DOJ's $25M INFOSEC contract to Booz Allen Hamilton shows fair value, but limited competition raises concerns

Contract Overview

Contract Amount: $24,915,274 ($24.9M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Justice

Start Date: 2010-06-30

End Date: 2018-09-29

Contract Duration: 3,013 days

Daily Burn Rate: $8.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: LABOR HOURS

Sector: IT

Official Description: INFORMATION SECURITY (INFOSEC) SUPPORT SERVICES

Place of Performance

Location: STERLING, LOUDOUN County, VIRGINIA, 20166

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $24.9 million to BOOZ ALLEN HAMILTON INC for work described as: INFORMATION SECURITY (INFOSEC) SUPPORT SERVICES Key points: 1. Value for money appears reasonable given the duration and scope of services. 2. Competition was limited, potentially impacting price discovery and taxpayer savings. 3. Contract duration and labor hour pricing present moderate risk. 4. Services are critical for national security and law enforcement operations. 5. This contract falls within the IT services sector, specifically cybersecurity. 6. Booz Allen Hamilton has a significant track record with federal contracts.

Value Assessment

Rating: good

The contract's total value of approximately $24.9 million over eight years suggests a moderate annual spend. Benchmarking against similar IT support services contracts indicates that the pricing, while not explicitly detailed per unit, is within a reasonable range for the complexity and duration of the services provided. The lack of detailed cost breakdowns makes a precise value-for-money assessment challenging, but the overall expenditure appears justified by the critical nature of information security support for the DEA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. While the data shows 12 offers were received, the specific number of bidders that actively participated and submitted final proposals is not detailed. A competitive process like this generally leads to better price discovery and ensures the government receives the best value. However, the ultimate impact on price depends on the intensity of the competition among the bidders.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government isn't overpaying for services. It also promotes innovation by allowing a wider range of contractors to compete for government work.

Public Impact

The primary beneficiaries are the Drug Enforcement Administration (DEA) and the Department of Justice (DOJ), receiving essential information security support. Services delivered include protecting sensitive data, networks, and systems critical to law enforcement operations. The geographic impact is primarily within the United States, supporting DEA field offices and headquarters. The contract supports a workforce skilled in cybersecurity and IT support, contributing to the federal IT labor market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of 8 years (3013 days) could lead to vendor lock-in and reduced flexibility.
Labor hour pricing can sometimes lead to cost overruns if not managed tightly.
Reliance on a single large contractor like Booz Allen Hamilton may limit opportunities for smaller, specialized firms.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Booz Allen Hamilton is a well-established contractor with extensive experience in federal IT services.
The contract supports critical national security and law enforcement functions.

Sector Analysis

The Information Security (INFOSEC) Support Services contract falls within the broader IT services sector, specifically focusing on cybersecurity. This sector is characterized by high demand due to increasing cyber threats. The market size for federal cybersecurity services is substantial, with agencies like the DOJ and DEA investing heavily to protect sensitive data and critical infrastructure. This contract represents a significant portion of spending for specialized IT support within the DEA, aligning with government-wide efforts to enhance cybersecurity posture.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates no small business subcontracting was mandated or reported. The award to a large prime contractor like Booz Allen Hamilton means that opportunities for small businesses to directly participate in this specific contract are limited. However, large contractors often engage small businesses as subcontractors on larger prime contracts, though the extent of this is not detailed here. The absence of a specific small business set-aside or subcontracting plan might limit the direct infusion of federal dollars into the small business IT ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the DEA and DOJ. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Justice IT Support Services
DEA Information Technology Contracts
Federal Cybersecurity Services
IT Professional Services
Management and Consulting Services

Risk Flags

Long contract duration
Labor hour pricing model
Potential for limited competition impact

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $24.9 million to BOOZ ALLEN HAMILTON INC. INFORMATION SECURITY (INFOSEC) 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 Justice (Drug Enforcement Administration).

What is the total obligated amount?

The obligated amount is $24.9 million.

What is the period of performance?

Start: 2010-06-30. End: 2018-09-29.

What is Booz Allen Hamilton's track record with federal INFOSEC contracts?

Booz Allen Hamilton has a long and extensive history of securing and performing federal contracts, particularly in the IT and cybersecurity domains. They are a major incumbent contractor across numerous government agencies, including the Department of Defense, Intelligence Community, and civilian agencies like the DOJ. Their track record includes managing large-scale IT infrastructure, providing advanced cybersecurity solutions, and offering strategic consulting services. While their experience is vast, it's important to note that like any large contractor, they have faced scrutiny and reviews regarding contract performance and pricing on specific awards. For this particular DOJ contract, their established presence suggests a deep understanding of the agency's needs and a capacity to deliver complex services.

How does the value of this contract compare to similar INFOSEC support services?

The total contract value of approximately $24.9 million over eight years equates to an average annual spend of roughly $3.1 million. This figure appears moderate when benchmarked against other large federal contracts for comprehensive IT and cybersecurity support services. Contracts for similar scope and duration, especially those involving advanced threat detection, network defense, and sensitive data protection for agencies with high-security requirements like the DEA, can range from several million to tens of millions of dollars annually. The value here seems reasonable, reflecting the ongoing need for specialized expertise in safeguarding critical information assets, though a more granular comparison would require detailed service level agreements and specific deliverables.

What are the primary risks associated with this contract?

The primary risks associated with this contract include vendor lock-in due to the long duration (8 years), which can limit the government's ability to adapt to new technologies or switch providers if performance issues arise. The labor-hour pricing model presents a risk of cost escalation if work hours are not efficiently managed or if the scope of work expands unexpectedly. Furthermore, the reliance on a single large contractor for critical INFOSEC support could pose a risk if the contractor experiences significant operational disruptions or fails to maintain adequate staffing levels with the necessary expertise. Finally, the potential for performance degradation over a long contract period, despite initial success, is an inherent risk.

How effective has Booz Allen Hamilton been in delivering INFOSEC services for the DOJ?

Assessing the specific effectiveness of Booz Allen Hamilton's delivery on this particular DOJ contract requires access to performance evaluations, contractor performance assessment reporting (CPAR) data, and potentially Inspector General reports, which are not publicly detailed in the provided data. However, given the contract's duration and renewal (implied by the start and end dates spanning 8 years), it suggests a level of satisfactory performance that allowed the contract to continue. Booz Allen Hamilton's general reputation in the federal IT and cybersecurity space is that of a capable provider, but effectiveness can vary significantly by contract, team, and evolving agency needs. Without specific performance metrics, a definitive judgment on effectiveness remains qualitative.

What are the historical spending patterns for INFOSEC support services at the DEA?

Historical spending patterns for INFOSEC support services at the DEA, and by extension the DOJ, have generally shown a consistent and increasing trend over the years, mirroring government-wide priorities to bolster cybersecurity capabilities. Agencies like the DEA handle vast amounts of sensitive data related to investigations and operations, making robust information security paramount. Spending in this area typically covers a range of services including network security, data encryption, threat intelligence, incident response, and compliance. The $24.9 million awarded over eight years represents a sustained investment, indicating that the DEA views INFOSEC support as a critical and ongoing requirement rather than a one-time expenditure. This aligns with broader federal IT spending trends focused on modernization and defense against evolving cyber threats.

What is the impact of limited competition on taxpayer value for this contract?

While the contract was awarded under 'full and open competition,' the number of actual bidders and the intensity of that competition are key factors in determining taxpayer value. If only a few companies were truly competitive or if the bidding process lacked robust engagement, it could lead to suboptimal pricing. Limited competition, even within a full and open framework, can reduce the pressure on contractors to offer their lowest possible prices, potentially resulting in higher costs for taxpayers than if a more crowded field of bidders had vied for the contract. This underscores the importance of encouraging broad participation in federal contracting opportunities to ensure the best possible value is achieved.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: DJD-10-R-0003

Offers Received: 12

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)

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: $29,176,520

Exercised Options: $28,174,159

Current Obligation: $24,915,274

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline