Booz Allen Hamilton contract for critical online services awarded $60.2M, highlighting IT infrastructure needs

Contract Overview

Contract Amount: $60,256,646 ($60.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of the Treasury

Start Date: 2016-06-10

End Date: 2017-09-28

Contract Duration: 475 days

Daily Burn Rate: $126.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF FOR CRITICAL FUNCTIONS - OFFICE OF ON LINE SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20224

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $60.3 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::CT::IGF FOR CRITICAL FUNCTIONS - OFFICE OF ON LINE SERVICES Key points: 1. Contract value of $60.2M for critical online services suggests significant investment in IT infrastructure. 2. The 'Other Computer Related Services' NAICS code indicates a broad scope of IT support. 3. A firm-fixed-price contract type generally offers cost certainty for the government. 4. The contract duration of 475 days points to a medium-term project. 5. Awarded to a single contractor, Booz Allen Hamilton, this indicates a specific expertise was sought. 6. The contract was awarded via full and open competition, suggesting a robust bidding process.

Value Assessment

Rating: good

The contract's value of $60.2M for IT services over approximately 15 months appears reasonable given the critical nature of online services. Benchmarking against similar large-scale IT support contracts for federal agencies would provide a more precise value-for-money assessment. The firm-fixed-price structure is a positive indicator for cost control, assuming the scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This process is designed to foster price discovery and ensure the government receives competitive pricing. The presence of multiple bidders, though not explicitly stated in the provided data, is implied by the 'full and open' designation.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through a competitive bidding environment, ensuring that federal dollars are spent efficiently.

Public Impact

Federal employees and potentially the public benefit from the reliable operation of critical online services. The contract supports the maintenance and enhancement of the IRS's online service infrastructure. The primary geographic impact is within the District of Columbia, where the IRS is headquartered. This contract likely supports a team of IT professionals, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not tightly managed under a firm-fixed-price contract.
Dependence on a single contractor for critical functions could pose a risk if performance falters.

Positive Signals

Firm-fixed-price contract type provides cost predictability.
Full and open competition suggests a competitive award process.
Award to a well-established contractor like Booz Allen Hamilton may indicate a track record of successful delivery.

Sector Analysis

This contract falls within the broader Information Technology sector, specifically focusing on IT services and support. The market for federal IT services is substantial, with agencies consistently investing in maintaining and upgrading their digital infrastructure. This contract likely represents a portion of the IRS's overall IT spending, aimed at ensuring the continuity and performance of essential online platforms.

Small Business Impact

The provided data does not indicate any specific small business set-asides or subcontracting requirements for this contract. As a large contract awarded to a major prime contractor, it's possible that subcontracting opportunities may exist, but their allocation to small businesses is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the IRS's contracting officers and program managers. The Inspector General for Tax Administration (TIGTA) may also conduct audits or investigations related to IT spending and contract performance to ensure accountability and prevent fraud, waste, and abuse.

Related Government Programs

IRS IT Modernization Programs
Federal Civilian IT Services
Online Service Delivery Contracts
Critical Infrastructure IT Support

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of service disruption if contractor performance is inadequate.
Dependence on a single vendor for critical functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $60.3 million to BOOZ ALLEN HAMILTON INC. IGF::CT::IGF FOR CRITICAL FUNCTIONS - OFFICE OF ON LINE 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 Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $60.3 million.

What is the period of performance?

Start: 2016-06-10. End: 2017-09-28.

What is the historical spending pattern for similar critical online services contracts at the IRS?

Analyzing historical spending for similar critical online services contracts at the IRS would involve examining past awards for IT support, system maintenance, and online platform development. This would include looking at contract values, durations, and the contractors involved over the last 5-10 fiscal years. Such an analysis would help determine if the $60.2M award is consistent with previous investments, or if it represents an increase or decrease in spending for these types of services. It would also reveal trends in contract types (e.g., fixed-price vs. cost-plus) and competition levels, providing context for the current contract's structure and value. Understanding these patterns is crucial for assessing budget allocation and identifying potential shifts in IT strategy or operational needs within the IRS.

How does the performance of Booz Allen Hamilton on this contract compare to their other federal IT contracts?

Assessing Booz Allen Hamilton's performance on this specific contract requires access to performance evaluation reports (e.g., Contractor Performance Assessment Reporting System - CPARS) and potentially internal IRS feedback. Comparing this to their broader federal IT contract portfolio involves analyzing performance metrics across multiple contracts, looking for consistent high ratings, areas of concern, or recurring issues. Factors to consider include on-time delivery, adherence to budget, quality of services, and responsiveness to issues. A review of their track record on similar critical infrastructure or online service contracts would be particularly relevant. Consistent positive performance across a range of federal IT engagements would suggest a lower risk associated with this contract, while a pattern of issues might raise concerns about future delivery.

What specific IT services were included under the 'Other Computer Related Services' NAICS code for this contract?

The NAICS code 541519, 'Other Computer Related Services,' is a broad category encompassing a wide range of IT support activities not classified under more specific codes. For this contract, 'Other Computer Related Services' likely included a combination of IT consulting, systems integration, network management, cybersecurity support, software maintenance, and potentially help desk or technical support for the IRS's critical online functions. The specific services would have been detailed in the contract's Statement of Work (SOW). Given the 'critical functions' aspect, these services were essential for ensuring the availability, reliability, and security of the IRS's online platforms, which could include tax filing portals, taxpayer communication systems, or internal operational software.

What are the key risk indicators associated with a firm-fixed-price contract for critical IT functions?

Key risk indicators for a firm-fixed-price (FFP) contract, especially for critical IT functions, include the potential for the contractor to cut corners on quality to maintain profitability if costs exceed estimates, or conversely, for the government to pay a premium if the contractor's initial bid was excessively high due to perceived risks. Scope creep is another significant risk; if requirements change or expand beyond the initial SOW, managing those changes under an FFP contract can lead to disputes or costly change orders. Furthermore, if the contractor lacks the necessary technical expertise or resources, they may struggle to deliver the required critical functions, leading to service disruptions. The government also bears the risk if unforeseen technical challenges arise that were not anticipated during the bidding process.

How does the contract duration of 475 days impact the assessment of value for money?

A contract duration of 475 days (approximately 15.6 months) for critical IT services suggests a medium-term engagement. For value-for-money assessment, this duration allows for a reasonable period to implement, manage, and potentially see the results of the IT services. It's long enough to establish a working relationship and achieve project milestones but not so long as to lock the government into potentially outdated technology or unfavorable terms. Shorter durations might indicate a need for rapid deployment or a specific, time-bound project, while longer durations could suggest ongoing operational support. The value is assessed by whether the services delivered over this period justify the $60.2M cost, considering the criticality and complexity of the functions supported.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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

Solicitation ID: TTN 4184

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

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: $273,279,782

Exercised Options: $222,757,900

Current Obligation: $60,256,646

Actual Outlays: $10,948,333

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TIRNO11D00011

IDV Type: IDC

Timeline