Booz Allen Hamilton Inc. awarded $16.2M for IT systems engineering and technical support by GSA

Contract Overview

Contract Amount: $16,195,676 ($16.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2001-12-17

End Date: 2003-12-14

Contract Duration: 727 days

Daily Burn Rate: $22.3K/day

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: INFRASTRUCTURE PRODUCT DEVELOPMENT, SYSTEMS ENGINEERING, & TECHNICAL SUPPORT

Place of Performance

Location: FORT MONMOUTH, MONMOUTH County, NEW JERSEY, 07703

State: New Jersey Government Spending

Plain-Language Summary

General Services Administration obligated $16.2 million to BOOZ ALLEN HAMILTON INC for work described as: INFRASTRUCTURE PRODUCT DEVELOPMENT, SYSTEMS ENGINEERING, & TECHNICAL SUPPORT Key points: 1. Contract value of $16.2M over two years suggests a significant investment in IT support services. 2. The 'Computer Systems Design Services' NAICS code indicates a focus on specialized IT solutions. 3. A Time and Materials contract type can lead to cost overruns if not closely managed. 4. The duration of 727 days (approx. 2 years) is typical for complex IT development projects. 5. Booz Allen Hamilton's extensive experience in government contracting likely influenced this award. 6. The award was made by the General Services Administration, a key agency for IT procurement.

Value Assessment

Rating: good

The contract value of $16.2 million over approximately two years for IT systems engineering and technical support appears reasonable given the scope of services typically provided under NAICS code 541512. Benchmarking against similar contracts for complex IT development and support services suggests that the overall investment is within expected ranges for a large federal agency like GSA. The Time and Materials (T&M) pricing structure, while common for evolving IT needs, warrants close monitoring to ensure cost efficiency and prevent scope creep.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data does not specify the competition level for this contract. Without details on whether it was competed full and open, limited, or sole-source, it is difficult to assess the effectiveness of the procurement process. A competitive process typically leads to better price discovery and potentially lower costs for the government. If this was a sole-source award, justification for the lack of competition would be necessary to evaluate value for money.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Higher competition generally results in more competitive pricing, saving taxpayer dollars. Limited or sole-source awards may indicate unique capabilities required or potential for higher costs if alternatives were not adequately explored.

Public Impact

Federal agencies requiring advanced IT systems engineering and technical support benefit from this contract. The services delivered likely enhance the operational efficiency and technological capabilities of the General Services Administration. The geographic impact is primarily national, supporting federal IT infrastructure across various locations. Workforce implications include the employment of skilled IT professionals by Booz Allen Hamilton to fulfill contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type carries inherent risk of cost escalation if not managed diligently.
Lack of specific competition details prevents a full assessment of price reasonableness and potential for savings.
The broad nature of 'systems engineering and technical support' could lead to scope creep if not clearly defined.

Positive Signals

Award to an established contractor like Booz Allen Hamilton suggests a level of confidence in their ability to deliver.
The General Services Administration's involvement indicates a strategic procurement for critical IT functions.
The contract duration of approximately two years allows for sustained support and development of IT systems.

Sector Analysis

This contract falls within the Information Technology sector, specifically focusing on computer systems design and related services. The market for IT systems engineering and technical support is highly competitive, with numerous large and small businesses offering specialized expertise. Federal spending in this area is substantial, driven by the continuous need for modernization, cybersecurity, and efficient IT operations across government agencies. This contract with GSA represents a portion of that broader federal IT expenditure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a specific set-aside requirement. However, as a large prime contractor, Booz Allen Hamilton may engage small businesses as subcontractors for specialized services, contributing to the broader small business ecosystem, though this is not mandated by the contract terms provided.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the General Services Administration. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements inherent in a Time and Materials agreement. Transparency is generally facilitated through contract award databases and reporting mechanisms, though specific internal oversight processes are not detailed here. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Professional Services
Systems Engineering
Technical Support Services
Computer Systems Design
Federal IT Modernization Programs

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Lack of transparency regarding the competition level.
Broad scope of 'systems engineering and technical support' requires diligent management.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $16.2 million to BOOZ ALLEN HAMILTON INC. INFRASTRUCTURE PRODUCT DEVELOPMENT, SYSTEMS ENGINEERING, & TECHNICAL SUPPORT

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 $16.2 million.

What is the period of performance?

Start: 2001-12-17. End: 2003-12-14.

What is Booz Allen Hamilton's track record with the federal government, particularly with the General Services Administration?

Booz Allen Hamilton Inc. is a long-standing and prominent government contractor with a substantial history of serving various federal agencies, including the General Services Administration (GSA). Their extensive portfolio includes a wide range of services, particularly in IT, cybersecurity, management consulting, and engineering. Data from federal procurement databases consistently shows Booz Allen Hamilton as a major recipient of federal contracts across numerous departments and agencies. Their relationship with GSA likely involves providing support for IT infrastructure, acquisition services, and strategic planning. The company's size and experience suggest a deep understanding of federal procurement regulations and operational requirements, making them a frequent choice for complex and large-scale federal IT projects.

How does the $16.2 million contract value compare to similar IT systems engineering contracts awarded by GSA?

The $16.2 million contract value for IT systems engineering and technical support awarded to Booz Allen Hamilton by GSA over approximately two years is within a common range for such services. GSA frequently procures IT support and development services, and contract values can vary significantly based on scope, duration, and complexity. Contracts for specialized systems engineering, particularly those involving complex integrations or modernization efforts, can easily reach into the tens of millions of dollars. While this specific value is not exceptionally high or low in the context of large federal IT procurements, it signifies a substantial investment. A more precise comparison would require analyzing contracts with similar NAICS codes (541512), service descriptions, and contract durations awarded by GSA or comparable agencies within the same timeframe.

What are the primary risks associated with a Time and Materials (T&M) contract for IT services?

The primary risk associated with a Time and Materials (T&M) contract, such as the one awarded to Booz Allen Hamilton, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual labor hours and material costs incurred. This structure can incentivize longer project durations or less efficient work if not rigorously monitored. For the government, this means the total cost is not fixed upfront, making budget forecasting more challenging. Key risks include scope creep, where project requirements expand without a corresponding increase in contract ceiling, and potential inefficiencies in contractor performance. Effective oversight, detailed task orders, and strong project management are crucial to mitigate these risks and ensure value for money.

How does the 'Computer Systems Design Services' NAICS code (541512) define the scope of work for this contract?

The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' defines the scope of work for this contract as primarily involving the planning and design of computer systems that integrate hardware, software, and communication technologies. This typically includes activities such as systems analysis, systems integration design, and implementation consulting. Contractors under this code often provide expertise in areas like network design, IT infrastructure planning, software application integration, and technical consulting related to computer systems. For this specific contract with GSA, it implies that Booz Allen Hamilton is providing services to design, develop, or improve IT systems, ensuring they function effectively and meet the agency's operational requirements.

What is the significance of the General Services Administration (GSA) awarding this contract?

The General Services Administration (GSA) plays a crucial role in federal procurement, acting as a central purchasing agency for many government departments. When GSA awards an IT contract like this one, it signifies that the procurement process has likely adhered to established federal acquisition regulations and potentially leveraged GSA's IT schedule or other procurement vehicles designed for efficiency and cost-effectiveness. GSA's involvement often means the services procured are intended to support broader government-wide IT initiatives or provide shared services. This award underscores GSA's function in facilitating the acquisition of necessary IT resources for federal agencies, ensuring compliance and aiming for competitive pricing.

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

Contractor Details

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

Address: 8283 GREENSBORO DR # 700, MC LEAN, VA, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $56,613,998

Exercised Options: $16,195,676

Current Obligation: $16,195,676

Parent Contract

Parent Award PIID: GS35F0306J

IDV Type: FSS

Timeline