Booz Allen Hamilton awarded $88.9M for critical cybersecurity and program management support to the Navy

Contract Overview

Contract Amount: $88,866,583 ($88.9M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2018-02-14

End Date: 2023-02-13

Contract Duration: 1,825 days

Daily Burn Rate: $48.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THIS PROCUREMENT IS TO OBTAIN TECHNICAL AND PROGRAM MANAGEMENT SUPPORT UNIQUE TO PMW 130S INFORMATION ASSURANCE AND CYBER SECURITY NEEDS. TECHNICAL SUPPORTS INCLUDES: ANALYSIS, EVALUATION AND RECOMMENDATIONS OF SOFTWARE / HARDWARE AND DATA COMPONENTS AS WELL AS THEIR INTERFACES TO CURRENT AND FUTURE C4I SYSTEMS. PROGRAM MANAGEMENT INCLUDES: PROGRAM MANAGEMENT, ACQUISITION MANAGEMENT, RISK MANAGEMENT, FINANCIAL MANAGEMENT, CONTRACTS MANAGEMENT, INSTALLATIONS MANAGEMENT AND LOGISTICS MANAGEMENT.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $88.9 million to BOOZ ALLEN HAMILTON INC for work described as: THIS PROCUREMENT IS TO OBTAIN TECHNICAL AND PROGRAM MANAGEMENT SUPPORT UNIQUE TO PMW 130S INFORMATION ASSURANCE AND CYBER SECURITY NEEDS. TECHNICAL SUPPORTS INCLUDES: ANALYSIS, EVALUATION AND RECOMMENDATIONS OF SOFTWARE / HARDWARE AND DATA COMPONENTS AS WELL AS THEIR INTERFACES T… Key points: 1. Contract provides essential technical and program management services for information assurance and cybersecurity. 2. Services encompass analysis, evaluation, and recommendations for C4I systems software, hardware, and data components. 3. Program management functions include acquisition, risk, financial, contracts, installations, and logistics. 4. Contract awarded via full and open competition, suggesting a competitive bidding process. 5. The contract duration of five years indicates a long-term need for these specialized services. 6. The cost-plus-fixed-fee pricing structure allows for flexibility while managing project scope.

Value Assessment

Rating: good

The contract value of $88.9 million over five years averages approximately $17.8 million annually. Benchmarking this against similar IT and cybersecurity support contracts for defense agencies suggests this is within a reasonable range, given the specialized nature of the services. The cost-plus-fixed-fee (CPFF) structure, while allowing for cost flexibility, requires careful oversight to ensure efficiency and prevent cost overruns. Without detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance.

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 offers. The presence of two bidders suggests a moderate level of competition for this specialized requirement. While two bidders are better than one, a higher number of competitors could potentially drive prices down further and foster greater innovation. The agency's decision to proceed with two offers implies that the received proposals met the technical and cost requirements adequately.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple companies to bid, which can lead to more competitive pricing and better value. Even with two bidders, the competitive process helps ensure the government is not overpaying for essential services.

Public Impact

The U.S. Navy benefits directly through enhanced information assurance and cybersecurity capabilities for its C4I systems. This contract supports the operational readiness and security of critical defense communication and command infrastructure. The services provided are vital for protecting sensitive military data and ensuring the integrity of defense networks. Workforce implications include the employment of highly skilled technical and program management professionals within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize higher spending if not closely monitored.
Limited competition (two bidders) may not represent the absolute best value achievable.
The long duration could lead to scope creep or outdated technology if not managed proactively.

Positive Signals

Awarded through full and open competition, indicating a fair and accessible process.
Booz Allen Hamilton is a well-established contractor with significant experience in defense IT and cybersecurity.
The contract addresses critical national security needs related to information assurance.

Sector Analysis

This contract falls within the broader Information Technology and Professional Services sector, specifically focusing on cybersecurity and program management for defense applications. The market for these services is substantial, driven by increasing cyber threats and the complexity of modern defense systems. Comparable spending benchmarks in this area often involve multi-year, high-value contracts awarded to large, specialized defense contractors. The demand for such expertise is consistently high within the Department of Defense.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The prime contractor, Booz Allen Hamilton, is a large business. While large prime contractors are often required to subcontract a portion of their work to small businesses, the specific subcontracting plan details are not provided here. The absence of a set-aside suggests the primary focus was on securing specialized expertise, potentially limiting direct opportunities for small businesses as prime contractors on this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA) and the relevant Naval program executive office. Accountability measures are embedded within the contract's performance work statement and the cost-plus-fixed-fee structure, which requires detailed reporting and justification of costs. Transparency is facilitated through contract award databases and reporting requirements, though specific internal oversight processes are not detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Navy Information Technology Support Services
Cybersecurity Services for Department of Defense
Program Management Support Contracts
C4I Systems Development and Maintenance
Defense Acquisition Management Support

Risk Flags

Cost Overrun Potential (CPFF structure)
Scope Creep Risk
Technical Obsolescence
Dependence on Single Contractor Expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $88.9 million to BOOZ ALLEN HAMILTON INC. THIS PROCUREMENT IS TO OBTAIN TECHNICAL AND PROGRAM MANAGEMENT SUPPORT UNIQUE TO PMW 130S INFORMATION ASSURANCE AND CYBER SECURITY NEEDS. TECHNICAL SUPPORTS INCLUDES: ANALYSIS, EVALUATION AND RECOMMENDATIONS OF SOFTWARE / HARDWARE AND DATA COMPONENTS AS WELL AS THEIR INTERFACES TO CURRENT AND FUTURE C4I SYSTEMS. PROGRAM MANAGEMENT INCLUDES: PROGRAM MANAGEMENT, ACQUISITION MANAGEMENT, RISK MANAGEMENT, FINANCIAL MANAGEMENT, CONTRACTS MANAGEMENT, INSTALLATIONS MANAGEMENT AND LOGISTICS MANAGEMENT.

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 Contract Management Agency).

What is the total obligated amount?

The obligated amount is $88.9 million.

What is the period of performance?

Start: 2018-02-14. End: 2023-02-13.

What is Booz Allen Hamilton's track record with similar government contracts, particularly in cybersecurity and program management for the Navy?

Booz Allen Hamilton has a long and extensive history of performing IT, cybersecurity, and program management services for the Department of Defense, including the Navy. They are a major incumbent contractor across numerous defense programs. Their track record includes managing complex systems, providing strategic guidance, and delivering technical solutions. While specific performance metrics for individual contracts are often proprietary or found in detailed past performance reviews, their sustained presence and numerous awards indicate a generally positive and capable performance history with the government. However, like any large contractor, they have also faced scrutiny and contract disputes on occasion, underscoring the importance of ongoing performance monitoring.

How does the $88.9 million contract value compare to other cybersecurity and program management support contracts awarded by the Navy or DoD?

The $88.9 million contract value over five years, averaging approximately $17.8 million annually, is substantial but falls within the typical range for large, complex IT and cybersecurity support contracts awarded to major defense contractors. Many similar contracts supporting critical systems or large program offices within the DoD can range from tens to hundreds of millions of dollars over their lifecycle. For instance, broader IT modernization or enterprise-level cybersecurity services contracts can exceed this value significantly. This contract's value is commensurate with the specialized, high-level technical and management expertise required for PMW 130's information assurance and C4I systems.

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

Key risks include potential cost overruns due to the Cost Plus Fixed Fee (CPFF) structure, which requires diligent financial oversight. Another risk is the potential for scope creep, where contract requirements expand beyond the original intent, impacting cost and schedule. Technical obsolescence is also a risk, given the rapid evolution of cybersecurity threats and technologies; the contract must ensure adaptability. Mitigation strategies likely involve robust program management, detailed cost tracking, regular performance reviews, clear definition of requirements, and proactive technology refresh planning. The competitive award process itself helps mitigate risks by selecting a capable contractor.

How effective is the Cost Plus Fixed Fee (CPFF) contract type for procuring specialized cybersecurity and program management services?

The CPFF structure is often used when the scope of work cannot be precisely defined at the outset, or when significant research and development or complex technical challenges are involved, as is common in advanced cybersecurity and program management. It provides flexibility for the contractor to incur costs while aiming for a fixed profit. For the government, it allows access to specialized expertise that might be difficult to procure under a firm-fixed-price contract. However, CPFF contracts require stringent government oversight to control costs and prevent inefficiencies, as the contractor is incentivized to incur costs to achieve the fixed fee. Effective management and clear performance metrics are crucial for its success.

What is the historical spending trend for similar cybersecurity and program management support services within the Department of Defense?

Spending on cybersecurity and program management support services within the DoD has shown a consistent upward trend over the past decade. This is driven by the increasing sophistication of cyber threats, the expansion of digital infrastructure, and the growing complexity of defense acquisition programs. Budgets allocated to IT modernization, network security, and specialized technical support have grown substantially. Contracts like this one, focused on critical areas like information assurance for naval systems, represent a significant portion of this spending. Trends indicate a continued high demand and investment in these capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: N0003917R3053

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: BOOZ ALLEN HAMILTON INC, MC LEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $94,828,919

Exercised Options: $93,947,419

Current Obligation: $88,866,583

Actual Outlays: $14,192,548

Subaward Activity

Number of Subawards: 38

Total Subaward Amount: $9,516,273

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4024

IDV Type: IDC

Timeline