HHS Awards $58M to Booz Allen Hamilton for DCIPHER Services, Focusing on Computer Systems Design

Contract Overview

Contract Amount: $58,260,870 ($58.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2022-03-20

End Date: 2027-03-19

Contract Duration: 1,825 days

Daily Burn Rate: $31.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DCIPHER SERVICES

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $58.3 million to BOOZ ALLEN HAMILTON INC for work described as: DCIPHER SERVICES Key points: 1. Contract Value: $58.26 million over 5 years. 2. Incumbent: Booz Allen Hamilton holds the contract. 3. Risk: Potential for vendor lock-in if competition was limited. 4. Sector: Information Technology (Computer Systems Design Services).

Value Assessment

Rating: good

The contract value of $58.26 million over five years appears reasonable for complex computer systems design services. Benchmarking against similar large-scale IT contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method generally leads to more competitive pricing for the government.

Taxpayer Impact: Full and open competition aims to secure the best value for taxpayers by encouraging multiple bidders to offer competitive prices.

Public Impact

Public health initiatives supported by CDC IT infrastructure. Potential for improved data analysis and disease surveillance. Ensures continuity of critical IT services for public health.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT sector, specifically computer systems design services. Spending in this area is crucial for government agencies to maintain and upgrade their technological infrastructure, with benchmarks varying widely based on complexity and duration.

Small Business Impact

The data indicates that small businesses were not directly awarded this contract, as it went to Booz Allen Hamilton. Further analysis would be needed to determine if small businesses are involved as subcontractors.

Oversight & Accountability

Oversight is typically managed by the contracting officer's representative (COR) within the CDC to ensure adherence to contract terms and performance standards. Accountability rests with Booz Allen Hamilton to deliver services as specified.

Related Government Programs

Risk Flags

Tags

computer-systems-design-services, department-of-health-and-human-services, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $58.3 million to BOOZ ALLEN HAMILTON INC. DCIPHER 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 $58.3 million.

What is the period of performance?

Start: 2022-03-20. End: 2027-03-19.

What specific IT systems or services does DCIPHER encompass, and how do they directly support the CDC's mission?

DCIPHER likely refers to a program or system critical for data processing, information retrieval, or electronic records management within the CDC. Its specific functions would directly support the agency's mission by enabling efficient disease surveillance, outbreak investigation, public health research, and communication of health information to stakeholders and the public.

Given the 5-year duration, what are the primary risks associated with vendor lock-in or technological obsolescence for this contract?

The primary risk of vendor lock-in stems from the incumbent provider potentially having deep integration and proprietary knowledge, making it difficult and costly to switch. Technological obsolescence is a risk if the contract doesn't include provisions for regular technology refreshes or adaptation to new standards, potentially leaving the CDC with outdated systems.

How does the firm-fixed-price contract type incentivize efficiency and cost control for Booz Allen Hamilton?

A firm-fixed-price contract incentivizes the contractor to manage costs effectively because any expenses exceeding the agreed-upon price are absorbed by the contractor. This structure encourages Booz Allen Hamilton to be efficient in their service delivery and resource allocation to maximize their profit margin, while the government has cost certainty.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $67,720,964

Exercised Options: $61,965,318

Current Obligation: $58,260,870

Actual Outlays: $51,795,207

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0004

IDV Type: GWAC

Timeline

Start Date: 2022-03-20

Current End Date: 2027-03-19

Potential End Date: 2027-03-19 00:00:00

Last Modified: 2026-03-18

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