DoD's $95M Cyber Command IT Services Contract Awarded to Booz Allen Hamilton

Contract Overview

Contract Amount: $95,325,683 ($95.3M)

Contractor: Booz Allen Hamilton Inc.

Awarding Agency: Department of Defense

Start Date: 2020-11-18

End Date: 2025-11-17

Contract Duration: 1,825 days

Daily Burn Rate: $52.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: LABOR FOR COMPUTER SERVICE

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $95.3 million to BOOZ ALLEN HAMILTON INC. for work described as: LABOR FOR COMPUTER SERVICE Key points: 1. Contract focuses on critical computer programming services for cyber operations. 2. Awarded via full and open competition, suggesting a robust bidding process. 3. Long-term contract duration (5 years) indicates a sustained need for these services. 4. Cost-plus-fixed-fee structure allows for flexibility but requires careful oversight. 5. Booz Allen Hamilton, a large incumbent, likely possesses significant institutional knowledge. 6. No small business set-aside, raising questions about broader economic impact. 7. Geographic concentration in Maryland aligns with defense sector hubs.

Value Assessment

Rating: fair

The contract's value of $95.3 million over five years for custom computer programming services is substantial. Benchmarking this against similar IT service contracts within the Department of Defense is challenging without more granular data on the specific services rendered. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex IT projects, can lead to cost overruns if not managed tightly. The absence of a specific per-unit cost makes direct value-for-money assessment difficult, relying instead on overall project delivery and performance.

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 bids. The solicitation process likely involved a detailed request for proposals (RFP) and a thorough evaluation of technical capabilities, past performance, and price. While the number of bidders (10) is provided, the level of competition and its impact on price discovery would depend on the quality and diversity of the proposals received.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. It ensures that the government explores a wide range of solutions and contractors, potentially leading to better value.

Public Impact

The primary beneficiary is the U.S. Cyber Command, receiving essential IT services to support national security operations. Services delivered include custom computer programming, crucial for developing and maintaining cyber defense and offense capabilities. Geographic impact is concentrated in Maryland, a key hub for defense and intelligence agencies. Workforce implications include the potential for high-skilled IT jobs, primarily supporting Booz Allen Hamilton's operations in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize contractors to increase costs to maximize profit, necessitating robust oversight.
Long-term nature of the contract may reduce flexibility to adapt to rapidly changing cyber threats or technologies.
Concentration of significant cyber command IT services with a single large contractor could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a strong offer.
Booz Allen Hamilton is a well-established contractor with extensive experience in defense and IT services.
The contract duration indicates a stable, long-term requirement, allowing for focused development and support.

Sector Analysis

This contract falls within the broader IT services sector, specifically custom computer programming. The federal government is a major consumer of these services, particularly the Department of Defense, which requires advanced capabilities for cybersecurity and information warfare. The market for these services is highly competitive, with large system integrators and specialized IT firms vying for contracts. Booz Allen Hamilton is a significant player in this space, often competing for and winning large-scale government IT and consulting contracts.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. This means that large businesses were eligible to compete and were likely the primary awardees. While the prime contractor may engage small businesses as subcontractors, the lack of a direct set-aside means there's no guaranteed portion of the contract dedicated to small business participation. This could limit opportunities for smaller, specialized firms to directly contribute to this specific cyber command requirement.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee (CPFF) contract will be critical. The Department of Defense's contracting officers and technical representatives will be responsible for monitoring costs, ensuring performance standards are met, and approving any changes. The contract's duration and complexity necessitate regular reviews and audits to ensure compliance and prevent cost overruns. Transparency will be maintained through contract reporting mechanisms, though specific details of performance metrics and cost breakdowns may be sensitive due to national security implications.

Related Government Programs

Department of Defense IT Services
Cybersecurity Support Contracts
Custom Software Development Services
IT Professional Services
Defense Information Systems Agency (DISA) Contracts

Risk Flags

Cost Overrun Risk (CPFF structure)
Technological Obsolescence (long duration)
Performance Dependency (single large contractor)
Limited Small Business Participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $95.3 million to BOOZ ALLEN HAMILTON INC.. LABOR FOR COMPUTER SERVICE

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 (U.S. Cyber Command).

What is the total obligated amount?

The obligated amount is $95.3 million.

What is the period of performance?

Start: 2020-11-18. End: 2025-11-17.

What is Booz Allen Hamilton's track record with similar Department of Defense IT service contracts?

Booz Allen Hamilton has a long and extensive history of contracting with the Department of Defense (DoD) for a wide array of IT and professional services. They are a major incumbent across many defense agencies, including significant work in cyber operations, intelligence analysis, and systems integration. Their track record includes numerous large-scale, multi-year contracts similar in scope and complexity to this one. While generally considered a reliable performer, like any large contractor, they have faced scrutiny on specific contracts regarding cost management and performance metrics. However, their sustained presence and continued awards suggest a generally positive relationship and perceived capability within the DoD.

How does the $95.3 million value compare to other custom computer programming services contracts within the DoD?

The $95.3 million value for this 5-year contract (averaging approximately $19 million annually) is substantial but falls within the typical range for large-scale IT services supporting major defense commands. The DoD procures billions of dollars in IT services annually, with many individual contracts exceeding this amount, particularly those involving complex system development, integration, and cybersecurity. For custom computer programming specifically, contracts can range from a few million for niche projects to hundreds of millions for enterprise-wide solutions. This contract's value suggests a significant, ongoing requirement for specialized programming expertise critical to U.S. Cyber Command's mission.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for cyber services?

The primary risk with a CPFF contract, especially for complex and evolving fields like cyber services, is the potential for cost overruns. While the 'fixed fee' provides the contractor with a defined profit margin, the 'cost plus' element means the government pays the actual allowable costs incurred. If the scope is not well-defined, or if unforeseen technical challenges arise (common in cyber), costs can escalate significantly. This structure can incentivize contractors to incur higher costs, as their fee is a percentage of or fixed amount on top of those costs. Effective government oversight, rigorous cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure value for taxpayer money.

How might the long duration (5 years) impact the effectiveness of cyber services provided?

A long contract duration, such as the 5 years for this cyber services contract, offers both potential benefits and risks. Positively, it allows for continuity of operations, deep institutional knowledge development by the contractor, and long-term strategic planning for cyber capabilities. This stability can be crucial for complex systems. However, the rapid pace of technological change and the evolving threat landscape in cybersecurity pose a significant risk. A 5-year commitment might lock the government into specific technologies or approaches that become outdated or less effective over time. Flexibility within the contract to adapt to new threats, incorporate emerging technologies, and potentially re-compete or modify services mid-term is essential to maintain effectiveness.

What does the 'Custom Computer Programming Services' NAICS code (541511) typically encompass in a defense context?

The North American Industry Classification System (NAICS) code 541511, 'Custom Computer Programming Services,' in a defense context typically refers to services that involve writing, modifying, testing, and supporting software to meet the specific needs of the U.S. Cyber Command. This can include developing new applications from scratch, customizing existing software packages, integrating different software systems, and providing ongoing maintenance and updates. For Cyber Command, this likely translates to developing specialized tools for network defense, threat analysis, intelligence gathering, operational planning, and potentially offensive cyber capabilities. It is distinct from off-the-shelf software procurement or general IT support.

What is the significance of the contract being awarded in Maryland (ST: MD, SN: MARYLAND)?

The contract being awarded and likely performed in Maryland is highly significant given the state's concentration of federal defense and intelligence agencies. Maryland hosts numerous major installations and headquarters for the Department of Defense, including the National Security Agency (NSA) and U.S. Cyber Command itself. Awarding IT services contracts to companies operating within this geographic hub facilitates closer collaboration, communication, and oversight between the government client and the contractor. It also aligns with the existing ecosystem of defense contractors and cleared personnel prevalent in the Maryland/Virginia/DC region, potentially streamlining recruitment and operations.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Offers Received: 10

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 308 SENTINEL DR, ANNAPOLIS JUNCTION, MD, 20701

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $103,783,707

Exercised Options: $99,134,836

Current Obligation: $95,325,683

Actual Outlays: $59,470,419

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline