DoD's $28.8M IPPS-A Support Services Task Order Awarded to Booz Allen Hamilton
Contract Overview
Contract Amount: $28,815,949 ($28.8M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Defense
Start Date: 2023-08-18
End Date: 2026-08-17
Contract Duration: 1,095 days
Daily Burn Rate: $26.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THE PURPOSE OF MODIFICATION P00001 TO TASK ORDER W15QKN23F0515 FOR INTEGRATED PERSONNEL PAY SYSTEM, ARMY, FUNCTIONAL MANAGEMENT DIVISION SUPPORT SERVICES IS TO PROVIDE INCREMENTAL FUNDING TO THE BASE YEAR PERIOD OF PERFORMANCE.
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $28.8 million to BOOZ ALLEN HAMILTON INC for work described as: THE PURPOSE OF MODIFICATION P00001 TO TASK ORDER W15QKN23F0515 FOR INTEGRATED PERSONNEL PAY SYSTEM, ARMY, FUNCTIONAL MANAGEMENT DIVISION SUPPORT SERVICES IS TO PROVIDE INCREMENTAL FUNDING TO THE BASE YEAR PERIOD OF PERFORMANCE. Key points: 1. This task order provides functional management division support services for the Army's Integrated Personnel Pay System (IPPS-A). 2. Awarded to Booz Allen Hamilton Inc. under full and open competition. 3. The contract is for a base year period of performance with incremental funding. 4. The North American Industry Classification System (NAICS) code is 541512, Computer Systems Design Services.
Value Assessment
Rating: good
The award amount of $28.8M for a 3-year period appears reasonable for specialized IT support services. Benchmarking against similar large-scale government IT support contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally leads to better price discovery and value for the government.
Taxpayer Impact: The competitive award process is expected to ensure taxpayer funds are used efficiently for essential Army personnel system support.
Public Impact
Ensures continued operational support for a critical Army personnel and pay system. Supports the Army's human resources and pay functions, impacting service members and their families. The funding ensures the stability and ongoing development of the IPPS-A system.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in functional management support.
- Reliance on a single contractor for critical system support.
Positive Signals
- Awarded under full and open competition.
- Supports a vital defense system.
- Clear period of performance and funding structure.
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Spending in this area is substantial across government, supporting modernization and operational needs.
Small Business Impact
The awardee, Booz Allen Hamilton Inc., is a large business. There is no indication of small business participation in this specific task order, which is common for large prime contracts.
Oversight & Accountability
The Department of the Army's contracting activity and the use of a firm-fixed-price contract suggest a degree of oversight. However, ongoing monitoring of performance and costs will be crucial.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract awarded to a large business.
- No explicit small business subcontracting plan mentioned.
- Potential for vendor lock-in if not managed carefully.
- Dependence on a single contractor for critical system support.
Tags
computer-systems-design-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.8 million to BOOZ ALLEN HAMILTON INC. THE PURPOSE OF MODIFICATION P00001 TO TASK ORDER W15QKN23F0515 FOR INTEGRATED PERSONNEL PAY SYSTEM, ARMY, FUNCTIONAL MANAGEMENT DIVISION SUPPORT SERVICES IS TO PROVIDE INCREMENTAL FUNDING TO THE BASE YEAR PERIOD OF PERFORMANCE.
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 $28.8 million.
What is the period of performance?
Start: 2023-08-18. End: 2026-08-17.
What is the projected total cost of the IPPS-A program over its lifecycle, and how does this task order contribute to that?
The total lifecycle cost for the IPPS-A program is substantial, encompassing development, implementation, and ongoing sustainment. This task order represents a portion of the sustainment phase, specifically for functional management support. Understanding the broader program budget is key to assessing the value of individual task orders within it.
What are the key performance indicators (KPIs) for this contract, and how will they be measured to ensure effectiveness?
Key performance indicators for functional management support typically include system uptime, response times for issue resolution, accuracy of data management, and successful implementation of system updates. These KPIs are usually measured through regular reporting, user feedback, and system performance monitoring tools, ensuring the contractor meets defined service levels.
Are there any identified risks associated with the transition or ongoing management of IPPS-A functional support services?
Potential risks include contractor performance issues, cybersecurity vulnerabilities within the system, challenges in integrating IPPS-A with other defense systems, and the potential for cost overruns if not managed tightly. Mitigation strategies would involve robust contract oversight, regular security audits, and clear communication channels.
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
Solicitation ID: W15QKN23R0003
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: $33,984,374
Exercised Options: $28,815,949
Current Obligation: $28,815,949
Actual Outlays: $1,769,028
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $3,175,600
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 47QTCK18D0004
IDV Type: GWAC
Timeline
Start Date: 2023-08-18
Current End Date: 2026-08-17
Potential End Date: 2026-08-17 12:08:00
Last Modified: 2025-09-17
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