DOD CIO cybersecurity contract awarded to Booz Allen Hamilton for over $9.5M, spanning 18 months

Contract Overview

Contract Amount: $9,526,096 ($9.5M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2025-05-12

End Date: 2026-11-11

Contract Duration: 548 days

Daily Burn Rate: $17.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: DOD CIO CYBERSECURITY PLANNING, POLICY, STRATEGY, TECHNOLOGY, AND WORKFORCE

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 $9.5 million to BOOZ ALLEN HAMILTON INC for work described as: DOD CIO CYBERSECURITY PLANNING, POLICY, STRATEGY, TECHNOLOGY, AND WORKFORCE Key points: 1. Contract focuses on critical cybersecurity planning, policy, strategy, technology, and workforce development for the DOD CIO. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract duration of 548 days (approx. 18 months) indicates a medium-term engagement for strategic support. 4. The primary service category is 'All Other Professional, Scientific, and Technical Services,' a broad classification. 5. This award represents a portion of the broader federal spending on cybersecurity, a growing area of investment. 6. The contract is a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of $9.5M over 18 months appears reasonable for specialized cybersecurity planning and strategy services. Benchmarking against similar large-scale cybersecurity support contracts for federal agencies suggests this is within expected ranges. The use of labor hours for a professional services contract allows for flexibility in resource allocation, but requires careful monitoring to ensure efficiency and prevent cost overruns. Without specific task breakdowns and labor rates, a precise value-for-money assessment is challenging, but the overall scale aligns with the complexity of DOD's cybersecurity needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This method typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The specific number of bidders is not provided, but the open competition suggests a robust process aimed at achieving the best value for the government. This approach is generally favored for significant contracts to ensure a wide range of capabilities are considered and to drive down costs through market forces.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and access to a broader array of innovative solutions. This process helps ensure that government funds are used efficiently by leveraging the competitive nature of the market.

Public Impact

The Department of Defense CIO's office will directly benefit from enhanced cybersecurity planning, policy, and strategy. The contract supports the development and implementation of advanced cybersecurity technologies and workforce capabilities. Geographic impact is primarily centered in Washington D.C., where the agency is located, but the cybersecurity strategies will have a nationwide effect on DOD operations. Workforce implications include potential for specialized cybersecurity professionals to be engaged, both within the contractor and potentially within the agency through knowledge transfer.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Broad service category ('All Other Professional, Scientific, and Technical Services') could mask specific cost drivers or performance metrics.
Lack of specific details on the number of bidders or the competitive range makes it difficult to fully assess price discovery.
The contract is a Delivery Order, which relies on the terms of a potentially older IDIQ contract; its value is dependent on the underlying vehicle's terms.
Performance metrics and specific deliverables are not detailed in the provided data, making it hard to gauge success criteria.
The contract's focus on 'planning, policy, strategy' might have less immediate, tangible outcomes compared to direct implementation contracts.

Positive Signals

Awarded through full and open competition, indicating a commitment to competitive sourcing.
The contract addresses a critical national security need: cybersecurity for the Department of Defense.
Booz Allen Hamilton is a well-established contractor with significant experience in government IT and cybersecurity services.
The contract duration suggests a strategic, long-term focus on improving DOD's cybersecurity posture.
The award is a Delivery Order, which implies it was issued under an existing, likely pre-competed, IDIQ contract, potentially streamlining the acquisition process.

Sector Analysis

The cybersecurity services market is a rapidly growing and critical sector within the broader IT services industry. Federal spending on cybersecurity has seen consistent increases due to evolving threats and the digitization of government operations. This contract fits within the segment of strategic advisory and planning services, supporting the development of foundational cybersecurity frameworks. Comparable spending benchmarks for large federal cybersecurity support contracts often range from tens to hundreds of millions of dollars annually, depending on scope and duration. This $9.5M award is a significant, but not exceptionally large, investment for specialized strategic support within a major agency like the DOD.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, small businesses are unlikely to be direct prime contractors on this award. However, large prime contractors like Booz Allen Hamilton often utilize small business subcontractors to fulfill specific needs or meet subcontracting goals. The extent of small business participation will depend on the subcontracting plan developed by the prime contractor, which is not detailed here. Without specific subcontracting information, the direct impact on the small business ecosystem is limited to potential subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's internal contracting and program management offices. The specific agency is Washington Headquarters Services (WHS), which manages various support functions for the DOD. Accountability measures would be defined in the contract's statement of work and performance standards. Transparency is facilitated through contract databases like FPDS, where basic award information is published. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

DOD Cybersecurity Strategy
Federal Information Security Modernization Act (FISMA) Compliance
Cybersecurity Workforce Development Programs
DOD IT Modernization Initiatives
National Cybersecurity Strategy

Risk Flags

Broad Service Category
Lack of Specific Bidder Count
Delivery Order Under IDIQ
Performance Metrics Not Detailed

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.5 million to BOOZ ALLEN HAMILTON INC. DOD CIO CYBERSECURITY PLANNING, POLICY, STRATEGY, TECHNOLOGY, AND WORKFORCE

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 $9.5 million.

What is the period of performance?

Start: 2025-05-12. End: 2026-11-11.

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

Booz Allen Hamilton has a long and extensive history of providing a wide range of services, including cybersecurity, IT modernization, and strategic planning, to the Department of Defense and other federal agencies. They are a major incumbent contractor across numerous DOD programs. Their track record includes managing large, complex contracts involving policy development, technology implementation, and workforce strategy. While specific performance metrics for past DOD cybersecurity contracts are not publicly detailed in this award notice, Booz Allen's consistent presence and significant contract awards suggest a generally positive performance history and strong client relationships within the DOD. However, like any large contractor, they have also faced scrutiny and reviews on specific contracts over the years, underscoring the importance of ongoing performance monitoring.

How does the $9.5M value compare to other cybersecurity planning and strategy contracts awarded by the DOD CIO?

The $9.5 million value for an 18-month contract focused on cybersecurity planning, policy, strategy, and workforce for the DOD CIO is substantial but falls within a common range for such specialized, high-level support. Larger, more comprehensive cybersecurity initiatives, especially those involving significant technology deployment or extensive operational support, can easily reach tens or hundreds of millions of dollars. However, contracts focused purely on strategic planning, policy development, and workforce analysis, like this one appears to be, are often valued in the single-digit to low double-digit millions. Given the critical nature of the DOD CIO's role in setting enterprise-wide cybersecurity direction, this award reflects a significant investment in strategic guidance, consistent with the agency's needs and the contractor's expertise.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include the potential for scope creep, where the project expands beyond its original objectives, leading to cost overruns and schedule delays. Another risk is the contractor's ability to keep pace with the rapidly evolving cybersecurity threat landscape and technological advancements, potentially delivering outdated strategies. Performance risk also exists, where the delivered strategies may not be effectively implemented or achieve the desired security improvements. Mitigation strategies typically involve robust contract management, clearly defined deliverables and performance metrics, regular progress reviews, and strong government oversight. The use of labor hours, while flexible, requires diligent monitoring of effort to ensure efficiency. The contractor's experience and the competitive award process are intended to mitigate risks related to capability and cost.

How effective is the 'full and open competition' approach likely to be in ensuring value for this specific cybersecurity contract?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer dollars, as it maximizes the pool of potential offerors and encourages competitive pricing and innovation. For a contract focused on strategic cybersecurity planning, policy, and workforce, this approach allows the DOD CIO to solicit proposals from a wide range of highly qualified firms, potentially uncovering unique approaches or cost-saving methodologies. The effectiveness hinges on the clarity of the solicitation (RFP), the evaluation criteria, and the number and quality of bids received. If multiple strong proposals are submitted, the government is well-positioned to negotiate favorable terms and select the offeror that provides the best overall value, balancing technical merit with cost.

What are the historical spending patterns for cybersecurity planning and policy support within the DOD, and how does this contract fit?

The Department of Defense has consistently allocated significant resources towards cybersecurity, with spending increasing year-over-year due to escalating threats and the critical need to protect military networks and data. Historical spending patterns show a substantial portion dedicated to technology acquisition, but also considerable investment in strategic planning, policy development, and advisory services. Contracts for high-level strategic support, like the one awarded to Booz Allen Hamilton, are a recurring component of this spending. This $9.5 million award fits within the established pattern of investing in expert guidance to shape the DOD's overall cybersecurity posture, complementing investments in hardware, software, and personnel. It represents a focused allocation towards the foundational elements of cybersecurity governance.

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: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: LABOR HOURS (Z)

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: $51,741,857

Exercised Options: $16,342,766

Current Obligation: $9,526,096

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $2,571,340

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ003424D0012

IDV Type: IDC

Timeline