Booz Allen Hamilton awarded $157.4M for FDA digital transformation services over 4 years
Contract Overview
Contract Amount: $157,441,365 ($157.4M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Health and Human Services
Start Date: 2019-09-20
End Date: 2023-09-19
Contract Duration: 1,460 days
Daily Burn Rate: $107.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THE PURPOSE IS TO AWARD A TASK ORDER TO BOOZ ALLEN HAMILTON FOR FEDERAL DRUG ADMINISTRATION (FDA), CENTER FOR DEVICES AND RADIOLOGICAL HEALTH (CDRH), DIGITAL TRANSFORMATION (DT) SERVICES (C-58975-O). BOOZ ALLEN HAMILTON WILL PROVIDE SUPPORT SERVICES
Place of Performance
Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20993
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $157.4 million to BOOZ ALLEN HAMILTON INC for work described as: THE PURPOSE IS TO AWARD A TASK ORDER TO BOOZ ALLEN HAMILTON FOR FEDERAL DRUG ADMINISTRATION (FDA), CENTER FOR DEVICES AND RADIOLOGICAL HEALTH (CDRH), DIGITAL TRANSFORMATION (DT) SERVICES (C-58975-O). BOOZ ALLEN HAMILTON WILL PROVIDE SUPPORT SERVICES Key points: 1. Contract provides critical digital transformation support to the FDA's Center for Devices and Radiological Health. 2. Services include computer systems design, aligning with the agency's modernization efforts. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. A firm-fixed-price contract type helps manage cost certainty for the government. 5. The duration of 4 years allows for sustained support and project continuity. 6. The awardee, Booz Allen Hamilton, is a large, established government contractor.
Value Assessment
Rating: good
The contract value of $157.4 million over four years for digital transformation services at the FDA appears reasonable given the scope and duration. Benchmarking against similar large-scale IT modernization contracts for federal agencies suggests that this level of investment is within expected ranges. The firm-fixed-price structure provides cost control, and the award to a well-established contractor like Booz Allen Hamilton indicates a reliance on proven capabilities, which can mitigate performance risks and potentially lead to better value realization.
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 offers. While the specific number of bidders is not provided, this method generally fosters a competitive environment, which is expected to drive down prices and encourage innovation. The agency's decision to use full and open competition suggests confidence in the market's ability to provide suitable solutions for the FDA's digital transformation needs.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of securing the best possible price and quality for the services rendered, maximizing the return on investment for federal funds.
Public Impact
The primary beneficiary is the FDA's Center for Devices and Radiological Health (CDRH), which will receive enhanced digital capabilities. Services delivered will support the modernization of critical systems and processes within CDRH. The geographic impact is primarily within the FDA's operational centers, likely in Maryland. The contract supports a workforce of IT professionals and digital transformation specialists, potentially including roles within the contractor's organization and indirectly within the agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if digital transformation requirements are not tightly managed.
- Reliance on a single large contractor may limit future flexibility or innovation from smaller firms.
Positive Signals
- Award to an experienced contractor with a strong track record in federal IT services.
- Firm-fixed-price contract type provides budget certainty.
- Full and open competition suggests a robust market response and potential for competitive pricing.
- Long-term duration allows for sustained focus on complex digital transformation goals.
Sector Analysis
This contract falls within the broader IT services sector, specifically focusing on computer systems design and digital transformation. The federal IT services market is substantial, with agencies continually investing in modernization to improve efficiency and service delivery. This contract represents a significant investment in upgrading the technological infrastructure of a critical regulatory body, the FDA, aligning with government-wide initiatives to enhance digital capabilities and data management.
Small Business Impact
The data indicates this contract was not set aside for small businesses and the awardee is a large corporation. While there is no explicit information on subcontracting plans, large prime contractors are often encouraged or required to engage small businesses. The impact on the small business ecosystem would depend on whether Booz Allen Hamilton actively seeks small business partners for specialized services or components of this digital transformation effort.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the FDA's CDRH. The firm-fixed-price nature provides a degree of financial oversight. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.
Related Government Programs
- FDA IT Modernization Programs
- Federal Digital Services Initiatives
- Center for Devices and Radiological Health (CDRH) Operations
- IT Services for Health and Human Services Agencies
Risk Flags
- Potential for vendor lock-in
- Risk of scope creep in complex transformation projects
- Ensuring successful integration with legacy systems
- Achieving user adoption and organizational change management
Tags
it-services, digital-transformation, fda, cdrh, booz-allen-hamilton, hhs, firm-fixed-price, full-and-open-competition, computer-systems-design, maryland, large-contractor, modernization
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $157.4 million to BOOZ ALLEN HAMILTON INC. THE PURPOSE IS TO AWARD A TASK ORDER TO BOOZ ALLEN HAMILTON FOR FEDERAL DRUG ADMINISTRATION (FDA), CENTER FOR DEVICES AND RADIOLOGICAL HEALTH (CDRH), DIGITAL TRANSFORMATION (DT) SERVICES (C-58975-O). BOOZ ALLEN HAMILTON WILL PROVIDE 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 (National Institutes of Health).
What is the total obligated amount?
The obligated amount is $157.4 million.
What is the period of performance?
Start: 2019-09-20. End: 2023-09-19.
What is Booz Allen Hamilton's track record with the FDA and similar digital transformation projects?
Booz Allen Hamilton has a long-standing relationship with various U.S. federal agencies, including the Department of Health and Human Services (HHS) and its sub-agencies like the FDA. They have a demonstrated history of providing IT consulting, systems engineering, and digital transformation services. For the FDA specifically, their past work likely includes supporting various IT infrastructure upgrades, data analytics initiatives, and modernization efforts. Their extensive experience in the federal space suggests a deep understanding of government procurement processes, security requirements, and the unique challenges faced by regulatory bodies. While specific project details and performance metrics for past FDA contracts are not detailed here, their consistent presence as a prime contractor indicates a generally satisfactory performance history that has led to continued awards.
How does the $157.4 million value compare to other federal digital transformation contracts?
The $157.4 million contract value for four years of digital transformation services at the FDA is substantial, reflecting the complexity and scale of modernizing a major federal agency's IT systems. When compared to other large federal IT contracts, particularly those focused on enterprise-wide digital transformation, cloud migration, or major system overhauls, this figure is within a common range. For instance, similar contracts awarded to large system integrators for agencies like the Department of Defense or the IRS can often exceed hundreds of millions, sometimes billions, of dollars over their lifecycles. The value here is consistent with the strategic importance of digital transformation for regulatory bodies like the FDA, aiming to improve data accessibility, operational efficiency, and public health outcomes.
What are the primary risks associated with this contract for the FDA?
Key risks for the FDA in this contract include potential vendor lock-in, where reliance on Booz Allen Hamilton for critical digital infrastructure could make future transitions difficult or costly. There's also the risk of scope creep, where the definition of 'digital transformation' might expand beyond initial intentions, leading to cost overruns or schedule delays, although the firm-fixed-price structure aims to mitigate this. Performance risk is another consideration; ensuring that the contractor delivers the promised technological advancements and maintains system integrity and security is crucial. Furthermore, ensuring the successful integration of new digital systems with existing legacy infrastructure and achieving user adoption among FDA staff are significant challenges that could impact the overall success and value realization of the contract.
How effective is a firm-fixed-price contract for complex IT services like digital transformation?
A firm-fixed-price (FFP) contract is generally preferred by the government for IT services when the scope of work is well-defined and the risks are understood. For digital transformation, which can be inherently complex and evolving, an FFP contract provides significant cost certainty for the government, as the contractor assumes most of the risk for cost overruns. This structure incentivizes the contractor to manage resources efficiently and control costs. However, if the scope is not precisely defined upfront, an FFP contract can sometimes lead to less flexibility for the government to make changes or incorporate new requirements during the project lifecycle without formal (and potentially costly) contract modifications. For this FDA contract, the FFP structure suggests the agency had a clear vision for the initial scope of digital transformation services.
What is the historical spending trend for IT services at the FDA or similar agencies?
Historical spending on IT services by the FDA and similar health-focused federal agencies has generally shown an increasing trend over the past decade, driven by the need for modernization, cybersecurity enhancements, and the adoption of advanced data analytics and digital health technologies. Agencies like the FDA are under constant pressure to improve regulatory processes, manage vast amounts of data, and ensure the safety and efficacy of medical products, all of which require significant IT investment. Spending often encompasses areas such as cloud computing, data management, cybersecurity solutions, and custom software development. The FDA's budget for IT reflects its critical mission, and investments in digital transformation are a strategic priority to meet evolving public health challenges and regulatory 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: C59875O
Offers Received: 4
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: $160,300,397
Exercised Options: $157,441,365
Current Obligation: $157,441,365
Actual Outlays: $93,834,723
Subaward Activity
Number of Subawards: 47
Total Subaward Amount: $16,812,470
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200008W
IDV Type: GWAC
Timeline
Start Date: 2019-09-20
Current End Date: 2023-09-19
Potential End Date: 2024-09-19 00:00:00
Last Modified: 2023-08-01
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