DOJ awards Booz Allen Hamilton $34M for IT development and operations, continuing a 12-month logical follow-on

Contract Overview

Contract Amount: $34,174,500 ($34.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Justice

Start Date: 2023-08-16

End Date: 2024-08-15

Contract Duration: 365 days

Daily Burn Rate: $93.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: STOR 175 ITADD DEVELOPMENT & OPERATIONS SERVICES 12-MONTH LOGICAL FOLLOW-ON: BOOZ ALLEN HAMILTON

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $34.2 million to BOOZ ALLEN HAMILTON INC for work described as: STOR 175 ITADD DEVELOPMENT & OPERATIONS SERVICES 12-MONTH LOGICAL FOLLOW-ON: BOOZ ALLEN HAMILTON Key points: 1. Contract represents a continuation of services, suggesting a stable relationship and potentially predictable performance. 2. The 'Time and Materials' pricing model can pose a risk of cost overruns if not closely managed. 3. Competition was full and open, indicating a broad market search and potential for competitive pricing. 4. The contract is a delivery order, a common mechanism for tasking within a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The specific NAICS code (541511) points to custom computer programming services, a critical area for federal IT infrastructure. 6. The contract duration of 365 days is standard for this type of service delivery order.

Value Assessment

Rating: fair

The contract value of approximately $34.2 million for a 12-month period for IT development and operations services appears within a reasonable range for large-scale federal IT support. Benchmarking against similar custom computer programming services contracts awarded by the FBI or other DOJ components would provide a more precise value-for-money assessment. The 'Time and Materials' (T&M) pricing structure, while common, requires diligent oversight to ensure costs remain aligned with the value delivered and do not escalate beyond initial projections. Without detailed task breakdowns and labor hour tracking, it's difficult to definitively assess cost-effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, suggesting that the FBI actively sought proposals from a wide range of qualified vendors. The fact that it is a delivery order implies it was likely placed against an existing IDIQ contract that itself was competed. The number of bidders is not specified, but full and open competition generally fosters a more competitive environment, which can lead to better pricing and service innovation. This approach allows the government to leverage the broadest possible market.

Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of obtaining competitive pricing and ensures that government funds are used efficiently by selecting the best value offer.

Public Impact

Federal Bureau of Investigation (FBI) personnel benefit from enhanced IT development and operational support. Services delivered include custom computer programming, crucial for maintaining and advancing the FBI's technological capabilities. The geographic impact is primarily within the FBI's operational areas, likely concentrated in Virginia where the awardee is located. Workforce implications include the potential for skilled IT professionals to be engaged in supporting critical federal law enforcement functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Time and Materials' pricing model carries inherent risks of cost escalation if not rigorously managed and monitored.
Lack of specific performance metrics in the provided data makes it challenging to assess the contractor's efficiency and effectiveness.
The follow-on nature of the contract, while indicating continuity, might reduce the incentive for significant innovation compared to a new award.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process and potential for competitive pricing.
Booz Allen Hamilton is a well-established contractor with significant experience in federal IT services, implying a lower risk of execution failure.
The contract is a logical follow-on, indicating satisfaction with previous performance and a desire for continued service delivery.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically custom computer programming services (NAICS 541511). This is a highly competitive and dynamic market segment crucial for federal agencies. Spending in this area supports everything from software development and system integration to IT operations and maintenance. Comparable spending benchmarks would involve analyzing other large federal contracts for similar IT development and operations support, particularly those awarded by law enforcement or intelligence agencies, which often have unique and complex requirements.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, as a large prime contract awarded to a major federal contractor, Booz Allen Hamilton may engage small businesses as subcontractors to fulfill specific needs, though this is not mandated by the contract terms as presented.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officer and the relevant program managers within the Federal Bureau of Investigation (FBI). The 'Time and Materials' (T&M) pricing structure necessitates close monitoring of labor hours, rates, and material costs to ensure compliance and prevent overspending. Transparency is facilitated through contract award databases like FPDS. Accountability measures are inherent in the contract terms, with potential for performance reviews and remedies for non-performance. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

FBI IT Modernization Programs
DOJ Enterprise IT Services
Custom Software Development Contracts
IT Operations and Maintenance Services
Federal Law Enforcement Technology Initiatives

Risk Flags

Potential for cost overruns due to T&M pricing
Need for robust government oversight of labor hours and materials
Scope creep risk in IT development projects

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $34.2 million to BOOZ ALLEN HAMILTON INC. STOR 175 ITADD DEVELOPMENT & OPERATIONS SERVICES 12-MONTH LOGICAL FOLLOW-ON: BOOZ ALLEN HAMILTON

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $34.2 million.

What is the period of performance?

Start: 2023-08-16. End: 2024-08-15.

What is Booz Allen Hamilton's track record with the FBI and DOJ for IT services?

Booz Allen Hamilton is a major federal contractor with extensive experience providing IT and professional services across numerous government agencies, including the Department of Justice (DOJ) and its components like the Federal Bureau of Investigation (FBI). Their track record typically involves large, complex IT modernization, cybersecurity, data analytics, and operational support contracts. While specific performance details for this exact follow-on contract are not publicly detailed, their long-standing presence and numerous awards suggest a generally accepted capability to meet federal IT requirements. Historical data would show a pattern of significant contract awards, indicating a strong working relationship and a level of trust from agencies like the FBI. However, like any large contractor, they may have faced past performance reviews or challenges on specific contracts, which would be detailed in agency performance databases if publicly accessible.

How does the $34.2 million value compare to similar IT development and operations contracts?

The $34.2 million value for a 12-month IT development and operations services contract is substantial, reflecting the complexity and scale often associated with federal law enforcement agencies like the FBI. To benchmark this value, one would compare it to other contracts for similar services (NAICS 541511) awarded by the FBI, DOJ, or other agencies with comparable missions (e.g., other federal law enforcement or intelligence agencies). Factors influencing the value include the specific scope of work (custom programming, system integration, ongoing operations), the required skill sets, security clearances, and the duration. Contracts for pure IT operations might be lower, while those involving significant custom software development or integration of new technologies could be higher. Without a detailed breakdown of labor categories, hours, and specific deliverables, a precise comparison is difficult, but the amount is consistent with major IT support contracts within the federal government.

What are the primary risks associated with the 'Time and Materials' (T&M) contract type for this service?

The primary risk associated with a 'Time and Materials' (T&M) contract type for IT development and operations services 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. If the scope of work is not well-defined, if project timelines extend unexpectedly, or if labor productivity is lower than anticipated, costs can escalate significantly beyond initial estimates. For the government, this necessitates robust oversight to monitor labor hours, ensure efficient work, and validate material costs. The FBI must actively manage the contractor's performance and resource utilization to mitigate the risk of uncontrolled spending and ensure the contract delivers value for the funds expended. This requires detailed tracking and reporting mechanisms.

How effective is 'full and open competition' in ensuring value for taxpayer money in IT services?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in IT services. By allowing all responsible sources to submit offers, it maximizes the pool of potential contractors, thereby increasing the likelihood of receiving competitive bids. This competition drives down prices and encourages innovation as contractors strive to differentiate their offerings. Agencies can then select the offer that provides the best overall value, considering factors beyond just price, such as technical approach, past performance, and management capability. While it requires more upfront effort in terms of solicitation and evaluation, the potential for cost savings and superior service delivery typically outweighs these initial investments, leading to better utilization of public funds.

What is the historical spending trend for custom computer programming services at the FBI?

Analyzing historical spending trends for custom computer programming services (NAICS 541511) at the FBI would require access to detailed federal procurement data over several fiscal years. Generally, federal agencies, including the FBI, have seen a consistent and often increasing demand for IT services, including custom development, as they modernize systems, enhance cybersecurity, and leverage data analytics for investigations. Spending in this category is influenced by evolving technological landscapes, agency priorities, and the need to replace legacy systems. It's probable that the FBI's spending on custom programming has been substantial and potentially growing, reflecting the critical role of technology in modern law enforcement. Specific trends would reveal whether spending has been concentrated with a few large vendors or distributed across a wider range of contractors, and whether there's been a shift towards cloud-based solutions or specific programming languages.

What are the implications of this contract being a 'Delivery Order' versus a standalone contract?

This contract being a 'Delivery Order' (DO) signifies that it is a tasking instrument issued under a larger, pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract. The IDIQ contract itself would have undergone a full and open competition, establishing terms, conditions, and potentially ceiling prices for a broad scope of services over a period of time. The Delivery Order then specifies the exact quantity, delivery schedule, and price for a particular requirement within that IDIQ. This approach offers flexibility for the agency to order services as needed, while the initial competition ensures a baseline level of fairness and market vetting. For taxpayers, it means the initial competition for the IDIQ framework provides a foundation for value, and each DO is a specific call against that established framework, typically with defined scope and pricing.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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, MC LEAN, 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: $34,174,500

Exercised Options: $34,174,500

Current Obligation: $34,174,500

Actual Outlays: $34,174,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F386DA

IDV Type: FSS

Timeline