Treasury's IRS Spends $20.5M on IT Services via Full Competition, Booz Allen Hamilton Awarded

Contract Overview

Contract Amount: $20,543,146 ($20.5M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of the Treasury

Start Date: 2013-04-30

End Date: 2016-03-16

Contract Duration: 1,051 days

Daily Burn Rate: $19.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $20.5 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF Key points: 1. Significant contract value of $20.5M for IT services. 2. Booz Allen Hamilton is a major player in the government contracting space. 3. Full and open competition was utilized, suggesting a robust price discovery process. 4. The contract falls under the 'Other Computer Related Services' NAICS code.

Value Assessment

Rating: good

The contract's value of $20.5M appears reasonable for the duration and scope of 'Other Computer Related Services'. Benchmarking against similar IT service contracts would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery, allowing multiple vendors to bid and potentially driving down costs. This method generally leads to more competitive pricing.

Taxpayer Impact: The competitive nature of the award suggests taxpayers likely received fair value for the services rendered, minimizing potential overspending.

Public Impact

Taxpayers benefit from competitive bidding processes that aim for cost-effectiveness. The IRS relies on IT services to manage its vast operations and taxpayer data. Booz Allen Hamilton's involvement highlights the concentration of large IT service providers in the federal market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it hard to gauge effectiveness.
Contract duration of nearly 3 years could lead to scope creep or outdated technology if not managed well.

Positive Signals

Full and open competition utilized.
Awarded to a well-established contractor.
Contract value is clearly defined.

Sector Analysis

This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. Federal IT spending is consistently high, with significant portions allocated to system maintenance, upgrades, and new technology implementation.

Small Business Impact

While the contract was awarded through full and open competition, there is no specific indication of small business participation or subcontracting goals. Larger contracts often favor prime contractors who may not prioritize small business involvement.

Oversight & Accountability

The contract was awarded via a delivery order under a larger contract vehicle. Oversight would typically be managed by the contracting officer at the IRS, with performance reviews and milestone tracking.

Related Government Programs

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

Risk Flags

Potential for cost overruns in CPFF contract.
Lack of specific performance metrics.
Contract duration may lead to outdated solutions.
Limited visibility into small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $20.5 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF

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 $20.5 million.

What is the period of performance?

Start: 2013-04-30. End: 2016-03-16.

What specific IT services were procured under this contract, and how do they align with the IRS's mission objectives?

The contract falls under NAICS code 541519, 'Other Computer Related Services.' This broad category could encompass a range of services such as IT consulting, system integration, data processing, or IT support. Without further details, it's difficult to precisely align these services with specific IRS mission objectives, though they likely support critical functions like taxpayer processing, data security, or internal IT infrastructure.

Given the contract's duration and cost-plus-fixed-fee structure, what are the primary risks to cost control and value for money?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially over a nearly three-year period, is the potential for cost overruns if the contractor's actual costs exceed estimates. While the fixed fee provides some incentive for efficiency, the government bears the risk of increased costs. Effective oversight and robust cost monitoring are crucial to mitigate this risk and ensure value for money.

How does the utilization of 'full and open competition' for this contract ensure effective price discovery and prevent potential vendor lock-in?

Full and open competition allows any qualified vendor to submit a bid, fostering a competitive environment that drives down prices and encourages innovation. This process is designed to ensure the government receives the best possible value by selecting the most advantageous offer. It inherently prevents vendor lock-in by providing opportunities for new or smaller vendors to compete and potentially win future contracts.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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

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: $22,430,871

Exercised Options: $20,881,744

Current Obligation: $20,543,146

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TIRNO11D00011

IDV Type: IDC

Timeline