Booz Allen Hamilton awarded $24.3M for NSA CSFC support, a significant investment in R&D for national security

Contract Overview

Contract Amount: $24,263,968 ($24.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2016-04-14

End Date: 2022-04-13

Contract Duration: 2,190 days

Daily Burn Rate: $11.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF CONTRACT/ORDER NO. W15P7T-14-D-A210/KY05 PROGRAM: NATIONAL SECURITY AGENCY-GOVERNMENT OFF THE SHELF (NSA-GOTS) COMMERCIAL SOLUTIONS FOR CLASSIFIED (CSFC) SUPPORT

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $24.3 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF CONTRACT/ORDER NO. W15P7T-14-D-A210/KY05 PROGRAM: NATIONAL SECURITY AGENCY-GOVERNMENT OFF THE SHELF (NSA-GOTS) COMMERCIAL SOLUTIONS FOR CLASSIFIED (CSFC) SUPPORT Key points: 1. Contract awarded to a single, large incumbent contractor, raising questions about potential lack of competition. 2. Significant duration of the contract (6 years) suggests a long-term need for these specialized services. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed tightly. 4. Focus on 'Commercial Solutions for Classified' indicates a need for advanced, adaptable technology in a sensitive area. 5. The contract falls under Research and Development, a sector often characterized by evolving requirements and potential for innovation. 6. Geographic concentration in Maryland suggests a focus on a key national security hub.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Fixed Fee structure, while common for R&D, carries inherent risks of cost escalation. The total award amount of $24.3 million over six years averages to approximately $4 million annually, which may be reasonable for specialized national security R&D, but requires further scrutiny of the services delivered and the efficiency of their execution.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is a positive indicator for price discovery. However, the data does not specify the number of bidders or the extent of the competitive process. A full and open competition theoretically allows any interested party to bid, but the ultimate outcome depends on the specific requirements and the pool of qualified contractors.

Taxpayer Impact: A full and open competition, when robustly executed with multiple bidders, generally leads to better pricing for taxpayers by fostering a competitive environment.

Public Impact

The primary beneficiaries are national security agencies, specifically the National Security Agency (NSA), receiving critical support for classified systems. Services delivered likely involve research, development, and integration of commercial technologies for classified government use. The geographic impact is concentrated in Maryland, a hub for defense and intelligence activities. Workforce implications include highly skilled researchers, engineers, and technical specialists, likely employed by Booz Allen Hamilton and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher spending if not closely monitored.
Lack of specific performance metrics in the provided data makes it difficult to assess true value for money.
Long contract duration may reduce flexibility to adapt to rapidly changing technological landscapes.

Positive Signals

Awarded under full and open competition, suggesting a structured procurement process.
Contract supports critical national security functions, indicating a high-priority requirement.
The contractor, Booz Allen Hamilton, is a well-established entity with significant experience in government contracting.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on IT and national security applications. The market for 'Commercial Solutions for Classified' (CSFC) is specialized, requiring contractors with deep expertise in both cybersecurity and government security protocols. Comparable spending in this niche area is difficult to benchmark publicly due to classification, but R&D spending by defense agencies represents a substantial portion of the federal budget.

Small Business Impact

The provided data indicates that small business participation (sb) was false, and there was no small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses. Consequently, the primary contractor, Booz Allen Hamilton, would be responsible for any subcontracting efforts, and the impact on the small business ecosystem would depend on their subcontracting strategy, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense and the National Security Agency's internal procurement and program management offices. The Inspector General's office for the Department of Defense would also have jurisdiction for audits and investigations. Transparency is often limited for contracts supporting national security, but standard procurement regulations and contract clauses would apply.

Related Government Programs

National Security Agency (NSA) IT Support Contracts
Department of Defense Research and Development Programs
Commercial Solutions for Classified (CSFC) Initiatives
Cybersecurity Research and Development
Intelligence Community IT Modernization

Risk Flags

Potential for cost overruns due to CPFF structure.
Risk of technological obsolescence over the contract's six-year duration.
Limited transparency typical for national security contracts.
Dependence on a single large contractor may reduce future competitive options.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.3 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF CONTRACT/ORDER NO. W15P7T-14-D-A210/KY05 PROGRAM: NATIONAL SECURITY AGENCY-GOVERNMENT OFF THE SHELF (NSA-GOTS) COMMERCIAL SOLUTIONS FOR CLASSIFIED (CSFC) SUPPORT

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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $24.3 million.

What is the period of performance?

Start: 2016-04-14. End: 2022-04-13.

What is the specific nature of the 'Commercial Solutions for Classified' (CSFC) support provided under this contract?

The 'Commercial Solutions for Classified' (CSFC) program aims to leverage commercially available technologies and solutions for use in classified government systems. For this contract with Booz Allen Hamilton, the support likely involves research, development, integration, and sustainment of these commercial off-the-shelf (COTS) products and services to meet the NSA's specific classified operational requirements. This could encompass areas like secure communication systems, data processing, network infrastructure, and cybersecurity tools that have been adapted or certified for classified environments. The goal is to provide advanced capabilities more rapidly and potentially at a lower cost than developing bespoke government solutions, while maintaining stringent security standards.

How does the Cost Plus Fixed Fee (CPFF) contract type potentially impact cost control for this R&D effort?

A Cost Plus Fixed Fee (CPFF) contract reimburses the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. For Research and Development (R&D) efforts like this one, CPFF is often used because the scope and final costs can be uncertain at the outset. However, this structure can incentivize the contractor to incur higher costs, as their fee is fixed regardless of the total cost. Effective cost control relies heavily on robust government oversight, detailed cost tracking, and clear definition of allowable expenses. Without stringent management, there is a risk of cost overruns compared to fixed-price contracts, although it offers flexibility for evolving R&D needs.

What is Booz Allen Hamilton's track record with similar national security and R&D contracts?

Booz Allen Hamilton is a major government contractor with extensive experience supporting national security agencies, including the NSA and the Department of Defense. They have a long history of providing a wide range of services, including IT support, cybersecurity, intelligence analysis, and R&D. Their track record includes numerous large, complex contracts, often involving classified systems and advanced technologies. While specific performance details for individual contracts are not publicly available, their sustained presence and significant contract awards in this sector indicate a strong capability and established relationship with key defense and intelligence clients. They are recognized for their expertise in navigating complex government requirements and delivering technical solutions.

Can the value of this $24.3 million contract be benchmarked against similar R&D efforts for classified systems?

Benchmarking the value of this $24.3 million contract is challenging due to the classified nature of the work and the specialized 'Commercial Solutions for Classified' (CSFC) domain. Publicly available data on comparable contracts is scarce. However, the contract duration of six years (2190 days) suggests an average annual value of approximately $4 million. This figure needs to be assessed against the specific deliverables, the complexity of the R&D, the level of expertise required, and the market rates for similar specialized services. Given the sensitive nature and the need for highly skilled personnel, this annual spend might be within a reasonable range for critical national security R&D, but a definitive value assessment requires deeper insight into performance outcomes and alternative solutions.

What are the potential risks associated with a six-year contract for R&D in the rapidly evolving IT and cybersecurity landscape?

A six-year duration for an R&D contract in IT and cybersecurity presents several risks. Technology evolves rapidly, and a contract structured for a long period might become outdated before its completion, potentially locking the government into legacy solutions. There's a risk that the initial requirements may no longer be relevant or optimal by the end of the term. Furthermore, market innovation could outpace the contract's pace, leading to missed opportunities for adopting newer, more effective technologies. Managing such long-term R&D contracts requires continuous re-evaluation of objectives and flexibility to adapt the scope or technology focus to remain aligned with current threats and advancements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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, 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: $35,879,008

Exercised Options: $35,679,008

Current Obligation: $24,263,968

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $7,984,728

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: W15P7T14DA210

IDV Type: IDC

Timeline