Booz Allen Hamilton awarded $81.9M contract for cybersecurity and technical engineering services by the Department of the Navy

Contract Overview

Contract Amount: $81,916,538 ($81.9M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2019-06-19

End Date: 2024-09-30

Contract Duration: 1,930 days

Daily Burn Rate: $42.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: CYBERSECURITY (CS) / TECHNICAL AUTHORITY (CSTA) TECHNICAL&ENGINEERING SERVICES

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92152

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $81.9 million to BOOZ ALLEN HAMILTON INC for work described as: CYBERSECURITY (CS) / TECHNICAL AUTHORITY (CSTA) TECHNICAL&ENGINEERING SERVICES Key points: 1. Contract provides critical cybersecurity and technical engineering support to the Department of the Navy. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The duration of the contract is over 1900 days, indicating a long-term need for these services. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can incentivize cost control but requires careful oversight. 5. The award was a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The contractor, Booz Allen Hamilton, is a well-established player in the government contracting space. 7. The contract value of $81.9M represents a significant investment in maintaining naval cybersecurity capabilities.

Value Assessment

Rating: good

The contract value of $81.9 million for cybersecurity and technical engineering services appears reasonable given the extensive 5-year period of performance. Benchmarking against similar large-scale IT and engineering support contracts for defense agencies suggests this pricing is within expected ranges. The Cost Plus Fixed Fee (CPFF) structure, while requiring diligent oversight to manage costs, is common for complex services where exact costs are difficult to predict upfront. The fixed fee component provides a degree of cost certainty for the government.

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 bids. The presence of three bidders (no=3) suggests a moderate level of competition for this significant cybersecurity and engineering services requirement. While three bidders is not exceptionally high, it demonstrates that the requirement was not restricted and that multiple firms were interested and capable of performing the work. This level of competition generally supports fair price discovery.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovation. The presence of multiple bidders means the Navy likely received competitive proposals, leading to a better value for the government.

Public Impact

The Department of the Navy benefits from enhanced cybersecurity and technical engineering capabilities, crucial for national security. Services delivered are expected to bolster the Navy's digital infrastructure, operational readiness, and technological advantage. The primary geographic impact is within the Department of the Navy's operational and administrative centers, likely across various naval bases and facilities. Workforce implications include potential employment opportunities for cybersecurity analysts, engineers, and technical specialists, both within the contractor's organization and potentially through subcontracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts require robust oversight to prevent cost overruns and ensure the fixed fee remains reasonable.
The long duration of the contract (over 5 years) necessitates ongoing performance monitoring to ensure continued value and alignment with evolving cybersecurity threats.
Reliance on a single large contractor for critical cybersecurity functions could pose a risk if not managed with strong performance metrics and contingency planning.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield fair pricing.
Booz Allen Hamilton is a recognized leader in cybersecurity and engineering services, suggesting a high likelihood of successful performance.
The contract addresses critical national security needs, aligning with government priorities for defense and technological superiority.

Sector Analysis

This contract falls within the broader Information Technology and Professional Services sector, specifically focusing on specialized cybersecurity and engineering support. The market for these services is substantial, driven by increasing cyber threats and the continuous need for technological advancement in defense. Comparable spending benchmarks for similar large-scale engineering and cybersecurity support contracts within the Department of Defense often range in the tens to hundreds of millions of dollars over multi-year periods, making this award consistent with industry norms.

Small Business Impact

This contract does not appear to have a specific small business set-aside (sb: false). However, large prime contractors like Booz Allen Hamilton often engage small businesses for subcontracting opportunities. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its impact on the small business ecosystem. Without specific set-aside goals, the direct impact on small businesses is limited to potential subcontracting roles.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract would primarily reside with the Department of the Navy's contracting officers and program managers. They are responsible for monitoring costs, ensuring performance against contract requirements, and approving reimbursements. Transparency is facilitated through contract reporting mechanisms. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Cybersecurity Services
Naval Information Warfare Systems Command (NAVWAR) Contracts
IT Professional Services Contracts
Engineering Services for Defense Agencies
Cybersecurity Technical Support Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) contract requires diligent cost oversight.
Long contract duration necessitates continuous performance monitoring.
Potential for contractor lock-in if not managed effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $81.9 million to BOOZ ALLEN HAMILTON INC. CYBERSECURITY (CS) / TECHNICAL AUTHORITY (CSTA) TECHNICAL&ENGINEERING SERVICES

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 $81.9 million.

What is the period of performance?

Start: 2019-06-19. End: 2024-09-30.

What is Booz Allen Hamilton's track record with the Department of the Navy for similar services?

Booz Allen Hamilton has a long-standing and extensive history of providing a wide range of services, including cybersecurity, IT, and engineering support, to the Department of the Navy and other Department of Defense components. They are a major prime contractor on numerous large-scale contracts. Their track record typically includes successful delivery on complex programs, though like any large contractor, they may have faced scrutiny or challenges on specific projects. A detailed review of their past performance ratings and any reported issues on similar Navy contracts would provide a more granular assessment of their suitability and reliability for this specific award.

How does the $81.9M value compare to other cybersecurity contracts awarded by the Navy?

The $81.9 million contract value for cybersecurity and technical engineering services over approximately five years is substantial but falls within the typical range for major defense IT and engineering support contracts. The Department of the Navy awards numerous contracts in the tens to hundreds of millions of dollars annually for IT modernization, cybersecurity, and complex engineering solutions. This specific award's value is comparable to other large-scale, multi-year service contracts aimed at maintaining and enhancing critical defense capabilities. Factors such as the specific scope of work, duration, and required expertise influence the final contract value, making direct comparisons require careful alignment of service types and contract lengths.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this service?

The primary risk with a CPFF contract structure is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee is predetermined. If costs escalate significantly beyond initial estimates, the government may end up paying more than anticipated, even though the contractor's profit (the fee) is fixed. This necessitates robust government oversight to scrutinize costs, ensure efficiency, and prevent scope creep that isn't properly managed. The contractor has an incentive to control costs to maximize their fee relative to the effort, but the government bears the risk of unforeseen cost increases.

How effective are delivery orders within larger IDIQ contracts for managing cybersecurity needs?

Delivery orders (DOs) issued under an Indefinite Delivery/Indefinite Quantity (IDIQ) contract are a common and effective mechanism for agencies to procure services and supplies as needed over a defined period. For cybersecurity, this flexibility is crucial because threats and technological requirements evolve rapidly. DOs allow the Navy to task specific work, adjust quantities, and respond to emerging needs without needing to re-compete the entire requirement each time. This streamlines procurement, provides faster access to services, and allows for task-specific competition or pre-negotiated rates, contributing to both agility and cost control, provided the underlying IDIQ contract was competitively awarded.

What is the historical spending trend for cybersecurity and engineering services within the Department of the Navy?

Historical spending trends within the Department of the Navy for cybersecurity and engineering services have shown a consistent and increasing trajectory over the past decade. This is driven by the escalating cyber threat landscape, the modernization of naval platforms and IT infrastructure, and the increasing reliance on digital systems for operations and command. Budgets allocated to these areas have grown significantly as the Navy prioritizes maintaining technological superiority and protecting its networks and data. This $81.9M award aligns with this broader trend of sustained and significant investment in these critical capabilities.

What are the implications of this contract being a delivery order versus a standalone contract?

This contract being a delivery order (DO) implies it is issued under a pre-existing, larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract vehicle. This means the foundational terms, conditions, and potentially some level of competition or pricing structure were established when the parent IDIQ contract was awarded. For taxpayers, this can mean more efficient procurement as the administrative burden of a full, standalone competition is avoided for each subsequent need. It allows the agency to procure services incrementally as requirements arise, potentially leading to better cost management and faster delivery of capabilities compared to lengthy standalone contract processes.

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: N6600118R3503

Offers Received: 3

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: $85,212,342

Exercised Options: $85,212,342

Current Obligation: $81,916,538

Actual Outlays: $5,506,633

Subaward Activity

Number of Subawards: 30

Total Subaward Amount: $21,235,468

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