Booz Allen Hamilton awarded $19.3M for business administration support, with 3 bidders in a competitive process

Contract Overview

Contract Amount: $19,277,632 ($19.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2012-07-30

End Date: 2015-10-29

Contract Duration: 1,186 days

Daily Burn Rate: $16.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: BUS ADMIN SUPPORT SERVICES

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $19.3 million to BOOZ ALLEN HAMILTON INC for work described as: BUS ADMIN SUPPORT SERVICES Key points: 1. The contract value of $19.3 million for business administration support appears reasonable given the duration and scope. 2. Full and open competition suggests a healthy market for these services, potentially leading to better pricing. 3. The fixed-price contract type shifts performance risk to the contractor, aligning incentives for efficient delivery. 4. This contract falls within the IT services sector, specifically custom computer programming, indicating a need for specialized expertise. 5. The contractor, Booz Allen Hamilton, is a large, established firm with significant federal contracting experience. 6. The contract duration of nearly 4 years provides a stable period for service delivery and performance evaluation.

Value Assessment

Rating: good

The contract value of $19.3 million over approximately 4 years for business administration support services is within a reasonable range for a large federal contract of this nature. Benchmarking against similar IT support contracts awarded by the Department of Defense suggests that the pricing is competitive. The firm-fixed-price structure further indicates that the contractor is expected to manage costs effectively to maintain profitability, which is a positive sign for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were eligible to bid. With three bidders participating, the competition level suggests a moderately competitive environment. This level of competition generally allows for price discovery and encourages bidders to offer competitive proposals to secure the award. The presence of multiple bidders is a positive indicator for achieving fair market value.

Taxpayer Impact: The full and open competition with three bidders suggests that taxpayer dollars were likely used efficiently, as the government had multiple options to choose from, driving down costs through competitive pressure.

Public Impact

The primary beneficiaries are the Department of the Army, receiving essential business administration support services. The services delivered likely include a range of administrative, analytical, and potentially IT-related support functions crucial for operational efficiency. The geographic impact is centered within the Department of Defense's operational areas, primarily supporting Army functions. The contract supports a workforce of skilled professionals, including analysts and administrative staff, contributing to federal employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single large contractor could limit future flexibility or innovation if not managed proactively.

Positive Signals

Firm-fixed-price contract aligns contractor incentives with cost control and efficient service delivery.
Full and open competition suggests a robust market and potential for competitive pricing.
Contractor's established track record in federal contracting implies experience and capability.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically IT services, with a North American Industry Classification System (NAICS) code of 541511 for Custom Computer Programming Services. This sector is characterized by high demand for specialized expertise in areas like software development, system integration, and IT support. The market size for federal IT services is substantial, with agencies consistently investing in technology to improve operations and national security. This contract represents a typical engagement for IT support within a large federal agency like the Department of Defense.

Small Business Impact

The contract was not set aside for small businesses, and the awardee, Booz Allen Hamilton, is a large corporation. This indicates that small businesses were not the primary focus for this specific award. However, large prime contractors often engage small businesses as subcontractors. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses under this contract, which could still provide some benefit to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. Performance reviews, regular reporting, and adherence to contract terms are standard accountability measures. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Services Contracts
Business Administration Support Services
Custom Computer Programming Services Contracts
IT Consulting and Integration Services

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Risk of contractor performance degradation over the contract's duration.
Dependency on a single large contractor for critical support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.3 million to BOOZ ALLEN HAMILTON INC. BUS ADMIN SUPPORT 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 Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $19.3 million.

What is the period of performance?

Start: 2012-07-30. End: 2015-10-29.

What is Booz Allen Hamilton's track record with the Department of Defense for similar services?

Booz Allen Hamilton has a long and extensive history of contracting with the Department of Defense (DoD) across a wide array of services, including IT, management consulting, and engineering support. For business administration support and custom computer programming services specifically, the company has been awarded numerous contracts over the years. Their track record generally indicates a strong capability to deliver complex solutions and manage large-scale federal contracts. However, like any large contractor, there may be instances of past performance issues or contract disputes that warrant review. A detailed analysis of their performance on prior DoD contracts, particularly those with similar scope and value, would provide a more precise understanding of their reliability and effectiveness in fulfilling this specific requirement.

How does the $19.3 million contract value compare to similar business administration support contracts awarded by the Army?

The $19.3 million contract value for business administration support services, awarded over approximately 4 years (1186 days), translates to an average annual value of roughly $4.8 million. When compared to similar contracts awarded by the Department of the Army for comparable services, this value appears to be within a reasonable market range. Federal procurement data often shows significant variation in contract values based on specific deliverables, labor mix, and duration. However, for a contract involving comprehensive business administration support, potentially including IT elements given the NAICS code, this figure is neither exceptionally high nor low. It suggests a standard level of investment for such services within a large military branch.

What are the primary risks associated with this firm-fixed-price contract type?

The primary risk associated with a firm-fixed-price (FFP) contract type, while generally favorable for the government in terms of cost certainty, lies in the potential for the contractor to cut corners on quality or performance to maintain profitability if cost pressures become too high. For Booz Allen Hamilton, the risk is that unforeseen challenges in delivering business administration support or custom programming could erode their profit margin, potentially leading to reduced service quality or attempts to renegotiate terms. Conversely, the government bears the risk that the initial price may not fully reflect the true cost of performance if the scope is significantly underestimated, though this is mitigated by the competitive bidding process. Effective oversight is crucial to ensure performance standards are met despite the FFP structure.

What does the 'Custom Computer Programming Services' NAICS code imply about the services rendered?

The NAICS code 541511, 'Custom Computer Programming Services,' indicates that a significant portion of the services procured under this contract likely involves the design, development, modification, and testing of software and systems tailored to the specific needs of the Department of the Army. This goes beyond standard IT support or off-the-shelf software implementation. It suggests that the contractor may be involved in creating new applications, customizing existing software, integrating disparate systems, or providing specialized programming expertise to solve unique operational challenges. The 'Business Admin Support Services' description, when paired with this NAICS code, implies that the programming services are directly in support of administrative functions, potentially involving the development of custom tools for data management, workflow automation, reporting, or other administrative processes.

How does the contract duration of 1186 days impact performance and cost-effectiveness?

The contract duration of 1186 days, approximately 3 years and 3 months, provides a substantial period for the contractor, Booz Allen Hamilton, to deliver the specified business administration support services. A longer duration can enhance cost-effectiveness by allowing the contractor to amortize startup costs over a longer period and potentially achieve economies of scale. It also provides stability for the agency, ensuring continuity of essential services without frequent re-competition. From a performance perspective, this duration allows for a deeper understanding of the agency's needs and the development of more integrated solutions. However, it also necessitates robust performance monitoring throughout the period to ensure sustained quality and address any potential degradation over time. The fixed-price nature further incentivizes efficiency over this extended period.

What is the significance of the contract being a 'Definitive Contract'?

The designation of this award as a 'Definitive Contract' signifies that it is a standard, fully negotiated contract with a fixed price and delivery schedule, representing a firm commitment by the government to purchase and the contractor to provide specific goods or services. Unlike indefinite-delivery/indefinite-quantity (IDIQ) contracts, which allow for flexibility in quantities ordered over a period, a definitive contract typically outlines the complete scope, price, and terms upfront. This implies that the requirements for business administration support were well-defined at the time of award. For the Department of the Army, this means a clear understanding of the expected deliverables and costs, simplifying budget management and oversight. For Booz Allen Hamilton, it provides a predictable revenue stream and a defined set of responsibilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91QUZ12R0022

Offers Received: 3

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: $20,771,809

Exercised Options: $20,771,809

Current Obligation: $19,277,632

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline