Booz Allen Hamilton contract for FDA IT systems support valued at over $80 million over five years

Contract Overview

Contract Amount: $80,495,035 ($80.5M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2012-09-18

End Date: 2017-12-18

Contract Duration: 1,917 days

Daily Burn Rate: $42.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF CRITICAL FUNCTION CBER SYSTEMS SUPPORT OPERATIONS&MAINTENANCE; AND DEVELOPMENT, MODERNIZATION AND ENHANCEMENT (DME).

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $80.5 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::CT::IGF CRITICAL FUNCTION CBER SYSTEMS SUPPORT OPERATIONS&MAINTENANCE; AND DEVELOPMENT, MODERNIZATION AND ENHANCEMENT (DME). Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract's duration of approximately five years indicates a long-term need for these services. 3. Fixed-price contract type may incentivize contractor efficiency and cost control. 4. The services encompass critical IT operations, maintenance, and modernization for the FDA. 5. The awardee, Booz Allen Hamilton, is a large, established government contractor. 6. The contract's value places it in the mid-to-large range for IT support services.

Value Assessment

Rating: good

The contract's total value of over $80 million over five years averages to approximately $16 million annually. Benchmarking this against similar large-scale IT support and modernization contracts for federal health agencies suggests this is within a reasonable range, especially considering the critical nature of FDA systems. The firm-fixed-price structure implies that the contractor bears the risk of cost overruns, which can be a positive indicator of value if managed effectively. However, without detailed breakdowns of labor categories and hours, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is designed to ensure that the government receives the best possible pricing and technical solutions by allowing any qualified vendor to submit a proposal. The presence of multiple bidders typically drives down costs and encourages innovation. The specific number of bidders is not provided, but the designation suggests a robust competition.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a market where prices are driven down through rivalry, leading to more cost-effective government spending.

Public Impact

The primary beneficiaries are the Food and Drug Administration (FDA) and its mission to protect public health. Services delivered include essential IT operations, maintenance, and modernization of critical systems. Geographic impact is likely nationwide, supporting FDA operations across its various facilities and remote workforce. Workforce implications include the potential for IT professionals employed by Booz Allen Hamilton to support the FDA's technological infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if modernization and enhancement requirements are not tightly managed.
Reliance on a single large contractor for critical IT infrastructure could pose a risk if performance falters.
The long-term nature of the contract may reduce flexibility to adopt newer technologies if not structured for adaptability.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded favorable pricing.
Firm-fixed-price contract type aligns incentives for cost efficiency and performance.
The contractor, Booz Allen Hamilton, has extensive experience in government IT services, indicating a lower risk of execution failure.
The contract addresses critical IT needs for a vital public health agency, ensuring operational continuity.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on computer systems support, maintenance, and modernization. The IT services market for the federal government is substantial, with significant spending allocated to maintaining and upgrading legacy systems while also investing in new digital capabilities. Contracts of this magnitude are common for large federal agencies like the FDA, which rely heavily on complex IT infrastructure to manage vast amounts of data and support regulatory functions. Comparable spending benchmarks would typically be found within IT services categories for health and human services agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major prime contractor, it is possible that subcontracting opportunities may exist for small businesses. However, without specific subcontracting plans or goals outlined in the award details, the direct impact on the small business ecosystem is unclear. Large prime contractors often utilize small businesses for specialized IT services, but this is not guaranteed.

Oversight & Accountability

Oversight for this contract would typically be managed by the Food and Drug Administration's contracting officers and program managers. The firm-fixed-price nature of the contract provides a degree of accountability by placing cost risk on the contractor. Transparency is generally facilitated through contract award databases like FPDS. Inspector General oversight may be involved if any performance issues, fraud, waste, or abuse are suspected or reported.

Related Government Programs

FDA IT Modernization Initiatives
Federal Civilian IT Services
Health IT Support Contracts
IT Operations and Maintenance Contracts
Custom Computer Programming Services

Risk Flags

Long-term contract duration may limit flexibility for adopting emerging technologies.
Reliance on a single large contractor for critical systems.
Potential for scope creep in modernization and enhancement tasks.
Need for robust oversight to ensure value and performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $80.5 million to BOOZ ALLEN HAMILTON INC. IGF::CT::IGF CRITICAL FUNCTION CBER SYSTEMS SUPPORT OPERATIONS&MAINTENANCE; AND DEVELOPMENT, MODERNIZATION AND ENHANCEMENT (DME).

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $80.5 million.

What is the period of performance?

Start: 2012-09-18. End: 2017-12-18.

What is the historical spending trend for IT support and modernization at the FDA?

Analyzing historical spending trends for IT support and modernization at the FDA is crucial for understanding the context of this $80 million contract. While specific historical data for this exact contract is not provided, the FDA, like many large federal agencies, has consistently invested in its IT infrastructure. This includes significant outlays for maintaining legacy systems, upgrading hardware and software, and developing new platforms to support its regulatory and public health missions. Trends often show an increasing demand for data analytics, cybersecurity, cloud computing, and mobile accessibility. The duration of this contract (2012-2017) suggests it was part of a broader, ongoing effort to modernize FDA systems, likely following or preceding other similar investments. Understanding the agency's budget allocations for IT over several fiscal years would reveal whether this contract represents a typical expenditure or a significant deviation.

How does the pricing of this contract compare to similar IT support contracts awarded by other federal health agencies?

Comparing the pricing of this Booz Allen Hamilton contract to similar IT support contracts awarded by other federal health agencies requires access to detailed pricing structures and scope of work for comparable awards. The total value of over $80 million over five years, averaging around $16 million annually, provides a high-level benchmark. However, without knowing the specific services rendered (e.g., number of personnel, skill sets, specific systems supported, level of modernization), a direct price-per-unit comparison is difficult. Generally, contracts for critical IT operations, maintenance, and modernization for agencies like the FDA, CDC, or NIH tend to be substantial due to the complexity and sensitivity of the data handled. Factors such as labor rates, overhead, profit margins, and the competitive landscape influence pricing. A firm-fixed-price contract, as used here, aims to provide predictable costs, but the underlying value is determined by the efficiency and effectiveness of the services delivered relative to market rates for similar expertise.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key Performance Indicators (KPIs) for a contract of this nature, involving IT operations, maintenance, and modernization, are essential for ensuring the FDA receives the expected value and service levels. While specific KPIs are not detailed in the provided data, typical metrics would likely include system uptime and availability, response times for critical incidents, resolution times for reported issues, successful implementation of modernization projects within scope and budget, adherence to security protocols, and user satisfaction. For development, modernization, and enhancement (DME) tasks, KPIs might focus on the timely delivery of new features or system upgrades, reduction in system vulnerabilities, or improved processing speeds. The firm-fixed-price nature of the contract suggests that performance standards would be clearly defined, with potential penalties for non-compliance or incentives for exceeding expectations, although the latter is less common in fixed-price arrangements.

What is Booz Allen Hamilton's track record with similar large-scale IT contracts for federal agencies?

Booz Allen Hamilton has a long and extensive track record of performing large-scale IT contracts for various federal agencies, including those within the health and human services sector. They are a major government contractor known for providing a wide range of services, including IT modernization, cybersecurity, data analytics, and systems engineering. Their experience with agencies like the Department of Defense, intelligence community, and civilian agencies suggests a deep understanding of government procurement processes, security requirements, and operational needs. For contracts similar to this FDA award, Booz Allen Hamilton has historically managed complex IT infrastructures, supported critical mission systems, and undertaken significant modernization efforts. Their established presence and past performance on numerous large contracts indicate a generally low risk associated with their ability to execute the scope of work, although specific contract performance can vary.

What are the potential risks associated with relying on a single contractor for critical FDA IT systems over a multi-year period?

Relying on a single contractor like Booz Allen Hamilton for critical FDA IT systems over a multi-year period presents several potential risks. One primary risk is vendor lock-in, where the agency becomes heavily dependent on the contractor's proprietary knowledge, processes, or specific technologies, making it difficult and costly to switch providers or adopt alternative solutions. Another risk is complacency or a decline in service quality over time if competition is not actively maintained or if performance incentives are weak. Contractor performance issues, such as key personnel turnover, financial instability, or failure to keep pace with technological advancements, could significantly disrupt FDA operations. Furthermore, a single point of failure in cybersecurity could be exploited if the contractor's security practices are not robust. Mitigating these risks often involves strong contract management, clear performance metrics, regular reviews, and potentially incorporating mechanisms for knowledge transfer.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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: 1

Pricing Type: FIRM FIXED PRICE (J)

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

Financial Breakdown

Contract Ceiling: $121,910,552

Exercised Options: $80,495,035

Current Obligation: $80,495,035

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $24,252,603

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: HHSF223200950002I

IDV Type: IDC

Timeline