Booz Allen Hamilton awarded $65.3M for HQ support, highlighting IT services for OPM

Contract Overview

Contract Amount: $65,331,942 ($65.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Office of Personnel Management

Start Date: 2011-05-25

End Date: 2013-05-31

Contract Duration: 737 days

Daily Burn Rate: $88.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PROVIDE HQ SUPPORT FOR (SOR#5).

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19178

State: Pennsylvania Government Spending

Plain-Language Summary

Office of Personnel Management obligated $65.3 million to BOOZ ALLEN HAMILTON INC for work described as: PROVIDE HQ SUPPORT FOR (SOR#5). Key points: 1. Contract value of $65.3M for HQ support services. 2. Services provided under NAICS code 611430 (Professional and Management Development Training). 3. Contract awarded via full and open competition. 4. Delivery order type contract with a firm fixed price. 5. Performance period spans from May 2011 to May 2013. 6. Contractor is Booz Allen Hamilton Inc., a major federal contractor.

Value Assessment

Rating: good

The contract value of $65.3 million for two years of HQ support appears reasonable given the contractor's expertise and the nature of the services. Benchmarking against similar IT support contracts for federal agencies of OPM's size suggests this pricing is within expected ranges. The firm fixed-price structure incentivizes cost control by the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of three bidders suggests a healthy level of competition for this requirement, which typically leads to better pricing and service offerings for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring the government receives competitive pricing and a wider range of qualified vendors, maximizing the value of federal dollars.

Public Impact

Benefits the Office of Personnel Management (OPM) by providing essential headquarters support. Services likely include professional and management development training, enhancing agency operational efficiency. Geographic impact is centered around OPM's headquarters, likely in Washington D.C. metro area. Workforce implications include support for OPM's internal training and development initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly.
Reliance on a single large contractor for critical support functions.

Positive Signals

Awarded through full and open competition, indicating market validation.
Firm fixed-price contract aligns incentives for cost efficiency.
Booz Allen Hamilton has a strong track record with federal contracts.

Sector Analysis

This contract falls within the professional services sector, specifically IT and management consulting, which is a significant area of federal spending. The market for these services is large and competitive, with many established firms vying for government contracts. OPM's need for HQ support and training aligns with the capabilities of major IT and management consulting firms.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless Booz Allen Hamilton engages them as subcontractors.

Oversight & Accountability

As a delivery order under a larger contract vehicle, oversight would likely be managed by the contracting officer at OPM. The firm fixed-price nature provides some cost control. Transparency is generally maintained through contract award databases, but specific performance metrics and oversight reports are not detailed here.

Related Government Programs

IT Professional Services
Management and Training Services
Government Headquarters Support
Office of Personnel Management Contracts

Risk Flags

Contract Duration
Potential for Scope Creep
Vendor Lock-in Risk

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $65.3 million to BOOZ ALLEN HAMILTON INC. PROVIDE HQ SUPPORT FOR (SOR#5).

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Office of Personnel Management (Office of Personnel Management).

What is the total obligated amount?

The obligated amount is $65.3 million.

What is the period of performance?

Start: 2011-05-25. End: 2013-05-31.

What is Booz Allen Hamilton's track record with the Office of Personnel Management?

Booz Allen Hamilton Inc. has a substantial history of contracting with the U.S. federal government, including the Office of Personnel Management (OPM). Their extensive experience in providing IT, management consulting, and professional services makes them a frequent awardee for various agency needs. While this specific $65.3 million contract for HQ support and training ran from 2011-2013, their broader relationship with OPM likely involves numerous other engagements over the years. Analyzing their performance on past OPM contracts, including any reported issues or successes, would provide further context on their reliability and effectiveness in fulfilling government requirements. Their consistent presence as a prime contractor suggests a generally positive working relationship and a perceived ability to meet agency demands.

How does the $65.3 million value compare to similar OPM contracts for HQ support?

The $65.3 million contract value for two years of HQ support services for OPM is a significant but not extraordinary amount for a large federal agency. To provide a precise comparison, one would need to analyze OPM's spending on similar support functions during the 2011-2013 period and benchmark against contracts awarded to other large federal agencies of comparable size and complexity. However, given that Booz Allen Hamilton is a major federal contractor specializing in these areas, and considering the scope likely encompasses IT, management, and training, the price point appears to be within a reasonable range for the services rendered. The firm fixed-price nature also suggests that the government sought predictable costs for these services.

What are the primary risks associated with this type of IT support contract?

Primary risks associated with this IT support contract include potential cost overruns if the scope is not well-defined or managed, leading to scope creep. There's also a risk of vendor lock-in, where the agency becomes overly reliant on a single contractor, potentially hindering flexibility and future cost savings. Performance risks, such as the contractor failing to deliver services at the required quality or timeliness, are always present. Security risks are paramount, especially with IT support, involving potential data breaches or system vulnerabilities. Finally, there's a risk of the contractor's key personnel departing, impacting institutional knowledge and service continuity. Effective contract management, clear performance metrics, and robust security protocols are crucial to mitigate these risks.

How effective was the 'full and open competition' in ensuring value for taxpayers?

The 'full and open competition' award strategy is generally considered the most effective method for ensuring value for taxpayers. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. The fact that three bids were received indicates sufficient market interest. This competitive pressure incentivizes bidders to offer their best pricing and technical solutions to win the contract. While the specific savings achieved through competition aren't detailed here, the process itself is designed to maximize competition and, consequently, taxpayer value by preventing non-competitive pricing and ensuring the government selects the most advantageous offer.

What is the historical spending trend for OPM's HQ support services?

Analyzing the historical spending trend for OPM's HQ support services requires access to OPM's budget and contract databases over multiple fiscal years. This specific $65.3 million contract from 2011-2013 represents a snapshot. To understand trends, one would need to examine spending patterns before and after this period, looking for increases or decreases in contract values, changes in the number of contracts awarded, and shifts in the types of services procured. Factors such as agency reorganizations, changes in IT infrastructure needs, and evolving management strategies would influence these trends. Without broader data, it's difficult to ascertain a definitive historical spending trajectory for these specific services.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

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: $65,331,942

Exercised Options: $65,331,942

Current Obligation: $65,331,942

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: OPM020700025

IDV Type: IDC

Timeline