DHS awards $38.3M task order for CUBE support services to Booz Allen Hamilton

Contract Overview

Contract Amount: $38,259,528 ($38.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Homeland Security

Start Date: 2023-09-30

End Date: 2026-09-29

Contract Duration: 1,095 days

Daily Burn Rate: $34.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TASK ORDER FOR DHS CUBE SUPPORT SERVICES FOR THE DHS OCRSO ORDER OFF OF ALLIANT 2

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $38.3 million to BOOZ ALLEN HAMILTON INC for work described as: TASK ORDER FOR DHS CUBE SUPPORT SERVICES FOR THE DHS OCRSO ORDER OFF OF ALLIANT 2 Key points: 1. Contract awarded under Alliant vehicle, indicating a pre-competed framework. 2. Task order duration of 1095 days suggests a medium-term need for services. 3. Computer Systems Design Services (NAICS 541512) is a common IT support category. 4. The contract type is Time and Materials, which can pose cost control risks. 5. No small business set-aside was utilized for this specific task order. 6. The award was made by the Office of Procurement Operations, suggesting internal DHS support. 7. The contract is for CUBE support services, likely related to data or analytics platforms.

Value Assessment

Rating: fair

The total value of $38.3 million over three years for IT support services is within a typical range for large federal contracts. However, the Time and Materials (T&M) contract type warrants scrutiny. While T&M can offer flexibility, it often leads to higher costs compared to fixed-price contracts if not managed diligently. Benchmarking the per-hour rates against similar IT support services for DHS or other agencies would be necessary for a definitive value assessment. Without specific rate data, it's difficult to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was competed full and open, likely leveraging the Alliant Government-Wide Acquisition Contract (GWAC), which itself underwent a competitive process. The fact that it was full and open competition suggests that multiple vendors had the opportunity to bid. The number of bidders (3 indicated) is relatively low for a large task order, which could imply either a highly specialized requirement or potential limitations in the pool of qualified bidders on the Alliant vehicle for this specific service.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. A low number of bidders, however, might suggest that the price achieved may not be as competitive as it could have been with broader participation.

Public Impact

The Department of Homeland Security (DHS) will benefit from enhanced CUBE support services, potentially improving operational efficiency and data management. Services delivered likely include system design, integration, and maintenance for critical DHS platforms. The geographic impact is primarily within the District of Columbia, where DHS headquarters and key operations are located. Workforce implications may involve Booz Allen Hamilton personnel supporting DHS IT infrastructure and operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type increases risk of cost overruns if not closely monitored.
Low number of bidders (3) for a large task order may indicate limited competition and potentially higher pricing.
The specific nature of 'CUBE support services' is not detailed, making it difficult to assess the full scope and potential risks.

Positive Signals

Awarded off of the Alliant GWAC, which implies a pre-vetted and competitive contract vehicle.
Full and open competition provides a baseline level of market vetting.
Booz Allen Hamilton is a large, established federal contractor with a significant track record.

Sector Analysis

This contract falls within the Information Technology (IT) professional services sector, specifically focusing on computer systems design. The federal IT services market is substantial, with agencies heavily reliant on contractors for system development, integration, and support. Contracts like this are common as agencies modernize systems and require specialized expertise. Benchmarking against similar IT support task orders on GWACs like Alliant would provide further context on pricing and scope.

Small Business Impact

This task order was not awarded as a small business set-aside, nor does it appear to have specific subcontracting goals mentioned in the provided data. This means that the primary award went to a large business, Booz Allen Hamilton. While large contracts can sometimes include subcontracting opportunities for small businesses, the absence of explicit set-aside or goals suggests that direct small business participation may be limited unless proactively pursued by the prime contractor.

Oversight & Accountability

Oversight for this task order would typically fall under the contracting officer and program managers within DHS's Office of Procurement Operations and the relevant CUBE support service end-users. The Alliant GWAC vehicle itself has oversight mechanisms. Transparency is facilitated by contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Alliant Government-Wide Acquisition Contract (GWAC)
DHS IT Support Services
Computer Systems Design Services
Federal IT Professional Services

Risk Flags

Time and Materials Contract Type
Limited Competition (3 Bidders)
Lack of Specific Service Details

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $38.3 million to BOOZ ALLEN HAMILTON INC. TASK ORDER FOR DHS CUBE SUPPORT SERVICES FOR THE DHS OCRSO ORDER OFF OF ALLIANT 2

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $38.3 million.

What is the period of performance?

Start: 2023-09-30. End: 2026-09-29.

What is the specific nature of the 'CUBE support services' being procured, and what are the key performance objectives?

The provided data does not specify the exact nature of 'CUBE support services.' CUBE could refer to a specific DHS platform, system, or initiative, potentially related to data analytics, cloud infrastructure, or business intelligence. Understanding the precise function of CUBE is crucial for assessing the contract's necessity, the contractor's qualifications, and the potential impact of service disruptions. Key performance objectives would typically involve metrics related to system uptime, response times for support requests, successful implementation of upgrades or changes, and user satisfaction. Without this detail, a full assessment of program effectiveness and risk is limited.

How does the Time and Materials (T&M) pricing structure compare to industry benchmarks for similar IT support roles?

Time and Materials contracts are inherently flexible but carry a higher risk of cost escalation compared to fixed-price arrangements. To benchmark T&M rates, one would typically compare the blended hourly rates for various labor categories (e.g., senior systems analyst, junior technician) against government-wide salary data, industry surveys (like those from professional organizations or consulting firms), and rates paid on similar federal contracts. For instance, if the average blended rate significantly exceeds the average IT support rate for comparable skill sets in the DC metro area or on other DHS contracts, it could indicate potentially unfavorable pricing. The low number of bidders (3) might also suggest less downward pressure on rates.

What is Booz Allen Hamilton's past performance record with DHS, particularly on similar IT support contracts?

Booz Allen Hamilton is a large and established federal contractor with extensive experience across numerous agencies, including DHS. Their past performance record on similar IT support and systems design contracts would be a key factor in the award decision. Agencies typically review a contractor's performance history, including CPARS (Contractor Performance Assessment Reporting System) ratings, to gauge reliability, quality of work, and adherence to schedule and budget on previous engagements. A review of Booz Allen's CPARS ratings and specific contract history with DHS, especially concerning IT services, would provide insight into their capability to successfully execute this task order and manage associated risks.

What is the historical spending trend for CUBE support services or similar IT support within DHS?

Analyzing historical spending on CUBE support services or comparable IT support contracts within DHS would provide context for the $38.3 million award. If DHS has previously spent significantly more or less on similar services, it could indicate whether this award represents an increase, decrease, or stable level of investment. Examining spending patterns over the past 3-5 years can reveal trends in IT modernization efforts, shifts in service delivery models (e.g., from on-premise to cloud), or changes in agency priorities. Without specific historical data on CUBE or related IT support spending, it's difficult to determine if this task order aligns with established budgetary trends or represents a new or expanded requirement.

Given the 'full and open' competition but only 3 bidders, what does this imply about the specialized nature of the requirement or the competitiveness of the Alliant vehicle for this service?

The fact that this task order, competed 'full and open' under the Alliant GWAC, received only three bids suggests a few possibilities. Firstly, the requirement might be highly specialized, requiring specific technical expertise or clearances that limit the number of qualified bidders even within the Alliant pool. Secondly, it could indicate that the Alliant GWAC, while broad, may not have a deep bench of vendors capable of or interested in providing this particular type of CUBE support at the scale required. Thirdly, the timing or structure of the solicitation might have inadvertently limited broader participation. This limited competition could potentially impact price discovery, possibly leading to higher costs than if more vendors had competed.

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: 70RDAD23R00000017

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: $38,259,528

Exercised Options: $38,259,528

Current Obligation: $38,259,528

Actual Outlays: $21,241,869

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0004

IDV Type: GWAC

Timeline