Booz Allen Hamilton awarded $45.4M for cybersecurity research and analysis by the Department of Defense

Contract Overview

Contract Amount: $45,444,898 ($45.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2021-01-15

End Date: 2026-05-31

Contract Duration: 1,962 days

Daily Burn Rate: $23.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT

Sector: Other

Official Description: CYBERSECURITY RESEARCH AND ANALYSIS

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 $45.4 million to BOOZ ALLEN HAMILTON INC for work described as: CYBERSECURITY RESEARCH AND ANALYSIS Key points: 1. Contract value represents a significant investment in advanced cybersecurity capabilities. 2. The fixed-price contract with economic price adjustment suggests potential for cost fluctuations. 3. A long performance period indicates a sustained need for these specialized services. 4. The award was made under full and open competition, implying a robust bidding process. 5. The contractor, Booz Allen Hamilton, is a well-established player in the federal contracting space. 6. This contract falls under 'All Other Professional, Scientific, and Technical Services', a broad category.

Value Assessment

Rating: good

The contract value of $45.4 million over its period of performance appears reasonable for specialized cybersecurity research and analysis services. Benchmarking against similar contracts for advanced technical services in the defense sector would provide a more precise value-for-money assessment. The fixed-price with economic price adjustment (FPEPA) structure allows for some cost flexibility, which can be beneficial in research environments where unforeseen expenses may arise, but also introduces a degree of risk regarding final cost escalation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of a single award suggests that Booz Allen Hamilton was selected as the most advantageous offer based on the evaluation criteria. The level of competition, while not explicitly detailed in terms of the number of bidders, is generally expected to drive competitive pricing and ensure the government receives a strong value proposition.

Taxpayer Impact: Full and open competition typically leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.

Public Impact

The Department of Defense benefits from enhanced cybersecurity research and analytical capabilities, crucial for national security. Services delivered are expected to bolster the agency's understanding and defense against evolving cyber threats. The primary geographic impact is within the District of Columbia, where Washington Headquarters Services is located. This contract supports highly skilled technical and analytical jobs within the cybersecurity domain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Economic price adjustment clause could lead to costs exceeding initial projections.
Long performance period increases exposure to potential scope creep or changing requirements.
Reliance on a single contractor for critical cybersecurity research may pose a concentration risk.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Contractor is a large, experienced firm with a significant federal footprint.
Fixed-price element provides some cost certainty for a portion of the contract.

Sector Analysis

The cybersecurity sector is a rapidly growing and critical area within the broader professional, scientific, and technical services industry. Federal spending in this domain has seen consistent increases due to escalating cyber threats. This contract, valued at over $45 million, represents a substantial investment within this sector, likely contributing to research and development of advanced defense mechanisms and threat intelligence. Comparable spending benchmarks would typically be found within large-scale IT and defense research contracts.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, the prime contractor, Booz Allen Hamilton, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though large prime contractors often engage small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices, specifically within Washington Headquarters Services. Accountability measures are inherent in the contract's performance requirements and delivery schedules. Transparency is facilitated through federal contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Cybersecurity Services
Research and Development
Professional, Scientific, and Technical Services
Department of Defense IT Spending
National Security Contracts

Risk Flags

Potential for cost escalation due to Economic Price Adjustment.
Long performance period increases risk of changing requirements or obsolescence.
Broad NAICS code requires careful monitoring of contract scope.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.4 million to BOOZ ALLEN HAMILTON INC. CYBERSECURITY RESEARCH AND ANALYSIS

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 (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $45.4 million.

What is the period of performance?

Start: 2021-01-15. End: 2026-05-31.

What is Booz Allen Hamilton's track record with the Department of Defense for similar cybersecurity contracts?

Booz Allen Hamilton has a long and extensive history of contracting with the Department of Defense (DoD) across a wide range of services, including cybersecurity, IT, intelligence analysis, and management consulting. They are a major federal contractor with significant experience in complex defense programs. For cybersecurity-specific contracts with the DoD, they have been awarded numerous awards over the years, often in the hundreds of millions or even billions of dollars cumulatively, covering areas such as threat analysis, network defense, security operations, and research. Their performance history with the DoD is generally characterized by a high volume of work and a deep understanding of military requirements, though like any large contractor, specific contract performance can vary. Reviewing past performance evaluations and contract close-out reports for specific DoD cybersecurity awards would provide a more granular understanding of their success on similar engagements.

How does the $45.4 million contract value compare to typical cybersecurity research and analysis spending within the DoD?

The $45.4 million contract value for cybersecurity research and analysis is a substantial but not extraordinary amount within the context of the Department of Defense's overall budget. The DoD spends billions annually on cybersecurity initiatives, encompassing everything from hardware and software procurement to advanced research, development, and operational support. Contracts for specialized research and analysis, particularly those involving cutting-edge threats and sophisticated methodologies, can range from tens to hundreds of millions of dollars. This specific award appears to be a significant, multi-year investment focused on a particular area of cybersecurity expertise. To provide a precise benchmark, one would need to compare it against the average value and duration of other DoD contracts specifically categorized under 'cybersecurity research and analysis' or similar technical service codes over the past few fiscal years.

What are the primary risks associated with a fixed-price contract with economic price adjustment (FPEPA) for research services?

A Fixed-Price with Economic Price Adjustment (FPEPA) contract for research services presents a mixed risk profile. For the government, the primary risk is cost escalation. While the base price is fixed, the economic price adjustment clause allows for increases based on specific economic indicators (e.g., inflation, labor cost index changes). This means the final cost could exceed the initially projected $45.4 million, especially over a multi-year period where economic conditions can fluctuate significantly. For the contractor, the risk lies in accurately forecasting costs and managing the impact of economic changes. If the economic adjustments do not fully cover their increased costs, their profit margin could be eroded. Effective oversight is crucial to ensure that any price adjustments are justified according to the contract's terms and do not represent excessive profit.

What does the 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) classification imply about the scope of this contract?

The classification under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' indicates a broad scope for this contract. This category is a catch-all for services that do not fit into more specific professional, scientific, or technical service classifications. For cybersecurity research and analysis, this could encompass a wide array of activities, such as advanced threat modeling, vulnerability assessment methodologies, policy analysis, simulation development, forensic research, or specialized scientific consulting related to cyber defense. The broad nature suggests flexibility in the contract's requirements, allowing it to adapt to evolving research needs within the cybersecurity domain. However, it also means that the specific deliverables and focus areas are defined primarily by the contract's statement of work rather than the NAICS code itself.

What is the significance of the contract's long duration (ending May 2026)?

The contract's extended duration, with an end date of May 31, 2026, signifies a long-term strategic need for the cybersecurity research and analysis services being provided. A duration of over five years (from the start date of January 15, 2021) suggests that the Department of Defense views this work as critical and ongoing, rather than a short-term project. This extended period allows for deeper research, development of more complex solutions, and sustained support. For the contractor, it provides a stable revenue stream and the opportunity to build significant expertise in the contracted area. However, a long duration also increases the government's exposure to potential risks such as technological obsolescence, changes in strategic priorities, or contractor performance issues over time. Robust oversight and regular performance reviews are essential to manage these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ003418R0002

Offers Received: 1

Pricing Type: FIXED PRICE WITH ECONOMIC PRICE ADJUSTMENT (K)

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: $52,206,389

Exercised Options: $51,693,044

Current Obligation: $45,444,898

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $1,044,847

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HQ003418D0017

IDV Type: IDC

Timeline