Booz Allen Hamilton awarded $194.7M for Mission IT, a 5-year contract for computer systems design

Contract Overview

Contract Amount: $194,746,361 ($194.7M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2016-08-23

End Date: 2021-08-22

Contract Duration: 1,825 days

Daily Burn Rate: $106.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: MISSION INFORMATION TECHNOLOGY (MISSION IT) EFFORT IGF::OT::IGF

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $194.7 million to BOOZ ALLEN HAMILTON INC for work described as: MISSION INFORMATION TECHNOLOGY (MISSION IT) EFFORT IGF::OT::IGF Key points: 1. Contract value represents significant investment in IT modernization and support. 2. Sole-source award suggests limited market availability or specific contractor expertise. 3. Cost Plus Award Fee structure incentivizes performance but requires careful oversight. 4. Contract duration of 5 years indicates a long-term strategic IT need. 5. Focus on computer systems design services highlights a critical area of federal IT infrastructure.

Value Assessment

Rating: fair

The contract value of $194.7 million over five years for computer systems design services is substantial. Benchmarking against similar large-scale IT support contracts is difficult without more specific service details. The Cost Plus Award Fee (CPAF) structure, while common for complex IT services, can lead to higher costs if not managed tightly, as the contractor is reimbursed for allowable costs plus a fee that is adjusted based on performance. Without detailed performance metrics and cost breakdowns, assessing the true value-for-money 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 multiple vendors had the opportunity to bid. The presence of two bidders suggests a competitive landscape for this type of service, though the specific number of bids doesn't inherently guarantee optimal pricing. The competitive process is crucial for ensuring that the government receives the best possible value and that pricing is driven by market forces rather than limited options.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer competitive pricing, potentially leading to cost savings.

Public Impact

Federal agencies benefit from enhanced and modernized IT systems, improving operational efficiency. The contract supports the delivery of essential computer systems design and integration services. Geographic impact is likely nationwide, supporting federal IT infrastructure across various locations. Workforce implications include potential job creation within the IT sector, particularly for Booz Allen Hamilton and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee (CPAF) contracts can sometimes lead to cost overruns if performance metrics are not rigorously defined and monitored.
The large contract value necessitates robust oversight to ensure funds are used efficiently and effectively.
Reliance on a single awardee for such a critical IT function could pose risks if performance degrades or if the contractor faces significant challenges.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The contract duration suggests a stable, long-term need for these IT services.
Booz Allen Hamilton is a well-established contractor with a significant presence in the federal IT space.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design. This sector is characterized by rapid technological advancements and a high demand for specialized expertise in areas like cloud computing, cybersecurity, and data analytics. The market size for federal IT services is substantial, with agencies continually investing in modernizing their infrastructure to improve efficiency and security. This contract represents a significant portion of spending within the computer systems design sub-sector for the General Services Administration.

Small Business Impact

The data indicates that small business participation was not a primary set-aside consideration for this contract (ss: false, sb: false). While Booz Allen Hamilton is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific requirements of the task orders issued under this contract. Agencies are encouraged to promote small business participation, but it is not always mandated for large prime contracts.

Oversight & Accountability

Oversight for this contract would primarily be managed by the General Services Administration (GSA), specifically the Federal Acquisition Service. As a Cost Plus Award Fee (CPAF) contract, performance metrics and cost controls are critical oversight areas. The contract likely includes provisions for regular reporting, reviews, and potentially audits by GSA or an Inspector General's office to ensure accountability and transparency. The effectiveness of oversight hinges on the clarity of performance standards and the diligence of the contracting officer's representatives.

Related Government Programs

IT Modernization Programs
Cloud Computing Services
Cybersecurity Support
Enterprise Resource Planning (ERP) Systems
Data Center Consolidation

Risk Flags

Cost Plus Award Fee (CPAF) requires diligent oversight to manage costs.
Contract duration of 5 years necessitates long-term strategic planning and performance monitoring.
Potential for scope creep in complex IT system design projects.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $194.7 million to BOOZ ALLEN HAMILTON INC. MISSION INFORMATION TECHNOLOGY (MISSION IT) EFFORT IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $194.7 million.

What is the period of performance?

Start: 2016-08-23. End: 2021-08-22.

What is the historical spending trend for similar computer systems design services by the General Services Administration?

Analyzing historical spending trends for computer systems design services by the GSA requires access to detailed procurement data over multiple fiscal years. Generally, federal IT spending has been on an upward trajectory, driven by the need to modernize legacy systems, enhance cybersecurity, and adopt cloud technologies. The GSA, as a major procurement vehicle, often awards significant contracts in this space. Without specific historical data for this particular NAICS code (541512) and agency, it's difficult to provide precise figures. However, trends indicate a consistent demand for these services, with spending fluctuating based on agency priorities, budget allocations, and the introduction of new technological requirements. The increasing complexity of IT systems and the growing threat landscape suggest a sustained or increasing demand for sophisticated computer systems design expertise.

How does the awarded price compare to industry benchmarks for similar IT services?

Comparing the awarded price of $194.7 million over five years to industry benchmarks for computer systems design services is challenging without granular data on the specific services rendered, labor categories, and geographic locations. However, the average contract value for IT services can range widely. For large, complex projects involving system design, integration, and support, multi-million dollar contracts are common. The Cost Plus Award Fee (CPAF) structure means the final cost is variable, dependent on performance. To assess value, one would need to benchmark the labor rates, overhead, and profit margins against industry standards for comparable roles and expertise, as well as evaluate the achieved performance against the award fee criteria. Given Booz Allen Hamilton's established position, their rates might be at the higher end of the market spectrum, reflecting their expertise and service offerings.

What are the key performance indicators (KPIs) used to determine the award fee for this contract?

The specific Key Performance Indicators (KPIs) used to determine the award fee for this "MISSION IT" contract are not detailed in the provided data. However, for Cost Plus Award Fee (CPAF) contracts, KPIs typically focus on aspects such as technical performance (e.g., system uptime, successful implementation of new features, bug resolution rates), schedule adherence (e.g., meeting project milestones), cost control (though less emphasized in CPAF than fixed-price), customer satisfaction, and overall program management effectiveness. The GSA contracting officer and their representatives would establish these metrics, often in collaboration with the contractor, to incentivize desired outcomes and ensure the government receives high-quality services aligned with mission objectives. The 'award' portion of the fee is directly tied to how well Booz Allen Hamilton meets or exceeds these predefined performance standards.

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

Booz Allen Hamilton has a long and extensive track record of performing large-scale IT services contracts for various U.S. federal agencies, including the Department of Defense, intelligence agencies, and civilian departments. They are known for their expertise in areas such as systems engineering, cybersecurity, data analytics, digital transformation, and IT modernization. Their history includes managing complex, high-value contracts similar in scope and duration to this GSA "MISSION IT" effort. While specific performance details for past contracts are often proprietary or require deeper analysis of contract performance reports (like CPARs), Booz Allen Hamilton is generally considered a capable and experienced contractor in the federal IT landscape. Their ability to consistently win and perform on such contracts suggests a strong understanding of government requirements and a robust delivery capability.

What are the potential risks associated with a Cost Plus Award Fee (CPAF) contract structure for this service?

The primary risk associated with a Cost Plus Award Fee (CPAF) contract structure for computer systems design services is the potential for costs to escalate beyond initial projections. Unlike fixed-price contracts, CPAF reimburses the contractor for allowable costs incurred, plus a fee that is determined by performance against pre-defined metrics. If these metrics are not clearly defined, measurable, and rigorously monitored, or if the scope of work expands significantly without proper change control, costs can increase substantially. There's also a risk that the focus shifts towards achieving the 'award' fee targets rather than the most efficient or cost-effective solutions. Effective oversight, strong contract administration, and clear performance standards are crucial to mitigate these risks and ensure the government receives good value.

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: GSC-QF0B-16-33005

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

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: $379,607,238

Exercised Options: $379,607,238

Current Obligation: $194,746,361

Actual Outlays: $-58,817

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,594,059

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q09BGD0019

IDV Type: GWAC

Timeline