DHS awards $24.1M IT support contract to Booz Allen Hamilton, raising concerns about value and competition
Contract Overview
Contract Amount: $24,103,935 ($24.1M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Homeland Security
Start Date: 2013-02-27
End Date: 2015-06-30
Contract Duration: 853 days
Daily Burn Rate: $28.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: IGF::CL::IGF IT SUPPORT SERVICES FOR THE OFFICE OF INTELLIGENCE AND ANALYSIS, KNOWLEDGE MANAGEMENT DIVISION
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Homeland Security obligated $24.1 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::CL::IGF IT SUPPORT SERVICES FOR THE OFFICE OF INTELLIGENCE AND ANALYSIS, KNOWLEDGE MANAGEMENT DIVISION Key points: 1. Contract value of $24.1M for IT support services. 2. Booz Allen Hamilton Inc. is the sole awardee. 3. Potential concerns regarding competition and taxpayer impact. 4. Services fall under Custom Computer Programming Services (NAICS 541511).
Value Assessment
Rating: questionable
The contract's value of $24.1M for IT support services, awarded on a Time and Materials basis, warrants scrutiny. Benchmarking against similar custom computer programming services contracts is needed to assess if this pricing is competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although advertised as full and open competition, the award to a single contractor, Booz Allen Hamilton Inc., suggests potential limitations in the bidding process or a lack of competitive bids received. This could impact price discovery and potentially lead to higher costs.
Taxpayer Impact: The lack of robust competition may result in taxpayers paying more than necessary for these IT support services.
Public Impact
Citizens may be overpaying for IT support due to limited competition. The Department of Homeland Security's IT infrastructure relies on this contractor. Transparency in contract performance and cost is crucial for public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition despite 'full and open' designation.
- Time and Materials contract type can lead to cost overruns.
- Sole awardee raises questions about market competitiveness.
Positive Signals
- Contract awarded to a well-established firm.
- Services provided to a critical agency (DHS).
Sector Analysis
This contract falls within the IT sector, specifically custom computer programming services. Spending benchmarks for similar IT support contracts can vary widely based on scope and complexity, but a $24.1M award over approximately 2.7 years requires careful evaluation.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as 'sb' is false. This suggests that larger, established companies dominated the bidding process, potentially excluding smaller, specialized firms.
Oversight & Accountability
Further oversight is needed to ensure the Department of Homeland Security is receiving fair value for the $24.1M spent. Scrutiny of the competition process and performance metrics is essential for accountability.
Related Government Programs
- Custom Computer Programming Services
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- Potential for inflated costs due to T&M contract.
- Lack of demonstrated robust competition.
- Sole awardee raises concerns about market dynamics.
- Need for detailed performance and cost validation.
Tags
custom-computer-programming-services, department-of-homeland-security, dc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $24.1 million to BOOZ ALLEN HAMILTON INC. IGF::CL::IGF IT SUPPORT SERVICES FOR THE OFFICE OF INTELLIGENCE AND ANALYSIS, KNOWLEDGE MANAGEMENT DIVISION
Who is the contractor on this award?
The obligated recipient is BOOZ ALLEN HAMILTON INC.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Office of Procurement Operations).
What is the total obligated amount?
The obligated amount is $24.1 million.
What is the period of performance?
Start: 2013-02-27. End: 2015-06-30.
What specific IT support services were provided under this contract, and how do they align with the stated NAICS code for Custom Computer Programming Services?
The contract details are for 'IT SUPPORT SERVICES FOR THE OFFICE OF INTELLIGENCE AND ANALYSIS, KNOWLEDGE MANAGEMENT DIVISION'. While IT support is related to computer services, the specific tasks performed would determine the precise alignment with NAICS 541511 (Custom Computer Programming Services). A detailed review of the contract's Statement of Work (SOW) is necessary to confirm the nature of the services rendered and ensure accurate classification.
Given the 'full and open' competition designation, why was Booz Allen Hamilton the sole awardee, and what steps were taken to ensure genuine market competition?
The designation of 'full and open' competition implies that all responsible sources were permitted to submit offers. However, a sole awardee suggests that either only one offer was received, or only one offer met the technical and price requirements. Investigations into the solicitation process, outreach efforts, and evaluation criteria are needed to understand if genuine market competition was achieved or if barriers prevented other qualified firms from bidding or being selected.
How does the Time and Materials contract type impact the overall cost-effectiveness and taxpayer value for these IT support services?
Time and Materials (T&M) contracts can be less cost-effective than fixed-price contracts because they do not set a ceiling on the total cost. This means the government pays for the actual labor hours and materials used, plus a fixed fee or labor rate. While T&M can offer flexibility, it increases the risk of cost overruns and requires robust government oversight to manage and control expenditures effectively, potentially impacting taxpayer value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming 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: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)
Address: 8283 GREENSBORO DRIVE, MCLEAN, VA, 22102
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $24,103,935
Exercised Options: $24,103,935
Current Obligation: $24,103,935
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $3,444,311
Parent Contract
Parent Award PIID: HSHQDC06D00031
IDV Type: IDC
Timeline
Start Date: 2013-02-27
Current End Date: 2015-06-30
Potential End Date: 2015-06-30 00:00:00
Last Modified: 2015-06-02
More Contracts from Booz Allen Hamilton Inc
- Task Order (TO) 47qfca21f0018 IS Hereby Awarded to Booz Allen Hamilton, Inc. (BAH) to Provide Enterprise Level Data to the Ousd(c), and ITS Strategic Partners (I.E., DOD Fourth Estate, DOD Departments, and IC Community) — $1.4B (General Services Administration)
- Transformation Twenty-One Total Technology Next Generation (T4NG) Task Order - Benefits Integrated Delivery — $1.4B (Department of Veterans Affairs)
- Federal Contract — $1.2B (General Services Administration)
- Product and Technology Ecosystem Management Services (ptems)which Includes Product Delivery and Lifecycle Management to Transform VA by Tapping Into Emerging Technologies, Connecting Developers With VA Data, and Making Human Centered Design (HCD) — $1.1B (Department of Veterans Affairs)
- Task Order Award — $1.1B (General Services Administration)
Other Department of Homeland Security Contracts
- THE United States Coast Guard HAS a Requirement to Procure UP to Twenty-Six (26) Fast Response Cutters (frcs) on a Firm Fixed Price (FFP) Basis With an Economic Price Adjustment (EPA). Phase II of the FRC Program Will Complete the Fleet for a Total of 58 Cutters — $2.1B (Bollinger Shipyards Lockport, L.L.C.)
- Design and Construct NEW Vertical Barrier and Power Distribution, Lighting, Cameras, Equipment Shelters and Linear Ground Detection System (lgds) in Hildago County, NM — $1.8B (Fisher Sand & Gravel CO)
- Production&delivery of National Security Cutter (NSC) 6 — $1.7B (Huntington Ingalls Incorporated)
- YUM-2 Vertical Border and Waterborne Barrier Construction — $1.7B (Fisher Sand & Gravel CO)
- Construct Vertical Border Barrier — $1.6B (Fisher Sand & Gravel CO)