Interior's $20.5M IT Services Contract with Booz Allen Hamilton Faces Scrutiny for Value and Competition
Contract Overview
Contract Amount: $20,531,344 ($20.5M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of the Interior
Start Date: 2003-02-06
End Date: 2006-06-30
Contract Duration: 1,240 days
Daily Burn Rate: $16.6K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: 71680 - BOOZALLEN
Place of Performance
Location: VIRGINIA
State: Virginia Government Spending
Plain-Language Summary
Department of the Interior obligated $20.5 million to BOOZ ALLEN HAMILTON INC for work described as: 71680 - BOOZALLEN Key points: 1. Contract awarded to Booz Allen Hamilton for Computer Systems Design Services. 2. Significant spending of $20.5 million over its duration. 3. Awarded via competitive delivery order, suggesting some level of market engagement. 4. Concerns regarding the 'fairness' of the pricing and potential taxpayer impact exist. 5. The sector is IT services, a common area for government contracting.
Value Assessment
Rating: questionable
The contract's Time and Materials pricing structure, coupled with a high base contract value, raises questions about cost control and value for money. Benchmarking against similar IT services contracts is crucial to assess if the $20.5 million expenditure was justified.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The contract was awarded as a competitive delivery order, indicating that multiple vendors were likely considered. However, the specific details of the competition and how price discovery was achieved are not fully transparent, potentially limiting the full benefit of competition.
Taxpayer Impact: The $20.5 million spent on IT services could have been optimized through more rigorous price negotiation and oversight, potentially leading to savings for taxpayers.
Public Impact
Taxpayers may be overpaying for IT services due to the pricing structure and potential lack of aggressive negotiation. The Department of the Interior's reliance on a single large contractor for critical IT functions could pose a risk. Citizens expect efficient and cost-effective use of public funds, especially in areas like IT modernization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Lack of detailed competition transparency
- Potential for cost overruns
Positive Signals
- Awarded via competitive delivery order
- Contract duration of over 3 years
Sector Analysis
This contract falls within the IT services sector, specifically Computer Systems Design. Spending in this area is substantial across government agencies, with benchmarks varying widely based on service complexity and duration. The $20.5 million figure is significant for a single contract of this nature.
Small Business Impact
The data indicates this contract was not awarded to a small business. There is no information provided on whether small businesses were subcontracted, which is a missed opportunity for fostering small business participation in federal contracting.
Oversight & Accountability
The competitive delivery order mechanism suggests some level of oversight in the award process. However, the lack of detailed transparency regarding the competition and pricing assessment warrants further scrutiny to ensure accountability and effective use of funds.
Related Government Programs
- Computer Systems Design Services
- Department of the Interior Contracting
- Departmental Offices Programs
Risk Flags
- Potential for overpayment due to T&M pricing
- Limited transparency on competition details
- No indication of small business participation
- Risk of vendor lock-in
Tags
computer-systems-design-services, department-of-the-interior, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Interior awarded $20.5 million to BOOZ ALLEN HAMILTON INC. 71680 - BOOZALLEN
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 $20.5 million.
What is the period of performance?
Start: 2003-02-06. End: 2006-06-30.
What specific IT systems or services were provided under this contract, and how did their complexity justify the $20.5 million cost?
The contract was for Computer Systems Design Services (NAICS 541512). While the exact systems are not detailed, this category typically includes designing, developing, and integrating hardware and software solutions. The significant cost suggests complex projects, potentially involving system architecture, network design, or custom software development, but without further specifics, a precise justification remains elusive.
How effectively did the competitive delivery order process ensure fair pricing and prevent potential cost overruns for the government?
A competitive delivery order implies that multiple vendors were solicited, which should theoretically lead to better pricing. However, the Time and Materials (T&M) pricing structure itself can be prone to cost overruns if not tightly managed with labor hour ceilings and detailed oversight. The 'fairness' of the price discovery is questionable without knowing the specifics of the bidding and negotiation process.
What is the long-term impact of this contract on the Department of the Interior's IT infrastructure and its ability to adapt to future technological changes?
Contracts of this duration and value can significantly shape an agency's IT landscape. If the services provided were strategic and forward-looking, they could enhance the Department's capabilities. However, a T&M contract with a single large vendor might also lead to vendor lock-in or a focus on maintaining existing systems rather than fostering innovation and adaptability to new technologies.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
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: $21,762,197
Exercised Options: $20,531,344
Current Obligation: $20,531,344
Parent Contract
Parent Award PIID: GS35F0306J
IDV Type: FSS
Timeline
Start Date: 2003-02-06
Current End Date: 2006-06-30
Potential End Date: 2006-06-30 00:00:00
Last Modified: 2012-06-27
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