Booz Allen Hamilton Inc. awarded $17.5M for IT support services to the IRS

Contract Overview

Contract Amount: $17,532,823 ($17.5M)

Contractor: Booz Allen Hamilton Inc.

Awarding Agency: Department of the Treasury

Start Date: 2007-12-17

End Date: 2013-04-21

Contract Duration: 1,952 days

Daily Burn Rate: $9.0K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

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 $17.5 million to BOOZ ALLEN HAMILTON INC. for work described as: TOTAL INFORMATION PROCESSING SUPPORT SER Key points: 1. Contract awarded at a competitive price point, suggesting good value. 2. Strong competition among bidders likely drove favorable pricing. 3. No immediate risk indicators identified, but long duration warrants monitoring. 4. Services align with core IRS IT infrastructure needs. 5. Positioned within the IT consulting and systems design sector. 6. Contract duration of nearly 5 years indicates a significant commitment.

Value Assessment

Rating: good

The total award of $17.5 million for computer systems design services appears reasonable given the nearly 5-year duration. Benchmarking against similar IT support contracts for federal agencies of this size and scope would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating a robust bidding process. With 5 bidders identified, the level of competition was healthy, suggesting that the government received multiple viable proposals. This competition likely contributed to achieving a fair market price and ensuring the selection of a qualified contractor.

Taxpayer Impact: The full and open competition for this contract is beneficial for taxpayers as it promotes a competitive environment, which typically leads to better pricing and service quality.

Public Impact

Federal employees within the IRS will benefit from enhanced IT support. Services delivered include computer systems design and related support. The geographic impact is primarily within Maryland, where the contractor is located. The contract supports the IT workforce by providing essential infrastructure services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to vendor lock-in if not managed effectively.
Potential for scope creep over the 5-year period requires diligent oversight.
Reliance on a single contractor for critical IT support could pose a risk if performance degrades.

Positive Signals

Awarded through full and open competition, indicating a strong market response.
Firm fixed price contract structure shifts cost risk to the contractor.
Booz Allen Hamilton is a well-established government contractor with a track record in IT services.

Sector Analysis

This contract falls within the Information Technology sector, specifically in computer systems design services. The market for IT support and systems integration for federal agencies is substantial, with numerous large and small businesses competing for these contracts. This award represents a typical engagement for IT service providers supporting government operations, aligning with broader trends in federal IT modernization and maintenance.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and the prime contractor, Booz Allen Hamilton, is a large business. There is no explicit information on subcontracting plans for small businesses within this data snippet. Further analysis would be needed to determine if small business participation was a requirement or a factor in the evaluation.

Oversight & Accountability

As a competitive delivery order, this contract likely falls under the oversight of the contracting agency (Department of the Treasury/IRS) and potentially the Government Accountability Office (GAO) if protests were filed. The firm-fixed-price nature simplifies financial oversight compared to cost-reimbursement contracts. Transparency would be enhanced through contract award databases and agency reporting.

Related Government Programs

IRS IT Modernization Programs
Federal Civilian IT Services
Computer Systems Design and Related Services
Information Technology Professional Services

Risk Flags

Long contract duration may increase risk of scope creep and technological obsolescence.
Potential over-reliance on a single large contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $17.5 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 $17.5 million.

What is the period of performance?

Start: 2007-12-17. End: 2013-04-21.

What is Booz Allen Hamilton's track record with the IRS and similar federal agencies for IT support contracts?

Booz Allen Hamilton has a significant history of contracting with the IRS and other federal agencies for a wide range of IT services, including systems design, integration, and support. Their extensive experience suggests a deep understanding of government IT environments and requirements. While specific performance metrics for this particular contract are not detailed here, their overall performance with federal clients is generally considered strong, though like any large contractor, they may have faced occasional performance issues or contract disputes on specific engagements. A thorough review of past performance evaluations and any contract-related disputes would provide a more granular assessment.

How does the $17.5 million award compare to the average cost of similar IT support contracts for the IRS?

Without specific details on the scope of work and service levels, directly comparing the $17.5 million total award to average costs is challenging. However, considering the nearly 5-year duration, the annual value is approximately $3.5 million. This figure needs to be benchmarked against the average annual cost for comparable computer systems design and IT support services procured by the IRS or similar large federal agencies. Factors such as the complexity of systems supported, the number of users, and the specific services rendered (e.g., help desk, network management, software development) significantly influence pricing. The competitive nature of the award suggests the price is likely within a reasonable market range for the services provided.

What are the primary risks associated with this contract, given its duration and scope?

The primary risks associated with this contract include potential scope creep, where the requirements may expand beyond the original agreement, leading to cost increases or performance issues if not managed properly. The long duration (nearly 5 years) also presents a risk of technological obsolescence if the systems and services supported are not kept current with industry advancements. Furthermore, over-reliance on a single contractor for critical IT functions can create vulnerabilities if the contractor's performance falters or if there are disruptions in service. Effective contract management, regular performance reviews, and clear change control processes are crucial to mitigate these risks.

How effective has Booz Allen Hamilton been in delivering IT support services under similar firm-fixed-price contracts?

Booz Allen Hamilton has a substantial portfolio of firm-fixed-price (FFP) contracts across various federal agencies. FFP contracts are generally favored for well-defined scopes of work, as they place the cost risk on the contractor, incentivizing efficiency. While specific performance data for this IRS contract isn't available, the company's extensive experience suggests they have developed robust processes for managing FFP agreements. Their ability to consistently win and perform on such contracts indicates a general effectiveness in delivering IT services within budget and schedule constraints. However, a detailed review of past performance reports and client feedback would be necessary for a definitive assessment of their effectiveness on similar FFP engagements.

What are the historical spending patterns for computer systems design services at the IRS?

Historical spending patterns for computer systems design services at the IRS, and indeed across the federal government, have shown a consistent and often increasing trend over the years. Agencies like the IRS rely heavily on complex IT systems for tax processing, taxpayer services, and internal operations. Spending in this category typically fluctuates based on modernization initiatives, system upgrades, cybersecurity enhancements, and the need for ongoing maintenance and support. The IRS, in particular, has undergone significant IT transformations, necessitating substantial investment in systems design and integration. Analyzing past IRS budgets and contract awards for NAICS code 541512 (Computer Systems Design Services) would reveal trends in contract values, types, and durations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

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: $17,677,870

Exercised Options: $17,677,870

Current Obligation: $17,532,823

Parent Contract

Parent Award PIID: TIRNO06D00026

IDV Type: IDC

Timeline