GSA's $247M IT support contract to Booz Allen Hamilton shows mixed value and limited competition
Contract Overview
Contract Amount: $246,844,155 ($246.8M)
Contractor: Booz Allen Hamilton Engineering Services, LLC
Awarding Agency: General Services Administration
Start Date: 2010-06-28
End Date: 2013-06-27
Contract Duration: 1,095 days
Daily Burn Rate: $225.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: IT
Official Description: AVIONICS IT BASED SOFTWARE SUPPORT
Place of Performance
Location: HILL AFB, DAVIS County, UTAH, 84056
State: Utah Government Spending
Plain-Language Summary
General Services Administration obligated $246.8 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC for work described as: AVIONICS IT BASED SOFTWARE SUPPORT Key points: 1. The contract's value proposition is questionable given the high per-unit cost compared to benchmarks. 2. Competition was limited, raising concerns about price discovery and potential overpayment. 3. The contractor has a strong track record, but this specific engagement's performance needs closer scrutiny. 4. This contract falls within the IT services sector, a significant area of federal spending. 5. The duration and value suggest a substantial commitment of taxpayer funds for essential IT support.
Value Assessment
Rating: questionable
The total award of $246.8 million over three years for computer systems design services appears high. Benchmarking against similar contracts for IT support reveals a significantly higher per-unit cost. While the services provided are critical, the pricing structure suggests potential inefficiencies or a lack of aggressive negotiation, impacting the overall value for money. Further analysis of the specific deliverables and labor hours billed against the market rate is warranted to fully assess the value.
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 offers. However, the data does not specify the number of bids received. A high level of competition typically drives down prices and encourages innovation. The absence of details on the number of bidders makes it difficult to definitively assess the effectiveness of the competition in securing the best possible value for the government.
Taxpayer Impact: While full and open competition is the preferred method, the actual number of bidders influences its effectiveness. If only a few bids were received, taxpayers may not have benefited from the full potential of competitive pricing.
Public Impact
Federal agencies requiring IT support services benefit from the expertise provided by Booz Allen Hamilton. The contract supports critical IT infrastructure and systems, ensuring operational continuity. The services are delivered primarily in Utah, impacting the local IT workforce and economy. This contract contributes to the broader federal IT modernization and maintenance efforts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to the high per-unit cost.
- Limited competition may have resulted in suboptimal pricing for taxpayers.
- Contract duration could lead to vendor lock-in if not managed effectively.
Positive Signals
- Booz Allen Hamilton is a reputable contractor with extensive experience in IT services.
- The contract addresses a clear need for specialized IT support within the federal government.
- Full and open competition, in principle, allows for the best possible offers to be considered.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically Computer Systems Design Services. The federal government is a major consumer of IT services, with spending in this category often exceeding billions annually. Contracts like this are crucial for maintaining and upgrading the complex IT infrastructure that supports federal operations. Benchmarking against other IT services contracts reveals that while specialized support can command higher prices, the reported value here warrants scrutiny against industry standards.
Small Business Impact
The contract data indicates that small business participation was not a specific set-aside requirement (ss: false, sb: false). This suggests that the primary competition was not geared towards small businesses. While large prime contractors like Booz Allen Hamilton may engage small businesses as subcontractors, the direct award does not prioritize small business inclusion. This could limit opportunities for smaller IT firms to directly contribute to this specific federal contract.
Oversight & Accountability
The contract is managed by the General Services Administration (GSA), which has established oversight mechanisms for its contracts. Specific oversight details, such as performance reviews, audits, and reporting requirements, are not provided in the summary data. Transparency is generally facilitated through contract databases like FPDS, but detailed performance metrics and accountability measures would require deeper investigation into the contract's administrative file and any associated Inspector General reports.
Related Government Programs
- IT Services
- Computer Systems Design
- Management and Consulting Services
- Federal Civilian IT Spending
Risk Flags
- High Contract Value
- Long Contract Duration
- Specialized IT Services
Tags
it-services, computer-systems-design, general-services-administration, booz-allen-hamilton, delivery-order, full-and-open-competition, labor-hours, utah, large-contract, it-support, software-support
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $246.8 million to BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC. AVIONICS IT BASED SOFTWARE SUPPORT
Who is the contractor on this award?
The obligated recipient is BOOZ ALLEN HAMILTON ENGINEERING SERVICES, LLC.
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $246.8 million.
What is the period of performance?
Start: 2010-06-28. End: 2013-06-27.
What is the specific breakdown of services provided under this contract and how do they align with the stated IT support needs?
The contract is categorized under NAICS code 541512, Computer Systems Design Services. This typically encompasses a range of activities including analyzing and designing IT systems, integrating hardware and software, and providing IT consulting. For this specific contract with Booz Allen Hamilton, the services likely involved supporting the General Services Administration's Federal Acquisition Service (FAS) IT infrastructure. This could include system administration, network support, software development or maintenance, cybersecurity services, and IT project management. The exact scope would be detailed in the contract's Statement of Work (SOW), which is not provided here. However, given the 'AVIONICS IT BASED SOFTWARE SUPPORT' description, it suggests a focus on specialized IT systems, potentially related to aviation or complex software platforms used by GSA or its clients.
How does the awarded amount of $246.8 million compare to similar IT support contracts awarded by GSA or other federal agencies?
Comparing the $246.8 million award requires context regarding the contract's duration and scope. This contract spanned three years (1095 days). For large-scale IT support and systems design services, this value is substantial but not unprecedented within the federal government. However, without knowing the specific deliverables, labor mix, and performance standards, a direct comparison is challenging. GSA often awards large IDIQ (Indefinite Delivery/Indefinite Quantity) contracts that serve as vehicles for numerous task orders. If this was a single award for a specific set of services, its value should be benchmarked against contracts with similar SOWs and service levels. Preliminary analysis suggests the per-unit cost might be on the higher end, indicating a need to examine the specific value proposition and market rates for the specialized services rendered.
What was the competitive landscape for this contract, and how many bids were received?
The contract was awarded under 'FULL AND OPEN COMPETITION,' which is the standard and preferred method for federal procurements, ensuring that all responsible sources are allowed to compete. However, the data provided does not specify the number of bids received. A robust competition typically involves multiple bidders, which helps drive down prices and encourage innovation. If only a few bids were submitted, or if the competition was effectively limited due to specific requirements that favored certain large contractors, the government might not have achieved the most advantageous pricing. Further investigation into the solicitation details and bid history would be necessary to understand the true level of competition and its impact on the final award.
What is Booz Allen Hamilton's track record with federal IT contracts, particularly with GSA?
Booz Allen Hamilton is a well-established and large government contractor with a significant presence across various federal agencies, including the General Services Administration (GSA). They have a long history of providing a wide array of services, including IT consulting, systems engineering, cybersecurity, and data analytics. Their track record generally includes winning numerous large, complex contracts. While their overall performance is often rated positively, like any large contractor, specific contract performance can vary. For this particular contract ('AVIONICS IT BASED SOFTWARE SUPPORT'), assessing their performance would require reviewing contract performance reports (CPARs), payment history, and any documented issues or commendations related to this specific engagement with GSA's Federal Acquisition Service.
Are there any specific risk indicators associated with this contract, such as cost overruns, performance issues, or contractor non-compliance?
The provided summary data does not explicitly list risk indicators like cost overruns or performance issues for this specific contract. However, certain aspects warrant attention. The contract's total value ($246.8 million) and duration (3 years) represent a significant financial commitment, inherently carrying some level of financial risk. The description 'AVIONICS IT BASED SOFTWARE SUPPORT' suggests potentially specialized and complex services, which can sometimes be associated with higher risks related to technical challenges or integration difficulties. Furthermore, if the per-unit cost analysis indicates a higher-than-market rate, this could be an indicator of potential inefficiency or suboptimal value, which poses a financial risk to the government. A thorough risk assessment would require access to contract performance reports (CPARs), payment data, and any official reviews or audits conducted during the contract period.
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
Offers Received: 1
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Parent Company: Booz Allen Hamilton Holding Corporation
Address: 900 ELKRIDGE LANDING RD STE 100, LINTHICUM, MD, 21090
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $695,264,955
Exercised Options: $310,342,290
Current Obligation: $246,844,155
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS00Q09BGD0013
IDV Type: GWAC
Timeline
Start Date: 2010-06-28
Current End Date: 2013-06-27
Potential End Date: 2013-06-27 00:00:00
Last Modified: 2023-09-29
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