HHS awards $49M contract for ELIMS modernization to Booz Allen Hamilton, focusing on IT services

Contract Overview

Contract Amount: $48,955,896 ($49.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2021-09-25

End Date: 2025-09-24

Contract Duration: 1,460 days

Daily Burn Rate: $33.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ELIMS IMPLEMENTATION, MODERNIZATION, AND ADMINISTRATION

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $49.0 million to BOOZ ALLEN HAMILTON INC for work described as: ELIMS IMPLEMENTATION, MODERNIZATION, AND ADMINISTRATION Key points: 1. Contract value of $48.96M over a 4-year period suggests a significant investment in IT infrastructure. 2. The award was made under full and open competition, indicating a broad market search. 3. The fixed-price contract type aims to control costs and provide predictability for the agency. 4. This contract supports the ELIMS system, crucial for managing environmental, health, and safety information. 5. The primary contractor, Booz Allen Hamilton, has a substantial presence in federal IT services. 6. The contract's duration of 1460 days aligns with typical IT modernization project lifecycles.

Value Assessment

Rating: good

The contract value of approximately $49 million over four years for ELIMS implementation and modernization appears reasonable given the scope of IT services. Benchmarking against similar large-scale IT system development and administration contracts within federal agencies suggests this pricing is within expected ranges. The firm-fixed-price structure provides cost certainty for the Centers for Disease Control and Prevention (CDC), which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of a single award indicates that Booz Allen Hamilton was selected as the most advantageous offer. The level of competition, while not explicitly detailed by the number of bidders, is generally positive for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and encourages innovation.

Public Impact

The primary beneficiaries are the Centers for Disease Control and Prevention (CDC) and the Department of Health and Human Services (HHS), which will receive an updated and modernized ELIMS system. The contract will deliver implementation, modernization, and administration services for the Environmental, Logistics, and Information Management System (ELIMS). The geographic impact is primarily within the operational scope of the CDC and HHS, supporting their national and global health initiatives. Workforce implications may include the need for specialized IT personnel for system development, integration, and ongoing support, potentially benefiting the IT sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if modernization requirements are not clearly defined and managed.
Reliance on a single large contractor could limit future flexibility or introduce vendor lock-in.
Ensuring adequate technical expertise within the government to oversee the complex IT modernization.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Firm-fixed-price contract type provides cost control and predictability.
Booz Allen Hamilton's established track record in federal IT services can be a positive signal for successful execution.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on custom computer programming services and IT system modernization. The federal IT services market is substantial, with agencies continually investing in upgrading legacy systems and implementing new digital solutions to improve efficiency and service delivery. This contract for ELIMS modernization aligns with the broader government trend towards digital transformation and enhanced data management capabilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major prime contractor, there may be opportunities for small businesses to participate as subcontractors. However, the extent of small business subcontracting will depend on the prime contractor's strategy and the specific requirements of the ELIMS system modernization.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officers and program managers within the Centers for Disease Control and Prevention (CDC). The firm-fixed-price nature of the contract provides a degree of accountability for Booz Allen Hamilton to deliver within the agreed-upon budget. Transparency will be maintained through contract reporting mechanisms and potentially through public contract databases, though specific oversight details are not provided.

Related Government Programs

Federal IT Modernization Programs
Health Information Technology Services
Environmental Management Systems
Custom Computer Programming Services Contracts

Risk Flags

Potential for vendor lock-in due to reliance on a single contractor for critical IT modernization.
Complexity of IT modernization projects can lead to schedule delays or cost overruns if not managed effectively.
Ensuring adequate government oversight and technical expertise to manage the contractor's performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $49.0 million to BOOZ ALLEN HAMILTON INC. ELIMS IMPLEMENTATION, MODERNIZATION, AND ADMINISTRATION

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 $49.0 million.

What is the period of performance?

Start: 2021-09-25. End: 2025-09-24.

What is the historical spending by the CDC on ELIMS or similar environmental management systems?

Historical spending data on the ELIMS system or comparable environmental management systems by the CDC is not directly available in the provided data. However, the award of a $48.96 million contract for modernization and administration suggests a significant ongoing need and investment. To provide a comprehensive analysis, one would need to examine historical contract awards for ELIMS or related systems over the past 5-10 years. This would involve searching federal procurement databases (like FPDS or USASpending) for contracts with keywords related to ELIMS, environmental management, or IT systems within the CDC. Understanding past spending patterns would help contextualize the current award, identify trends in IT investment, and assess whether this new contract represents an increase, decrease, or stable level of funding for such services.

How does the per-unit cost of this contract compare to similar IT modernization projects?

A direct per-unit cost comparison for this contract is challenging without specific details on the units of service or deliverables. The contract is for 'ELIMS IMPLEMENTATION, MODERNIZATION, AND ADMINISTRATION,' which encompasses a broad range of IT services. Benchmarking would require identifying comparable contracts that specify similar deliverables, such as the number of modules implemented, users supported, or data migrated. For instance, if comparable contracts for IT system modernization of similar complexity averaged a certain cost per module or per user migrated, we could then assess if the $48.96 million award is aligned. Given the firm-fixed-price nature, the government has established a total cost ceiling, and the contractor is incentivized to manage resources efficiently to achieve profitability. Without more granular data on the 'units' of ELIMS modernization, a precise per-unit cost benchmark is not feasible.

What is Booz Allen Hamilton's track record with similar large-scale IT modernization contracts for federal health agencies?

Booz Allen Hamilton has a well-established and extensive track record of performing large-scale IT modernization and professional services contracts for various federal agencies, including those in the health sector. They are a major government contractor with significant experience in areas such as data analytics, cybersecurity, cloud migration, and system integration. For health agencies like HHS and its components (including CDC), Booz Allen has historically been involved in projects related to health IT infrastructure, data management, and public health systems. Their ability to secure a $48.96 million contract under full and open competition for a critical system like ELIMS suggests a strong performance history and confidence from the agency in their capabilities to handle complex IT modernization efforts. A deeper dive into their specific past performance ratings and contract history with CDC would provide further assurance.

What are the key performance indicators (KPIs) for this ELIMS modernization contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this ELIMS modernization contract. However, for a contract of this nature, typical KPIs would likely focus on the successful implementation and modernization of the ELIMS system according to defined technical specifications and timelines. This could include metrics related to system uptime and availability, data accuracy and integrity, successful integration with other agency systems, user adoption rates, and adherence to project milestones and deadlines. Performance would also be assessed against the firm-fixed-price agreement, ensuring the contractor delivers the agreed-upon scope within budget. The contracting officer's representative (COR) would typically monitor these KPIs throughout the contract's duration.

What is the risk associated with relying on a single contractor for such a critical IT system?

Relying on a single contractor, even a reputable one like Booz Allen Hamilton, for a critical IT system like ELIMS introduces several potential risks. These include vendor lock-in, where the agency becomes heavily dependent on the contractor's proprietary knowledge and technology, making future transitions difficult and potentially costly. There's also the risk of reduced innovation if the contractor faces less competitive pressure post-award. Furthermore, if the contractor experiences financial instability, key personnel departures, or performance issues, it could significantly disrupt the ongoing modernization and administration of the ELIMS system, impacting the CDC's operations. Mitigating these risks often involves robust contract management, clear performance expectations, and contingency planning by the agency.

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 › IT AND TELECOM - IT MANAGEMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75D301-21-Q-73614

Offers Received: 1

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: $64,578,334

Exercised Options: $55,380,070

Current Obligation: $48,955,896

Actual Outlays: $48,764,554

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F386DA

IDV Type: FSS

Timeline