DoD's $30M IT Support Contract with Booz Allen Hamilton Faces Scrutiny Over R&D Classification
Contract Overview
Contract Amount: $30,019,307 ($30.0M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2012-10-01
End Date: 2018-03-31
Contract Duration: 2,007 days
Daily Burn Rate: $15.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IT SUPPORT SERVICES - LABOR
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $30.0 million to BOOZ ALLEN HAMILTON INC for work described as: IT SUPPORT SERVICES - LABOR Key points: 1. Contract awarded to Booz Allen Hamilton for IT Support Services. 2. Significant spending of $30M over a 5.5-year period. 3. Classification under R&D (NAICS 541712) raises questions about appropriateness. 4. Full and open competition was utilized, suggesting a competitive bidding process.
Value Assessment
Rating: questionable
The contract's total value of $30M over 5.5 years is substantial. Benchmarking is difficult due to the unusual classification under R&D for IT support services, which may inflate costs compared to standard IT service contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive process. However, the classification under R&D may have skewed the competitive landscape and price discovery.
Taxpayer Impact: Taxpayer funds may be misallocated if R&D classification is inappropriate for IT support services, potentially leading to higher costs than necessary.
Public Impact
Citizens may question the appropriateness of classifying IT support services under Research and Development. Transparency concerns arise regarding the justification for the R&D classification and its impact on pricing. Potential for inefficient use of taxpayer funds if the contract is not accurately categorized.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Misclassification of service type (IT Support vs. R&D)
- Potential for inflated costs due to incorrect classification
- Lack of clarity on specific R&D activities performed
Positive Signals
- Awarded under full and open competition
- Long-term contract providing stable support
Sector Analysis
The IT services sector is vast, with significant government spending. However, classifying IT support under R&D (NAICS 541712) is atypical and warrants investigation, as R&D typically focuses on innovation and discovery rather than routine support.
Small Business Impact
The contract data indicates that small businesses were not directly involved as prime contractors (ss: false, sb: false). Further analysis would be needed to determine if small businesses participated as subcontractors.
Oversight & Accountability
The classification of IT support services under R&D requires further oversight to ensure proper justification and prevent potential misuse of funds. Accountability for the classification decision and its financial implications is crucial.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Defense Information Systems Agency Programs
Risk Flags
- Potential misclassification of service type
- Questionable justification for R&D NAICS code
- Risk of inflated costs due to classification
- Lack of clarity on specific services rendered
Tags
research-and-development-in-the-physical, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.0 million to BOOZ ALLEN HAMILTON INC. IT SUPPORT SERVICES - LABOR
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 $30.0 million.
What is the period of performance?
Start: 2012-10-01. End: 2018-03-31.
What specific R&D activities were performed under this contract that justified the NAICS code 541712, and how did this classification impact the bidding and pricing?
The justification for classifying IT support services under NAICS 541712 (Research and Development in the Physical, Engineering, and Life Sciences) is unclear and appears questionable. Typically, IT support falls under different categories. This misclassification could have distorted the competitive landscape, potentially attracting bidders not specialized in IT support or allowing for higher cost structures associated with R&D projects, ultimately impacting price discovery and taxpayer value.
What are the risks associated with misclassifying IT support services as R&D, particularly concerning cost control and performance metrics?
Misclassifying IT support as R&D poses significant risks. It can lead to inflated costs, as R&D contracts often have different pricing structures and overhead allowances than standard service contracts. Performance metrics may also be misaligned, focusing on research outcomes rather than service level agreements crucial for IT support. This ambiguity can hinder effective oversight and make it difficult to assess true value for money.
How effective was the 'full and open competition' in ensuring the best value for taxpayer dollars, given the potentially inappropriate classification?
While 'full and open competition' is generally a positive indicator for achieving best value, its effectiveness is compromised by the questionable NAICS code classification. The R&D categorization might have deterred specialized IT support firms or encouraged bids based on R&D cost structures, potentially inflating prices. Without a clear understanding of the services rendered and the rationale for the R&D classification, it's difficult to ascertain if the competition truly yielded the most cost-effective IT support solution.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
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: 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: $30,019,307
Exercised Options: $30,019,307
Current Obligation: $30,019,307
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $1,568,788
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102808D2015
IDV Type: IDC
Timeline
Start Date: 2012-10-01
Current End Date: 2018-03-31
Potential End Date: 2018-03-31 00:00:00
Last Modified: 2023-10-02
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