Booz Allen Hamilton Inc. awarded $40.2M for EPA IT support, highlighting a need for specialized systems design services

Contract Overview

Contract Amount: $40,256,069 ($40.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Environmental Protection Agency

Start Date: 2015-09-14

End Date: 2021-12-13

Contract Duration: 2,282 days

Daily Burn Rate: $17.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IGF::CT::IGF ELECTRONIC RULEMAKING AND FOIA ONLINE SUPPORT FOR OFFICE OF INFORMATION COLLECTION

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $40.3 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::CT::IGF ELECTRONIC RULEMAKING AND FOIA ONLINE SUPPORT FOR OFFICE OF INFORMATION COLLECTION Key points: 1. Contract value of $40.2M over approximately 6 years suggests a significant investment in IT support. 2. Full and open competition indicates a robust bidding process, potentially leading to competitive pricing. 3. The contract's duration and scope point to a long-term need for reliable IT infrastructure and support. 4. Awarded to a single contractor, Booz Allen Hamilton Inc., suggests specialized expertise was a key factor. 5. The nature of computer systems design services implies a focus on developing and maintaining complex IT solutions. 6. Performance period spanning from 2015 to 2021 reflects a stable, ongoing requirement for these services.

Value Assessment

Rating: good

The contract value of $40.2M over nearly 6.5 years for computer systems design services appears reasonable given the scope. Benchmarking against similar large-scale IT support contracts for federal agencies suggests that pricing for specialized services like this can vary significantly based on complexity and duration. Without specific details on the deliverables and labor hours, a precise value-for-money assessment is challenging, but the competitive nature of the award provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The fact that it was competed openly suggests that the EPA sought the best possible solution and price through a broad market solicitation. The number of bidders is not specified, but the open competition generally fosters a more competitive environment, which can lead to better pricing and innovation.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs and ensures the government receives the best value for its investment. This process reduces the risk of overpayment and encourages a wider range of contractors to compete, potentially leading to more efficient service delivery.

Public Impact

The Environmental Protection Agency (EPA) benefits directly through enhanced IT support for its operations. Services delivered include computer systems design, crucial for managing and improving the agency's technological infrastructure. The geographic impact is primarily within the EPA's operational centers, supporting its national mission. Workforce implications include the potential for specialized IT roles within Booz Allen Hamilton to support the EPA, and indirectly, the EPA's own IT staff who will utilize these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the contractor's proprietary systems become deeply integrated.
Reliance on a single contractor for critical IT systems design could pose risks if performance falters.
The long duration of the contract may lead to less frequent opportunities for re-competition and market price adjustments.

Positive Signals

Award through full and open competition suggests a thorough vetting process and competitive pricing.
Booz Allen Hamilton is a well-established contractor with a significant track record in government IT services.
The contract's focus on systems design indicates a proactive approach to IT infrastructure development and modernization.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design. The market for federal IT services is substantial, with agencies increasingly relying on external contractors for specialized expertise. This contract represents a portion of the EPA's broader IT spending, which is crucial for its mission-critical operations. Comparable spending benchmarks would involve analyzing other large IT support contracts awarded to system integrators and design firms within the federal government.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major prime contractor, Booz Allen Hamilton, the primary impact on small businesses would likely be through subcontracting opportunities. The extent of small business participation would depend on the prime contractor's subcontracting plan and the specific needs of the IT systems design work.

Oversight & Accountability

Oversight for this contract would typically be managed by the EPA's contracting officers and program managers. Performance reviews, regular reporting, and adherence to contract terms are standard accountability measures. Transparency is facilitated through contract databases like FPDS, which provide public access to award details. The Inspector General's office for the EPA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

IT Services
Computer Systems Design
Federal IT Support Contracts
Environmental Protection Agency IT Spending
Large IT Contracts

Risk Flags

Potential for vendor lock-in
Performance risk on critical systems
Schedule and cost overrun potential
Data security and integrity concerns

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $40.3 million to BOOZ ALLEN HAMILTON INC. IGF::CT::IGF ELECTRONIC RULEMAKING AND FOIA ONLINE SUPPORT FOR OFFICE OF INFORMATION COLLECTION

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $40.3 million.

What is the period of performance?

Start: 2015-09-14. End: 2021-12-13.

What is Booz Allen Hamilton's track record with the EPA and other federal agencies for similar IT services?

Booz Allen Hamilton Inc. has a long-standing and extensive track record of providing IT and management consulting services to the EPA and numerous other federal agencies. They are a major government contractor with a significant portfolio of awards across various domains, including IT modernization, cybersecurity, data analytics, and systems engineering. For the EPA specifically, their past performance likely includes support for environmental data management systems, regulatory compliance IT, and general IT infrastructure services. Their extensive experience suggests a deep understanding of federal procurement processes and agency-specific needs, which is often a key factor in winning large, complex contracts like this one.

How does the $40.2M contract value compare to similar EPA IT support contracts?

The $40.2M contract value over approximately 6.5 years for computer systems design services is substantial, reflecting a significant investment by the EPA. To benchmark this, one would compare it to other large IT support and systems design contracts awarded by the EPA or similar large federal agencies (e.g., DoD, HHS, DHS) over comparable periods. Factors like the specific services (e.g., cloud migration, software development, network infrastructure), the level of technical expertise required, and the duration of the contract heavily influence cost. While $40.2M is a considerable sum, it may be within the expected range for a comprehensive, multi-year IT systems design engagement for a major federal agency, especially considering the specialized nature of the work.

What are the primary risks associated with this contract for the EPA?

Key risks associated with this contract include potential over-reliance on a single contractor (Booz Allen Hamilton) for critical IT systems design, which could lead to vendor lock-in or reduced flexibility. Performance risk is another concern; any significant failure in system design or implementation could disrupt EPA operations. Schedule delays or cost overruns, although mitigated by competitive bidding, remain possibilities in complex IT projects. Furthermore, ensuring the security and integrity of EPA data and systems throughout the design and implementation phases is paramount, and any breaches would pose a significant risk. Finally, the long-term nature of the contract necessitates ongoing monitoring to ensure continued value and alignment with evolving EPA needs.

How effective is 'full and open competition' in ensuring value for money in large IT contracts like this?

Full and open competition is generally considered the most effective method for ensuring value for money in large IT contracts. By allowing all responsible sources to bid, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive proposals that offer the best combination of price and technical merit. This process drives down prices through market forces and encourages innovation as contractors vie for the award. For the EPA's $40.2M contract, this approach likely resulted in a more favorable price than a sole-source or limited competition award. However, effective evaluation criteria and robust source selection processes are crucial to ensure that the lowest price doesn't come at the expense of essential technical capabilities or long-term performance.

What are the historical spending patterns for IT services at the EPA?

Historical spending patterns for IT services at the EPA, like most large federal agencies, show a consistent and significant allocation of resources towards maintaining and modernizing its technological infrastructure. This includes spending on software development, hardware acquisition, network management, cybersecurity, and specialized IT consulting services. Over the years, there has been a trend towards outsourcing more complex IT functions to specialized contractors, driven by the need for advanced expertise and cost-efficiency. Contracts for systems design, data management, and cloud services have become increasingly prominent. The $40.2M awarded to Booz Allen Hamilton fits within this broader pattern of substantial and sustained investment in IT to support the EPA's environmental mission.

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

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

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: $50,547,167

Exercised Options: $43,062,083

Current Obligation: $40,256,069

Actual Outlays: $173,172

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $4,363,223

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0019

IDV Type: GWAC

Timeline