Booz Allen Hamilton awarded $34.9M for Army personnel system support, highlighting IT services for personnel and pay

Contract Overview

Contract Amount: $34,895,709 ($34.9M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2020-01-18

End Date: 2023-08-17

Contract Duration: 1,307 days

Daily Burn Rate: $26.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS IS A TASK ORDER FOR INTEGRATED PERSONNEL&PAY SYSTEM, ARMY (IPPS-A) FUNCTIONAL MANAGEMENT DIVISION SUPPORT SERVICES (FMDSS) FOR A 12-MONTH BASE PERIOD AND 2 12-MONTH OPTIONS.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $34.9 million to BOOZ ALLEN HAMILTON INC for work described as: THIS IS A TASK ORDER FOR INTEGRATED PERSONNEL&PAY SYSTEM, ARMY (IPPS-A) FUNCTIONAL MANAGEMENT DIVISION SUPPORT SERVICES (FMDSS) FOR A 12-MONTH BASE PERIOD AND 2 12-MONTH OPTIONS. Key points: 1. Contract focuses on critical IT infrastructure for personnel and pay management. 2. Full and open competition suggests a competitive bidding process. 3. Firm-fixed-price contract type aims to control costs. 4. Long duration indicates a sustained need for these services. 5. Services are essential for the operational efficiency of the Army's HR functions. 6. Contract value is significant within the IT services sector for defense.

Value Assessment

Rating: good

The contract value of $34.9 million over approximately 3.5 years for IT support services appears reasonable given the scope of supporting a major Army system like IPPS-A. Benchmarking against similar large-scale IT support contracts for defense systems suggests this pricing is within expected ranges. The firm-fixed-price structure provides cost certainty for the government, although it may not capture all potential efficiencies if requirements evolve significantly.

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 offers. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service quality. The government likely sought proposals that demonstrated technical capability and cost-effectiveness.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for competitive pricing and encourages a wider pool of qualified contractors to bid, potentially driving down costs.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel, who will receive improved HR and pay management services. Services delivered include functional management and support for the Integrated Personnel & Pay System - Army (IPPS-A). The geographic impact is nationwide, supporting Army personnel across various installations. Workforce implications include the need for skilled IT professionals to manage and maintain the system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if system requirements change significantly during the contract period.
Reliance on a single contractor for critical personnel and pay system support could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract type helps manage cost overruns.
Long-term contract indicates a stable and ongoing need, suggesting a well-defined requirement.
Full and open competition suggests a robust selection process.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on government IT support and system integration. The market for defense IT services is substantial, driven by the need for modernization and operational efficiency. Comparable spending benchmarks for large-scale enterprise resource planning (ERP) system support within the federal government often run into tens or hundreds of millions of dollars, making this contract's value proportionate to its scope.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside criterion for this specific award (ss: false, sb: false). While the prime contractor, Booz Allen Hamilton, is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific needs of the IPPS-A system support.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of the Army contracting officers and program managers responsible for IPPS-A. Accountability measures are embedded within the firm-fixed-price contract terms, performance work statements, and delivery schedules. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics may not always be publicly disclosed.

Related Government Programs

Integrated Personnel & Pay System - Army (IPPS-A)
Defense Human Resources Activity (DHRA) IT Services
General Services Administration (GSA) IT Schedule Contracts
Department of Defense Enterprise Resource Planning (ERP) Systems

Risk Flags

Potential for vendor lock-in if system is highly proprietary.
Dependence on contractor expertise for critical system functions.
Risk of performance degradation if key personnel depart.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.9 million to BOOZ ALLEN HAMILTON INC. THIS IS A TASK ORDER FOR INTEGRATED PERSONNEL&PAY SYSTEM, ARMY (IPPS-A) FUNCTIONAL MANAGEMENT DIVISION SUPPORT SERVICES (FMDSS) FOR A 12-MONTH BASE PERIOD AND 2 12-MONTH OPTIONS.

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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $34.9 million.

What is the period of performance?

Start: 2020-01-18. End: 2023-08-17.

What is the track record of Booz Allen Hamilton in supporting large-scale defense IT systems?

Booz Allen Hamilton has a long-standing and extensive track record of supporting the Department of Defense and other federal agencies with a wide range of IT services, including system design, integration, cybersecurity, and program management. They have been involved in numerous complex projects, often involving large enterprise resource planning (ERP) systems and personnel management solutions. Their experience with defense IT infrastructure, including classified systems and stringent security requirements, positions them as a capable contractor for critical systems like IPPS-A. Past performance evaluations and contract awards from agencies like the Army, Navy, and Air Force typically reflect their ability to deliver on complex IT initiatives, though specific performance details for individual contracts are often proprietary.

How does the value of this contract compare to similar IT support services for personnel systems in the federal government?

The $34.9 million contract value for 1307 days (approximately 3.5 years) of support for the Army's IPPS-A functional management division is within the expected range for large-scale, mission-critical IT systems. Similar contracts supporting major federal personnel and payroll systems, such as the Department of the Navy's Enterprise Resource Planning (ERP) systems or the Department of Veterans Affairs' HR systems, often involve multi-year engagements with values ranging from tens to hundreds of millions of dollars. The firm-fixed-price nature of this contract provides cost certainty, which is a key consideration. When normalized for duration and scope, this contract appears to represent a standard investment for maintaining and supporting such a vital system.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential technical challenges in supporting a complex system like IPPS-A, the possibility of evolving requirements leading to scope creep, and contractor performance issues. Mitigation strategies are embedded in the contract structure. The firm-fixed-price (FFP) award helps control costs, as the contractor bears the risk of cost overruns. The full and open competition process aims to select a contractor with proven capabilities. Performance work statements (PWS) define clear deliverables and standards, and contract oversight by the Army ensures adherence. Regular performance reviews and defined contract clauses for addressing deficiencies further mitigate risks.

How effective is the Integrated Personnel & Pay System - Army (IPPS-A) in achieving its stated goals, and how does this contract contribute?

IPPS-A aims to modernize and integrate the Army's personnel and pay processes, providing a single, common platform for all components (Active Duty, National Guard, Reserves). Its goals include improving data accuracy, streamlining HR functions, enhancing readiness reporting, and reducing administrative burden. This contract directly contributes to IPPS-A's effectiveness by providing essential functional management and support services. The contractor's role in maintaining, enhancing, and troubleshooting the system ensures its continued operation and alignment with Army requirements. The success of IPPS-A is crucial for efficient personnel management and operational readiness, making the support provided under this contract vital.

What are the historical spending patterns for IT support services related to personnel and pay systems within the Department of Defense?

Historical spending patterns within the Department of Defense for IT support related to personnel and pay systems have been substantial and consistently high. Agencies like the Army, Navy, and Air Force invest heavily in maintaining and modernizing their human resources and payroll infrastructure. This includes significant outlays for system development, implementation, sustainment, and ongoing support services, often through large, multi-year contracts. Spending is driven by the complexity of managing millions of service members, the need for robust security, and the continuous requirement for accurate pay and benefits. The trend has been towards consolidating disparate systems into integrated platforms like IPPS-A, which requires significant upfront and ongoing support investment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: FIRM FIXED PRICE (J)

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: $34,895,709

Exercised Options: $34,895,709

Current Obligation: $34,895,709

Actual Outlays: $781,905

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0004

IDV Type: GWAC

Timeline