HHS awards $90.3M for IT applications support, with Booz Allen Hamilton Inc. securing the contract

Contract Overview

Contract Amount: $90,317,081 ($90.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2020-09-21

End Date: 2024-09-24

Contract Duration: 1,464 days

Daily Burn Rate: $61.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OCIO TECHNICAL APPLICATIONS SUPPORT SERVICES

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $90.3 million to BOOZ ALLEN HAMILTON INC for work described as: OCIO TECHNICAL APPLICATIONS SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $90.3M over approximately 4 years indicates significant investment in IT support. 3. Fixed-price contract type may offer cost certainty but could limit flexibility for scope changes. 4. The award to a single contractor, Booz Allen Hamilton Inc., warrants a review of performance and pricing. 5. The NAICS code 541512 points to a focus on computer systems design services. 6. The contract duration of 1464 days (approx. 4 years) suggests a long-term need for these services.

Value Assessment

Rating: good

The contract value of $90.3M over roughly four years for technical applications support services appears reasonable given the scope. Benchmarking against similar IT support contracts within the federal government would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the government has a clear understanding of the requirements and has negotiated a price that is expected to cover all costs and profit. However, without specific performance metrics or detailed cost breakdowns, a definitive assessment of exceptional value is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 6 bidders suggests a healthy level of competition for this requirement. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards. The number of bidders provides some assurance that the pricing is likely aligned with market rates.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for their investment. The multiple bids received suggest that the government is not locked into a single provider, fostering a more cost-effective outcome.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from enhanced technical applications support. Services delivered include computer systems design and related support, crucial for agency operations. The geographic impact is primarily within Georgia, where the contract is managed. The contract supports the IT workforce by engaging a major contractor for specialized services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if performance is consistently good and contract is extended.
Reliance on a single large contractor may limit opportunities for smaller, specialized firms.
Scope creep could become an issue if not managed tightly under the fixed-price contract.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Firm-fixed-price contract provides cost predictability for the government.
Contract duration suggests a stable, long-term need being met.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design and related services. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract for technical applications support aligns with the broader trend of federal agencies outsourcing complex IT functions to specialized contractors to ensure operational efficiency and access to expertise. Comparable spending benchmarks for similar IT support services can be found across various federal agencies, often varying based on complexity and duration.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While Booz Allen Hamilton Inc. is a large business, there is no explicit information on subcontracting plans for small businesses within this award. The absence of a small business set-aside means that opportunities for small businesses to directly compete for this prime contract were limited. However, large prime contractors often engage small businesses as subcontractors, which could provide indirect opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the CDC. The firm-fixed-price nature of the contract provides a degree of accountability by defining the scope and cost upfront. Transparency is generally maintained through federal contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected related to the contract's performance or award.

Related Government Programs

IT Applications Development
Computer Systems Design Services
Federal IT Support Contracts
Department of Health and Human Services IT Spending
Centers for Disease Control and Prevention Contracts

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of vendor lock-in due to long-term contract.
Performance deficiencies by the contractor.
Dependency on a single large contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $90.3 million to BOOZ ALLEN HAMILTON INC. OCIO TECHNICAL APPLICATIONS SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $90.3 million.

What is the period of performance?

Start: 2020-09-21. End: 2024-09-24.

What is the track record of Booz Allen Hamilton Inc. in delivering similar IT support services to the federal government?

Booz Allen Hamilton Inc. has a long-standing and extensive track record of providing a wide range of IT and management consulting services to numerous federal agencies. They are a major government contractor with significant experience in areas such as systems engineering, cybersecurity, data analytics, and application development and sustainment. Their past performance on similar contracts, particularly those involving complex technical applications support for health-focused agencies like HHS, would be a key factor in their selection for this award. Agencies typically review past performance evaluations and existing contract vehicles when assessing a contractor's suitability for new awards. A review of their contract history would likely reveal numerous awards for IT services, demonstrating their capacity and experience in this domain.

How does the awarded price compare to market rates for similar IT applications support services?

Determining the precise market rate for IT applications support services is complex due to variations in scope, complexity, labor categories, and geographic location. However, the total contract value of $90.3 million over approximately four years, awarded under full and open competition with six bidders, suggests that the pricing is likely competitive. Firm-fixed-price contracts generally aim to establish a price that covers all anticipated costs, profit, and risk for the contractor. Benchmarking would involve comparing the average loaded labor rates, overhead, and profit margins to industry standards for similar roles (e.g., system administrators, software developers, project managers) within the federal contracting space. Given the competitive bidding environment, it is reasonable to infer that the awarded price reflects a negotiated value that the government deemed acceptable based on the proposals received.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this contract include potential scope creep, contractor performance issues, and over-reliance on a single vendor. Scope creep is a risk in any IT project, especially under a fixed-price contract, and is mitigated through rigorous change control processes, clear definition of deliverables, and active program management by the CDC. Contractor performance risks are managed through performance monitoring, regular reviews, and contractual remedies for deficiencies. Over-reliance on Booz Allen Hamilton Inc. could be a risk if their performance falters or if the government seeks greater flexibility; this is partially mitigated by the initial competitive award process, which implies alternatives were considered, and by the potential for future competition at contract end. The firm-fixed-price structure itself mitigates cost overrun risks for the government, shifting that risk to the contractor.

How effective is the Centers for Disease Control and Prevention (CDC) in managing its IT support contracts?

The effectiveness of the CDC in managing its IT support contracts can be assessed through various indicators, including contract performance metrics, timely delivery of services, adherence to budget, and successful achievement of program objectives. As a major health agency, the CDC relies heavily on robust IT infrastructure and support to fulfill its mission. While specific performance data for this particular contract is not detailed here, the CDC generally operates within established federal acquisition regulations and employs program managers and contracting officers to oversee its contracts. Their ability to attract competitive bids, as seen in this award, suggests a capacity to structure requirements effectively. Ongoing oversight, performance evaluations, and feedback mechanisms are crucial for ensuring the effectiveness of IT contract management.

What are the historical spending patterns for technical applications support services at the CDC or HHS?

Historical spending patterns for technical applications support services at the CDC and HHS are generally characterized by consistent investment in maintaining and modernizing IT systems critical for public health initiatives. Agencies like the CDC require ongoing support for a vast array of applications, from data management and analysis to public health surveillance and communication platforms. Spending in this area often fluctuates based on specific modernization projects, cybersecurity needs, and the lifecycle of existing systems. Over the years, federal agencies have increasingly relied on contractors for specialized IT support due to the complexity and rapid evolution of technology. Analyzing historical data would likely show a sustained, and potentially increasing, expenditure trend in IT services to keep pace with technological advancements and agency demands.

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

Solicitation ID: 75D301-20-Q-71922

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

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: $90,317,081

Exercised Options: $90,317,081

Current Obligation: $90,317,081

Actual Outlays: $64,514,052

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0004

IDV Type: GWAC

Timeline