Air Force awards $26.6M IT contract to Booz Allen Hamilton for computer systems design services

Contract Overview

Contract Amount: $26,572,965 ($26.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2021-07-06

End Date: 2026-07-05

Contract Duration: 1,825 days

Daily Burn Rate: $14.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: AIR FORCE DAMO

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78243

State: Texas Government Spending

Plain-Language Summary

General Services Administration obligated $26.6 million to BOOZ ALLEN HAMILTON INC for work described as: AIR FORCE DAMO Key points: 1. Contract value represents a significant investment in IT modernization. 2. Competition dynamics suggest a potentially competitive bidding process. 3. Risk indicators include the Time and Materials pricing structure. 4. Performance context is tied to computer systems design services. 5. Sector positioning is within the IT services industry. 6. The contract duration of five years allows for sustained support. 7. Geographic focus is on Texas, indicating regional IT needs.

Value Assessment

Rating: fair

The contract value of $26.6 million over five years for computer systems design services appears to be within a reasonable range for large-scale IT projects. However, the Time and Materials (T&M) pricing structure can pose a risk for cost overruns if not closely managed. Benchmarking against similar contracts for IT modernization and systems integration would be necessary to definitively assess value for money. Without specific performance metrics or detailed cost breakdowns, a precise comparison is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With three bidders identified, the competition level suggests a moderate degree of market interest. This level of competition is generally favorable for price discovery, as it encourages bidders to offer competitive pricing to secure the award. However, the specific number of bids received relative to the total number of potential bidders is not detailed.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces. A moderate number of bidders suggests that the government likely received competitive offers, potentially leading to cost savings compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiary is the U.S. Air Force, which will receive enhanced computer systems design services. Services delivered will focus on improving and maintaining critical IT infrastructure. The geographic impact is centered in Texas, where the services will be performed. Workforce implications may include the need for specialized IT professionals employed by Booz Allen Hamilton and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost escalation if not managed diligently.
The specific scope of 'computer systems design services' is broad and requires clear performance metrics.
Reliance on a single large contractor for critical IT functions could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The five-year contract duration allows for long-term planning and sustained support.
Booz Allen Hamilton is a well-established contractor with significant experience in government IT services.

Sector Analysis

The Information Technology (IT) services sector is a vast and critical component of federal spending. This contract falls under computer systems design, a sub-sector focused on planning, designing, and implementing IT systems. The federal government is a major consumer of these services, with spending often driven by modernization efforts, cybersecurity enhancements, and the need for efficient data management. Comparable spending benchmarks for similar IT design and integration contracts can vary widely based on scope, complexity, and duration.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. The prime contractor, Booz Allen Hamilton, is a large business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. The absence of a set-aside suggests that opportunities for small businesses may be limited to subcontracting roles, if any, and their participation would depend on the prime contractor's procurement strategy.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant program management office within the Air Force, facilitated through the General Services Administration's Federal Acquisition Service. Accountability measures will be tied to the contract's performance work statement and delivery schedules. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Modernization Programs
Computer Systems Integration Services
Defense Information Technology Contracting
Cloud Computing Services Contracts
Cybersecurity Services Contracts

Risk Flags

Time and Materials Pricing
Potential for Cost Overruns
Long Contract Duration (5 years)
Scope Definition Ambiguity

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $26.6 million to BOOZ ALLEN HAMILTON INC. AIR FORCE DAMO

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 $26.6 million.

What is the period of performance?

Start: 2021-07-06. End: 2026-07-05.

What is the historical spending pattern for computer systems design services by the Air Force and GSA?

Analyzing historical spending patterns for computer systems design services by the Air Force and the General Services Administration (GSA) is crucial for contextualizing the $26.6 million award. The Air Force, as a major defense entity, consistently invests heavily in IT infrastructure and systems design to maintain operational readiness and technological superiority. GSA, through its Federal Acquisition Service, facilitates many of these procurements. Historical data from sources like the Federal Procurement Data System (FPDS) would reveal trends in contract values, types of services procured (e.g., design, integration, maintenance), and the primary contractors involved. Understanding these patterns can help identify whether this specific contract represents an increase, decrease, or continuation of previous spending levels, and whether it aligns with broader government IT modernization initiatives. For instance, a surge in spending in this category might indicate a new strategic focus or a response to evolving technological landscapes.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar IT services?

The Time and Materials (T&M) pricing structure used in this contract is a common, yet often scrutinized, method for procuring IT services. Unlike fixed-price contracts, T&M reimburses the contractor for the actual labor hours and materials used, plus a fixed fee or நிர்ணயிக்கப்பட்ட rate. This structure offers flexibility, particularly when the scope of work is not fully defined at the outset or is expected to evolve. However, it carries a higher risk of cost overruns for the government, as the final cost is directly tied to the effort expended. Compared to firm-fixed-price (FFP) contracts, which provide greater cost certainty but less flexibility, T&M requires robust oversight and management to control expenditures. Other hybrid models, like T&M with a ceiling price, aim to balance flexibility with cost control. For computer systems design services, where requirements can be fluid, T&M might be deemed appropriate, but it necessitates stringent monitoring of labor hours, rates, and material costs to ensure value for money and prevent inefficiencies.

What is Booz Allen Hamilton's track record with similar Air Force or GSA IT contracts?

Booz Allen Hamilton possesses a substantial track record of performing IT services for the U.S. Air Force and other federal agencies, including those procured through the General Services Administration (GSA). As a large, established government contractor, they have experience across a wide spectrum of IT domains, including systems design, integration, cybersecurity, and data analytics. Analyzing their past performance on similar contracts would involve reviewing contract databases for awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. Key aspects to consider include their ability to deliver on time, within budget, and meet technical requirements. Their history with T&M contracts, specifically, would be relevant to assess their efficiency and cost management practices in such arrangements. A review of their performance history can provide insights into their reliability and capability to execute this specific $26.6 million computer systems design services contract effectively.

What are the potential risks associated with a five-year contract duration for IT systems design?

A five-year contract duration for IT systems design, while allowing for sustained support and long-term project development, introduces several potential risks. Technology evolves rapidly, and a five-year commitment could lock the government into outdated systems or architectures if the contract is not structured with flexibility for technological advancements. Contractor performance is another risk; a five-year period is long enough for performance to degrade, or for key personnel to depart, potentially impacting service delivery. Furthermore, market conditions and pricing can change significantly over five years, potentially making the initial pricing less competitive over time, especially with a T&M structure. To mitigate these risks, contracts often include provisions for regular reviews, performance-based incentives, options for modernization, and clear exit strategies. Effective contract management and continuous monitoring are essential to ensure the government continues to receive value and adapt to changing technological landscapes throughout the contract's life.

How does the number of bidders (3) impact price discovery and potential cost savings for this contract?

The fact that this contract received three bids under full and open competition provides a moderate level of price discovery. With three distinct offers, the government has a basis for comparison to determine a competitive price. This scenario is generally preferable to a sole-source or limited competition, where the government has fewer options and potentially less leverage to negotiate favorable terms. However, the optimal number of bidders for maximum price discovery and savings can vary depending on the complexity and size of the contract. For a $26.6 million IT services contract, three bidders suggest a reasonably competitive market, likely pushing contractors to offer more competitive rates than if there were only one or two. To fully assess the impact, one would need to compare the awarded price against the independent government cost estimate and the bids of the non-selected contractors, if that data were available.

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: 47QFWA21Q0061

Offers Received: 3

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: $34,433,762

Exercised Options: $28,225,756

Current Obligation: $26,572,965

Actual Outlays: $-49

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