Interior's $17.1M IT support contract awarded to Booz Allen Hamilton shows fair value with competitive pricing

Contract Overview

Contract Amount: $17,175,241 ($17.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of the Interior

Start Date: 2006-08-01

End Date: 2011-07-31

Contract Duration: 1,825 days

Daily Burn Rate: $9.4K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SUPPLENTARY IT CONTRACT SUPPORT SERVICES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $17.2 million to BOOZ ALLEN HAMILTON INC for work described as: SUPPLENTARY IT CONTRACT SUPPORT SERVICES Key points: 1. Contract awarded via competitive bidding, suggesting a reasonable price was achieved. 2. Booz Allen Hamilton, a large established contractor, likely has the capacity and expertise for this IT support role. 3. The contract duration of five years indicates a stable, long-term need for these services. 4. Time and Materials contract type may pose a risk for cost overruns if not managed closely. 5. This contract falls within the broader category of IT support services for federal agencies. 6. The geographic location in Maryland suggests a concentration of federal IT support activities in that region.

Value Assessment

Rating: fair

The contract's total value of $17.1 million over five years averages approximately $3.4 million annually. Benchmarking against similar IT support contracts is challenging without more specific service details. However, the competitive award suggests the pricing was deemed acceptable at the time of award. The Time and Materials (T&M) pricing structure, while common for IT services, can lead to higher costs if not meticulously managed and monitored for efficiency. Without specific performance metrics or comparisons to industry standards for the services rendered, a definitive value-for-money assessment is difficult, but the competitive nature provides some assurance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a Competitive Delivery Order, indicating it was competed under a broader indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle that allowed for full and open competition. The presence of a single award suggests that while competed, only one offer was deemed the best value or met all requirements. The competitive nature of the initial award vehicle is a positive sign for price discovery, though the specifics of the bidding process for this particular order are not detailed.

Taxpayer Impact: The use of full and open competition for this contract is beneficial for taxpayers as it encourages multiple vendors to bid, driving down prices and ensuring the government receives competitive rates for essential IT support services.

Public Impact

The Department of the Interior benefits from sustained IT support services, crucial for its operations. Federal employees within the Department of the Interior will have access to reliable IT infrastructure and assistance. The contract supports IT jobs, potentially within Booz Allen Hamilton's workforce. The geographic impact is primarily centered around the Department of the Interior's operations, likely concentrated in Maryland.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely monitored.
Limited information on specific performance metrics makes it difficult to assess the full value delivered.
The award to a single contractor, even if competitively sourced, reduces immediate price pressure post-award.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Booz Allen Hamilton is a well-established contractor with significant experience in federal IT services.
The contract duration of five years suggests a stable and predictable need for these services.

Sector Analysis

This contract falls within the Information Technology sector, specifically IT services and support. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. Contracts like this are common across government, supporting everything from network management to software development. Benchmarking spending is difficult without granular service details, but the overall federal IT budget runs into the tens of billions annually, making this contract a relatively small component of the larger IT spending landscape.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false, sb=false). As a competitive delivery order awarded to a large prime contractor, Booz Allen Hamilton, there is potential for subcontracting opportunities for small businesses. However, the extent to which small businesses will be utilized is not specified in the provided data. Without explicit subcontracting goals or reporting, the direct impact on the small business ecosystem is uncertain, though large prime contracts often do involve a portion of work being delegated to smaller firms.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Interior's contracting officers and program managers. The contract type (Time and Materials) necessitates close monitoring of labor hours and costs to ensure value. Transparency is generally facilitated through contract award databases like FPDS. Specific Inspector General (IG) jurisdiction would depend on the nature of any potential issues or investigations arising from the contract's performance or administration.

Related Government Programs

IT Professional Services
IT Operations and Support
Department of the Interior IT Contracts
Management and Consulting Services

Risk Flags

Time and Materials contract type carries inherent cost overrun risk.
Limited detail on specific services impacts value assessment.
Competition level for the delivery order itself is not detailed, only the vehicle.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $17.2 million to BOOZ ALLEN HAMILTON INC. SUPPLENTARY IT CONTRACT SUPPORT SERVICES

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 $17.2 million.

What is the period of performance?

Start: 2006-08-01. End: 2011-07-31.

What specific IT support services were included under this contract?

The provided data indicates this was a 'SUPPLEMENTARY IT CONTRACT SUPPORT SERVICES' contract. However, the specific nature of these services is not detailed. Typically, such contracts can encompass a wide range of IT support functions, including help desk operations, network administration, system maintenance, cybersecurity support, software installation and troubleshooting, and potentially IT project management assistance. Without further documentation or a detailed statement of work, the precise scope of services remains undefined, making it difficult to assess the contract's effectiveness or value beyond its general classification.

How does the $17.1 million total value compare to similar IT support contracts awarded by the Department of the Interior?

Comparing the $17.1 million total value requires context regarding the contract's duration and scope. This contract spanned five years (August 1, 2006, to July 31, 2011), averaging approximately $3.4 million per year. The Department of the Interior, like other large federal agencies, awards numerous IT support contracts of varying sizes and complexities. Without knowing the specific services rendered (e.g., help desk vs. specialized cybersecurity), a direct comparison is difficult. However, for a five-year contract providing general IT support, $3.4 million annually is within a plausible range for a large agency, especially considering the competitive award mechanism suggests market-driven pricing at the time.

What are the primary risks associated with a Time and Materials (T&M) contract for IT support?

The primary risk with a Time and Materials (T&M) contract, like the one awarded to Booz Allen Hamilton, is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. If the scope of work is not well-defined, or if contractor performance is inefficient, the costs can escalate beyond initial expectations. Effective oversight, including detailed tracking of hours, rigorous review of invoices, and clear task definitions, is crucial to mitigate these risks and ensure the government receives good value. The government also bears the risk of contractor inefficiency.

What was Booz Allen Hamilton's track record with the Department of the Interior prior to this award?

The provided data does not include information on Booz Allen Hamilton's specific track record with the Department of the Interior prior to this contract award in 2006. However, Booz Allen Hamilton is a large, well-established government contractor with extensive experience across numerous federal agencies, including significant work in IT services. Their long-standing presence in the federal contracting space suggests a history of performance, though specific details regarding past performance ratings or prior contracts with DOI would require access to more comprehensive federal procurement databases or agency records.

How has federal spending on IT support services evolved since this contract was awarded in 2006?

Federal spending on IT support services has generally increased significantly since 2006, driven by factors such as digital transformation initiatives, modernization efforts, cybersecurity demands, and the expansion of cloud computing. Agencies have shifted towards more complex IT solutions, requiring advanced support. While this $17.1 million contract represented a specific IT support need for the Department of the Interior over a five-year period ending in 2011, overall federal IT spending has grown substantially. Trends include increased investment in data analytics, artificial intelligence, and agile development, alongside ongoing needs for traditional infrastructure support and cybersecurity.

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

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: $17,175,241

Exercised Options: $17,175,241

Current Obligation: $17,175,241

Parent Contract

Parent Award PIID: GS35F0306J

IDV Type: FSS

Timeline