DoD's $4.3M Cyber Integration Contract Awarded to Booz Allen Hamilton for Engineering Services

Contract Overview

Contract Amount: $4,337,750 ($4.3M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2024-12-20

End Date: 2026-12-19

Contract Duration: 729 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: NMRIL ENGINEERING SERVICES (CYBER INTEGRATION AND TEST III)

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92101

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $4.3 million to BOOZ ALLEN HAMILTON INC for work described as: NMRIL ENGINEERING SERVICES (CYBER INTEGRATION AND TEST III) Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, indicating potential for future task orders. 3. The fixed-fee pricing structure aims to control costs while allowing for flexibility. 4. The contract duration of approximately two years provides a defined period for service delivery. 5. The primary focus on engineering services for cyber integration and testing highlights a critical defense need. 6. The award to a large, established contractor like Booz Allen Hamilton suggests a focus on proven capabilities.

Value Assessment

Rating: good

The contract's value of approximately $4.3 million over two years for specialized cyber integration and testing services appears reasonable within the defense sector. Benchmarking against similar engineering services contracts for cyber capabilities is challenging without more specific task details. However, the cost-plus-fixed-fee (CPFF) structure, while offering flexibility, requires careful oversight to ensure costs remain controlled and aligned with the fixed fee. The award amount is not exceptionally high for a contract of this nature, suggesting a potentially good value if performance meets expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the 'full and open' designation generally implies a robust competitive environment. This approach is designed to foster price discovery and ensure the government receives the best value by considering a wide range of potential contractors.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it increases the likelihood of competitive pricing and reduces the risk of overpayment compared to sole-source or limited competition awards.

Public Impact

The Department of the Navy benefits from enhanced cyber integration and testing capabilities for its systems. This contract supports the development and maintenance of secure and effective cyber defenses for naval operations. The services delivered are critical for ensuring the operational readiness and security of military technology. The contract is likely to impact the cybersecurity and engineering workforce, potentially creating or sustaining jobs within these fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee (CPFF) contracts if not closely monitored.
Reliance on a single large contractor may limit opportunities for smaller, specialized firms in future procurements.
The complexity of cyber integration and testing can introduce performance risks if not managed effectively.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield good value.
Booz Allen Hamilton is a well-established contractor with a strong track record in defense and cybersecurity.
The contract is a delivery order under an IDIQ, indicating a pre-vetted contract vehicle that streamlines procurement.
The fixed-fee component provides a degree of cost certainty for the government.

Sector Analysis

This contract falls within the Engineering Services sector, specifically focusing on cyber integration and testing, a critical area for national defense. The market for cybersecurity and engineering services for the federal government is substantial, with significant annual spending. This contract represents a portion of the Department of Defense's broader investment in maintaining and advancing its technological and cyber capabilities. Comparable spending benchmarks would typically involve looking at other large-scale cyber defense contracts awarded by various military branches.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Booz Allen Hamilton is a large prime contractor. While this specific award does not directly benefit small businesses through a set-aside, large prime contractors are often required to meet subcontracting goals with small businesses on their contracts. The extent to which this contract will involve small business subcontractors is not detailed here but is a common practice in federal contracting to ensure broader participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards, reporting requirements, and payment schedules tied to milestones. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Cybersecurity Services
Engineering and Technical Services
Information Technology Services
Defense Information Systems Agency (DISA) Contracts
Naval Sea Systems Command (NAVSEA) Contracts

Risk Flags

Cost control oversight needed for CPFF contract type.
Performance metrics and quality assurance are critical for cyber services.
Potential for scope creep impacting budget and timeline.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.3 million to BOOZ ALLEN HAMILTON INC. NMRIL ENGINEERING SERVICES (CYBER INTEGRATION AND TEST III)

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 $4.3 million.

What is the period of performance?

Start: 2024-12-20. End: 2026-12-19.

What is Booz Allen Hamilton's track record with the Department of Defense, particularly in cyber integration and testing?

Booz Allen Hamilton Inc. has a long and extensive history of contracting with the Department of Defense (DoD) across various services, including cybersecurity, engineering, and IT support. They are a major defense contractor with numerous awards for complex projects. Specifically concerning cyber integration and testing, the company has been involved in developing and implementing advanced cybersecurity solutions, network defense strategies, and testing protocols for military systems. Their track record generally indicates a capacity to handle large-scale, critical defense initiatives. However, a detailed review of past performance on similar cyber integration and testing contracts would be necessary to fully assess their specific capabilities and any past performance issues or commendations relevant to this particular award.

How does the $4.3 million contract value compare to similar cyber integration and testing contracts awarded by the DoD?

The $4.3 million contract value for cyber integration and testing services over approximately two years is a moderate-sized award within the broader context of Department of Defense spending. The DoD frequently awards contracts for cybersecurity and related engineering services that range from a few million dollars to hundreds of millions, or even billions, depending on the scope, duration, and complexity. This specific contract, being a delivery order under an IDIQ, suggests it's a defined task within a larger framework. While not a mega-contract, it represents a significant investment for specialized cyber capabilities. To provide a precise comparison, one would need to analyze contracts with similar North American Industry Classification System (NAICS) codes (like 541330 for Engineering Services or potentially 541512 for Computer Systems Design Services if applicable) and similar service descriptions awarded within the last 1-3 years by the Navy or other DoD components.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract type for cyber services?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type, especially for complex services like cyber integration and testing, revolve around cost control and contractor incentive. For the government, the main risk is that the contractor may incur higher costs than anticipated, potentially leading to a higher overall price if the fixed fee is a substantial portion of the total. While the fee is fixed, the 'cost' portion is reimbursable, creating less incentive for the contractor to aggressively control expenses compared to fixed-price contracts. This necessitates robust government oversight to scrutinize incurred costs, ensure they are reasonable and allocable, and prevent scope creep that inflates costs without commensurate value. For the contractor, the risk lies in accurately estimating the costs to perform the work to achieve the fixed fee, as any unforeseen expenses beyond their estimate reduce their profit margin.

What is the expected program effectiveness or outcome of this cyber integration and testing contract?

The expected program effectiveness of this cyber integration and testing contract is to enhance the Department of the Navy's cybersecurity posture and ensure the reliable functioning of its integrated systems. Specifically, it aims to identify vulnerabilities, validate security controls, and ensure that cyber components work seamlessly and securely within larger operational frameworks. Successful outcomes would include the delivery of robust testing reports, remediation of identified security flaws, and confirmation that systems meet stringent defense cybersecurity standards. Ultimately, this contract contributes to the overall mission readiness and operational security of naval assets by mitigating cyber threats and ensuring the integrity of critical information and communication systems.

How has federal spending on engineering services for cybersecurity evolved over the past five years?

Federal spending on engineering services specifically for cybersecurity has seen a significant and consistent upward trend over the past five years, driven by the escalating threat landscape and the increasing digitization of government operations. Agencies across the DoD, intelligence community, and civilian sectors have prioritized cybersecurity investments. This includes funding for research and development, system integration, vulnerability assessments, penetration testing, and the implementation of advanced security technologies. While specific figures for 'engineering services for cybersecurity' can be fragmented across various budget categories and contract types (e.g., IT services, R&D, professional services), overall federal cybersecurity spending has grown substantially, reflecting its critical importance. This growth is expected to continue as threats evolve and new technologies emerge.

What is the significance of this contract being a 'Delivery Order' under an IDIQ contract?

The significance of this contract being a 'Delivery Order' (aw: DELIVERY ORDER) under an Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract is that it represents a specific task or set of tasks issued against a pre-negotiated, broader contract vehicle. IDIQ contracts establish terms, conditions, and often pricing ceilings for services over a period, allowing agencies to issue task orders (like this delivery order) as needed. This approach streamlines the procurement process for recurring or anticipated needs, reducing the time and administrative burden associated with awarding new contracts for each individual requirement. For taxpayers, it can lead to more efficient spending by leveraging pre-competed agreements. For the contractor, it provides a framework for ongoing work. The 'CYBER INTEGRATION AND TEST III' designation suggests this is likely the third iteration or a specific program within a larger cyber testing IDIQ.

Industry Classification

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

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $8,254,577

Exercised Options: $8,254,577

Current Obligation: $4,337,750

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $518,350

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6600121D0070

IDV Type: IDC

Timeline