Booz Allen Hamilton awarded $254.5M for IT services, with a significant portion for custom computer programming

Contract Overview

Contract Amount: $254,534,978 ($254.5M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: National Science Foundation

Start Date: 2019-07-16

End Date: 2025-01-15

Contract Duration: 2,010 days

Daily Burn Rate: $126.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 18

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IT SERVICES

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

National Science Foundation obligated $254.5 million to BOOZ ALLEN HAMILTON INC for work described as: IT SERVICES Key points: 1. Contract value indicates substantial IT support needs for the agency. 2. Custom computer programming services are a key component, suggesting complex software development or integration. 3. The contract duration spans over five years, implying a long-term strategic partnership. 4. Delivery orders suggest a flexible approach to task execution and resource allocation. 5. The contract is not set aside for small businesses, indicating a focus on large prime contractors. 6. The significant award amount warrants close monitoring for performance and cost-effectiveness.

Value Assessment

Rating: good

The total award of $254.5 million over approximately six years represents a significant investment in IT services. Benchmarking against similar large-scale IT support contracts for federal agencies suggests this award is within a typical range for comprehensive custom computer programming and related services. While specific per-unit cost data is not provided, the overall value reflects the scope and duration of the services required. Further analysis of individual delivery orders would be needed to assess granular pricing and value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This competitive process is designed to foster price discovery and ensure the government receives the best value. The fact that it was fully competed suggests a healthy market for these types of IT services, with several large contractors capable of meeting the agency's requirements.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging a wider pool of bidders, leading to potentially more cost-effective solutions.

Public Impact

The National Science Foundation (NSF) is the primary beneficiary, receiving critical IT support. Services delivered include custom computer programming, likely supporting scientific research and data management. The contract's impact is primarily national, supporting NSF's mission across the United States. The workforce implications include employment opportunities for IT professionals within Booz Allen Hamilton and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the long duration and delivery order structure.
Reliance on a single large contractor could limit future flexibility or innovation.
Ensuring consistent performance and quality across multiple delivery orders over time.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Long-term contract allows for sustained support and knowledge retention.
Booz Allen Hamilton is a well-established contractor with a track record in federal IT services.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming. The federal IT services market is vast, with agencies consistently investing in software development, system integration, and IT support to modernize operations and advance their missions. Comparable spending benchmarks for large IT support contracts often run into hundreds of millions of dollars, reflecting the complexity and scale of government IT needs. This award to Booz Allen Hamilton aligns with broader trends of significant federal investment in technology.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate specific subcontracting goals for small businesses in the provided data. This suggests that the prime contractor, Booz Allen Hamilton, is expected to fulfill the majority of the work with its own resources or through larger partners. The absence of small business set-asides in this particular award means direct opportunities for small businesses as prime contractors are limited, though they may still participate as subcontractors if opportunities arise.

Oversight & Accountability

Oversight for this contract would typically be managed by the National Science Foundation's contracting officers and program managers. Accountability measures are embedded within the contract's terms and conditions, including performance standards and delivery schedules outlined in individual delivery orders. Transparency is facilitated through federal procurement databases like FPDS-NG, where contract awards are reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

IT Professional Services
Custom Computer Programming Services
Software Development Contracts
IT Support Services
Cloud Computing Services (potential component)
Data Analytics Services (potential component)

Risk Flags

Long contract duration may increase risk of technological obsolescence.
Custom development can be prone to scope creep and cost overruns.
Reliance on a single large contractor could limit future agility.

Frequently Asked Questions

What is this federal contract paying for?

National Science Foundation awarded $254.5 million to BOOZ ALLEN HAMILTON INC. IT SERVICES

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: National Science Foundation (National Science Foundation).

What is the total obligated amount?

The obligated amount is $254.5 million.

What is the period of performance?

Start: 2019-07-16. End: 2025-01-15.

What is Booz Allen Hamilton's track record with the National Science Foundation and similar federal agencies for IT services?

Booz Allen Hamilton is a large, established federal contractor with extensive experience providing IT services across numerous government agencies, including the National Science Foundation. Their track record generally includes a wide range of support, from cybersecurity and data analytics to custom software development and IT modernization. For the NSF specifically, they have likely been involved in supporting scientific computing infrastructure, data management systems, and research support platforms. Their history with federal contracts indicates a capacity to manage large, complex programs, though like any large contractor, performance can vary by specific contract and program. Reviewing past performance evaluations and contract close-outs for Booz Allen Hamilton on similar NSF or agency contracts would provide a more granular understanding of their reliability and effectiveness.

How does the $254.5 million award compare to NSF's historical IT spending?

The $254.5 million award represents a significant, but not necessarily unprecedented, investment for the National Science Foundation over its approximately six-year duration. Federal agencies like the NSF rely heavily on IT infrastructure and services to support their core missions, which often involve managing vast amounts of scientific data, facilitating research collaborations, and running complex computational models. Annual IT spending for agencies of NSF's size can range from hundreds of millions to over a billion dollars. This specific contract, focusing on custom computer programming and IT services, likely forms a substantial part of their IT budget dedicated to software development and system enhancement. To provide a precise comparison, one would need to analyze NSF's historical IT spending reports and identify similar large-scale IT service contracts awarded in previous fiscal years to understand the proportion this award represents.

What are the primary risks associated with a contract of this size and duration for custom computer programming?

Contracts of this magnitude and duration, particularly for custom computer programming, carry several inherent risks. One primary risk is scope creep, where the project's requirements expand beyond the initial agreement, leading to cost overruns and schedule delays. Another significant risk is technological obsolescence; custom software developed today might become outdated before the contract ends, requiring costly updates or re-engineering. Contractor performance risk is also present; ensuring consistent quality, timely delivery, and effective management of resources over several years can be challenging. Furthermore, dependency on a single large contractor can create vendor lock-in, potentially limiting the agency's flexibility in adopting new technologies or switching providers in the future. Finally, security risks related to custom-developed software, including vulnerabilities and data breaches, require continuous vigilance and robust security protocols.

What does 'Custom Computer Programming Services' entail in the context of this NSF contract?

In the context of this National Science Foundation contract, 'Custom Computer Programming Services' (NAICS code 541511) likely encompasses a broad range of activities related to the design, development, implementation, and maintenance of specialized software solutions. This could include writing, testing, and debugging code for new applications, modifying existing software to meet evolving NSF requirements, integrating disparate software systems, and developing databases. Given NSF's mission, these services might support scientific research platforms, data analysis tools, collaboration portals, or internal administrative systems. The 'custom' aspect implies that the software is being built or significantly tailored to meet unique NSF needs, rather than purchasing off-the-shelf solutions. This often involves close collaboration between the contractor and NSF personnel to define requirements and ensure the final product aligns with scientific and operational objectives.

How does the 'Delivery Order' (DO) contract type affect flexibility and cost control?

The 'Delivery Order' (DO) contract type, often used within larger Indefinite-Delivery/Indefinite-Quantity (IDIQ) or other base contract vehicles, provides significant flexibility for both the government and the contractor. For the government, it allows for task-specific orders to be placed as needs arise, enabling agile response to changing requirements without needing to re-compete the entire scope of work each time. This is particularly useful for IT services where needs can evolve rapidly. For the contractor, it provides a framework for ongoing work. However, this flexibility can also introduce challenges for cost control. Without clearly defined tasks and fixed prices for each order upfront, there's a risk of unmanaged cost growth if orders are not carefully defined, priced, and monitored. Effective management requires robust oversight of each DO to ensure it aligns with the overall contract objectives and represents fair value.

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: 18

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: $256,987,441

Exercised Options: $256,987,441

Current Obligation: $254,534,978

Actual Outlays: $179,566,799

Subaward Activity

Number of Subawards: 29

Total Subaward Amount: $19,750,100

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F386DA

IDV Type: FSS

Timeline