Commerce's USPTO Awards $23.5M for IT Security Operations to Booz Allen Hamilton

Contract Overview

Contract Amount: $23,551,245 ($23.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Commerce

Start Date: 2024-03-30

End Date: 2026-10-31

Contract Duration: 945 days

Daily Burn Rate: $24.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: INFORMATION TECHNOLOGY DEVELOPMENTAL SECURITY OPERATIONS SUPPORT SERVICES

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Commerce obligated $23.6 million to BOOZ ALLEN HAMILTON INC for work described as: INFORMATION TECHNOLOGY DEVELOPMENTAL SECURITY OPERATIONS SUPPORT SERVICES Key points: 1. Contract awarded to Booz Allen Hamilton for IT Security Operations. 2. Significant value of $23.55 million over its period of performance. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract falls within the Computer Systems Design Services sector.

Value Assessment

Rating: good

The contract's value of $23.55 million for 945 days of service appears reasonable given the scope of IT developmental security operations support. Benchmarking against similar large-scale IT service contracts suggests this pricing is within expected ranges for specialized security support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, maximizing the value of taxpayer funds allocated to this essential IT security function.

Public Impact

Ensures the security of critical IT systems for the U.S. Patent and Trademark Office. Supports the ongoing development and operational security of government digital infrastructure. Contributes to the protection of sensitive intellectual property data.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for scope creep in developmental security operations.
  • Reliance on a single contractor for critical security functions.
  • Ensuring continued innovation and adaptation to evolving threats.

Positive Signals

  • Awarded through full and open competition.
  • Clear period of performance with defined end date.
  • Supports a critical government function (IT security).

Sector Analysis

This contract falls under the IT sector, specifically Computer Systems Design Services. Spending in this area is substantial across government agencies, driven by the need for robust cybersecurity and system development to support agency missions.

Small Business Impact

While awarded through full and open competition, the data does not indicate specific set-asides for small businesses. Larger contracts like this often involve prime contractors who may then subcontract to smaller firms, but direct small business participation is not evident here.

Oversight & Accountability

The contract's duration and value suggest it will be subject to standard government oversight mechanisms. Regular performance reviews and financial audits are expected to ensure accountability and adherence to contract terms.

Related Government Programs

  • Computer Systems Design Services
  • Department of Commerce Contracting
  • U.S. Patent and Trademark Office Programs

Risk Flags

  • Potential for vendor lock-in.
  • Labor hour pricing can lead to cost overruns if not managed.
  • Ensuring continuous adaptation to evolving cyber threats.
  • Dependence on a single contractor for critical security functions.

Tags

computer-systems-design-services, department-of-commerce, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $23.6 million to BOOZ ALLEN HAMILTON INC. INFORMATION TECHNOLOGY DEVELOPMENTAL SECURITY OPERATIONS 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 Commerce (U.S. Patent and Trademark Office).

What is the total obligated amount?

The obligated amount is $23.6 million.

What is the period of performance?

Start: 2024-03-30. End: 2026-10-31.

What specific metrics will be used to evaluate the effectiveness of the developmental security operations support provided by Booz Allen Hamilton?

Effectiveness will likely be measured through a combination of performance metrics, including incident response times, vulnerability remediation rates, security posture assessments, and successful implementation of new security protocols. The contract should detail specific KPIs and reporting requirements to ensure objective evaluation of the contractor's performance against defined security objectives.

What is the potential risk of vendor lock-in given the long-term nature and specialized services of this contract?

There is a moderate risk of vendor lock-in due to the specialized nature of developmental security operations and the contract's duration. To mitigate this, the USPTO should ensure clear exit strategies, knowledge transfer requirements, and maintain flexibility to transition services if necessary. Regular market research and performance reviews can also help prevent over-reliance.

How does the pricing structure, based on labor hours, ensure cost-effectiveness and prevent potential overruns?

The labor hour pricing structure allows for flexibility in adapting to evolving security needs but carries a risk of cost overruns if not managed tightly. Effective oversight, detailed task orders, and regular budget reviews are crucial. The government should establish clear ceilings and monitor labor categories and hours diligently to ensure cost-effectiveness and prevent unnecessary expenditures.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSIT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1333BJ24Q00280042

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

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: $23,851,245

Exercised Options: $23,551,245

Current Obligation: $23,551,245

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $19,673,772

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 1333BJ21D00280001

IDV Type: IDC

Timeline

Start Date: 2024-03-30

Current End Date: 2026-10-31

Potential End Date: 2028-10-31 00:00:00

Last Modified: 2026-03-16

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