Booz Allen Hamilton awarded $245M for IT services, with a significant portion for computer systems design

Contract Overview

Contract Amount: $245,031,654 ($245.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of the Interior

Start Date: 2015-09-25

End Date: 2021-05-26

Contract Duration: 2,070 days

Daily Burn Rate: $118.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::CT::IGF

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $245.0 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::CT::IGF Key points: 1. Contract value of $245M over its period of performance suggests a substantial need for IT services. 2. The contract was awarded under full and open competition, indicating a broad market solicitation. 3. The duration of the contract (2070 days) points to a long-term engagement for IT support. 4. The primary service category is Computer Systems Design Services, a critical area for federal IT infrastructure. 5. The award to a single contractor, Booz Allen Hamilton, warrants scrutiny for potential price efficiencies and performance. 6. The contract's Time and Materials pricing structure may present cost control challenges if not closely managed.

Value Assessment

Rating: fair

The total award of $245M over approximately 5.7 years averages to about $43M annually. Benchmarking this against similar large-scale IT services contracts for federal agencies is complex due to varying scopes. However, the Time and Materials pricing model, while flexible, can lead to higher costs if not managed diligently compared to fixed-price contracts. Without specific per-unit data, a definitive value-for-money assessment is challenging, but the duration and scale suggest a significant investment that requires ongoing performance monitoring.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' suggesting that all responsible sources were permitted to submit a bid. The presence of 4 delivery orders indicates multiple taskings under this primary contract. While the number of bidders is not explicitly stated, full and open competition generally fosters a competitive environment, which can lead to better pricing and innovation. The agency's choice of this procurement method implies a desire to leverage the broadest possible market.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through market forces, potentially leading to lower prices and higher quality services.

Public Impact

Federal agencies requiring advanced computer systems design and IT support services are the primary beneficiaries. The contract delivers essential IT infrastructure and operational support, crucial for government functions. Services are likely concentrated in Virginia, where the contractor's stated location is. The contract supports a workforce skilled in IT, computer systems design, and related technical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not strictly managed and monitored for efficiency.
The large contract value and single awardee raise questions about potential price competitiveness over the long term.
Lack of specific performance metrics in the provided data makes it difficult to assess the effectiveness of services delivered.

Positive Signals

Awarded through full and open competition, indicating a broad market approach to finding the best solution.
The contract duration suggests a stable, long-term need for these critical IT services.
The contractor, Booz Allen Hamilton, is a well-established entity with significant experience in federal IT contracts.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on Computer Systems Design Services. This is a large and dynamic market within the federal government, encompassing a wide range of services from software development to network infrastructure management. Federal spending in this area is consistently high as agencies modernize systems and enhance cybersecurity. Comparable spending benchmarks would typically involve analyzing IT services contracts awarded to large system integrators and consulting firms by various federal agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major contractor, it is unlikely to have significant direct subcontracting opportunities specifically designated for small businesses unless mandated by the prime contractor's internal policies or specific subcontracting goals. The focus is on large-scale IT solutions rather than fostering the small business ecosystem through direct set-asides.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Interior. Performance monitoring, invoice review, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Services
Computer Systems Design
Management and Consulting Services
Information Technology Professional Services
Cloud Computing Services
Cybersecurity Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Need for robust oversight to ensure efficient use of labor hours and resources.
Long contract duration requires sustained performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $245.0 million to BOOZ ALLEN HAMILTON INC. IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $245.0 million.

What is the period of performance?

Start: 2015-09-25. End: 2021-05-26.

What is the historical spending trend for Computer Systems Design Services by the Department of the Interior?

Analyzing historical spending trends for Computer Systems Design Services by the Department of the Interior requires access to detailed procurement data over multiple fiscal years. Generally, federal agencies like the Department of the Interior have shown a consistent and often increasing investment in IT services, including systems design, as they face evolving technological landscapes, cybersecurity threats, and the need for digital transformation. Factors such as agency-specific modernization initiatives, budget allocations, and the complexity of managing vast data systems influence these spending patterns. Without specific historical data for this NAICS code (541512) within the Department of the Interior, it's difficult to provide precise figures, but the overall trend in federal IT spending has been upward, driven by modernization efforts and the increasing reliance on digital infrastructure.

How does the awarded amount compare to similar IT services contracts for federal agencies of comparable size?

The awarded amount of $245 million for Computer Systems Design Services is substantial, placing it among significant IT contracts. To compare effectively, one would need to identify similar contracts awarded by agencies of comparable size and scope to the Department of the Interior, focusing on the same NAICS code (541512) or closely related IT service categories. Large federal IT contracts often range from tens to hundreds of millions of dollars, depending on the duration, complexity, and specific services required. Contracts for system design, integration, and modernization can be particularly costly. Booz Allen Hamilton is a major federal contractor, and their awards are often large due to their extensive capabilities. A direct comparison would involve benchmarking against other large system integrators' awards for similar services, considering factors like contract length and specific deliverables.

What are the key performance indicators (KPIs) used to evaluate Booz Allen Hamilton's performance under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate Booz Allen Hamilton's performance. Typically, for IT services contracts, KPIs would be defined in the contract's Performance Work Statement (PWS) or Statement of Work (SOW). These might include metrics related to system uptime, response times for technical support, project completion rates, adherence to security protocols, software defect rates, and user satisfaction. The effectiveness of the contractor's performance is usually assessed through regular reviews, milestone achievements, and potentially through contractor performance assessment reporting (CPARs). Without access to the specific PWS or CPARs, a detailed assessment of performance evaluation is not possible.

What is the risk associated with the Time and Materials (T&M) pricing structure for this contract?

The primary risk associated with a Time and Materials (T&M) pricing structure is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual time and materials used. This can lead to higher costs if the project scope expands, if labor hours are not efficiently managed, or if material costs increase unexpectedly. For the government, effective oversight and diligent monitoring of labor hours, rates, and material expenses are crucial to control costs and ensure fair pricing. Without strong controls and clear task definitions, T&M contracts can become more expensive than initially anticipated, posing a financial risk to the agency and taxpayers.

How has the Department of the Interior's spending on IT services evolved over the past five years?

To accurately assess the evolution of the Department of the Interior's spending on IT services over the past five years, one would need to analyze aggregated procurement data across various IT-related NAICS codes and contract types. Federal IT spending, in general, has seen a consistent increase, driven by the need for modernization, cybersecurity enhancements, and the adoption of new technologies like cloud computing. Agencies are increasingly focused on consolidating IT infrastructure, improving data analytics capabilities, and ensuring robust digital services for citizens and employees. It is reasonable to infer that the Department of the Interior has likely followed this trend, potentially increasing its IT expenditures to maintain and upgrade its technological capabilities, although specific figures would require detailed data analysis.

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: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

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: $255,457,741

Exercised Options: $255,457,741

Current Obligation: $245,031,654

Actual Outlays: $112,793,511

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $2,244,163

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200008W

IDV Type: GWAC

Timeline