DoD's $43M Cybersecurity Engineering Contract Awarded to Booz Allen Hamilton Amidst Full and Open Competition

Contract Overview

Contract Amount: $43,068,563 ($43.1M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2024-09-09

End Date: 2026-10-08

Contract Duration: 759 days

Daily Burn Rate: $56.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CYBERSECURITY TECHNICAL AUTHORITY (CSTA) ENGINEERING SERVICES

Place of Performance

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

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $43.1 million to BOOZ ALLEN HAMILTON INC for work described as: CYBERSECURITY TECHNICAL AUTHORITY (CSTA) ENGINEERING SERVICES Key points: 1. The contract value of approximately $43 million represents a significant investment in cybersecurity engineering capabilities for the Department of the Navy. 2. Booz Allen Hamilton, a large and established government contractor, secured this award through a full and open competition, suggesting a competitive bidding process. 3. The contract duration of over two years (759 days) indicates a need for sustained engineering support in a critical and evolving domain. 4. The 'Engineering Services' NAICS code (541330) places this contract within a broad category of technical and professional services. 5. The absence of small business set-aside flags suggests the primary award was not specifically targeted to small businesses, though subcontracting opportunities may exist. 6. The contract type (Cost Plus Fixed Fee) allows for cost reimbursement plus a fixed fee, which can be suitable for complex projects where costs are uncertain but requires careful oversight.

Value Assessment

Rating: good

Benchmarking the value of this $43 million contract requires detailed comparison to similar cybersecurity engineering services contracts. Given Booz Allen Hamilton's extensive experience in this sector, the pricing is likely competitive, but a thorough analysis would involve comparing their proposed labor rates and overhead to industry standards and historical Navy contracts for comparable services. The Cost Plus Fixed Fee structure necessitates close monitoring of costs to ensure value for money is achieved throughout the contract's performance period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 9 bidders indicates a robust level of competition for this cybersecurity engineering services requirement. A higher number of bidders generally suggests a more competitive environment, which can lead to better pricing and innovative solutions for the government.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple companies to vie for the contract, potentially driving down costs and improving the quality of services received.

Public Impact

The Department of the Navy benefits from enhanced cybersecurity engineering expertise to protect its critical systems and data. This contract supports the development and implementation of advanced cybersecurity solutions, safeguarding naval operations. The services delivered are crucial for maintaining the technological superiority and operational readiness of naval forces. While specific geographic impacts are not detailed, the contract supports a federal agency with nationwide and global operational responsibilities. The contract likely supports a workforce of highly skilled cybersecurity engineers and technical professionals, potentially creating or sustaining jobs in this specialized field.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur higher costs if the fixed fee is substantial relative to the effort.
The broad scope of 'Engineering Services' may lead to scope creep if not managed meticulously, potentially increasing costs beyond initial estimates.
Reliance on a single large contractor for critical cybersecurity functions could pose a risk if the contractor faces performance issues or financial instability.

Positive Signals

Award through full and open competition suggests a competitive pricing structure and selection of a capable provider.
Booz Allen Hamilton's established track record in government contracting, particularly in defense and cybersecurity, indicates a high likelihood of successful performance.
The contract's duration allows for the development of long-term cybersecurity strategies and solutions, fostering stability in a critical area.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on cybersecurity. The broader market for cybersecurity services is substantial and rapidly growing, driven by increasing digital threats and the need for robust defense across all industries, particularly within the federal government. Comparable spending benchmarks would involve analyzing other large-scale cybersecurity support contracts awarded by defense agencies, which often represent significant portions of the federal IT and defense budgets.

Small Business Impact

The data indicates this contract was not awarded as a small business set-aside, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business. However, large prime contractors like Booz Allen Hamilton often engage small businesses for specialized services or as part of their subcontracting plans, so there may be indirect opportunities for small businesses within the ecosystem of this contract.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely involve rigorous review of incurred costs by the Department of the Navy's contracting officers and potentially the Defense Contract Audit Agency (DCAA). Performance metrics and deliverables will be monitored to ensure compliance with the contract's technical requirements. Transparency is typically managed through contract reporting requirements and the Federal Procurement Data System (FPDS). Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Cybersecurity Services
Engineering and Technical Services
Department of Defense IT Spending
Naval Information Warfare Systems Command (NAVWAR) Contracts
Defense Information Technology Contracting Organization (DITCO) Contracts

Risk Flags

Potential for cost overruns in CPFF contract
Scope creep risk in broad engineering services
Over-reliance on a single large contractor
Need for continuous monitoring of evolving cyber threats

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $43.1 million to BOOZ ALLEN HAMILTON INC. CYBERSECURITY TECHNICAL AUTHORITY (CSTA) 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 $43.1 million.

What is the period of performance?

Start: 2024-09-09. End: 2026-10-08.

What is Booz Allen Hamilton's track record with the Department of Defense for cybersecurity engineering services?

Booz Allen Hamilton has a long and extensive history of providing a wide range of services, including cybersecurity engineering, to the Department of Defense (DoD) and its various branches, such as the Department of the Navy. They are a major contractor in the defense sector, consistently awarded significant contracts for technical, analytical, and management support. Their track record includes work on complex systems integration, threat analysis, vulnerability assessments, and the development of defensive cyber strategies. While specific performance metrics for past contracts are not publicly detailed in this summary, their continued success in winning competitive bids for critical services like this one suggests a generally positive performance history and strong client relationships within the DoD.

How does the $43 million contract value compare to similar cybersecurity engineering contracts awarded by the Navy?

The $43 million value for this cybersecurity engineering services contract is substantial, reflecting the critical nature of the work and the expertise required. To benchmark effectively, one would compare it against other recent awards for similar services (e.g., CSTA Engineering, cybersecurity technical support, network defense engineering) issued by the Department of the Navy or other DoD components. Contracts of this magnitude are common for large, complex federal agencies requiring specialized technical support over multi-year periods. The number of bidders (9) suggests that this contract attracted significant interest, which is typical for high-value, strategically important procurements in the defense sector. Without access to a detailed database of comparable contracts, a precise value-for-money assessment is difficult, but the award through full and open competition implies a market-driven price.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for cybersecurity engineering?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Booz Allen Hamilton, revolve around cost control and potential for contractor inefficiency. In a CPFF structure, the government reimburses the contractor for allowable costs plus a predetermined fixed fee representing profit. The risk for the government is that the contractor may have less incentive to control costs compared to fixed-price contracts, as cost overruns are generally reimbursed. If the fixed fee is generous or the oversight is lax, the contractor might not be as motivated to find the most cost-effective solutions. For cybersecurity engineering, where requirements can evolve rapidly and technical challenges are complex, managing scope and ensuring that costs remain reasonable while achieving the fixed fee is crucial for ensuring value for taxpayer money.

How does the 'Engineering Services' classification impact the scope and potential outcomes of this contract?

The classification of 'Engineering Services' (NAICS 541330) indicates a broad scope that encompasses the application of scientific and mathematical principles to design, develop, and test structures, processes, and systems. For this cybersecurity contract, it implies that the services will likely involve not just operational support but also design, analysis, integration, and potentially research and development related to cybersecurity technologies and architectures. This could include designing secure networks, developing new security protocols, assessing system vulnerabilities from an engineering perspective, and providing technical expertise for the implementation of complex cybersecurity solutions. The broadness means the specific tasks will be defined by the contract's statement of work, but the 'engineering' aspect suggests a focus on foundational technical solutions and improvements rather than purely administrative or basic maintenance tasks.

What are the implications of awarding this contract to a large incumbent contractor like Booz Allen Hamilton?

Awarding this contract to a large incumbent contractor like Booz Allen Hamilton has several implications. Positively, it suggests continuity of service and a contractor with deep institutional knowledge of the Department of the Navy's systems and operational environment, potentially leading to smoother execution and reduced ramp-up time. Their established infrastructure and workforce can also handle the scale and complexity of the requirement. However, it also raises potential concerns about market concentration and reduced competition in future procurements if the contractor becomes deeply embedded. For taxpayers, the key is ensuring that the incumbent's advantage doesn't translate into complacency or inflated pricing; rigorous performance management and ongoing market analysis are essential to maintain value.

What is the significance of the contract duration (759 days) in the context of cybersecurity?

The contract duration of 759 days, approximately two years and one month, is significant for a cybersecurity engineering services contract. Cybersecurity is a rapidly evolving field, and threats, technologies, and best practices change constantly. A duration of this length allows for the development and implementation of more strategic, long-term cybersecurity initiatives rather than short-term fixes. It provides stability for the contractor to build expertise, establish robust processes, and see complex engineering projects through to completion. For the Department of the Navy, it ensures sustained support in a critical area, enabling them to adapt to emerging threats and continuously improve their cyber defenses over a meaningful period.

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: N6600124R3513

Offers Received: 9

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: $133,546,803

Exercised Options: $51,211,221

Current Obligation: $43,068,563

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $2,487,538

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