DoD's $55M IT contract for R&D in exploitation and assurance awarded to Booz Allen Hamilton

Contract Overview

Contract Amount: $54,935,109 ($54.9M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2017-09-29

End Date: 2021-11-29

Contract Duration: 1,522 days

Daily Burn Rate: $36.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST NO FEE

Sector: IT

Official Description: IGF::OT::IGF RESEARCH AND DEVELOPMENT OF ENTERPRISE EXPLOITATION AND INFORMATION ASSURANCE (E2IA)

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $54.9 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF RESEARCH AND DEVELOPMENT OF ENTERPRISE EXPLOITATION AND INFORMATION ASSURANCE (E2IA) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1522 days indicates a significant, long-term project. 3. Focus on enterprise exploitation and information assurance points to critical cybersecurity needs. 4. The award was a delivery order under a larger contract, implying a phased approach. 5. The contract value of $54.9M represents a substantial investment in R&D. 6. The contractor, Booz Allen Hamilton, is a well-established entity in the defense IT sector.

Value Assessment

Rating: good

The contract value of $54.9 million for R&D in enterprise exploitation and information assurance appears reasonable given the specialized nature of the work and the contractor's expertise. Benchmarking against similar R&D contracts in cybersecurity and information assurance is challenging due to the unique focus on 'exploitation'. However, the Cost No Fee (CNF) contract type suggests that the contractor bears some financial risk, which can be a positive indicator of value. The duration of over four years also suggests a complex and potentially high-impact project.

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 a bid. The specific number of bidders is not provided, but the 'full and open' designation generally implies a robust competitive environment. This approach is designed to foster price discovery and ensure the government receives the best possible value by considering a wide range of potential contractors.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining competitive pricing and innovative solutions, potentially leading to cost savings and improved service delivery.

Public Impact

The Department of Defense is the primary beneficiary, receiving advanced R&D for critical information assurance capabilities. Services delivered include research and development focused on enterprise exploitation and information assurance, enhancing national security. The geographic impact is primarily within the defense sector, with potential applications across various military branches and intelligence agencies. Workforce implications may include specialized roles for researchers, cybersecurity analysts, and engineers within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific metrics for R&D success makes it difficult to assess performance outcomes.
The 'exploitation' aspect of the R&D could raise ethical or operational concerns if not properly managed.
Reliance on a single large contractor for such a critical R&D area might limit future flexibility.

Positive Signals

Awarded through full and open competition, suggesting a fair and competitive process.
Booz Allen Hamilton has a strong track record in defense contracting and cybersecurity.
The contract addresses a critical need for advanced information assurance capabilities.
The Cost No Fee (CNF) contract type can indicate a willingness by the contractor to invest in the project's success.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on research and development for cybersecurity and information assurance. The market for cybersecurity R&D is substantial and growing, driven by increasing cyber threats. Comparable spending benchmarks are difficult to pinpoint due to the specialized nature of 'enterprise exploitation and information assurance,' but significant government investment in cybersecurity R&D is common across defense and intelligence agencies. This contract represents a targeted investment in advanced capabilities within this critical domain.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. The prime contractor, Booz Allen Hamilton, is a large business. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem for this specific award is likely minimal, though large prime contractors often engage small businesses for specialized support on broader contracts.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by 'sa: Defense Contract Management Agency'. Accountability measures are inherent in the contract terms, performance requirements, and payment schedules. Transparency is generally maintained through contract databases and reporting requirements, although specific R&D details might be sensitive. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse related to the contract.

Related Government Programs

Cybersecurity Research and Development Programs
Information Assurance Initiatives
Defense Intelligence Agency Contracts
National Security Agency Contracts
Advanced Technology Development Contracts

Risk Flags

R&D Project Scope Ambiguity
Cybersecurity Exploitation Risks
Technological Obsolescence
Contractor Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $54.9 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF RESEARCH AND DEVELOPMENT OF ENTERPRISE EXPLOITATION AND INFORMATION ASSURANCE (E2IA)

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $54.9 million.

What is the period of performance?

Start: 2017-09-29. End: 2021-11-29.

What is Booz Allen Hamilton's track record with similar Department of Defense R&D contracts?

Booz Allen Hamilton has a long and extensive history of performing research and development (R&D) and IT services for the Department of Defense (DoD). They are a major contractor across various defense agencies, including the Army, Navy, Air Force, and intelligence community. Their portfolio includes work in areas such as cybersecurity, systems engineering, data analytics, and advanced technology development. While specific R&D contracts for 'enterprise exploitation and information assurance' are not detailed here, their general experience suggests a strong capability to handle complex, high-stakes research projects. Their past performance on numerous large-scale DoD contracts indicates a deep understanding of military requirements and operational environments, making them a frequent choice for critical R&D initiatives.

How does the $54.9 million contract value compare to other DoD R&D investments in cybersecurity?

The $54.9 million contract value for this specific R&D effort in enterprise exploitation and information assurance is a significant but not extraordinary amount for the Department of Defense. The DoD invests billions annually in R&D, with a substantial portion allocated to cybersecurity and information assurance due to the persistent and evolving threat landscape. For instance, the DoD's R&D budget often includes hundreds of millions, if not billions, for cybersecurity-related initiatives across various programs and research areas. This contract represents a focused investment in a particular niche of cybersecurity R&D. When compared to broader cybersecurity R&D programs or platform-specific security enhancements, $54.9 million is a mid-to-large size award, reflecting the specialized and potentially cutting-edge nature of the work.

What are the primary risks associated with this type of R&D contract?

The primary risks associated with this type of R&D contract, particularly one focused on 'enterprise exploitation and information assurance,' are multifaceted. Firstly, R&D inherently carries a risk of technical failure or the inability to achieve desired outcomes within the projected timeline and budget. The specific focus on 'exploitation' could also introduce operational or ethical risks if the developed capabilities are misused or fall into the wrong hands. Contractor performance risk is also present; while Booz Allen Hamilton is experienced, the complexity of the R&D could still lead to delays or cost overruns. Furthermore, the rapid evolution of technology in cybersecurity means that the developed solutions could become obsolete quickly, diminishing their long-term value. Finally, ensuring adequate oversight and control over potentially sensitive R&D outcomes is a critical risk management consideration.

How effective is the 'Cost No Fee' (CNF) contract type in ensuring program effectiveness for R&D?

The 'Cost No Fee' (CNF) contract type, while less common for pure R&D, can be an interesting mechanism for ensuring program effectiveness, particularly when the government wants to incentivize contractor investment and risk-sharing. In a CNF contract, the contractor is reimbursed for allowable costs but receives no fee or profit. This structure strongly motivates the contractor to control costs and deliver the project efficiently, as any cost overruns directly impact their bottom line. For R&D, this can encourage innovation and a focus on achieving tangible results that justify the incurred costs. However, it can also disincentivize contractors from pursuing highly ambitious or speculative research where the probability of success is low, as there is no profit to offset the risk. The effectiveness hinges on the contractor's commitment to the project's mission beyond just profit motive and the government's ability to monitor costs and progress closely.

What are the historical spending patterns for Computer Systems Design Services (NAICS 541512) within the Department of Defense?

The Department of Defense (DoD) is a significant spender on Computer Systems Design Services (NAICS 541512), reflecting its vast and complex IT infrastructure and evolving technological needs. Historical spending patterns show a consistent and substantial demand for these services, encompassing areas like system design, integration, IT consulting, and cybersecurity solutions. The DoD frequently awards large contracts in this category, often through competitive bidding processes, to support its global operations, intelligence gathering, and modernization efforts. Spending in this area has generally trended upwards over the years, driven by increasing cyber threats, the need for advanced data analytics, cloud migration, and the development of new defense systems. Contracts can range from small, specialized tasks to multi-billion dollar enterprise-wide IT modernization programs.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST NO FEE (S)

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: $71,427,681

Exercised Options: $71,427,681

Current Obligation: $54,935,109

Actual Outlays: $409,521

Subaward Activity

Number of Subawards: 32

Total Subaward Amount: $3,806,077

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: GS00Q09BGD0019

IDV Type: GWAC

Timeline