DoD's $46.7M Cyber Security Consolidation contract awarded to Booz Allen Hamilton for IT services

Contract Overview

Contract Amount: $46,685,203 ($46.7M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2019-09-26

End Date: 2022-02-24

Contract Duration: 882 days

Daily Burn Rate: $52.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CYBER SECURITY CONSOLIDATION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $46.7 million to BOOZ ALLEN HAMILTON INC for work described as: CYBER SECURITY CONSOLIDATION Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract value of $46.7M over approximately 2.4 years indicates significant investment in cyber security. 3. Fixed-price contract type may offer cost certainty for the government. 4. The 'Other Computer Related Services' NAICS code points to a broad scope of IT support. 5. Awarded by the Defense Information Systems Agency (DISA), a key player in DoD IT infrastructure. 6. The contract duration of 882 days suggests a medium-term project. 7. The absence of small business set-aside indicates a focus on larger, established prime contractors.

Value Assessment

Rating: good

The contract value of $46.7M for approximately 2.4 years of cyber security services appears reasonable given the scope and the prime contractor's expertise. Benchmarking against similar large-scale cyber security consolidation efforts within the Department of Defense would provide a more precise value-for-money assessment. The firm-fixed-price structure helps manage cost overruns, but the overall value is contingent on the effective delivery of services and achievement of consolidation goals.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely invited to submit proposals. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency sought the best value through this competitive process.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of potential contractors to bid, driving down prices and improving the quality of services received, ultimately leading to more efficient use of public funds.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, which will receive consolidated and potentially enhanced cyber security services. The services delivered are expected to improve the overall cyber defense posture of the DoD, protecting critical information and systems. The geographic impact is likely nationwide, supporting DoD operations across various locations, with a concentration in the District of Columbia. The contract supports a significant workforce, both within Booz Allen Hamilton and potentially its subcontractors, in the field of cyber security and IT services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if consolidation leads to over-reliance on a single provider.
Risk of scope creep if the definition of 'cyber security consolidation' is not tightly managed.
Dependence on contractor performance for critical national security functions.
Challenges in integrating diverse cyber security systems and processes.
Ensuring adequate knowledge transfer and documentation for future sustainment.

Positive Signals

Award to a well-established contractor with a strong track record in defense IT.
Firm-fixed-price contract provides cost predictability.
Consolidation efforts can lead to greater efficiency and reduced redundancy.
Full and open competition suggests a robust selection process.
Focus on cyber security is critical for national defense.

Sector Analysis

The cyber security sector within the federal government is a rapidly growing and critical area, driven by increasing threats. This contract fits within the broader IT services market, specifically focusing on specialized cyber security solutions. The federal IT services market is substantial, with significant annual spending. This contract represents a portion of the DoD's investment in maintaining a secure digital infrastructure, comparable to other large-scale IT modernization and security initiatives across various agencies.

Small Business Impact

This contract was not awarded as a small business set-aside, and the prime contractor, Booz Allen Hamilton, is a large business. This suggests that the primary focus was on securing the capabilities of a large, experienced firm. There is no explicit information on subcontracting plans for small businesses within the provided data. The impact on the small business ecosystem would depend on whether Booz Allen Hamilton actively seeks small business partners for specialized services or components of this consolidation effort.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) contracting officers and program managers. Performance monitoring, adherence to contract terms, and quality assurance are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

DoD Cyber Security Initiatives
Defense Information Technology Modernization
Federal Information Security Management Act (FISMA) Compliance
IT Services for National Security
Cybersecurity Operations Support

Risk Flags

Potential for vendor lock-in
Risk of scope creep
Dependence on contractor performance
Integration challenges
Need for robust oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.7 million to BOOZ ALLEN HAMILTON INC. CYBER SECURITY CONSOLIDATION

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 Information Systems Agency).

What is the total obligated amount?

The obligated amount is $46.7 million.

What is the period of performance?

Start: 2019-09-26. End: 2022-02-24.

What is Booz Allen Hamilton's track record with similar large-scale cyber security consolidation contracts for the Department of Defense?

Booz Allen Hamilton has a long-standing and extensive history of supporting the Department of Defense (DoD) across a wide range of IT and cyber security services. They have been involved in numerous large-scale contracts, including those focused on network modernization, system integration, and cyber defense. While specific 'consolidation' contracts of this exact nature may vary, their experience in managing complex IT environments, implementing security protocols, and integrating disparate systems positions them as a capable contractor. Their past performance on similar, albeit not identical, projects would be a key factor in the DoD's decision-making process, likely assessed through past performance evaluations during the solicitation phase. Detailed performance metrics from previous DoD cyber contracts would offer further insight into their capabilities and reliability.

How does the $46.7M contract value compare to other cyber security consolidation efforts within the DoD or other federal agencies?

The $46.7M contract value for approximately 2.4 years of cyber security consolidation services falls within a moderate range for large federal IT procurements. Cyber security spending across the federal government, particularly within the Department of Defense, can range from tens of millions to billions of dollars annually, depending on the scope and complexity. Consolidation efforts, by their nature, often involve significant investment to achieve economies of scale and streamline operations. Compared to major IT modernization programs or enterprise-wide security overhauls, this contract's value appears proportionate. However, a precise benchmark requires comparing it to contracts with similar objectives, such as integrating multiple security platforms, consolidating security operations centers, or unifying threat intelligence across a specific DoD component or agency. Without more granular data on comparable consolidation projects, it's challenging to definitively state if it represents exceptional value or is on the higher end.

What are the primary risks associated with consolidating cyber security services under a single contract and contractor?

Consolidating cyber security services under a single contract and contractor presents several key risks. Firstly, there's the risk of 'vendor lock-in,' where the government becomes overly dependent on the awarded contractor, making it difficult and costly to switch providers or adopt new technologies independently. Secondly, a single point of failure could emerge; if the contractor experiences performance issues, security breaches, or financial instability, the entire cyber security posture of the affected DoD components could be compromised. Thirdly, there's the potential for reduced innovation if the contractor's solutions become entrenched and less adaptable to evolving threats or new technological advancements. Finally, managing such a large and critical contract requires robust oversight to prevent scope creep, ensure accountability, and maintain competitive pressure, which can be resource-intensive for the government.

What specific cyber security functions or capabilities are likely included in this 'consolidation' effort?

Given the 'Cyber Security Consolidation' title and the NAICS code 'Other Computer Related Services,' this contract likely encompasses a broad range of activities aimed at streamlining and unifying the DoD's cyber defenses. This could include consolidating disparate security operations centers (SOCs) into a more centralized or federated model, integrating various security information and event management (SIEM) systems, unifying threat intelligence platforms, and standardizing endpoint detection and response (EDR) solutions. It may also involve consolidating identity and access management (IAM) systems, vulnerability management processes, and incident response protocols across different DoD entities. The goal is typically to reduce redundancy, improve efficiency, enhance visibility into the threat landscape, and enable faster, more coordinated responses to cyber incidents.

How does the firm-fixed-price (FFP) contract type influence the risk and cost management for this cyber security consolidation?

The firm-fixed-price (FFP) contract type is generally favored by the government for services where the scope of work is well-defined and unlikely to change significantly. For this cyber security consolidation contract, an FFP structure provides the DoD with a high degree of cost certainty, as the contractor assumes most of the risk for cost overruns. This means Booz Allen Hamilton is obligated to perform the work for the agreed-upon price, regardless of their actual costs. While this benefits the government by preventing unexpected budget increases, it places a greater burden on the contractor to accurately estimate costs and manage resources efficiently. If the scope is not perfectly defined or unforeseen technical challenges arise, the contractor might face reduced profit margins or even losses, potentially impacting their motivation or ability to deliver the highest quality service.

What is the significance of the Defense Information Systems Agency (DISA) awarding this contract?

The Defense Information Systems Agency (DISA) is a combat support agency responsible for providing, operating, and defending U.S. military information networks. Awarding this cyber security consolidation contract underscores DISA's central role in managing and securing the DoD's vast and complex IT infrastructure. It indicates that DISA is likely leading or heavily involved in efforts to standardize, integrate, and enhance cyber defenses across various DoD components. This contract aligns with DISA's mission to deliver secure and resilient enterprise IT services and capabilities, suggesting a strategic initiative to improve the overall cyber resilience and operational effectiveness of the DoD's digital domain.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HC102815R0030

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $73,878,388

Exercised Options: $46,833,318

Current Obligation: $46,685,203

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102818D0006

IDV Type: IDC

Timeline