Booz Allen Hamilton awarded $55.16M IT engineering task order for AFRL/RIEB ISR domain support

Contract Overview

Contract Amount: $55,159,815 ($55.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2019-08-26

End Date: 2020-08-25

Contract Duration: 365 days

Daily Burn Rate: $151.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THE PURPOSE OF THIS TASK ORDER (TO) IS TO PROVIDE THE AFRL/RIEB AND ITS CLIENTS WITH SPECIALIZED INFORMATION TECHNOLOGY (IT) ENGINEERING SERVICES (ES) AND ANALYTICAL SUPPORT WITHIN THE ISR DOMAIN.

Place of Performance

Location: ROME, ONEIDA County, NEW YORK, 13441

State: New York Government Spending

Plain-Language Summary

General Services Administration obligated $55.2 million to BOOZ ALLEN HAMILTON INC for work described as: THE PURPOSE OF THIS TASK ORDER (TO) IS TO PROVIDE THE AFRL/RIEB AND ITS CLIENTS WITH SPECIALIZED INFORMATION TECHNOLOGY (IT) ENGINEERING SERVICES (ES) AND ANALYTICAL SUPPORT WITHIN THE ISR DOMAIN. Key points: 1. Task order focuses on specialized IT engineering and analytical support within the ISR domain. 2. Contract awarded via full and open competition, suggesting a competitive bidding process. 3. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. The duration of 365 days indicates a focused, one-year period of performance. 5. The award was made by the General Services Administration (GSA) to Booz Allen Hamilton Inc. 6. The North American Industry Classification System (NAICS) code 541512 points to Computer Systems Design Services. 7. This award represents a specific IT services need within the Air Force Research Laboratory (AFRL).

Value Assessment

Rating: fair

The contract value of $55.16 million for a one-year IT engineering services task order is substantial. Without specific benchmarks for similar specialized ISR domain IT support, it's difficult to definitively assess value for money. The Cost Plus Fixed Fee (CPFF) contract type introduces inherent risk, as costs can escalate beyond initial estimates if not rigorously controlled. Benchmarking against other GSA IT service contracts or similar specialized engineering support would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but this competitive approach generally fosters price discovery and encourages contractors to offer competitive terms. The GSA's use of full and open competition for IT services aims to ensure a broad range of capabilities are considered and that the government receives the best possible value.

Taxpayer Impact: Taxpayers benefit from a competitive process that is intended to drive down costs and ensure that the selected contractor offers the most advantageous solution for the specialized IT engineering services required.

Public Impact

The primary beneficiaries are the Air Force Research Laboratory (AFRL)/RIEB, receiving specialized IT engineering and analytical support. The services delivered are crucial for advancing capabilities within the Intelligence, Surveillance, and Reconnaissance (ISR) domain. The geographic impact is primarily within the operational sphere of AFRL, likely supporting national security missions. Workforce implications include the potential for skilled IT professionals to be engaged in critical defense research and development activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs to maximize profit if not closely monitored.
Limited duration of one year may necessitate follow-on contracts, potentially leading to continuity challenges or increased administrative burden.
The specialized nature of ISR domain IT support may limit the pool of qualified contractors, potentially impacting future competition.
Reliance on a single award for this task order means the government is dependent on one contractor for these specific services.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair selection process.
Booz Allen Hamilton is a well-established contractor with significant experience in government IT services.
The General Services Administration (GSA) is a reputable agency for managing federal IT procurements.
The task order addresses a specific, critical need within the Air Force Research Laboratory's ISR domain.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically focusing on computer systems design and integration. The market for specialized IT engineering and analytical support within defense domains like ISR is significant, driven by the continuous need for technological advancement in national security. Comparable spending benchmarks would typically involve analyzing other large IT services contracts awarded by defense agencies for similar specialized capabilities, considering factors like contract type, duration, and scope of work.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major prime contractor, it may present subcontracting opportunities for small businesses, depending on Booz Allen Hamilton's subcontracting plan. However, the primary award does not directly benefit the small business ecosystem through a set-aside mechanism.

Oversight & Accountability

Oversight for this task order would typically be managed by the contracting officer and program officials within the General Services Administration (GSA) and the Air Force Research Laboratory (AFRL). Accountability measures are inherent in the CPFF contract structure, requiring detailed cost reporting and performance metrics. Transparency is generally facilitated through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Air Force Research Laboratory (AFRL) IT Support Contracts
Intelligence, Surveillance, and Reconnaissance (ISR) Systems Development
GSA IT Schedule 70 (now IT-70) Procurements
Computer Systems Design Services Contracts
Cost Plus Fixed Fee (CPFF) IT Services Awards

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type carries inherent cost overrun risk.
Limited duration of one year may require subsequent contract actions.
Specialized nature of ISR IT support could limit future competition.
Lack of specific bidder count prevents full assessment of competitive intensity.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $55.2 million to BOOZ ALLEN HAMILTON INC. THE PURPOSE OF THIS TASK ORDER (TO) IS TO PROVIDE THE AFRL/RIEB AND ITS CLIENTS WITH SPECIALIZED INFORMATION TECHNOLOGY (IT) ENGINEERING SERVICES (ES) AND ANALYTICAL SUPPORT WITHIN THE ISR DOMAIN.

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 $55.2 million.

What is the period of performance?

Start: 2019-08-26. End: 2020-08-25.

What is Booz Allen Hamilton's track record with similar IT engineering task orders for defense agencies?

Booz Allen Hamilton Inc. has a long-standing and extensive track record of providing IT engineering, analytical support, and consulting services to various U.S. federal agencies, including the Department of Defense (DoD). They frequently engage in complex projects related to intelligence, surveillance, and reconnaissance (ISR), cybersecurity, data analytics, and systems integration. Their experience often involves supporting research and development efforts within agencies like the Air Force Research Laboratory (AFRL). While specific performance metrics for individual task orders are not publicly detailed, their consistent awards and significant contract values suggest a generally positive performance history and a strong understanding of government contracting requirements and technical needs within these specialized domains. Their ability to secure large, complex task orders like this one indicates a sustained capacity to meet demanding government requirements.

How does the $55.16 million value compare to similar ISR domain IT support contracts?

The $55.16 million value for a one-year IT engineering task order focused on the ISR domain is substantial, reflecting the specialized and critical nature of the services. Benchmarking this against similar contracts requires access to detailed contract databases and analysis of scope, duration, and contractor. However, large IT services task orders for defense research laboratories, particularly those involving advanced capabilities like ISR, often fall within this range or higher. Contracts awarded under GSA schedules or direct solicitations for specialized engineering support to entities like AFRL can easily reach tens of millions of dollars annually. The Cost Plus Fixed Fee (CPFF) structure also means the final cost could vary, but the initial ceiling indicates a significant investment in acquiring these specific technical capabilities for the specified period.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for IT services?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Booz Allen Hamilton, is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. If the contractor's costs exceed initial estimates, the government pays the higher costs. This can incentivize contractors to be less cost-conscious than in fixed-price contracts, as their profit (the fixed fee) remains constant regardless of the actual costs incurred. Effective oversight, rigorous cost tracking, and clear definition of allowable costs are crucial to mitigate this risk and ensure the government receives good value. Scope creep, if not managed through contract modifications, can also inflate costs under this type of agreement.

How effective is full and open competition in ensuring value for specialized IT services like ISR support?

Full and open competition is generally considered the most effective method for ensuring value for specialized IT services, including those for the ISR domain. By allowing all responsible sources to compete, the government broadens the potential pool of qualified contractors, fostering a competitive environment. This competition typically drives down prices, encourages innovation, and ensures that the government can select the offer that provides the best combination of technical capability, past performance, and price. For highly specialized areas like ISR IT support, where unique expertise is required, full and open competition helps identify the contractors best equipped to meet the demanding requirements, thereby maximizing the likelihood of achieving desired mission outcomes and a strong return on investment for taxpayer funds.

What is the historical spending pattern for Computer Systems Design Services (NAICS 541512) by GSA or AFRL?

Historical spending patterns for Computer Systems Design Services (NAICS 541512) by agencies like GSA and AFRL are substantial and reflect the increasing reliance on advanced IT solutions. GSA, through its various IT schedules and contract vehicles, facilitates billions of dollars in IT services annually across the government. AFRL, as a key research and development arm of the Air Force, consistently invests heavily in IT services to support its mission, including specialized areas like ISR. Spending in this category often fluctuates based on specific research initiatives, modernization efforts, and national security priorities. Analyzing historical data would likely show a trend of increasing demand for sophisticated IT engineering, data analytics, and systems integration services, with significant portions allocated to contractors like Booz Allen Hamilton who possess the requisite expertise and security clearances.

What are the implications of the 365-day duration for this task order?

The 365-day duration of this task order indicates a focused, one-year period for the delivery of specialized IT engineering services. This duration suggests that the requirement may be for a specific project phase, a defined research objective, or a period of operational support that has been scoped for a year. For the contractor, it provides a clear timeframe for performance and revenue. For the government, it allows for a defined period to assess performance and value before committing to potential follow-on work. A one-year duration can also be advantageous if requirements are expected to evolve significantly, allowing for re-evaluation and potential recompete or modification of the contract based on changing needs or technological advancements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $59,885,054

Exercised Options: $59,885,054

Current Obligation: $55,159,815

Actual Outlays: $100,000

Subaward Activity

Number of Subawards: 49

Total Subaward Amount: $5,813,539

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCK18D0004

IDV Type: GWAC

Timeline