DoD's $45.6M Cyber Services Contract Awarded to Booz Allen Hamilton Faces Scrutiny

Contract Overview

Contract Amount: $45,615,032 ($45.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2022-08-19

End Date: 2026-09-25

Contract Duration: 1,498 days

Daily Burn Rate: $30.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: CYBER STRATEGIC & OPERATIONAL, TECHNICAL AND ANALYTICAL SERVICES IN SUPPORT OF THE JOINT STAFF, J6 DIRECTORATE.

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 $45.6 million to BOOZ ALLEN HAMILTON INC for work described as: CYBER STRATEGIC & OPERATIONAL, TECHNICAL AND ANALYTICAL SERVICES IN SUPPORT OF THE JOINT STAFF, J6 DIRECTORATE. Key points: 1. Contract awarded to a single large business, raising questions about small business participation. 2. The 'Engineering Services' NAICS code may not fully capture the cyber-specific nature of the work. 3. Cost-plus-fixed-fee contract type can lead to cost overruns if not managed tightly. 4. The Joint Staff J6 Directorate's reliance on external cyber expertise highlights a critical capability gap.

Value Assessment

Rating: fair

The $45.6M award for cyber services is substantial. Benchmarking against similar complex IT and engineering support contracts is difficult without more granular cost data. The Cost Plus Fixed Fee structure warrants close monitoring for potential cost creep.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a broad search for qualified vendors. However, the award to a single large incumbent raises questions about whether the competition effectively drove the lowest possible price or encouraged innovative solutions from smaller, specialized firms.

Taxpayer Impact: Taxpayer funds are being used for critical cyber support. While competition was sought, the final price and value derived will depend on effective contract management and performance.

Public Impact

Ensures critical cyber capabilities for the Joint Staff, impacting national security operations. Potential for knowledge transfer and capacity building within the DoD cyber workforce. The contract's success could influence future cyber support strategies across military branches.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation.
Potential for cost overruns with CPFF contract type.
Broad NAICS code may not reflect specialized cyber services.

Positive Signals

Awarded under full and open competition.
Supports critical Joint Staff cyber operations.
Long-term contract provides stable support.

Sector Analysis

This contract falls within the broader IT and professional services sector, specifically supporting defense intelligence and operations. Spending benchmarks for similar cyber support services to federal agencies can vary widely based on scope and complexity, but $45.6M over nearly 4 years indicates a significant investment.

Small Business Impact

The contract data indicates no small business participation (sb: false). This suggests that the prime contractor, Booz Allen Hamilton, is performing the majority, if not all, of the work. Further investigation into subcontracting opportunities for small businesses is warranted.

Oversight & Accountability

The Department of the Navy, acting as the contracting agency, is responsible for oversight. The Joint Staff J6 Directorate will be the primary user and beneficiary, requiring robust performance monitoring and quality assurance to ensure effective delivery of cyber services.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to CPFF structure.
Lack of demonstrated small business subcontracting.
Broad NAICS code may obscure true service nature.
Reliance on a single large incumbent.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.6 million to BOOZ ALLEN HAMILTON INC. CYBER STRATEGIC & OPERATIONAL, TECHNICAL AND ANALYTICAL SERVICES IN SUPPORT OF THE JOINT STAFF, J6 DIRECTORATE.

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 Navy).

What is the total obligated amount?

The obligated amount is $45.6 million.

What is the period of performance?

Start: 2022-08-19. End: 2026-09-25.

What specific cyber capabilities are being procured, and how do they align with the Joint Staff's evolving threat landscape?

The contract broadly covers 'Cyber Strategic & Operational, Technical and Analytical Services.' Without detailed SOWs, it's difficult to ascertain specific capabilities. However, given the Joint Staff J6's role, these likely include network defense, threat intelligence analysis, vulnerability assessments, and strategic cyber planning to support joint operations and maintain information superiority.

How effectively did the full and open competition process ensure competitive pricing and identify the best value solution for these critical cyber services?

While 'full and open' implies broad solicitation, the award to a single large incumbent raises concerns. True competitive pricing and best value are achieved when multiple qualified bidders present compelling technical solutions and cost proposals. Further analysis of the bidding process and award decision rationale is needed to confirm if the competition truly maximized value.

What are the risks associated with a Cost Plus Fixed Fee (CPFF) contract for complex cyber services, and what mitigation strategies are in place?

CPFF contracts carry inherent risks of cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. For complex cyber services, scope creep or unforeseen technical challenges can escalate costs. Mitigation requires rigorous oversight, clear performance metrics, strict change control, and regular audits of contractor expenditures to ensure efficiency and prevent unnecessary spending.

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: N0018922R3037

Offers Received: 2

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: $84,142,148

Exercised Options: $60,131,264

Current Obligation: $45,615,032

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $36,883

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7264

IDV Type: IDC

Timeline