Treasury's FATCA Program Management Support contract awarded to Booz Allen Hamilton for over $24M

Contract Overview

Contract Amount: $24,192,651 ($24.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of the Treasury

Start Date: 2013-12-03

End Date: 2017-06-19

Contract Duration: 1,294 days

Daily Burn Rate: $18.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::CL::IGF FOREIGN ACCOUINT TAX COMPLIANCE ACT PROGRAM MANAGEMENT SUPPORT AND DEVELOPMENT SUPPORT (FATCA PM)

Place of Performance

Location: LANHAM, PRINCE GEORGES County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $24.2 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::CL::IGF FOREIGN ACCOUINT TAX COMPLIANCE ACT PROGRAM MANAGEMENT SUPPORT AND DEVELOPMENT SUPPORT (FATCA PM) Key points: 1. Contract provides program management and development support for the Foreign Account Tax Compliance Act (FATCA). 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The contract duration of approximately 3.5 years (1294 days) indicates a medium-term engagement. 4. The cost-plus-fixed-fee (CPFF) pricing structure can lead to cost overruns if not managed carefully. 5. The North American Industry Classification System (NAICS) code 541519 points to services in computer-related fields. 6. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a similar framework.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without more detailed cost breakdowns or comparisons to similar FATCA support contracts. The total award amount of over $24 million for a 3.5-year period suggests a significant investment in program management and development. The CPFF structure requires close oversight to ensure costs remain reasonable and aligned with the fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of 3 bidders (no) suggests a moderate level of competition for this specific award. While competition is present, the exact number of bidders limits a definitive assessment of how aggressively prices were driven down.

Taxpayer Impact: A competitive award process generally benefits taxpayers by encouraging contractors to offer their best pricing and performance to secure the contract.

Public Impact

The primary beneficiaries are the Internal Revenue Service (IRS) and the Department of the Treasury, who receive critical support for the FATCA program. Services delivered include program management and development support, crucial for the effective implementation and ongoing operation of FATCA. The geographic impact is primarily national, supporting U.S. tax compliance efforts, though FATCA itself has international implications. Workforce implications include the employment of skilled professionals in program management, IT, and tax compliance analysis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize contractors to increase costs to maximize their fee, requiring robust oversight.
The specific nature of 'development support' could lead to scope creep if not clearly defined and managed.
Reliance on a single contractor for program management over several years may reduce flexibility and increase switching costs.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
The contract duration suggests a stable, long-term need for these services, allowing for focused expertise development.
Booz Allen Hamilton is a well-established government contractor with extensive experience in program management and IT services.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically IT and management consulting for government programs. The market for such services is large and highly competitive, with numerous firms capable of providing program management and development support. This contract represents a portion of the government's investment in ensuring compliance with complex financial regulations like FATCA.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions (ss: false, sb: false). This suggests that the competition was open to all eligible businesses, including large corporations. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity for small business participation.

Oversight & Accountability

Oversight would typically be managed by the contracting officer and program managers within the IRS or Treasury. The CPFF structure necessitates diligent monitoring of costs and performance to ensure value for money. Transparency is generally maintained through contract reporting mechanisms, though specific IG oversight details for this particular contract are not provided.

Related Government Programs

Foreign Account Tax Compliance Act (FATCA)
IRS Program Management Support
Treasury Department IT Services
Tax Compliance Technology

Risk Flags

Cost-plus-fixed-fee pricing structure requires careful monitoring to prevent cost overruns.
Scope definition for 'development support' needs to be precise to avoid creep.
Limited number of bidders (3) may indicate potential for less competitive pricing than a wider field.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $24.2 million to BOOZ ALLEN HAMILTON INC. IGF::CL::IGF FOREIGN ACCOUINT TAX COMPLIANCE ACT PROGRAM MANAGEMENT SUPPORT AND DEVELOPMENT SUPPORT (FATCA PM)

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 $24.2 million.

What is the period of performance?

Start: 2013-12-03. End: 2017-06-19.

What is the specific nature of the 'development support' provided under this contract?

The term 'development support' in the context of FATCA program management likely refers to the enhancement, maintenance, and evolution of the systems and processes used to implement and enforce the Foreign Account Tax Compliance Act. This could include software development for data collection and analysis platforms, improvements to reporting mechanisms, integration with other financial systems, and the creation of tools to assist IRS personnel in managing FATCA compliance. Without more specific documentation, it's difficult to pinpoint exact development tasks, but it generally implies activities aimed at improving the functionality, efficiency, and effectiveness of the FATCA program's technological and procedural infrastructure.

How does the $24.19 million award compare to typical spending on similar program management contracts?

Comparing this $24.19 million award requires context regarding the scope, duration, and complexity of similar program management contracts. For a 3.5-year contract supporting a significant legislative initiative like FATCA, this figure appears within a reasonable range for a large, established contractor like Booz Allen Hamilton. However, without specific benchmarks for FATCA-related support or comparable international tax compliance program management, a precise value-for-money assessment is difficult. Contracts for large-scale IT and program management can easily run into tens of millions of dollars over several years, especially when dealing with complex regulatory environments and data management.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of service?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs compared to fixed-price contracts. While the 'fixed fee' component provides a ceiling on profit, the 'cost plus' element means the government reimburses the contractor's allowable costs. If cost controls are weak or the scope is not tightly managed, costs can escalate, leading to a higher total contract price. For 'development support,' there's also a risk of scope creep, where requirements expand beyond the initial agreement, further driving up costs. Robust government oversight, clear performance metrics, and stringent change control processes are essential to mitigate these risks.

What is Booz Allen Hamilton's track record with the IRS and Treasury for similar services?

Booz Allen Hamilton has a long-standing and extensive track record of providing a wide range of services to the IRS and the Department of the Treasury, including IT modernization, program management, cybersecurity, and financial management consulting. They are a major federal contractor frequently awarded large-scale contracts across various agencies. Their experience with complex government programs and regulatory environments like FATCA is substantial. While specific performance details for this particular contract are not detailed here, their general history suggests a capacity to handle such requirements, though like any large contractor, performance can vary across individual engagements.

How has federal spending on FATCA implementation and support evolved over time?

Federal spending on FATCA implementation and support has been significant since its inception following the Hiring Incentives to Restore Employment (HIRE) Act of 2010. Initial spending focused on establishing the framework, developing reporting systems, and international outreach. Subsequent years have seen continued investment in program management, IT infrastructure, data analysis, and enforcement activities. While this specific $24 million contract covers a defined period (2013-2017), overall federal spending related to FATCA likely fluctuates based on legislative priorities, technological advancements, and evolving international compliance landscapes. Tracking precise historical spending requires aggregating data across multiple contracts and fiscal years.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

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: $24,832,866

Exercised Options: $24,832,866

Current Obligation: $24,192,651

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TIRNO11D00011

IDV Type: IDC

Timeline