Booz Allen Hamilton contract for computer systems design services exceeds $204 million over five years

Contract Overview

Contract Amount: $204,469,944 ($204.5M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2015-07-20

End Date: 2021-01-19

Contract Duration: 2,010 days

Daily Burn Rate: $101.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF

Place of Performance

Location: DAYTON, GREENE County, OHIO, 45433

State: Ohio Government Spending

Plain-Language Summary

General Services Administration obligated $204.5 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF Key points: 1. Contract value indicates significant demand for IT consulting and systems integration. 2. Sole awardee suggests potential for limited competition or specialized expertise. 3. Long duration may pose risks related to evolving technology and changing requirements. 4. Performance context is crucial to assess if value was achieved over the contract period. 5. Sector positioning aligns with substantial government investment in IT modernization. 6. The Time and Materials pricing structure can lead to cost overruns if not managed closely.

Value Assessment

Rating: fair

Benchmarking this contract's value against similar IT services contracts is challenging without specific scope details. However, a $204 million award over five years suggests a substantial investment. The Time and Materials (T&M) pricing model, while flexible, carries inherent risks of cost escalation if not rigorously managed and monitored by the agency. Without detailed performance metrics or comparison to industry benchmarks for similar services, assessing the true value-for-money is difficult. The absence of small business set-asides might indicate a focus on large, established prime contractors.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. However, the fact that only one award was made suggests that Booz Allen Hamilton was either the sole responsive, responsible bidder, or significantly outperformed all others on evaluation criteria. This level of competition, while initially broad, resulted in a single award, which could imply either a highly specialized requirement or a very strong proposal from the awardee.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to solicit the best possible pricing and technical solutions. However, a single award from such a competition might warrant further investigation into the evaluation process to ensure maximum value was obtained.

Public Impact

Federal agencies requiring advanced computer systems design and integration services benefit from this contract. The contract supports the modernization and operational efficiency of government IT infrastructure. Workforce implications include employment opportunities for IT professionals within Booz Allen Hamilton and potentially its subcontractors. Geographic impact is likely nationwide, supporting various agency locations requiring these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials pricing structure.
Risk of vendor lock-in given the long contract duration and specialized services.
Dependency on a single contractor may reduce leverage for future negotiations.
Ensuring continued alignment with evolving technological needs over the contract's lifespan.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Booz Allen Hamilton is a well-established contractor with a significant track record in government IT services.
The contract duration of 2010 days (approx. 5.5 years) indicates a stable, long-term need for these services.
The contract was awarded by the General Services Administration (GSA), a reputable contracting agency.

Sector Analysis

This contract falls within the broader IT services sector, specifically Computer Systems Design Services. This sector is characterized by high demand from government agencies seeking to modernize legacy systems, implement new technologies, and enhance cybersecurity. The market is competitive, with a mix of large prime contractors and specialized small businesses. Government spending in this area is substantial, driven by the need for digital transformation across all federal departments. Comparable spending benchmarks would typically involve analyzing other large IT services contracts awarded by agencies like GSA, DoD, or DHS.

Small Business Impact

This contract does not appear to have been set aside for small businesses, as indicated by 'sb': false. The prime contractor, Booz Allen Hamilton, is a large business. This means that opportunities for small businesses would primarily exist as subcontractors to Booz Allen Hamilton. The extent of small business subcontracting is not detailed here, but it is a critical factor in assessing the contract's impact on the small business ecosystem. Agencies are often required to meet small business subcontracting goals, which would necessitate Booz Allen Hamilton engaging with smaller firms.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the General Services Administration (GSA). The Federal Acquisition Service (FAS) within GSA is responsible for managing many IT procurements. Transparency is facilitated through contract databases like FPDS. Accountability measures would include performance reviews, adherence to contract terms, and potentially audits. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Professional Services
Management and Consulting Services
Computer Systems Integration
Software Development
IT Support Services

Risk Flags

Potential for cost overruns due to T&M pricing
Lack of detailed performance metrics in provided data
Single award from full and open competition warrants review
No explicit small business subcontracting information provided

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $204.5 million to BOOZ ALLEN HAMILTON INC. 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 $204.5 million.

What is the period of performance?

Start: 2015-07-20. End: 2021-01-19.

What was the specific scope of work for these computer systems design services?

The provided data indicates the contract was for 'Computer Systems Design Services' (NAICS 541512) awarded to Booz Allen Hamilton Inc. by the General Services Administration (GSA). While the specific scope is not detailed, this NAICS code typically encompasses designing and integrating computer hardware and software systems. This can include activities such as systems analysis, network design, software engineering, and IT infrastructure planning. Given the contract's substantial value ($204M+) and duration (over 5 years), the scope likely involved complex, large-scale IT projects for one or more federal agencies, potentially including system modernization, cloud migration, cybersecurity enhancements, or the development of new IT capabilities to support agency missions.

How does the $204 million contract value compare to similar IT services contracts awarded by GSA?

The $204 million contract value for Booz Allen Hamilton is significant, placing it among larger IT services awards. GSA awards a wide range of IT contracts, from small task orders to multi-billion dollar indefinite-delivery/indefinite-quantity (IDIQ) vehicles. To provide a precise comparison, one would need to analyze contracts within the same NAICS code (541512) and similar contract types (e.g., Delivery Orders under IDIQs, or stand-alone contracts) awarded over comparable timeframes. However, in the context of GSA's overall IT spending, a single award of this magnitude suggests a substantial, long-term requirement for specialized computer systems design expertise, likely for a critical agency function or a large-scale modernization effort.

What are the primary risks associated with a Time and Materials (T&M) contract of this size and duration?

Time and Materials (T&M) contracts, like the one awarded to Booz Allen Hamilton, carry inherent risks, especially for large, long-duration awards. The primary risk is cost overrun, as the government pays for the actual labor hours and material costs incurred by the contractor, plus a fixed fee or fixed hourly rates. Without stringent oversight, contractors may not be incentivized to control costs efficiently. For a $204 million contract over five years, this could lead to significant budget challenges if not managed meticulously. Other risks include potential scope creep, difficulty in accurately forecasting final costs, and the need for robust government monitoring to ensure fair and reasonable pricing and prevent contractor inefficiencies from being passed on.

What does the fact that this was a single award under 'full and open competition' imply?

A single award under 'full and open competition' can imply several things. Firstly, it suggests that the government advertised the opportunity broadly, allowing any qualified vendor to bid. Secondly, the outcome indicates that either Booz Allen Hamilton was the only bidder that met all the minimum requirements, or it was the offeror that provided the best value to the government based on the evaluation criteria. It could mean the requirement was highly specialized, attracting only one capable bidder, or that Booz Allen Hamilton submitted an exceptionally strong proposal that significantly outperformed all others. From a taxpayer perspective, while competition is generally good, a single award might warrant scrutiny to ensure the government truly received the best possible price and solution.

What is Booz Allen Hamilton's track record with federal IT contracts?

Booz Allen Hamilton is a major government contractor with extensive experience in providing IT services, including computer systems design, cybersecurity, data analytics, and digital transformation solutions. They hold numerous prime contracts across various federal agencies, consistently ranking among the top IT service providers to the U.S. government. Their track record includes managing large, complex programs and delivering a wide range of technical and consulting services. While specific performance details for individual contracts are often proprietary or found in agency performance reports, Booz Allen Hamilton's sustained presence and significant contract awards suggest a generally strong capability and established reputation within the federal IT landscape.

How does the 'Computer Systems Design Services' category (NAICS 541512) fit into overall federal IT spending?

Computer Systems Design Services (NAICS 541512) represent a significant segment of overall federal IT spending. This category encompasses a broad range of critical IT functions, including the design, development, integration, and maintenance of complex computer systems. Federal agencies rely heavily on these services to modernize aging infrastructure, implement new technologies (like cloud computing and AI), enhance cybersecurity defenses, and develop custom software solutions to meet unique mission requirements. Spending in this area is driven by the government's continuous need to adapt its technological capabilities to evolving threats and operational demands, making it a consistently large and important part of the federal IT procurement landscape.

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

Solicitation ID: ID07150012

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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: $237,089,144

Exercised Options: $237,089,144

Current Obligation: $204,469,944

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0019

IDV Type: GWAC

Timeline