Booz Allen Hamilton awarded $26M contract for custom computer programming services by U.S. Cyber Command

Contract Overview

Contract Amount: $26,082,036 ($26.1M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2023-03-17

End Date: 2026-03-16

Contract Duration: 1,095 days

Daily Burn Rate: $23.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: WINTERSHADOW - CDS

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $26.1 million to BOOZ ALLEN HAMILTON INC for work described as: WINTERSHADOW - CDS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can carry higher risk of cost overruns. 3. The duration of 1095 days indicates a significant, long-term need for these services. 4. The contract is a definitive contract, suggesting a well-defined scope of work. 5. The awardee, Booz Allen Hamilton, is a large, established government contractor. 6. The services fall under Custom Computer Programming, a critical area for defense operations.

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns. However, the fixed fee component provides some cost control. Comparing to similar custom programming contracts within the Department of Defense would be necessary for a more precise value assessment. The total award amount of $26M over three years suggests a significant investment in specialized IT services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that while the competition was open, specific sources may have been excluded prior to the final award. The number of bidders is not specified, but the 'full and open' designation generally implies a robust competitive environment, which should theoretically lead to better pricing and value for the government.

Taxpayer Impact: A competitive bidding process, even with exclusions, is generally favorable for taxpayers as it encourages multiple vendors to offer their best pricing and solutions, potentially reducing overall costs.

Public Impact

U.S. Cyber Command benefits from enhanced custom computer programming capabilities. The services delivered are critical for national cybersecurity and defense operations. The geographic impact is primarily within Maryland, where the contractor is located. The contract supports specialized IT workforce needs within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize their fee, potentially leading to higher overall spending than anticipated.
The 'after exclusion of sources' clause in the competition type warrants further investigation into the rationale for excluding specific bidders, which could impact the breadth of competition.
Lack of detailed performance metrics in the provided data makes it difficult to assess the effectiveness and efficiency of the services being procured.

Positive Signals

Awarded through full and open competition, indicating a broad search for qualified vendors.
Booz Allen Hamilton is a reputable contractor with extensive experience in government IT services.
The contract addresses a critical need for custom programming within U.S. Cyber Command, suggesting strategic alignment with defense objectives.

Sector Analysis

This contract falls within the broader Information Technology (IT) sector, specifically focusing on custom computer programming services. The market for such services within the federal government is substantial, driven by the continuous need for specialized software development, system integration, and cybersecurity solutions. Comparable spending benchmarks would involve analyzing other contracts for similar programming services awarded to large system integrators by defense agencies.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses. Therefore, the primary impact will be on large system integrators, and subcontracting opportunities for small businesses would depend on Booz Allen Hamilton's internal subcontracting strategy, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Defense and U.S. Cyber Command. Accountability measures are inherent in the Cost Plus Fixed Fee structure, with the fixed fee contingent on meeting contract requirements. Transparency is facilitated through contract databases like FPDS, though detailed performance reports are often not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense IT Services Contracts
Cybersecurity Services Contracts
Custom Software Development Contracts
U.S. Cyber Command Procurement

Risk Flags

Cost Plus Fixed Fee contract type carries inherent cost overrun risk.
Competition type 'Full and Open Competition After Exclusion of Sources' requires scrutiny of exclusion rationale.
Lack of detailed performance metrics limits assessment of value for money.
Contract duration of three years necessitates ongoing monitoring for evolving requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.1 million to BOOZ ALLEN HAMILTON INC. WINTERSHADOW - CDS

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 $26.1 million.

What is the period of performance?

Start: 2023-03-17. End: 2026-03-16.

What is the historical spending pattern of the U.S. Cyber Command on custom computer programming services?

Analyzing historical spending patterns for U.S. Cyber Command on custom computer programming services requires access to detailed procurement data over several fiscal years. Generally, defense agencies like Cyber Command have shown a consistent and increasing investment in IT services, including custom programming, due to the evolving nature of cyber threats and the need for advanced technological capabilities. This specific $26M contract represents a significant, but not necessarily unprecedented, investment. To provide a precise historical context, one would need to aggregate data on similar contracts awarded by Cyber Command, looking at the total dollar value, number of awards, and types of services procured over the past 5-10 years to identify trends and budget allocations.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or is expected to evolve, requiring flexibility. In this structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers less cost certainty for the government, as costs can exceed initial estimates. However, it provides more flexibility than FFP. Compared to Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF), CPFF offers a more predictable fee structure, as the fee is fixed regardless of cost performance, unlike CPIF/CPAF where the fee can be adjusted based on performance against targets. For custom programming, FFP might be preferred if requirements are very stable, but CPFF is common when innovation or adaptation is key.

What is Booz Allen Hamilton's track record with similar government IT contracts?

Booz Allen Hamilton is a major government contractor with a substantial track record in providing IT and cybersecurity services to various federal agencies, including the Department of Defense. They frequently win large, complex contracts for systems engineering, software development, and IT modernization. Their performance history on similar contracts is generally characterized by extensive experience and capability in handling large-scale projects. However, like many large contractors, they have also faced scrutiny and past performance issues on specific contracts, which are typically detailed in government performance evaluations. A thorough assessment would involve reviewing their past performance ratings, any contract disputes, and the successful delivery of comparable services to agencies like Cyber Command.

What are the potential risks associated with this specific contract award?

Potential risks associated with this contract include cost overruns inherent in the CPFF structure, where the government bears the risk of increased costs. There's also a risk related to the 'after exclusion of sources' aspect of the competition, which could imply that the full spectrum of potential solutions or cost savings was not realized if the exclusions were not fully justified. Furthermore, the complexity of custom computer programming means there's a risk of schedule delays or the delivered product not fully meeting evolving operational requirements. Finally, contractor performance risk, though mitigated by Booz Allen Hamilton's experience, always exists, especially in highly specialized cyber domains.

How does this contract align with the strategic goals of U.S. Cyber Command?

This contract directly aligns with the strategic goals of U.S. Cyber Command, which is tasked with defending Department of Defense networks, conducting cyber warfare, and ensuring information superiority in cyberspace. Custom computer programming services are essential for developing and maintaining the sophisticated tools, platforms, and analytical capabilities required to achieve these objectives. Whether it's for enhancing threat detection, improving network defense mechanisms, developing new cyber operational tools, or supporting intelligence analysis, tailored software solutions are critical. The award to a major IT services provider like Booz Allen Hamilton suggests a focus on acquiring advanced, specialized capabilities to meet the Command's mission requirements in a rapidly evolving cyber landscape.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MC LEAN, 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: $39,161,765

Exercised Options: $26,136,213

Current Obligation: $26,082,036

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline