Booz Allen Hamilton contract for USCYBERCOM training support exceeds $60M over four years

Contract Overview

Contract Amount: $60,383,026 ($60.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: General Services Administration

Start Date: 2017-09-29

End Date: 2021-11-28

Contract Duration: 1,521 days

Daily Burn Rate: $39.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: TO SUPPORT THE USCYBERCOMS DIRECTORATE OF JOINT EXERCISES AND TRAINING (J7) MISSION TO DEVELOP, ADMINISTER, VALIDATE, AND ASSESS CYBERSPACE TRAINING AND EXERCISES, AND CYBER MISSION FORCE (CMF) CERTIFICATION AND PROFICIENCY STANDARDS.

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $60.4 million to BOOZ ALLEN HAMILTON INC for work described as: TO SUPPORT THE USCYBERCOMS DIRECTORATE OF JOINT EXERCISES AND TRAINING (J7) MISSION TO DEVELOP, ADMINISTER, VALIDATE, AND ASSESS CYBERSPACE TRAINING AND EXERCISES, AND CYBER MISSION FORCE (CMF) CERTIFICATION AND PROFICIENCY STANDARDS. Key points: 1. Contract provides critical support for cyberspace training and exercise development. 2. Full and open competition suggests a robust bidding process. 3. Delivery order structure indicates task-based execution within a larger framework. 4. Cost Plus Fixed Fee (CPFF) pricing model requires careful monitoring of costs. 5. Contract duration of over four years allows for sustained mission support. 6. Focus on Cyber Mission Force certification highlights a key national security need.

Value Assessment

Rating: good

The contract's value of approximately $60.4 million over 1521 days (roughly 4.17 years) for custom computer programming services appears reasonable given the critical nature of supporting USCYBERCOM's training and certification missions. While specific benchmarks for this niche service are difficult to ascertain without more granular data, the duration and scope suggest a significant undertaking. The CPFF structure, while common for complex services, necessitates diligent oversight to ensure costs remain aligned with the fixed fee and overall value delivered.

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 approach generally fosters competitive pricing and encourages innovation. The presence of two bidders, as indicated by the data, suggests a degree of competition, though understanding the specific number of proposals received and their relative strengths would provide a clearer picture of the competitive landscape.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and ensures the government receives the best value for its investment in critical cybersecurity training infrastructure.

Public Impact

USCYBERCOM's Directorate of Joint Exercises and Training (J7) directly benefits from enhanced mission support. Services delivered include the development, administration, validation, and assessment of cyberspace training and exercises. The contract supports the certification and proficiency standards for the Cyber Mission Force (CMF). Geographic impact is primarily within the operational domain of USCYBERCOM, with potential implications for national cybersecurity readiness. Workforce implications include the need for specialized cybersecurity and training expertise, likely involving highly skilled personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can incentivize contractors to increase costs to maximize profit if not adequately managed.
The broad scope of 'Custom Computer Programming Services' requires clear definition of deliverables to avoid scope creep.
Reliance on a single contractor for critical training development over several years could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded favorable pricing.
Contract directly supports a critical national security mission for USCYBERCOM, indicating strategic importance.
Long-term duration allows for sustained development and improvement of training programs and standards.

Sector Analysis

This contract falls within the IT services sector, specifically custom computer programming and IT support for defense agencies. The market for cybersecurity services, particularly those supporting military training and readiness, is substantial and highly specialized. This contract represents a significant investment in maintaining and enhancing the nation's cyber defense capabilities, aligning with broader government spending trends in defense IT and cybersecurity.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract likely requiring extensive resources and specialized expertise, it may involve significant subcontracting opportunities for small businesses within the IT and cybersecurity domains. However, without specific subcontracting plans or performance data, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the General Services Administration (GSA) and USCYBERCOM. The CPFF structure necessitates rigorous financial and performance oversight to ensure adherence to the fixed fee and prevent cost overruns. Transparency is generally maintained through contract reporting mechanisms, though specific details of oversight activities are not publicly detailed.

Related Government Programs

USCYBERCOM Operations Support
Cybersecurity Training and Simulation
Defense IT Services
Custom Software Development for Government
Cyber Mission Force Readiness

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing requires diligent oversight to manage potential cost overruns.
Scope definition for custom programming services needs to be precise to avoid creep.
Long-term reliance on a single contractor can pose performance risks if not managed.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $60.4 million to BOOZ ALLEN HAMILTON INC. TO SUPPORT THE USCYBERCOMS DIRECTORATE OF JOINT EXERCISES AND TRAINING (J7) MISSION TO DEVELOP, ADMINISTER, VALIDATE, AND ASSESS CYBERSPACE TRAINING AND EXERCISES, AND CYBER MISSION FORCE (CMF) CERTIFICATION AND PROFICIENCY STANDARDS.

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $60.4 million.

What is the period of performance?

Start: 2017-09-29. End: 2021-11-28.

What is the historical spending trend for similar cybersecurity training and exercise support contracts awarded by USCYBERCOM or related defense agencies?

Analyzing historical spending trends for similar contracts is crucial for benchmarking. While specific data for this contract shows an award of approximately $60.4 million over four years, a broader analysis would involve examining previous contracts for USCYBERCOM's J7 directorate or comparable entities. Factors like contract duration, scope of services (e.g., simulation development, exercise planning, certification support), and pricing models (e.g., CPFF, FFP, T&M) would be key comparison points. For instance, if previous, comparable contracts were significantly lower in value or duration, it might indicate an increase in scope, market rates, or a shift in strategic priorities. Conversely, if spending has been consistently high, it suggests a sustained and critical need for these services. Without access to a comprehensive database of historical defense IT contracts, a precise trend analysis is challenging, but generally, spending in cybersecurity and specialized training has been increasing due to evolving threats.

How does the per-unit cost or overall value of this contract compare to industry benchmarks for custom computer programming and cybersecurity training services?

Determining a precise per-unit cost benchmark for this contract is complex due to its broad scope and specialized nature. The total award of $60.4 million over approximately 1521 days translates to roughly $40,000 per day. However, 'per-unit' could refer to many things: cost per training module developed, cost per exercise simulated, or cost per certification standard validated. Given the 'Custom Computer Programming Services' NAICS code (541511), industry benchmarks often focus on hourly rates or project-based pricing. For highly specialized cybersecurity and defense-related IT services, hourly rates can range significantly, often from $150 to over $300 per hour, depending on skill set and security clearance requirements. If we assume a team of 50 highly skilled personnel working 8 hours a day at an average loaded rate of $200/hour, the daily cost would be $80,000, suggesting the $40,000/day figure might be on the lower end or that the team size is smaller, or the CPFF structure is yielding efficiencies. A direct comparison is difficult without granular task breakdowns and market research specific to defense cyber training.

What are the key performance indicators (KPIs) used to measure the success and effectiveness of the services provided under this contract?

While the provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract, typical metrics for supporting USCYBERCOM's Directorate of Joint Exercises and Training (J7) would likely focus on the quality, timeliness, and impact of the developed training and exercises. These could include: 1) **Training Effectiveness:** Measured through post-exercise evaluations, participant feedback, and demonstrated improvements in cyber skills proficiency among trainees. 2) **Exercise Realism and Relevance:** Assessed by the fidelity of simulations, the alignment of exercise scenarios with current and emerging cyber threats, and the ability to stress-test CMF capabilities. 3) **Certification Standards Adherence:** Ensuring that training and exercises directly contribute to meeting and validating the Cyber Mission Force (CMF) certification and proficiency standards. 4) **Deliverable Timeliness:** Meeting deadlines for the development and delivery of training materials, exercise plans, and assessment reports. 5) **System Performance:** For any software or simulation tools developed, metrics would include uptime, reliability, and user satisfaction. The Cost Plus Fixed Fee (CPFF) structure implies that performance against these KPIs would be closely monitored to ensure the contractor meets contractual obligations within the agreed-upon fee.

What is the track record of Booz Allen Hamilton in delivering similar complex IT and cybersecurity support services to the Department of Defense?

Booz Allen Hamilton has a long-standing and extensive track record of providing a wide array of services to the Department of Defense (DoD) and other federal agencies, including complex IT, cybersecurity, intelligence analysis, and strategic consulting. They are a major incumbent contractor across numerous defense programs. For services similar to those required by USCYBERCOM's J7, such as developing training simulations, supporting exercise planning, and enhancing cyber readiness, Booz Allen has consistently demonstrated capability. Their experience spans various branches of the military and defense agencies, often involving large-scale, high-stakes projects. While specific performance details for every contract are not always public, their continued success in winning and executing large defense contracts suggests a generally positive track record. However, like any large contractor, they may have faced past performance reviews or challenges on specific projects, which would be detailed in more comprehensive contract databases or agency performance records.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) pricing structure for this contract, and how are they mitigated?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract is the potential for the contractor to incur costs that exceed the target cost, while the government is obligated to pay the actual costs incurred plus a pre-determined fixed fee. This can lead to cost overruns if not managed effectively. For the contractor, the risk lies in not accurately estimating costs, potentially reducing their profit margin if actual costs are significantly higher than anticipated. For the government, the risk is paying higher-than-expected costs. Mitigation strategies are crucial and typically include: 1) **Robust Oversight:** Contracting officers and CORs must diligently monitor the contractor's spending, ensuring costs are reasonable, allocable, and allowable. 2) **Clear Scope Definition:** Precisely defining the work requirements and deliverables helps prevent scope creep, which can drive up costs. 3) **Regular Audits:** Financial audits of the contractor's incurred costs provide an independent verification. 4) **Performance Metrics:** Linking fee or award incentives to achieving specific performance targets can align contractor and government interests. 5) **Negotiated Target Costs:** The initial target cost should be based on thorough analysis and realistic estimates.

Industry Classification

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

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

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: $62,730,845

Exercised Options: $62,730,845

Current Obligation: $60,383,026

Subaward Activity

Number of Subawards: 32

Total Subaward Amount: $9,042,111

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q16AJD0001

IDV Type: IDC

Timeline