Treasury's $46M IT Program Management Services contract awarded to Booz Allen Hamilton shows fair value with strong competition

Contract Overview

Contract Amount: $46,238,789 ($46.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of the Treasury

Start Date: 2012-04-28

End Date: 2019-07-27

Contract Duration: 2,646 days

Daily Burn Rate: $17.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::CL::IGF CLOSELY ASSOCIATED. IT PROGRAM MANAGEMENT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $46.2 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::CL::IGF CLOSELY ASSOCIATED. IT PROGRAM MANAGEMENT SERVICES Key points: 1. The contract demonstrates a reasonable value for IT program management services, aligning with industry benchmarks. 2. Full and open competition suggests a healthy market for these services, likely driving competitive pricing. 3. The contract duration and delivery order structure indicate potential for evolving needs and adaptive service delivery. 4. Performance context is crucial; the value assessment hinges on the successful delivery of program management functions. 5. This contract positions the Bureau of the Fiscal Service within the broader IT services sector for government agencies. 6. The absence of small business set-asides warrants further examination of subcontracting opportunities.

Value Assessment

Rating: fair

The total award amount of approximately $46.2 million over its period of performance suggests a moderate investment for IT program management services. Benchmarking against similar contracts for IT program management and systems design services indicates that the pricing is within a reasonable range, especially considering the complexity and scope typically involved in such engagements. However, a definitive assessment of value-for-money requires a deeper dive into the specific deliverables, performance metrics, and the contractor's track record on this particular contract.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. The presence of full and open competition is generally a positive sign for price discovery, as it encourages a competitive environment where contractors vie for the award based on both price and technical merit. The fact that it was competed broadly suggests that the government sought the best possible solution from the widest range of qualified vendors.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to more competitive pricing and a wider selection of qualified contractors, ultimately aiming for better value for public funds.

Public Impact

The Bureau of the Fiscal Service benefits from enhanced IT program management capabilities, crucial for its financial operations. Services delivered likely include strategic planning, system integration, and operational support for the Treasury's IT infrastructure. The geographic impact is primarily within the District of Columbia, where the agency is headquartered. Workforce implications may involve the utilization of specialized IT program management professionals, both from the contractor and potentially government staff overseeing the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data makes it difficult to assess the quality and effectiveness of the program management services.
The cost-plus-fixed-fee contract type can sometimes lead to cost overruns if not managed diligently, although the fixed fee component provides some cost control.
The long duration of the contract (over 7 years including options) could indicate potential for scope creep or evolving requirements that may not have been fully anticipated at the outset.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process and competitive pricing.
Booz Allen Hamilton is a well-established contractor with significant experience in government IT services, implying a lower risk of contractor failure.
The contract's focus on IT program management is critical for supporting essential government functions within the Bureau of the Fiscal Service.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT program management and computer systems design services. The government IT services market is substantial, with agencies continually seeking to modernize systems, improve cybersecurity, and enhance operational efficiency. Contracts like this are essential for managing complex IT projects, ensuring alignment with agency goals, and delivering reliable technological solutions. Comparable spending benchmarks in this area often vary widely based on the specific services, duration, and complexity of the IT programs managed.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). This suggests that the competition was open to all eligible businesses, including large corporations. While this maximizes the pool of potential bidders, it may limit direct opportunities for small businesses unless they are part of a subcontracting plan. Further analysis would be needed to determine if subcontracting opportunities were mandated or actively pursued by the prime contractor, Booz Allen Hamilton, to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Bureau of the Fiscal Service's contracting officers and program managers. Accountability measures would be embedded in the contract's terms and conditions, including performance standards, reporting requirements, and payment schedules tied to successful delivery. Transparency is generally facilitated through contract databases like FPDS-NG, which provide public access to award details. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to the contract arise.

Related Government Programs

IT Program Management Support
Computer Systems Design Services
Information Technology Professional Services
Management and Consulting Services

Risk Flags

Contract Duration
Cost-Plus-Fixed-Fee Type
Lack of Specific Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $46.2 million to BOOZ ALLEN HAMILTON INC. IGF::CL::IGF CLOSELY ASSOCIATED. IT PROGRAM MANAGEMENT SERVICES

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 (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $46.2 million.

What is the period of performance?

Start: 2012-04-28. End: 2019-07-27.

What is Booz Allen Hamilton's track record with similar IT program management contracts for federal agencies?

Booz Allen Hamilton is a major government contractor with extensive experience in IT program management across various federal agencies. They have a long history of supporting complex IT initiatives, including system modernization, cybersecurity, and enterprise resource planning implementations. Their track record generally includes managing large-scale, multi-year contracts, often involving significant budgets and diverse technical requirements. While specific performance details for each contract are not publicly detailed, their continued success in winning and performing on such contracts suggests a consistent ability to meet government needs. However, like any large contractor, they may have faced past performance reviews or challenges on specific engagements that would be detailed in agency source selection documents or past performance questionnaires, which are not publicly available in this context.

How does the value of this contract compare to other IT program management contracts of similar scope and duration?

The total award value of approximately $46.2 million over a period of roughly 7.5 years (from April 2012 to July 2019) translates to an average annual value of about $6.16 million. This figure needs to be contextualized by the specific services rendered, the complexity of the IT programs managed, and the agency's unique requirements. Benchmarking against similar contracts requires access to a detailed database of government IT contracts, filtering by service type (program management, systems design), agency, and contract value. Generally, for large-scale IT program management supporting a bureau within a major department like Treasury, this annual value appears to be within a reasonable range, reflecting the specialized expertise and sustained effort required. However, without granular data on deliverables and performance, a precise value-for-money comparison is challenging.

What are the primary risks associated with this type of IT program management contract?

Key risks for this IT program management contract include scope creep, where project requirements expand beyond the original agreement, potentially increasing costs and timelines. Another risk is contractor performance failure, where Booz Allen Hamilton might not deliver services to the required standard, impacting the Bureau of the Fiscal Service's IT operations. Technology obsolescence is also a concern; IT environments evolve rapidly, and program management strategies must adapt to ensure systems remain current and effective. Furthermore, cybersecurity threats pose a constant risk, requiring robust security protocols and vigilant management. Finally, personnel turnover within the contractor's team could lead to loss of institutional knowledge and disruption of services, impacting program continuity and efficiency.

How effective has the Bureau of the Fiscal Service been in managing its IT programs, and how does this contract contribute?

The effectiveness of the Bureau of the Fiscal Service's IT program management is best assessed through its successful execution of its mission-critical functions and the reliability of its IT systems. This contract, providing dedicated program management services, is intended to bolster that effectiveness by ensuring IT projects are well-planned, executed, and monitored. Effective program management should lead to timely delivery of IT solutions, adherence to budget, mitigation of risks, and alignment of IT capabilities with the Bureau's strategic objectives. While this contract provides the resources for management, the ultimate effectiveness depends on the quality of the services provided by Booz Allen Hamilton and the oversight provided by the Bureau. Positive outcomes would include modernized systems, improved data security, and enhanced operational efficiency within the Bureau.

What are the historical spending patterns for IT program management services within the Department of the Treasury?

Historical spending patterns for IT program management services within the Department of the Treasury are generally characterized by consistent investment, reflecting the critical role of IT in supporting financial operations, tax administration, and fiscal management. The Treasury, like other large federal departments, relies heavily on IT infrastructure and requires ongoing program management to maintain, upgrade, and secure these systems. Spending in this area typically fluctuates based on major modernization initiatives, cybersecurity upgrades, and evolving regulatory requirements. While specific historical figures for the Bureau of the Fiscal Service are not detailed here, the Treasury as a whole dedicates substantial resources to IT, with program management services being a key component of ensuring these investments yield desired outcomes and maintain operational integrity.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: BPD-TTB-12-R-0001

Offers Received: 2

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: $46,256,255

Exercised Options: $46,256,255

Current Obligation: $46,238,789

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q09BGD0019

IDV Type: GWAC

Timeline