Booz Allen Hamilton awarded $9.8M contract for cyberspace operations support to 318th Cyber Operations Group

Contract Overview

Contract Amount: $9,827,461 ($9.8M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2024-06-01

End Date: 2026-05-31

Contract Duration: 729 days

Daily Burn Rate: $13.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENVIRONMENT OPERATIONS SUPPORT TO THE 318TH CYBERSPACE OPERATIONS GROUP OPERATING OL-B, JOINT INFORMATION OPERATIONS

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $9.8 million to BOOZ ALLEN HAMILTON INC for work described as: ENVIRONMENT OPERATIONS SUPPORT TO THE 318TH CYBERSPACE OPERATIONS GROUP OPERATING OL-B, JOINT INFORMATION OPERATIONS Key points: 1. Contract value appears reasonable for specialized IT support services. 2. Full and open competition suggests a competitive bidding process. 3. Potential risks include contractor performance and evolving cyber threats. 4. This contract supports critical cyber operations within the Department of Defense. 5. The services fall under IT and professional services sectors. 6. Contract duration of two years provides a stable support period.

Value Assessment

Rating: good

The contract value of approximately $9.8 million over two years for specialized cyberspace operations support appears to be within a reasonable range for the services described. Benchmarking against similar IT support contracts for cyber units within the Department of Defense would provide a more precise value-for-money assessment. However, given the niche nature of cyber operations, the pricing is likely competitive due to the full and open competition.

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 number of bidders is not specified, but this procurement method generally fosters price discovery and encourages competitive pricing. The agency likely sought to maximize value by allowing a broad range of qualified contractors to participate.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible price for essential cyberspace operations support.

Public Impact

The 318th Cyberspace Operations Group benefits from enhanced operational capabilities. Services delivered include crucial support for cyber operations. The geographic impact is primarily within the operational domain of the 318th C.O.G. Workforce implications include the potential for specialized IT and cyber personnel to be engaged.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined.
Dependence on a single contractor for critical cyber operations support.
Risk of evolving cyber threats outpacing contractor capabilities.

Positive Signals

Award to a well-established contractor with a track record in defense IT.
Full and open competition suggests a robust selection process.
Fixed-price contract type can help control costs.

Sector Analysis

This contract falls within the Information Technology (IT) and professional services sector, specifically focusing on cyber operations support. The market for such specialized services is robust, driven by increasing cyber threats and the need for advanced defense capabilities. Comparable spending benchmarks for IT support in defense operations are substantial, with significant investments made annually across various agencies for cybersecurity and cyber warfare readiness.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement for this award (ss: false, sb: false). While Booz Allen Hamilton is a large business, there may be opportunities for small businesses to participate as subcontractors, depending on the specific service requirements and the prime contractor's subcontracting plan. The impact on the small business ecosystem would be indirect unless specific subcontracting goals are established.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Information Systems Agency (DISA) and the 318th Cyberspace Operations Group. Accountability measures are typically embedded within the contract's performance work statement and delivery schedules. Transparency is facilitated through contract award databases, though detailed operational performance metrics may not be publicly disclosed for security reasons. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Cybersecurity Services
IT Operations and Maintenance
Information Technology Professional Services
Defense Cyber Operations
Cloud Computing Services
Network Support Services

Risk Flags

Contractor Performance Risk
Cyber Threat Evolution
Data Security and Integrity
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.8 million to BOOZ ALLEN HAMILTON INC. ENVIRONMENT OPERATIONS SUPPORT TO THE 318TH CYBERSPACE OPERATIONS GROUP OPERATING OL-B, JOINT INFORMATION OPERATIONS

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 $9.8 million.

What is the period of performance?

Start: 2024-06-01. End: 2026-05-31.

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

Booz Allen Hamilton Inc. has a significant and extensive track record of providing IT, cybersecurity, and management consulting services to the Department of Defense (DoD) and various intelligence agencies. They are a prime contractor on numerous large-scale contracts supporting military operations, including cyber warfare, intelligence analysis, and systems engineering. Their history includes supporting various cyber commands and units, demonstrating a deep understanding of the DoD's operational requirements and security protocols. While specific performance details for individual contracts are often not public, their continued success in winning competitive bids for complex defense IT programs suggests a generally positive performance history and strong client relationships within the DoD.

How does the $9.8 million contract value compare to similar cyberspace operations support contracts?

The $9.8 million contract value for two years of cyberspace operations support is within a typical range for specialized IT services supporting military units. Contracts for similar functions, such as network operations, cybersecurity, and IT system maintenance for specialized groups within the DoD, can range from a few million to tens of millions of dollars annually, depending on the scope, complexity, and duration. Given that this contract is for the 318th Cyberspace Operations Group, a unit focused on specific cyber missions, the value suggests a focused scope of work rather than broad enterprise-wide IT support. Full and open competition further supports the likelihood that the price is competitive for the services rendered.

What are the primary risks associated with this contract for the Department of Defense?

The primary risks associated with this contract include potential contractor performance issues, where Booz Allen Hamilton may not meet the required service levels or technical specifications, impacting the 318th Cyberspace Operations Group's mission readiness. Another significant risk is the rapidly evolving nature of cyber threats; the contractor's ability to adapt and provide cutting-edge solutions may be challenged. There's also a risk of over-reliance on a single contractor for critical functions, which could create vulnerabilities if the contractor faces disruptions. Finally, ensuring the security and integrity of sensitive data handled under this contract is paramount, with breaches posing significant national security risks.

How effective is full and open competition in ensuring value for taxpayer money in IT support contracts?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in IT support contracts. By allowing all responsible sources to bid, it fosters a competitive environment where contractors are incentivized to offer their best technical solutions at the most competitive prices to win the contract. This process helps prevent price gouging and encourages innovation as companies strive to differentiate themselves. While it requires more upfront effort in terms of solicitation and evaluation, the long-term benefits of potentially lower costs, higher quality services, and a wider pool of innovative solutions typically outweigh these initial investments, leading to better overall value for taxpayers.

What is the historical spending trend for cyberspace operations support within the Department of Defense?

Historical spending trends within the Department of Defense for cyberspace operations support have shown a consistent and significant increase over the past decade. This upward trend is driven by the escalating complexity of cyber threats, the growing reliance on digital infrastructure for military operations, and the strategic importance placed on cyber warfare capabilities. Budgets allocated to cyber defense, intelligence, and operations have grown substantially, reflecting a national security priority. Contracts like this one, supporting specific operational groups, are part of a larger, multi-billion dollar ecosystem of spending dedicated to maintaining and advancing the DoD's cyber posture.

What are the implications of this contract being a Firm Fixed Price (FFP) award?

A Firm Fixed Price (FFP) contract type, like the one awarded to Booz Allen Hamilton, places the primary responsibility for cost control on the contractor. This means the contractor agrees to a set price for the defined scope of work, and their profit is determined by their ability to manage costs effectively. For the government, FFP contracts offer the most price certainty and help mitigate the risk of cost overruns, making budgeting more predictable. However, it can also incentivize contractors to cut corners if not carefully monitored, and it may limit flexibility if the scope of work needs to change significantly, potentially requiring contract modifications.

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 › IT AND TELECOM - NETWORK

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

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: $39,148,560

Exercised Options: $12,099,596

Current Obligation: $9,827,461

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $5,546,893

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102818D0006

IDV Type: IDC

Timeline