Department of Labor awards $25.4M contract to Booz Allen Hamilton for disaster assistance IT support

Contract Overview

Contract Amount: $25,361,528 ($25.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Labor

Start Date: 2022-05-26

End Date: 2024-11-29

Contract Duration: 918 days

Daily Burn Rate: $27.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: FOLLOW-ON ORDER AGAINST BOOZ ALLEN HAMILTON EXECUTIVE ORDER SUPPORT SERVICES BPA 1605TA-22-A-0001 FOR CONTINUING DISASTER ASSISTANCE IMPROVEMENT PROGRAM SUPPORT SERVICES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20210

State: District of Columbia Government Spending

Plain-Language Summary

Department of Labor obligated $25.4 million to BOOZ ALLEN HAMILTON INC for work described as: FOLLOW-ON ORDER AGAINST BOOZ ALLEN HAMILTON EXECUTIVE ORDER SUPPORT SERVICES BPA 1605TA-22-A-0001 FOR CONTINUING DISASTER ASSISTANCE IMPROVEMENT PROGRAM SUPPORT SERVICES. Key points: 1. Contract provides essential IT support for disaster assistance programs, aiming to improve response and recovery. 2. Booz Allen Hamilton, a large incumbent contractor, secured this follow-on order. 3. The contract's duration extends over 1.5 years, indicating a need for sustained support. 4. Performance is measured through labor hours, suggesting a focus on service delivery. 5. The contract falls under custom computer programming services, a critical area for government IT. 6. The award was made under a broad acquisition vehicle, potentially streamlining procurement.

Value Assessment

Rating: good

This contract's value of $25.4 million for disaster assistance IT support appears reasonable given the scope and duration. While specific benchmarks for similar disaster response IT services are not readily available, Booz Allen Hamilton is a large, established contractor with a history of government work. The labor hour pricing model allows for flexibility but requires careful monitoring to ensure efficiency and prevent cost overruns. The contract's value is significant but aligns with the critical nature of supporting national disaster response efforts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple vendors had the opportunity to bid. The use of a Blanket Purchase Agreement (BPA) call suggests a pre-competed framework was leveraged. The specific number of bidders for this call is not detailed, but the 'full and open' designation implies a competitive process that should theoretically lead to fair pricing and selection of the best value.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation from a wider pool of contractors.

Public Impact

Citizens affected by disasters will benefit from improved IT systems supporting assistance programs. The contract delivers crucial IT support services for the Department of Labor's disaster response capabilities. The geographic impact is national, as disaster assistance programs serve all regions of the U.S. The contract supports a workforce of IT professionals, likely including programmers, analysts, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the labor-hour nature of the contract.
Reliance on a single large contractor for critical disaster response IT infrastructure.
Ensuring continued innovation and efficiency under a follow-on order.

Positive Signals

Follow-on order indicates successful past performance and continued need for services.
Award to an experienced contractor like Booz Allen Hamilton suggests a lower risk of execution issues.
The contract supports a vital government function, contributing to national resilience.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming services. The market for government IT services is substantial, with agencies increasingly relying on technology to manage complex operations like disaster response. Booz Allen Hamilton is a major player in this space, competing with other large system integrators and IT service providers. The value of this contract is moderate within the broader context of federal IT spending, but significant for the specific program it supports.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no small business participation (sb: false). As a follow-on order to a large BPA call awarded to a major contractor, it is unlikely to create significant subcontracting opportunities for small businesses unless explicitly mandated or pursued by the prime contractor. This could represent a missed opportunity to leverage the small business ecosystem for specialized IT support.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Labor's Office of the Assistant Secretary for Administration and Management (OASAM), which awarded the contract. Performance monitoring would likely involve regular reviews of deliverables, adherence to labor hour reporting, and achievement of key performance indicators. Transparency is facilitated by the contract's public availability, but detailed operational oversight specifics are not provided.

Related Government Programs

Disaster Assistance Improvement Program (DAIP)
Federal Emergency Management Agency (FEMA) IT Support
Department of Labor IT Modernization Efforts
Custom Computer Programming Services Contracts
Broad Acquisition Vehicle (BPA) Call Orders

Risk Flags

Follow-on order to an existing BPA.
Labor hour pricing requires diligent oversight.
Potential for vendor lock-in with a large incumbent.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $25.4 million to BOOZ ALLEN HAMILTON INC. FOLLOW-ON ORDER AGAINST BOOZ ALLEN HAMILTON EXECUTIVE ORDER SUPPORT SERVICES BPA 1605TA-22-A-0001 FOR CONTINUING DISASTER ASSISTANCE IMPROVEMENT PROGRAM 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 Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $25.4 million.

What is the period of performance?

Start: 2022-05-26. End: 2024-11-29.

What is the historical spending pattern for disaster assistance IT support services by the Department of Labor?

Analyzing historical spending on disaster assistance IT support by the Department of Labor is crucial for understanding trends and justifying current investments. While specific data for this exact service category over extended periods is not provided, the Department of Labor, like other federal agencies, has seen a consistent need for IT support to manage complex programs, especially those related to economic security and workforce development, which often intersect with disaster recovery efforts. Spending in this area typically fluctuates based on the frequency and severity of national disasters and the corresponding activation of assistance programs. The follow-on nature of this $25.4 million contract suggests a sustained requirement, implying that previous investments in similar IT support were deemed necessary and effective. Benchmarking against prior years would reveal if this award represents an increase, decrease, or stable level of investment in IT capabilities for disaster response.

How does the pricing structure (labor hours) compare to fixed-price contracts for similar IT services?

The use of a 'LABOR HOURS' (pt: LABOR HOURS) pricing model for this $25.4 million contract offers flexibility but presents different value propositions compared to fixed-price contracts. Labor hour contracts allow the government to pay for the actual time and labor expended by the contractor, which can be advantageous when the scope of work is not fully defined or is expected to evolve, as is often the case with disaster response IT needs. This flexibility can prevent the government from being locked into a fixed scope that becomes obsolete or insufficient. However, it places a greater burden on the government for oversight to ensure efficient use of labor and prevent cost overruns. Fixed-price contracts, conversely, offer greater cost certainty for the government upfront but require a well-defined scope and can be less adaptable to changing requirements. For IT services, especially in dynamic environments like disaster recovery, labor hour contracts can be appropriate if managed diligently, but they may not always yield the most cost-effective outcome compared to a well-scoped fixed-price contract.

What is Booz Allen Hamilton's track record with the Department of Labor and disaster-related IT contracts?

Booz Allen Hamilton Inc. (co: BOOZ ALLEN HAMILTON INC) has a significant track record with various U.S. federal agencies, including the Department of Labor (ag: Department of Labor). As a large, established government contractor, they possess extensive experience in providing IT, consulting, and program support services. This specific contract is a follow-on order against a BPA, indicating a prior relationship and likely successful performance under that agreement for supporting the Disaster Assistance Improvement Program (DAIP). Their broader experience likely includes numerous other contracts related to disaster response, emergency management, and IT modernization across different government entities. While specific performance metrics for this BPA call are not detailed here, the issuance of a follow-on order generally signifies satisfaction with the contractor's past performance and the continued need for their services.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data indicates the contract is priced using 'LABOR HOURS' (pt: LABOR HOURS), which suggests that key performance indicators (KPIs) likely focus on service delivery, timeliness, and potentially the quality of IT support provided. While specific KPIs are not detailed in the summary data, typical metrics for such IT support contracts include system uptime and availability, response times to user requests or incidents, successful implementation of software updates or new features, and adherence to project timelines for any development or enhancement tasks. For a disaster assistance program, KPIs might also include the reliability and performance of IT systems during critical periods of high demand, ensuring seamless data flow and accessibility for program administrators and beneficiaries. Effective oversight would involve tracking these metrics regularly to ensure the contractor is meeting the Department of Labor's needs.

Are there any specific risks associated with relying on a single large contractor for this critical IT function?

Yes, there are inherent risks associated with relying on a single large contractor like Booz Allen Hamilton for critical IT functions supporting disaster assistance. One primary risk is vendor lock-in, where the government becomes heavily dependent on the contractor's proprietary systems or knowledge, making it difficult and costly to switch providers in the future. Another risk is complacency; a contractor might reduce efforts to innovate or improve efficiency if they perceive little threat of competition. Furthermore, a single point of failure exists: if the contractor experiences significant financial, operational, or reputational issues, it could directly disrupt the vital disaster assistance IT services. While Booz Allen Hamilton is a reputable firm, these general risks necessitate robust contract management, clear performance expectations, and contingency planning by the Department of Labor.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: LABOR HOURS (Z)

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: $25,397,546

Exercised Options: $25,397,546

Current Obligation: $25,361,528

Actual Outlays: $25,319,044

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $35,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 1605TA22A0001

IDV Type: BPA

Timeline