Booz Allen Hamilton awarded $138M for IT services at Tinker AFB, raising value-for-money questions

Contract Overview

Contract Amount: $138,057,295 ($138.1M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2020-07-20

End Date: 2026-01-19

Contract Duration: 2,009 days

Daily Burn Rate: $68.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: INFORMATOIN ASSURANCE AND MISSION ASSURANCE COMMERCIAL DERIVATIVE AIRCRAFT DIVISION, TINKER AFB OKLAHOMA

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73145

State: Oklahoma Government Spending

Plain-Language Summary

General Services Administration obligated $138.1 million to BOOZ ALLEN HAMILTON INC for work described as: INFORMATOIN ASSURANCE AND MISSION ASSURANCE COMMERCIAL DERIVATIVE AIRCRAFT DIVISION, TINKER AFB OKLAHOMA Key points: 1. Contract awarded to a single, large incumbent contractor. 2. Significant contract value suggests a need for robust performance monitoring. 3. The 'Time and Materials' pricing model can pose cost control risks. 4. Services are critical for information and mission assurance at a key Air Force base. 5. The contract duration extends over several years, indicating long-term reliance. 6. Limited competition may impact price competitiveness and innovation.

Value Assessment

Rating: fair

The contract's value of $138 million over its period of performance warrants close scrutiny. While specific benchmarks for 'Information Assurance and Mission Assurance Commercial Derivative Aircraft Division' services are not readily available, the 'Time and Materials' pricing structure, without clear cost ceilings or fixed-price components, presents a risk for cost overruns. Comparing this to similar large-scale IT support contracts, the pricing appears within a broad range, but the lack of competitive pressure makes definitive value assessment challenging. The absence of small business participation also limits potential cost efficiencies.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were theoretically allowed to compete. However, the data does not specify the number of bids received or the extent of the competitive process. The award to a single entity suggests that either only one bid met the requirements or the incumbent's proposal was significantly stronger. The level of competition is crucial for understanding price discovery.

Taxpayer Impact: While awarded competitively, the lack of detail on the number of bidders makes it difficult to definitively state the benefit to taxpayers. A robust competition typically drives down prices, but without knowing the bid landscape, the full cost-saving potential may not have been realized.

Public Impact

The primary beneficiaries are the U.S. Air Force units operating at Tinker AFB, Oklahoma, who will receive critical IT and mission assurance support. Services delivered include computer systems design and related support, essential for maintaining operational readiness and cybersecurity. The geographic impact is concentrated at Tinker AFB, Oklahoma, a major hub for aircraft maintenance and logistics. Workforce implications may include the direct employment of IT professionals by Booz Allen Hamilton and potential indirect support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials pricing model.
Lack of transparency regarding the number of bidders in the full and open competition.
Incumbent contractor awarded a significant contract value, potentially limiting new entrants.
No small business participation noted, missing opportunities for set-asides.

Positive Signals

Awarded through full and open competition, theoretically allowing broad market participation.
Services are critical for national defense and mission assurance at a key Air Force facility.
Long contract duration provides stability for service delivery and planning.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a vital component of the broader IT services industry. This sector is characterized by high demand from government agencies for support in areas like cybersecurity, network management, and system integration. The market size for government IT services is substantial, with agencies increasingly relying on contractors for specialized expertise. This contract represents a significant award within this niche, supporting critical defense infrastructure.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, the absence of explicit subcontracting requirements for small businesses means there is no direct mechanism to ensure small business participation. This limits opportunities for the small business ecosystem to engage with this significant federal spending, potentially concentrating the benefits among larger prime contractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the General Services Administration (GSA) and the relevant Air Force contracting and program management offices at Tinker AFB. Accountability measures would be embedded in the contract's performance work statement and delivery order terms. Transparency is facilitated by public contract databases, but detailed operational oversight and Inspector General jurisdiction would depend on specific clauses and ongoing performance reviews.

Related Government Programs

Information Assurance Services
Mission Assurance Programs
Defense IT Support Contracts
Air Force Logistics Command IT
Tinker AFB Support Services
Computer Systems Design Contracts

Risk Flags

Cost Control Risk (Time and Materials)
Limited Competition Impact
Potential for Vendor Lock-in
Reliance on Single Large Contractor

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $138.1 million to BOOZ ALLEN HAMILTON INC. INFORMATOIN ASSURANCE AND MISSION ASSURANCE COMMERCIAL DERIVATIVE AIRCRAFT DIVISION, TINKER AFB OKLAHOMA

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 $138.1 million.

What is the period of performance?

Start: 2020-07-20. End: 2026-01-19.

What is the historical spending pattern for similar information assurance and mission assurance services at Tinker AFB?

Analyzing historical spending for similar services at Tinker AFB requires access to detailed contract databases beyond the provided summary. However, the duration of this contract (awarded 2020, ending 2026) and its substantial value suggest a consistent need for these services. Typically, agencies like the Air Force maintain long-term contracts for critical support functions, often renewing or re-competing them as needs evolve. Without specific historical data, it's difficult to establish a precise trend, but the award to a large incumbent like Booz Allen Hamilton often indicates a pattern of sustained, high-value support requirements for specialized functions critical to base operations.

How does the 'Time and Materials' pricing model compare to other contract types for IT services in the federal government?

The 'Time and Materials' (T&M) pricing model is common for IT services, particularly when the scope of work is not fully defined at the outset or is expected to evolve. It allows for flexibility, paying contractors based on the hours worked and the cost of materials used. However, it carries a higher risk of cost overruns for the government compared to fixed-price contracts, as there is less incentive for the contractor to control costs. Agencies often mitigate this risk by setting not-to-exceed (NTE) ceilings, requiring detailed timesheets, and implementing robust oversight. Compared to Firm-Fixed-Price (FFP) contracts, T&M offers less cost certainty but greater adaptability to changing requirements.

What is Booz Allen Hamilton's track record with similar government IT contracts?

Booz Allen Hamilton is a major government contractor with extensive experience in IT services, including information assurance and mission assurance. They hold numerous large contracts across various federal agencies, particularly within the Department of Defense. Their track record generally includes successful delivery of complex IT solutions and strategic consulting. However, like any large contractor, they have also faced scrutiny regarding contract performance and pricing on specific awards. For this particular contract, assessing their performance would require reviewing specific delivery orders, performance reviews, and any reported issues or successes related to the information and mission assurance tasks at Tinker AFB.

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

Key Performance Indicators (KPIs) for this contract would likely focus on the effectiveness and efficiency of information and mission assurance services. Examples could include system uptime percentages, response times for security incidents, successful vulnerability remediation rates, compliance with cybersecurity mandates (e.g., NIST standards), and the successful execution of mission-critical IT functions. Performance would also be assessed based on adherence to schedules, budget management (especially within the T&M NTE ceilings), and overall customer satisfaction from the Air Force units at Tinker AFB. Regular reporting and performance reviews would track these KPIs.

How does the $138 million contract value compare to the overall IT spending at Tinker AFB?

Determining the exact proportion of this $138 million contract within Tinker AFB's overall IT spending requires comprehensive data on all IT-related expenditures at the base. Tinker AFB, as a major Air Force installation, likely has a significant IT budget encompassing hardware, software, network infrastructure, and various support services. This contract, focused on specialized information and mission assurance, represents a substantial portion of IT support but may not encompass the entirety of the base's IT investment. Benchmarking requires comparing this contract's value against the total IT budget or other major IT contracts awarded to the base.

What are the potential risks associated with relying on a single large contractor for critical mission assurance functions?

Relying on a single large contractor for critical mission assurance functions presents several risks. Firstly, there's a risk of vendor lock-in, making it difficult and costly to switch providers if performance degrades or needs change. Secondly, a lack of competition can lead to complacency and potentially higher prices over time. Thirdly, the contractor's financial stability or strategic shifts could impact service continuity. Finally, a single point of failure exists; if the contractor experiences significant operational issues, it could directly jeopardize the mission-critical functions they support, potentially impacting national security operations at Tinker AFB.

Industry Classification

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

Solicitation ID: 47QFWA20Q0013

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: $161,464,271

Exercised Options: $149,066,766

Current Obligation: $138,057,295

Actual Outlays: $-8,634

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $545,269

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0004

IDV Type: GWAC

Timeline