DoD awards $12.36M for Cyber Operations Support to Booz Allen Hamilton, with 4 bidders

Contract Overview

Contract Amount: $12,361,469 ($12.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2022-09-30

End Date: 2026-09-29

Contract Duration: 1,460 days

Daily Burn Rate: $8.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: CYBER OPERATIONS SUPPORT

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $12.4 million to BOOZ ALLEN HAMILTON INC for work described as: CYBER OPERATIONS SUPPORT Key points: 1. Value for money appears fair given the scope of cyber operations support. 2. Competition dynamics show a moderate level of engagement with 4 bidders. 3. Risk indicators are moderate, typical for complex IT support contracts. 4. Performance context is crucial for assessing long-term effectiveness. 5. Sector positioning is within the critical defense IT and cybersecurity domain.

Value Assessment

Rating: fair

Benchmarking the $12.36M contract value against similar cyber operations support contracts is challenging without more specific service details. However, the cost-plus-fixed-fee (CPFF) structure suggests that while Booz Allen Hamilton has an incentive to control costs, the government bears some risk for cost overruns. The contract's duration of 1460 days (4 years) provides a reasonable timeframe for service delivery. Further analysis would require comparing the fixed fee component and labor rates to industry standards for comparable roles.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all eligible responsible sources were permitted to submit offers. The presence of 4 bidders suggests a healthy, though not intensely competitive, market for these specialized cyber operations support services. This level of competition is generally sufficient to promote price discovery and encourage reasonable proposals.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it aims to secure the best value by allowing a range of qualified contractors to compete, potentially driving down costs and improving service quality.

Public Impact

The Department of Defense benefits from enhanced cyber operational capabilities. Services delivered likely include threat analysis, vulnerability assessment, and incident response. Geographic impact is primarily within Department of Defense facilities and networks. Workforce implications may involve specialized cybersecurity professionals supporting military operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can lead to cost overruns if not closely monitored.
The specific deliverables and performance metrics need rigorous oversight to ensure value.
Reliance on a single contractor for critical cyber operations support could pose long-term risks.

Positive Signals

Award to a large, established contractor like Booz Allen Hamilton suggests a track record of performance.
Full and open competition indicates a structured procurement process designed to achieve best value.
The contract's multi-year duration allows for sustained support and knowledge continuity.

Sector Analysis

The cybersecurity market within the defense sector is a rapidly growing and critical area. This contract fits within the broader IT services and engineering support categories, with a specific focus on cyber defense. Spending in this sector is substantial, driven by increasing global cyber threats. Comparable spending benchmarks would typically involve analyzing other large-scale cyber support contracts awarded by the DoD and other federal agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. While Booz Allen Hamilton is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of subcontracting to small businesses will depend on the prime contractor's strategy and the specific requirements of the cyber operations support. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant program executive office within the Department of the Navy. Accountability measures will be tied to the performance work statement and the fixed-fee component of the CPFF contract. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational details may be classified.

Related Government Programs

Cybersecurity Services
IT Support Services
Defense IT Modernization
Information Assurance

Risk Flags

Cost-plus-fixed-fee contract type requires close monitoring to prevent cost overruns.
Cybersecurity is a rapidly evolving field, posing risks of technology obsolescence.
Performance metrics for cyber operations support can be difficult to quantify and measure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.4 million to BOOZ ALLEN HAMILTON INC. CYBER OPERATIONS 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 Navy).

What is the total obligated amount?

The obligated amount is $12.4 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-09-29.

What is Booz Allen Hamilton's track record with similar Department of Defense cyber operations support contracts?

Booz Allen Hamilton is a well-established government contractor with extensive experience in providing IT, cybersecurity, and defense-related services to the Department of Defense and other federal agencies. They have a long history of supporting complex programs, including cyber operations, intelligence analysis, and systems engineering. Their track record typically involves managing large, multi-year contracts and delivering a wide range of technical and strategic solutions. While specific performance metrics for past cyber operations support contracts are often not publicly detailed, their consistent presence and significant contract awards in this domain suggest a generally positive performance history. However, as with any large contractor, there may be instances of performance issues or contract disputes that warrant review in specific cases.

How does the $12.36M value compare to similar cyber operations support contracts awarded by the DoD?

The $12.36M contract value for cyber operations support, awarded over a 4-year period, appears to be within a moderate range for specialized defense IT services. However, a precise comparison is difficult without knowing the specific scope of work, labor mix, and deliverables. Larger, more comprehensive cyber defense programs can run into hundreds of millions or even billions of dollars. Conversely, smaller, more focused task orders for specific cyber support might be in the lower millions. Given the 4 bidders and the CPFF structure, this award suggests a significant but not massive undertaking. Benchmarking would ideally involve looking at contracts with similar North American Industry Classification System (NAICS) codes (like 541330 for Engineering Services, though cyber is often broader) and similar service descriptions.

What are the primary risk indicators associated with this type of contract?

The primary risk indicators for this cyber operations support contract include: 1. **Technical Complexity:** Cyber operations are inherently complex and rapidly evolving, posing a risk of technology obsolescence or failure to keep pace with threats. 2. **Cost Overruns:** The Cost Plus Fixed Fee (CPFF) contract type carries a risk of cost overruns, as the government absorbs actual costs plus a fixed fee, requiring diligent oversight to manage expenditures. 3. **Performance Uncertainty:** Defining and measuring successful performance in cyber operations can be challenging, leading to potential disputes over deliverables and effectiveness. 4. **Security Risks:** Handling sensitive defense information necessitates stringent security protocols; any breach represents a significant risk. 5. **Contractor Dependency:** Over-reliance on a single contractor for critical functions can create vulnerabilities if the contractor fails to perform or faces financial instability.

How effective is the 'full and open competition' approach for specialized cyber support?

The 'full and open competition' approach is generally considered the most effective method for procuring specialized cyber support services, as it maximizes the pool of potential offerors and encourages a competitive environment. This broad approach allows the government to solicit proposals from a wide range of companies, including large established firms and potentially innovative smaller businesses, increasing the likelihood of finding the best technical solution at a competitive price. The presence of 4 bidders in this specific case indicates that the market is sufficiently robust to support this type of competition. While it may require more resources to manage the solicitation and evaluation process compared to other methods, the potential benefits in terms of value, innovation, and reduced risk often outweigh these costs for critical services like cyber operations support.

What are the historical spending patterns for cyber operations support within the Department of Defense?

Historical spending patterns for cyber operations support within the Department of Defense have shown a consistent and significant upward trend over the past decade. Driven by escalating global cyber threats and the increasing reliance on digital infrastructure for military operations, the DoD has allocated substantial resources to cybersecurity and cyber warfare capabilities. This includes funding for research and development, threat intelligence, network defense, offensive cyber operations, and personnel training. Budgets for cyber-related activities within the DoD have grown from billions to tens of billions annually, reflecting its strategic importance. Contracts like this one, for specialized support services, are a key component of this overall spending strategy, enabling the DoD to leverage external expertise and advanced technologies.

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: N6600118R0001

Offers Received: 4

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: $14,765,237

Exercised Options: $14,765,237

Current Obligation: $12,361,469

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $5,162,192

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6600119D3408

IDV Type: IDC

Timeline