DoD's $55.7M IT Network Support Contract Awarded to Booz Allen Hamilton Under Full and Open Competition

Contract Overview

Contract Amount: $55,695,040 ($55.7M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2009-06-18

End Date: 2013-06-30

Contract Duration: 1,473 days

Daily Burn Rate: $37.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: CLASSIFIED AND NON-CLASSIFIED INFORMATION TECHNOLOGY NETWORK SUPPORT

Place of Performance

Location: FORT BRAGG, CUMBERLAND County, NORTH CAROLINA, 28310

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $55.7 million to BOOZ ALLEN HAMILTON INC for work described as: CLASSIFIED AND NON-CLASSIFIED INFORMATION TECHNOLOGY NETWORK SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of approximately 4 years (1473 days) indicates a significant, long-term need. 3. Awarded to a single contractor, Booz Allen Hamilton, for specialized IT network support. 4. The contract type is Time and Materials, which can pose cost control risks if not managed closely. 5. The North American Industry Classification System (NAICS) code 517110 points to wired telecommunications carriers. 6. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery contract vehicle. 7. The contract was not set aside for small businesses, indicating a focus on larger prime contractors.

Value Assessment

Rating: fair

The total award amount of $55.7 million over approximately four years for IT network support requires careful benchmarking. Without specific details on the services rendered and the number of hours billed, a precise value-for-money assessment is challenging. However, the Time and Materials contract type can lead to higher costs if not managed diligently, especially compared to fixed-price contracts. The absence of a small business set-aside might suggest that the scope of work was deemed too large or specialized for smaller firms, potentially limiting competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bidders (no: 2) suggests a moderate level of competition for this specific delivery order. While full and open competition is generally preferred for maximizing price discovery, the limited number of bidders could mean that the market for this specialized IT network support is concentrated among a few large firms.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it theoretically drives down prices through a competitive bidding process. However, with only two bidders, the potential for significant cost savings may be constrained compared to scenarios with numerous competing offers.

Public Impact

The Department of Defense benefits from enhanced and reliable IT network infrastructure. Services delivered include wired telecommunications carrier support, crucial for military operations. The contract's primary geographic impact is likely within the operational areas of the Department of the Army. Workforce implications may include the employment of skilled IT professionals by Booz Allen Hamilton.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Limited number of bidders (2) may indicate a concentrated market and reduced competitive pressure.
Lack of specific performance metrics makes it difficult to assess the effectiveness of the support provided.
The contract's duration suggests a long-term reliance, potentially hindering flexibility for future technological advancements.

Positive Signals

Awarded through full and open competition, which is a positive indicator for market fairness.
Booz Allen Hamilton is a well-established contractor with significant experience in government IT services.
The contract addresses a critical need for IT network support within the Department of Defense.

Sector Analysis

This contract falls within the IT and Telecommunications sector, specifically focusing on wired telecommunications infrastructure. The market for such services is characterized by a few large, established players capable of handling complex government requirements. Spending in this area is critical for national security and operational readiness. Comparable spending benchmarks would typically involve other large-scale IT network support contracts awarded by federal agencies, often in the tens to hundreds of millions of dollars, depending on scope and duration.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the prime contractor, Booz Allen Hamilton, is expected to perform the majority of the work. The absence of small business participation could limit opportunities for smaller, specialized IT firms to contribute to this specific contract, potentially impacting the broader small business ecosystem within the federal contracting space for this particular requirement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer within the Department of the Army. Performance monitoring, invoicing review, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS, which provide basic award information. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Services
Wired Telecommunications Contracts
IT Network Infrastructure Support
Information Technology Professional Services
Federal Telecommunications Services

Risk Flags

Time and Materials Contract Type
Limited Competition (2 Bidders)
Potential for Cost Overruns
Lack of Detailed Performance Metrics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.7 million to BOOZ ALLEN HAMILTON INC. CLASSIFIED AND NON-CLASSIFIED INFORMATION TECHNOLOGY NETWORK SUPPORT

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 $55.7 million.

What is the period of performance?

Start: 2009-06-18. End: 2013-06-30.

What specific IT network support services were provided under this contract?

The provided data indicates the contract is for 'CLASSIFIED AND NON-CLASSIFIED INFORMATION TECHNOLOGY NETWORK SUPPORT' and falls under NAICS code 517110 (Wired Telecommunications Carriers). While the specific services are not detailed, this generally encompasses the installation, maintenance, and operation of wired communication networks, including cabling, routers, switches, and related infrastructure. It likely involves ensuring the reliability, security, and performance of the Department of the Army's internal and external wired communication systems, supporting both classified and unclassified data transmission essential for military operations.

How does the Time and Materials (T&M) contract type compare to other contract types for IT support in terms of cost-effectiveness?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change. While T&M offers flexibility, it carries a higher risk of cost overruns for the government compared to fixed-price contracts. The government pays for the actual labor hours and material costs incurred by the contractor, plus a fixed fee or labor-hour rate. This contrasts with fixed-price contracts, where the contractor agrees to a set price regardless of the actual costs. For IT support, fixed-price contracts are generally preferred for well-defined tasks to ensure cost certainty. However, for evolving IT needs or unforeseen technical challenges, T&M can be necessary, but it requires rigorous oversight and management to control spending and ensure value.

What is the typical track record of Booz Allen Hamilton in delivering IT network support to the federal government?

Booz Allen Hamilton is a large, well-established government contractor with extensive experience in providing IT and cybersecurity services across various federal agencies, including the Department of Defense. They have a long history of managing complex IT infrastructure projects and network support. While specific performance details for this particular contract are not available, Booz Allen Hamilton is generally recognized for its capabilities in this domain. However, like any large contractor, they have faced scrutiny and past performance issues on some contracts, underscoring the importance of ongoing performance monitoring by the government.

What are the potential risks associated with a contract awarded under full and open competition with only two bidders?

While full and open competition is the preferred method for maximizing market participation, having only two bidders can present certain risks. It may indicate a concentrated market where only a few companies possess the necessary qualifications, technology, or security clearances to bid. This limited competition could lead to less aggressive pricing than if there were multiple bidders vying for the contract. Furthermore, it might reduce the government's leverage in negotiations and potentially limit the pool of innovative solutions. However, it also ensures that at least two capable vendors were considered, providing a baseline for comparison.

How does the $55.7 million award amount compare to historical spending on similar IT network support contracts?

The $55.7 million award for approximately four years of IT network support is a significant but not unusual figure for large-scale federal IT contracts. The Department of Defense, in particular, invests heavily in maintaining robust and secure IT infrastructure. Historical spending patterns show that contracts for network support, telecommunications, and related IT services for agencies like the Army often range from tens to hundreds of millions of dollars over multi-year periods. The specific value is highly dependent on the scope, complexity, security requirements (e.g., classified systems), and duration. This award appears to be within the expected range for a contract of this nature and duration supporting a major military branch.

What are the implications of the contract being awarded as a Delivery Order?

The fact that this award is a 'Delivery Order' implies that it was issued under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar type of multiple-award contract vehicle. This means that the foundational contract terms, including pricing structures, general scope, and contractor qualifications, were likely established previously, possibly through another competitive process. A Delivery Order then specifies the exact quantity, delivery schedule, and price for a particular task or requirement. This approach allows agencies to procure services more efficiently over time, but the initial competition for the IDIQ vehicle is crucial for ensuring overall value.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)

Address: 8283 GREENSBORO DRIVE, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $104,885,755

Exercised Options: $79,497,495

Current Obligation: $55,695,040

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06D0019

IDV Type: IDC

Timeline