Booz Allen Hamilton contract for telecommunications services awarded at $26.8M, with a 1152-day duration

Contract Overview

Contract Amount: $26,795,286 ($26.8M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2005-02-11

End Date: 2008-04-08

Contract Duration: 1,152 days

Daily Burn Rate: $23.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 18

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200512!050772!9700!HC1047!DISA, NATIONAL CAPITAL REGION !FA877104D0006 !A!N! !N!VC02 ! !20050211!20060211!006928857!006928857!006928857!N!BOOZ ALLEN HAMILTON INC !8283 GREENSBORO DRIVE !MCLEAN !VA!22102!27200!610!51!FALLS CHURCH !FALLS CHURCH (CITY) !VIRGINIA !+000005239468!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !000 !* !541330!E! !5!B!M! !A! !20200930!B!A!N!A! !A!N!J!2!001!B! !Z!N!Z! ! !N!C!N! ! ! !Z!Z!A!A!000!A!B!N! ! ! ! ! ! !0001! !

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $26.8 million to BOOZ ALLEN HAMILTON INC for work described as: 200512!050772!9700!HC1047!DISA, NATIONAL CAPITAL REGION !FA877104D0006 !A!N! !N!VC02 ! !20050211!20060211!006928857!006928857!006928857!N!BOOZ ALLEN HAMILTON INC !8283 GREENSBORO DRIVE !MCLEAN !VA!22102!27200!610!51!FALLS CHURCH !FALL… Key points: 1. Contract value of $26.8M over 1152 days suggests a daily burn rate of approximately $23,260. 2. The contract was awarded under full and open competition, indicating a potentially competitive bidding process. 3. The primary service category is 'Other ADP & Telecommunication Services', aligning with the contractor's expertise. 4. The contract's duration of over three years implies a need for sustained telecommunications support. 5. The award was made to a single contractor, Booz Allen Hamilton Inc., for the entirety of the contract. 6. The contract was issued as a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

The total award amount of $26.8 million over 1152 days results in a daily cost of approximately $23,260. Benchmarking this against similar telecommunications service contracts is challenging without more specific service details and market data. However, the duration suggests a significant, long-term need. The contract type is 'FIRM FIXED PRICE', which typically offers cost certainty for the government, but the overall value proposition depends heavily on the scope and quality of services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION', indicating that all responsible sources were permitted to submit bids. The data does not specify the number of bidders, but the designation implies a competitive process was intended. A competitive award generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it aims to secure the best value by encouraging multiple vendors to offer competitive pricing and innovative solutions.

Public Impact

The primary beneficiary is the Department of Defense, specifically the Defense Information Systems Agency (DISA), which requires telecommunications support. The services delivered are categorized as 'Other ADP & Telecommunication Services', likely encompassing network infrastructure, communication systems, and related IT support. The contract is geographically located in Virginia, with the contractor's address in McLean, VA. The contract supports the operational needs of the military and government agencies requiring robust communication capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the services rendered makes it difficult to assess true value for money.
The duration of the contract (over 3 years) could lead to vendor lock-in if not managed carefully.
Reliance on a single contractor for a significant telecommunications requirement may pose a risk if performance degrades.

Positive Signals

Awarded under full and open competition, suggesting a fair and competitive process.
Firm Fixed Price contract type provides cost predictability for the government.
The contractor, Booz Allen Hamilton, is a well-established entity in the government contracting space.

Sector Analysis

This contract falls within the broader Information Technology and Telecommunications sector. The North American Industry Classification System (NAICS) code 517110 ('Wired Telecommunications Carriers') is listed, though the PSC code D399 ('Other ADP & Telecommunication Services') suggests a broader scope than just traditional carrier services. The market for telecommunications services for government agencies is substantial, with significant spending allocated to ensuring secure and reliable communication networks. Comparable spending benchmarks would require detailed analysis of similar DISA or DoD contracts for ADP and telecommunication support.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, Booz Allen Hamilton, is a large business, and any subcontracting would be at their discretion.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Defense Information Systems Agency (DISA) and the Department of Defense. As a Delivery Order under a potential IDIQ contract, oversight would involve monitoring performance against the established terms and conditions, ensuring timely delivery, and verifying compliance with the firm fixed price. Transparency is generally facilitated through contract award databases, but specific oversight reports or Inspector General investigations would depend on performance issues or audits.

Related Government Programs

Defense Information Systems Agency (DISA) Contracts
Department of Defense Telecommunications Services
Federal IT and Telecommunications Spending
Wired Telecommunications Carrier Services
ADP and Telecommunication Services Contracts

Risk Flags

Potential for technological obsolescence due to contract duration.
Lack of specific service details hinders comprehensive value assessment.
Reliance on a single large contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.8 million to BOOZ ALLEN HAMILTON INC. 200512!050772!9700!HC1047!DISA, NATIONAL CAPITAL REGION !FA877104D0006 !A!N! !N!VC02 ! !20050211!20060211!006928857!006928857!006928857!N!BOOZ ALLEN HAMILTON INC !8283 GREENSBORO DRIVE !MCLEAN !VA!22102!27200!610!51!FALLS CHURCH !FALLS CHURCH (CITY) !VIRGINIA !+000005239468!N!N!000000000000!D399!OTHER ADP & TELECOMMUNICATION SERVICES !S1 !SERVICES !000 !* !541330!E! !5!B!M! !A! !202

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $26.8 million.

What is the period of performance?

Start: 2005-02-11. End: 2008-04-08.

What specific telecommunications services were included in this $26.8 million contract?

The contract is broadly categorized under 'Other ADP & Telecommunication Services' (PSC D399) and has a NAICS code of 517110 ('Wired Telecommunications Carriers'). While the exact services are not detailed in the provided data, this typically encompasses a range of offerings such as network infrastructure management, voice and data communication services, potentially including circuit provisioning, maintenance, and support for secure government communication systems. Given the awarding agency (DISA), it's likely related to supporting military and defense communication networks, which could involve complex routing, bandwidth management, and ensuring high availability for critical operations.

How does the daily cost of approximately $23,260 compare to market rates for similar services?

Directly comparing the daily cost of $23,260 to market rates for 'Other ADP & Telecommunication Services' is difficult without granular data on the specific services rendered, service level agreements (SLAs), and geographic scope. Telecommunications costs can vary significantly based on bandwidth, latency requirements, security protocols, and the criticality of the service. For large-scale government contracts managed by major providers like Booz Allen Hamilton, costs might reflect premium support, security clearances, and integration with existing complex government networks. A precise benchmark would require access to detailed market research reports or competitive bid data for comparable government or large enterprise telecommunications solutions.

What is Booz Allen Hamilton's track record with similar government telecommunications contracts?

Booz Allen Hamilton Inc. is a major government contractor with extensive experience in IT and telecommunications services. They have a long history of supporting defense and civilian agencies with complex technology solutions. Their track record typically includes managing large-scale network infrastructure, cybersecurity services, and providing advanced communication capabilities. While this specific contract is for $26.8 million over 1152 days, Booz Allen has managed numerous contracts of similar or larger magnitudes across various federal agencies. Their performance on such contracts is generally subject to government evaluations, which can be accessed through sources like the Federal Procurement Data System (FPDS) or agency-specific reporting mechanisms.

What are the potential risks associated with a three-year contract for telecommunications services?

A significant risk with a multi-year contract like this (1152 days) is technological obsolescence. Telecommunications technology evolves rapidly, and a contract spanning over three years might not capture the latest advancements or cost efficiencies unless structured with flexibility. Another risk is vendor lock-in, where the government becomes heavily reliant on a single provider, potentially limiting future options or negotiating leverage. Performance degradation over time is also a concern, as is the potential for cost overruns if the 'Firm Fixed Price' was not adequately scoped or if unforeseen requirements emerge that necessitate contract modifications. Ensuring robust performance metrics and clear exit strategies are crucial mitigation steps.

How does the 'Full and Open Competition' award impact the value for taxpayers?

Awarding a contract under 'Full and Open Competition' is generally advantageous for taxpayers. It signifies that multiple vendors had the opportunity to bid, fostering a competitive environment that typically drives down prices and encourages innovation. This process aims to ensure the government secures the best possible value by selecting the offer that provides the optimal balance of cost, performance, and technical merit. Unlike sole-source or limited competition awards, full and open competition reduces the risk of inflated pricing due to a lack of market pressure, thereby maximizing the efficient use of taxpayer funds.

What is the significance of this contract being a 'Delivery Order'?

The designation of this award as a 'Delivery Order' implies that it was issued under a pre-existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract or a similar type of multiple-award contract vehicle. IDIQ contracts allow agencies to procure services or supplies over a period of time, with specific quantities and delivery dates defined by individual delivery orders. This approach provides flexibility for the agency to order services as needed, while the underlying IDIQ contract establishes the terms, conditions, and pricing structure. For taxpayers, this can mean more efficient procurement, as the competition and vetting of the base IDIQ contract have already occurred, streamlining the process for subsequent orders.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 18

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 8283 GREENSBORO DRIVE, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: FA877104D0006

IDV Type: IDC

Timeline