DOJ awards Booz Allen Hamilton $26.5M for IT development and operations, continuing a 456-day contract

Contract Overview

Contract Amount: $26,518,848 ($26.5M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Justice

Start Date: 2024-08-16

End Date: 2025-11-15

Contract Duration: 456 days

Daily Burn Rate: $58.2K/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 FY24: BOOZ ALLEN HAMILTON

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $26.5 million to BOOZ ALLEN HAMILTON INC for work described as: STOR 175 ITADD DEVELOPMENT & OPERATIONS SERVICES 12-MONTH LOGICAL FOLLOW-ON FY24: BOOZ ALLEN HAMILTON Key points: 1. Contract value represents a significant investment in IT services for the FBI. 2. Booz Allen Hamilton, a large incumbent contractor, is the sole awardee. 3. The contract is a follow-on, suggesting a need for continuity in services. 4. Performance period extends over 15 months, indicating a medium-term engagement. 5. The contract type is Time and Materials, which can pose cost control challenges. 6. This award falls under custom computer programming services, a key IT sector.

Value Assessment

Rating: fair

The contract value of $26.5 million over 15 months is substantial for IT development and operations. Benchmarking against similar custom computer programming services contracts is difficult without more specific service details. However, the Time and Materials (T&M) pricing structure, while flexible, can lead to higher costs if not managed closely, potentially impacting overall value for money compared to fixed-price contracts for well-defined scopes.

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 had the opportunity to bid. However, the data only shows one awardee, Booz Allen Hamilton, for this specific delivery order. Further analysis would be needed to determine the number of proposals received and the extent of the competitive landscape to fully assess price discovery.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer competitive pricing, potentially leading to better value. However, the ultimate benefit depends on the number of bids received and the effectiveness of the evaluation process.

Public Impact

The Federal Bureau of Investigation (FBI) is the primary beneficiary, receiving critical IT development and operations support. The services delivered are expected to enhance the FBI's technological capabilities and operational efficiency. The contract is geographically focused on Virginia, where the FBI has significant operations. The contract likely supports a workforce of IT professionals, both within the contractor and potentially within the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored and managed.
As a follow-on contract, there's a risk of vendor lock-in and reduced incentive for innovation if not structured with performance metrics.
The specific nature of 'development & operations services' can be broad, requiring clear scope definition to ensure efficient resource allocation.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Booz Allen Hamilton is an established contractor with a significant track record in government IT services.
The contract duration of 15 months allows for sustained support and project continuity.

Sector Analysis

This contract falls within the Custom Computer Programming Services sector (NAICS 541511), a significant segment of the IT industry. This sector encompasses a wide range of services, from software development to IT infrastructure management. The federal government is a major consumer of these services, with spending often concentrated in areas supporting national security, law enforcement, and administrative functions. Comparable spending benchmarks would typically involve analyzing the average cost of similar IT support contracts across various agencies.

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 set-aside provision. However, as a large contract awarded to a major prime contractor, there may be opportunities for small businesses to participate as subcontractors, depending on Booz Allen Hamilton's subcontracting plan and the specific needs of the project.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting agency, the Federal Bureau of Investigation (FBI), and the Department of Justice (DOJ). Mechanisms likely include regular performance reviews, milestone tracking, and financial audits. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

FBI IT Modernization Programs
DOJ Information Technology Support Services
Custom Computer Programming Services Contracts
IT Development and Operations Support

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Risk of vendor lock-in in follow-on contracts.
Need for strong government oversight to manage scope and efficiency.
Limited transparency on the number of bidders in this specific delivery order.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $26.5 million to BOOZ ALLEN HAMILTON INC. STOR 175 ITADD DEVELOPMENT & OPERATIONS SERVICES 12-MONTH LOGICAL FOLLOW-ON FY24: 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 $26.5 million.

What is the period of performance?

Start: 2024-08-16. End: 2025-11-15.

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

Booz Allen Hamilton is a large, established government contractor with extensive experience providing IT services to various federal agencies, including the FBI and DOJ. They have a long history of securing and performing on contracts related to custom computer programming, IT development, and operations support. Analyzing their past performance on similar contracts with these agencies would involve reviewing contract histories for on-time delivery, adherence to budget, quality of service, and any past performance issues or awards. Their significant presence suggests a generally positive working relationship and capability, but specific contract performance metrics would be needed for a definitive assessment.

How does the $26.5 million contract value compare to other FBI IT development contracts?

The $26.5 million value for this 15-month contract is a substantial figure, indicative of significant IT development and operations support. To benchmark this value, one would compare it against the average contract size and duration for similar custom computer programming services (NAICS 541511) awarded by the FBI or other law enforcement agencies. Factors such as the complexity of the services, the number of personnel required, and the specific technological domains involved heavily influence contract values. Without detailed service descriptions, a precise comparison is challenging, but this award appears to be within the range of major IT support contracts for federal law enforcement agencies.

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

The primary risk with a Time and Materials (T&M) contract, like this one, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. If the scope of work is not clearly defined, or if project management is weak, labor hours can escalate beyond initial estimates, driving up the total cost. This necessitates robust oversight from the government to monitor labor hours, ensure efficiency, and control material costs. For IT development, where requirements can evolve, T&M offers flexibility but requires diligent management to prevent uncontrolled spending and ensure value for taxpayer money.

How does the 'follow-on' nature of this contract impact its value and risk?

A 'follow-on' contract signifies that this award continues or replaces a previous contract for similar services. This can offer benefits such as continuity of operations, reduced ramp-up time, and leveraging existing knowledge. For the FBI, it means uninterrupted IT support. However, it also carries risks. There's a potential for vendor lock-in, where the incumbent contractor may have an advantage in future competitions. Furthermore, if the previous contract's performance was suboptimal, simply continuing the same services without significant improvements or re-competition might not yield the best value. Effective performance management and clear objectives are crucial to mitigate these risks and ensure continued value.

What is the typical duration and cost for custom computer programming services at the FBI?

The typical duration and cost for custom computer programming services at the FBI can vary widely based on project scope and complexity. Contracts can range from short-term, specialized development tasks to long-term, comprehensive IT operations and maintenance. Durations often span from a few months to several years, with values ranging from tens of thousands to tens of millions of dollars. This specific contract, valued at approximately $26.5 million over 456 days (about 15 months), falls into the category of a significant, medium-term engagement. Historical data would show a spectrum of contract sizes, with larger, more complex system development or modernization efforts commanding higher values and longer durations.

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, 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: $26,518,848

Exercised Options: $26,518,848

Current Obligation: $26,518,848

Actual Outlays: $26,518,847

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $7,200,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F386DA

IDV Type: FSS

Timeline