Treasury's $27M TIPPS 4 Contract with Booz Allen Hamilton Faces Scrutiny for Value and Competition

Contract Overview

Contract Amount: $27,060,303 ($27.1M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of the Treasury

Start Date: 2012-09-29

End Date: 2017-09-19

Contract Duration: 1,816 days

Daily Burn Rate: $14.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::CT::IGF CRITICAL FUNCTIONS - TIPPS 4

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20016

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $27.1 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::CT::IGF CRITICAL FUNCTIONS - TIPPS 4 Key points: 1. The contract awarded to Booz Allen Hamilton for critical IT functions represents a significant investment. 2. Competition details are limited, raising questions about price discovery and potential value for taxpayers. 3. The 'Other Computer Related Services' NAICS code suggests a broad scope, potentially impacting oversight. 4. The contract's duration and cost-plus structure warrant close examination for efficiency.

Value Assessment

Rating: questionable

The contract's cost-plus fixed fee structure, combined with a lack of detailed performance metrics, makes a direct value assessment difficult. Benchmarking against similar 'Other Computer Related Services' contracts is challenging due to the broad NAICS code and specific nature of 'Critical Functions'.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While advertised as full and open competition, the limited number of subsequent delivery orders (4) suggests potential concentration. The impact on price discovery is unclear without knowing the number of bids received and the negotiation process.

Taxpayer Impact: The total award amount of over $27 million necessitates careful oversight to ensure taxpayer funds are used efficiently and effectively for the intended critical functions.

Public Impact

Taxpayers may be paying a premium if competition was not robust or if the cost-plus structure incentivized higher spending. The IRS relies on these critical functions, meaning any disruption or inefficiency could impact taxpayer services. Transparency in contract performance and spending is crucial for public trust in government IT procurements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus contract type can lead to cost overruns.
Limited number of delivery orders may indicate concentrated award.
Broad NAICS code makes specific performance benchmarking difficult.
Long contract duration increases risk of scope creep and inefficiency.

Positive Signals

Awarded under full and open competition.
Contract supports critical IRS functions.
Established vendor with a history of government contracting.

Sector Analysis

This contract falls within the IT services sector, specifically 'Other Computer Related Services'. Spending in this area is substantial across government, with benchmarks varying widely based on service complexity and duration. The $27M total award is moderate for a multi-year IT service contract.

Small Business Impact

The data indicates the prime contractor is Booz Allen Hamilton, a large business. There is no explicit information provided regarding small business subcontracting participation within this specific contract award.

Oversight & Accountability

The contract was awarded by the Department of the Treasury's Internal Revenue Service. Oversight would typically involve contract officers, program managers, and potentially agency inspectors general to ensure compliance and performance.

Related Government Programs

Other Computer Related Services
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Cost-plus contract type.
Long contract duration.
Broad NAICS code.
Limited number of delivery orders.
Lack of specific performance metrics in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $27.1 million to BOOZ ALLEN HAMILTON INC. IGF::CT::IGF CRITICAL FUNCTIONS - TIPPS 4

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 $27.1 million.

What is the period of performance?

Start: 2012-09-29. End: 2017-09-19.

What specific critical functions does TIPPS 4 encompass, and how does their performance directly benefit IRS operations and taxpayer services?

TIPPS 4 likely refers to IT support services for critical IRS functions, potentially including systems maintenance, software development, or data management. Understanding the precise nature of these functions is key to assessing their necessity and the value derived from the $27M investment. Without this detail, it's difficult to definitively link the spending to tangible improvements in IRS operations or taxpayer service delivery.

Given the cost-plus fixed fee structure, what mechanisms were in place to control costs and ensure Booz Allen Hamilton achieved efficiencies?

Cost-plus fixed fee contracts can incentivize spending if not carefully managed. Effective oversight would require detailed cost reporting, regular audits, and clear performance metrics tied to fee adjustments. The limited number of delivery orders (4) and the long duration suggest a need to scrutinize how cost controls and efficiency incentives were applied throughout the contract's lifecycle.

How did the 'full and open competition' process translate into competitive pricing and optimal vendor selection for these critical IT services?

While the contract was advertised as full and open, the actual level of competition is crucial. Understanding the number of bids received, the evaluation criteria, and the negotiation outcomes would reveal if the process truly fostered competitive pricing. The $27M award suggests significant value was expected, and robust competition is the primary driver for achieving that value for taxpayers.

Industry Classification

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

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MCLEAN, VA, 22102

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,774,338

Exercised Options: $28,137,674

Current Obligation: $27,060,303

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TIRNO11D00011

IDV Type: IDC

Timeline