GSA's $65.7M IT Cloud Services Contract with Booz Allen Hamilton Faces Scrutiny for Limited Competition

Contract Overview

Contract Amount: $65,753,525 ($65.8M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2019-09-27

End Date: 2022-09-26

Contract Duration: 1,095 days

Daily Burn Rate: $60.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 15

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IT OPERATIONS AND MAINTENANCE FOR FEDERAL ACQUISITION CLOUD SERVICES.

Place of Performance

Location: SAN JOSE, SANTA CLARA County, CALIFORNIA, 95113

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $65.8 million to BOOZ ALLEN HAMILTON INC for work described as: IT OPERATIONS AND MAINTENANCE FOR FEDERAL ACQUISITION CLOUD SERVICES. Key points: 1. The contract awarded to Booz Allen Hamilton for IT Cloud Services represents a significant expenditure of $65.7 million. 2. Competition appears limited, raising questions about potential price inflation and value for taxpayer money. 3. The use of a BPA Call award method warrants further investigation into its impact on price discovery. 4. The sector is IT Operations and Maintenance, a critical area for federal agencies.

Value Assessment

Rating: questionable

The contract's pricing is difficult to assess without detailed labor hour breakdowns and market comparisons. Given the limited competition, there's a risk that the pricing may not be fully optimized.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a full and open competition BPA Call. However, the specific details of the competition and how price was determined are not fully transparent, potentially impacting price discovery.

Taxpayer Impact: The significant expenditure of $65.7 million necessitates robust oversight to ensure taxpayer funds are used efficiently and effectively, especially if competition was not as robust as it could have been.

Public Impact

Federal agencies rely on these cloud services for critical IT operations, impacting service delivery. The large contract value means any inefficiencies or overpricing directly affect taxpayer dollars. The specific nature of 'Custom Computer Programming Services' can be complex, requiring specialized expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited transparency on price discovery for BPA Call.
Lack of clear small business participation.
Potential for cost overruns if competition was not fully leveraged.

Positive Signals

Contract supports essential IT operations.
Awarded under a broad GSA schedule.

Sector Analysis

This contract falls within the IT Operations and Maintenance sector, specifically Custom Computer Programming Services. Federal spending in this area is substantial, with benchmarks varying widely based on service complexity and contract type.

Small Business Impact

The data indicates that this contract was not awarded to a small business (sb: false). Further analysis would be needed to determine if small business subcontracting opportunities were adequately pursued or offered.

Oversight & Accountability

The General Services Administration (GSA) is responsible for this contract. Oversight would involve monitoring performance, ensuring compliance with contract terms, and reviewing pricing mechanisms to ensure fair value.

Related Government Programs

Custom Computer Programming Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Limited transparency on competition details.
No clear indication of small business utilization.
Potential for price inflation due to competition structure.
Need for detailed performance metrics to assess value.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $65.8 million to BOOZ ALLEN HAMILTON INC. IT OPERATIONS AND MAINTENANCE FOR FEDERAL ACQUISITION CLOUD SERVICES.

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $65.8 million.

What is the period of performance?

Start: 2019-09-27. End: 2022-09-26.

What was the competitive landscape for this specific BPA Call, and how did it influence the final pricing?

While listed as 'full-and-open', the specifics of the competition for this BPA Call are crucial. Understanding the number of bidders, the evaluation criteria, and the negotiation process would reveal how effectively competition drove down prices. Without this detail, it's difficult to ascertain if the government secured the best possible value for the $65.7 million expenditure.

What are the key performance indicators (KPIs) for these IT cloud services, and how has Booz Allen Hamilton performed against them?

Effective oversight requires clear KPIs tied to service availability, performance, security, and responsiveness. Analyzing Booz Allen Hamilton's performance against these metrics would indicate the value delivered. Consistent underperformance, even at a competitive price, would represent a risk to federal IT operations and a poor use of taxpayer funds.

How does the per-unit cost of these custom computer programming services compare to industry benchmarks for similar federal contracts?

Benchmarking the per-unit cost, likely based on labor hours and specific service components, is essential for assessing value. If costs are significantly higher than comparable contracts or commercial offerings, it suggests potential inefficiencies or a lack of aggressive price negotiation, impacting the overall effectiveness of the contract.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 15

Pricing Type: LABOR HOURS (Z)

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: $96,559,232

Exercised Options: $67,190,020

Current Obligation: $65,753,525

Actual Outlays: $17,443,525

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $159,280

Parent Contract

Parent Award PIID: 47QDCB19A0001

IDV Type: BPA

Timeline