to meet operational demands and adapt to 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: 103

Pricing Type: COST PLUS INCENTIVE (V)

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: $31,701,286

Exercised Options: $31,265,090

Current Obligation: $31,265,089

Parent Contract

Parent Award PIID: TIRNO06D00026

IDV Type: IDC

Timeline