GSA Awards $76.7M for Custom Computer Programming Services to Booz Allen Hamilton

Contract Overview

Contract Amount: $76,737,783 ($76.7M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2011-09-29

End Date: 2016-09-30

Contract Duration: 1,828 days

Daily Burn Rate: $42.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: AWARD OF CONTRACT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20310

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $76.7 million to BOOZ ALLEN HAMILTON INC for work described as: AWARD OF CONTRACT Key points: 1. Contract awarded to a large, established firm, Booz Allen Hamilton. 2. Competition was full and open, suggesting potential for competitive pricing. 3. The contract type is Cost Plus Award Fee, which can incentivize performance but requires careful oversight. 4. Spending is within the IT sector, specifically custom computer programming services. 5. The contract duration is over 5 years, indicating a significant, long-term need.

Value Assessment

Rating: fair

The Cost Plus Award Fee structure requires robust performance metrics to ensure value. Without detailed performance data, it's difficult to definitively assess if the $76.7M award represents excellent value compared to similar custom programming contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the Cost Plus Award Fee structure means the final price is influenced by performance outcomes, making direct price comparison challenging.

Taxpayer Impact: Taxpayer funds are being used for custom programming services. The effectiveness of the award fee structure in controlling costs and ensuring value will determine the ultimate taxpayer impact.

Public Impact

Citizens benefit from potentially improved government IT systems and services through custom programming. The use of a large, well-known contractor like Booz Allen Hamilton may indicate a focus on established expertise. The long contract duration suggests a sustained investment in specific IT capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee requires strong performance monitoring to prevent cost overruns.
Lack of specific performance metrics makes value assessment difficult.
Contract duration is long, increasing exposure to potential scope creep or changing technology needs.

Positive Signals

Awarded under full and open competition.
Contractor has a strong reputation in government contracting.
Services are critical for modernizing government IT infrastructure.

Sector Analysis

This contract falls within the Information Technology sector, specifically custom computer programming. Spending benchmarks for this category can vary widely based on complexity and duration, but $76.7M over five years for specialized services is substantial.

Small Business Impact

The data indicates this contract was not awarded to a small business (ss: false, sb: false). This suggests the scope or nature of the services required may have favored larger, more established contractors with specific capabilities.

Oversight & Accountability

The Cost Plus Award Fee contract type necessitates rigorous oversight from the General Services Administration (GSA) to ensure performance targets are met and costs are managed effectively. Regular audits and performance reviews are crucial.

Related Government Programs

Custom Computer Programming Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Cost Plus Award Fee structure requires diligent oversight.
Long contract duration increases risk of obsolescence or scope creep.
No indication of small business participation.
Specific performance metrics and outcomes are not detailed in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $76.7 million to BOOZ ALLEN HAMILTON INC. AWARD OF CONTRACT

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 $76.7 million.

What is the period of performance?

Start: 2011-09-29. End: 2016-09-30.

How effectively did the award fee structure incentivize Booz Allen Hamilton to deliver high-quality custom programming services within budget?

The effectiveness of the award fee structure hinges on the clarity and measurability of the performance metrics defined in the contract. If these metrics were well-defined and rigorously monitored by GSA, the structure likely incentivized quality delivery. However, without insight into the specific award fee payouts and performance evaluations, it's difficult to definitively assess the degree of success in controlling costs and ensuring optimal value for the taxpayer.

What are the primary risks associated with a Cost Plus Award Fee contract for custom programming services, and how were they mitigated?

Key risks include potential cost overruns if performance targets are not clearly defined or if the contractor inflates costs to maximize profit, and the risk of the government paying for suboptimal performance. Mitigation strategies typically involve stringent contract oversight, clearly defined performance standards, independent cost reviews, and robust negotiation of the award fee criteria to ensure alignment with government objectives.

How does this contract's spending compare to similar custom computer programming services awarded by the government in the same period?

Benchmarking this $76.7M contract requires comparing it against contracts with similar scope, complexity, duration, and contractor capabilities. Given the full and open competition and the five-year duration, the price per year ($15.3M) seems substantial but potentially justifiable for specialized custom programming. A detailed analysis would involve comparing labor rates, overhead, and profit margins with industry standards and other government awards.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: 4

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

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

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: $95,196,332

Exercised Options: $95,196,332

Current Obligation: $76,737,783

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00T11AJC0004

IDV Type: IDC

Timeline