Booz Allen Hamilton awarded $24.6M contract for IT systems design, highlighting strong performance in federal IT services

Contract Overview

Contract Amount: $24,626,248 ($24.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of the Interior

Start Date: 2025-03-05

End Date: 2026-03-05

Contract Duration: 365 days

Daily Burn Rate: $67.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: BPIMSS BRIDGE CONTRACT

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $24.6 million to BOOZ ALLEN HAMILTON INC for work described as: BPIMSS BRIDGE CONTRACT Key points: 1. Contract value represents a significant investment in IT modernization for the Department of the Interior. 2. Full and open competition suggests a healthy market for these services, potentially leading to competitive pricing. 3. The Time and Materials pricing model introduces some cost variability, requiring diligent oversight. 4. This contract aligns with broader federal IT modernization efforts aimed at improving system efficiency and security. 5. The contractor, Booz Allen Hamilton, has a substantial track record in delivering complex IT solutions to government agencies. 6. The contract duration of one year with potential for extensions indicates a need for ongoing support.

Value Assessment

Rating: good

The contract value of $24.6 million for one year of Computer Systems Design Services appears reasonable given the contractor's established expertise and the nature of the services. Benchmarking against similar large-scale IT modernization contracts within the Department of the Interior and other federal agencies would provide a more precise value assessment. However, the full and open competition suggests that pricing was likely vetted against market rates. The Time and Materials (T&M) pricing structure, while flexible, necessitates careful monitoring to ensure cost efficiency and prevent scope creep.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which is beneficial for price discovery and ensuring the government receives the best value. The selection of a single awardee from a competitive pool suggests that Booz Allen Hamilton offered the most advantageous proposal based on the evaluation criteria.

Taxpayer Impact: Full and open competition typically leads to more favorable pricing for taxpayers by leveraging market forces to drive down costs and encourage innovation among bidders.

Public Impact

The Department of the Interior benefits from enhanced computer systems design and integration services, potentially improving operational efficiency and data management. Federal employees within the Department will likely utilize the improved systems, leading to better workflow and service delivery. The contract supports IT infrastructure in Maryland, contributing to the local economy through employment and business activity. The successful execution of this contract could lead to more robust and secure IT services for the agency's mission-critical functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) pricing model can lead to cost overruns if not closely managed and monitored for scope creep.
Reliance on a single large contractor for critical IT systems design may pose a risk if performance falters or if the contractor's priorities shift.
The duration of the contract, while allowing for flexibility, requires ongoing performance evaluation to ensure continued value.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process and likely competitive pricing.
The contractor, Booz Allen Hamilton, is a well-established entity with a proven track record in delivering complex federal IT solutions.
The contract supports essential IT modernization efforts, aligning with strategic government objectives for technological advancement.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader Information Technology (IT) industry. This sector encompasses a wide range of services, including IT consulting, systems integration, and custom software development. The federal government is a significant consumer of these services, investing heavily in modernizing its IT infrastructure to improve efficiency, security, and service delivery. Comparable spending benchmarks for IT services within federal agencies often run into billions of dollars annually, with individual contracts for complex systems design varying widely based on scope and duration.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a small business set-aside. While the prime contractor 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 requirements of the contract. Further analysis would be needed to determine the specific impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Interior's contracting officers and program managers. Performance will be monitored against contract deliverables and milestones. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office for the Department of the Interior may conduct audits or investigations if performance issues or potential fraud are identified.

Related Government Programs

Department of the Interior IT Modernization Programs
Federal Civilian Agency IT Services Contracts
Computer Systems Design and Related Services
Information Technology Professional Services

Risk Flags

Time and Materials Pricing Model
Potential for Cost Overruns
Contractor Dependency Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $24.6 million to BOOZ ALLEN HAMILTON INC. BPIMSS BRIDGE CONTRACT

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $24.6 million.

What is the period of performance?

Start: 2025-03-05. End: 2026-03-05.

What is Booz Allen Hamilton's track record with the Department of the Interior and similar IT contracts?

Booz Allen Hamilton has a substantial and long-standing track record of providing a wide array of services to the Department of the Interior, including IT consulting, systems engineering, and program management. Their experience spans various bureaus and offices within the department, indicating a deep understanding of DOI's operational needs and challenges. Nationally, Booz Allen Hamilton is a prime contractor on numerous large federal IT contracts across multiple agencies, consistently delivering complex solutions. Their performance history generally reflects a capacity to handle large-scale, mission-critical projects, though like any large contractor, specific contract performance can vary. This history suggests a lower risk profile for this specific contract due to established familiarity and expertise.

How does the $24.6 million contract value compare to similar IT systems design contracts within the federal government?

The $24.6 million contract value for one year of Computer Systems Design Services is within the typical range for significant IT modernization efforts within federal agencies. Large-scale IT projects, especially those involving system integration, cybersecurity enhancements, or cloud migration, can easily reach tens or hundreds of millions of dollars. For instance, contracts for enterprise resource planning (ERP) system implementations or major cybersecurity overhauls often exceed this amount. When compared to similar contracts for system design and integration services awarded by agencies like the General Services Administration (GSA) or the Department of Defense (DoD), this value appears commensurate with the scope of services typically required for a department-level IT initiative. The full and open competition further suggests that the pricing was vetted against market realities.

What are the primary risks associated with a Time and Materials (T&M) contract for IT systems design?

The primary risk associated with a Time and Materials (T&M) contract for IT systems design is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can incentivize longer project durations or less efficient work if not rigorously managed. For the government, this means that the total cost is not fixed upfront, making budget forecasting more challenging. Effective risk mitigation requires strong government oversight, detailed work breakdown structures, clear performance metrics, and vigilant monitoring of labor hours and material costs to ensure that the project stays within reasonable bounds and delivers value.

How effective are full and open competitions in ensuring value for taxpayer money in the IT services sector?

Full and open competitions are generally considered the most effective method for ensuring value for taxpayer money in the IT services sector. By allowing all responsible sources to submit bids, this procurement approach maximizes the pool of potential offerors, thereby increasing competition. Higher competition typically drives down prices, encourages innovation, and leads to better quality services as contractors vie for the award. It also provides a transparent and equitable process. While the administrative effort to manage a full and open competition can be higher, the potential savings and improved outcomes for taxpayers are significant, especially for large and complex IT contracts where the stakes are high.

What are the implications of awarding this contract to a single large vendor like Booz Allen Hamilton?

Awarding a significant IT contract to a single large vendor like Booz Allen Hamilton has several implications. Positively, it can leverage the vendor's extensive resources, established processes, and deep expertise to tackle complex challenges efficiently. Large contractors often have robust project management capabilities and a proven ability to scale operations. However, a potential downside is increased dependency on that single vendor. If performance issues arise, or if the vendor's strategic priorities shift, it could disrupt the program. Furthermore, it might limit opportunities for smaller, more specialized firms to participate directly, although subcontracting can mitigate this. The government must maintain strong oversight and performance management to ensure accountability and continued value.

What is the historical spending trend for Computer Systems Design Services at the Department of the Interior?

Historical spending trends for Computer Systems Design Services at the Department of the Interior (DOI) generally show a consistent and significant investment in IT infrastructure and modernization. Over the past several fiscal years, DOI has allocated substantial funds towards IT services, including system design, integration, and maintenance, reflecting the critical role technology plays in managing vast natural resources and diverse agency operations. While specific annual figures fluctuate based on agency priorities, budget allocations, and the lifecycle of major IT projects, the overall trend indicates a sustained need for these services. This contract, valued at $24.6 million, aligns with this historical pattern of significant investment in enhancing and maintaining the department's technological capabilities.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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: $45,264,808

Exercised Options: $37,474,873

Current Obligation: $24,626,248

Actual Outlays: $20,804,277

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200008W

IDV Type: GWAC

Timeline