GSA's $102.6M ITILOB contract to Booz Allen Hamilton for DFAS IT infrastructure support

Contract Overview

Contract Amount: $102,607,430 ($102.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2009-10-23

End Date: 2014-10-22

Contract Duration: 1,825 days

Daily Burn Rate: $56.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: THE PURPOSE OF THIS TO IS TO PROVIDE INFORMATION TECHNOLOGY INFRASTRUCTURE LINE OF BUSINESS (ITILOB) SUPPORT SERVICES FOR THE DEFENSE FINANCE AND ACCOUNTING SERVICE (DFAS) TECHNOLOGY SERVICES ORGANIZATION CORPORATE SERVICES (TSOCS) UNIT

Place of Performance

Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32508

State: Florida Government Spending

Plain-Language Summary

General Services Administration obligated $102.6 million to BOOZ ALLEN HAMILTON INC for work described as: THE PURPOSE OF THIS TO IS TO PROVIDE INFORMATION TECHNOLOGY INFRASTRUCTURE LINE OF BUSINESS (ITILOB) SUPPORT SERVICES FOR THE DEFENSE FINANCE AND ACCOUNTING SERVICE (DFAS) TECHNOLOGY SERVICES ORGANIZATION CORPORATE SERVICES (TSOCS) UNIT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee (CPAF), which incentivizes contractor performance. 3. The contract duration of 5 years (1825 days) indicates a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services. 5. The award was a Delivery Order under a larger contract, implying a phased approach to service delivery. 6. The contract was awarded to Booz Allen Hamilton, a large, established government contractor.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics and detailed cost breakdowns. The Cost Plus Award Fee (CPAF) structure allows for costs plus a fee that can be adjusted based on performance, which can lead to variability in the final cost. Comparing this to similar IT infrastructure support contracts would require access to more granular data on the scope of services and the specific deliverables expected. The total award amount of over $100 million over five years suggests a significant investment in IT infrastructure support for DFAS.

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 a bid. The fact that it was a Delivery Order suggests it was part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract or a similar vehicle that allowed for multiple awards or subsequent orders. The number of bidders is not specified, but full and open competition generally promotes price discovery and can lead to more competitive pricing.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs through market forces, ensuring that the government receives services at a fair market price.

Public Impact

The Defense Finance and Accounting Service (DFAS) is the primary beneficiary, receiving essential IT infrastructure support. Services delivered include ITILOB support, crucial for the operational efficiency of DFAS's technology services. The geographic impact is likely concentrated around DFAS facilities, primarily in Florida where the contract was awarded. Workforce implications may include the employment of IT professionals by Booz Allen Hamilton to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPAF contract type can sometimes lead to cost overruns if performance targets are not clearly defined or rigorously monitored.
Lack of specific performance metrics in the provided data makes it difficult to assess the true value for money.
The long duration of the contract could lead to vendor lock-in if not managed carefully.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should have yielded fair pricing.
The CPAF structure incentivizes contractor performance, potentially leading to higher quality service delivery.
Booz Allen Hamilton is a well-established contractor with a track record in government IT services.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT infrastructure support and computer systems design. The market for such services is substantial, with numerous large and small businesses competing for government contracts. This particular contract represents a significant investment by DFAS in maintaining and improving its IT backbone, aligning with broader government efforts to modernize IT systems and enhance cybersecurity. Comparable spending benchmarks would involve looking at other large-scale IT support contracts awarded by defense agencies or other federal entities for similar services.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary contractor, Booz Allen Hamilton, will likely handle the majority of the work. The lack of a small business set-aside means that opportunities for small businesses to directly participate in this specific contract may be limited, though they could potentially be involved as subcontractors if Booz Allen Hamilton chooses to engage them.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA) and the Defense Finance and Accounting Service (DFAS). As a Delivery Order under a GSA schedule, GSA's Federal Acquisition Service likely provides a layer of oversight. DFAS, as the end-user agency, would be responsible for monitoring performance and ensuring that the services meet their requirements. The CPAF structure implies performance metrics that would be reviewed to determine award fees, serving as an accountability measure. Transparency would depend on the public availability of contract performance reports and any Inspector General reviews.

Related Government Programs

DFAS IT Support Services
GSA IT Schedule Contracts
Defense Agency IT Modernization
Computer Systems Design Services

Risk Flags

Potential for cost overruns due to CPAF structure
Performance metrics clarity and monitoring effectiveness
Long-term contract management and potential for vendor lock-in

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $102.6 million to BOOZ ALLEN HAMILTON INC. THE PURPOSE OF THIS TO IS TO PROVIDE INFORMATION TECHNOLOGY INFRASTRUCTURE LINE OF BUSINESS (ITILOB) SUPPORT SERVICES FOR THE DEFENSE FINANCE AND ACCOUNTING SERVICE (DFAS) TECHNOLOGY SERVICES ORGANIZATION CORPORATE SERVICES (TSOCS) UNIT

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 $102.6 million.

What is the period of performance?

Start: 2009-10-23. End: 2014-10-22.

What is the track record of Booz Allen Hamilton in delivering IT infrastructure support services to the federal government, particularly for defense agencies?

Booz Allen Hamilton is a long-standing and prominent government contractor with extensive experience in IT services, including infrastructure support, cybersecurity, and systems integration. They have a significant history of working with defense agencies like the Department of Defense (DoD) and its components, such as DFAS. Their track record generally includes managing large, complex IT projects. However, like many large contractors, they have faced scrutiny and occasional contract disputes or performance issues on specific projects. A detailed review of their performance on similar DFAS contracts or other large-scale IT infrastructure projects would be necessary to fully assess their capabilities and reliability in this specific context. Past performance evaluations and contract award histories would provide more granular insights.

How does the $102.6 million total contract value compare to similar IT infrastructure support contracts awarded by GSA or other defense agencies over a similar period?

The $102.6 million total contract value over five years, averaging approximately $20.5 million per year, is substantial but falls within the typical range for large-scale IT infrastructure support contracts for major federal agencies. For instance, other defense agencies or large civilian departments often award contracts in the tens to hundreds of millions of dollars for comprehensive IT support, system design, and maintenance. The specific nature of ITILOB support for DFAS, which handles critical financial and accounting functions, justifies a significant investment. To provide a precise comparison, one would need to analyze contracts with similar scopes of work (e.g., IT infrastructure management, systems design, help desk support) awarded by agencies like the Department of the Army, Navy, Air Force, or civilian departments such as HHS or Treasury during the same timeframe (2009-2014).

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for IT infrastructure support, and how were they mitigated in this case?

The primary risks with CPAF contracts include potential cost overruns if the award fee criteria are not sufficiently stringent or if the contractor inflates costs to maximize the fee. There's also a risk that the focus shifts to meeting award fee targets rather than achieving the most effective or innovative solutions. Mitigation strategies typically involve clearly defined, measurable, and objective performance standards and award fee criteria. Robust government oversight, including regular performance reviews and audits, is crucial. For this contract, the success of mitigation would depend on the clarity of the Statement of Work (SOW), the rigor with which DFAS and GSA monitored performance against the defined metrics, and the fairness of the award fee determination process. Without access to the specific SOW and performance evaluations, a definitive assessment of mitigation effectiveness is difficult.

What is the historical spending pattern for IT infrastructure support services at DFAS, and does this contract represent an increase or decrease in investment?

Analyzing historical spending patterns for DFAS IT infrastructure support requires access to DFAS's budget documents and contract databases over several years prior to and during the contract period (2009-2014). This specific $102.6 million contract represents a significant, multi-year investment. Without prior data, it's impossible to definitively state whether it's an increase or decrease. However, given the critical nature of DFAS's financial operations and the ongoing need for robust IT systems, it's plausible that spending in this area remains consistently high or has increased due to evolving technological demands and security requirements. Trends in federal IT spending generally show a continuous need for infrastructure maintenance and upgrades, suggesting this contract aligns with ongoing investment rather than a one-off surge.

How does the NAICS code 541512 (Computer Systems Design Services) accurately reflect the scope of ITILOB support services provided under this contract?

The NAICS code 541512, 'Computer Systems Design Services,' is generally appropriate for a contract involving IT infrastructure support, as it encompasses services like designing, developing, integrating, and managing computer systems. ITILOB (Information Technology Infrastructure Library) support often involves the design, implementation, and maintenance of IT service management processes and the underlying infrastructure that supports them. This can include network design, server management, data center operations, and system integration, all of which fall under the umbrella of computer systems design. While the code is fitting, the 'ITILOB Support Services' aspect suggests a focus on service management frameworks and operational efficiency, which are key components of modern IT infrastructure management and system design.

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

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)

Address: 8283 GREENSBORO DR, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $231,156,215

Exercised Options: $106,719,331

Current Obligation: $102,607,430

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00T99ALD0202

IDV Type: GWAC

Timeline