DoD's $69M IGF Systems Engineering Support contract awarded to Booz Allen Hamilton shows fair value with 3 bidders

Contract Overview

Contract Amount: $68,954,763 ($69.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2014-11-24

End Date: 2020-03-31

Contract Duration: 1,954 days

Daily Burn Rate: $35.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF SYSTEMS ENGINEERING SUPPORT FOR INFORMATION ASSURANCE AND CYBER SECURITY

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $69.0 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF SYSTEMS ENGINEERING SUPPORT FOR INFORMATION ASSURANCE AND CYBER SECURITY Key points: 1. Contract awarded via full and open competition, indicating a competitive marketplace. 2. Booz Allen Hamilton, a large established contractor, holds this award. 3. The contract duration of 1954 days suggests a long-term need for these services. 4. Engineering services are critical for information assurance and cybersecurity. 5. The contract type (Cost Plus Fixed Fee) can incentivize cost control but requires robust oversight. 6. The award value of $68.95M over approximately 5.4 years implies a steady but not excessive annual spend.

Value Assessment

Rating: good

The contract's value appears reasonable given the scope of engineering support for information assurance and cybersecurity. Benchmarking against similar large-scale IT and engineering support contracts within the Department of Defense suggests that the pricing structure, while complex due to the Cost Plus Fixed Fee nature, is within expected ranges for specialized services. The presence of multiple bidders further supports the notion that the pricing was competitive at the time of award. The total obligated amount of $68.95M over nearly five years indicates a consistent investment in critical defense infrastructure.

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 solicitation resulted in three bids, indicating a moderate level of competition for this specialized engineering support. While three bidders suggest some market interest, a higher number could potentially drive prices down further. However, for complex, high-value defense contracts, three bidders often represent a healthy competitive environment where specialized expertise is a key differentiator.

Taxpayer Impact: The full and open competition process ensures that taxpayer dollars are likely being used efficiently by allowing multiple qualified companies to vie for the contract, fostering a more competitive pricing environment.

Public Impact

The Department of Defense benefits from enhanced information assurance and cybersecurity capabilities. This contract supports the critical function of protecting sensitive defense information and systems. The services provided are essential for maintaining the operational integrity of defense networks. The contract likely supports a workforce of skilled engineers and cybersecurity professionals, primarily in Virginia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain reasonable and fixed fees are justified.
The long duration of the contract could lead to scope creep if not managed effectively.
Reliance on a single contractor for critical cybersecurity engineering support may present concentration risk.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Booz Allen Hamilton is a well-established contractor with a significant track record in defense and IT services.
The contract addresses a critical need for information assurance and cybersecurity within the DoD.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting IT and cybersecurity functions for the Department of Defense. The market for defense IT and cybersecurity engineering is substantial, driven by continuous technological evolution and persistent threats. Comparable spending benchmarks for large-scale engineering support contracts within the federal government often run into tens or hundreds of millions of dollars, reflecting the complexity and criticality of these services. This contract represents a significant, albeit specific, investment in maintaining the security and integrity of defense information systems.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major defense contractor, it is unlikely that significant subcontracting opportunities for small businesses were mandated or a primary focus, though specific subcontracting plans are not detailed here. The primary beneficiaries are likely larger, specialized firms capable of meeting the extensive requirements.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), responsible for ensuring contractor performance and compliance. The Cost Plus Fixed Fee (CPFF) contract type necessitates rigorous financial oversight to monitor costs and ensure the fixed fee is earned appropriately. Transparency is generally maintained through contract reporting mechanisms, though specific details on public accessibility of performance metrics are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD Information Assurance Programs
Cybersecurity Engineering Support Services
Defense IT Modernization Contracts
Systems Engineering and Technical Assistance (SETA) Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Potential for scope creep due to long contract duration.
Concentration risk if contractor performance falters.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $69.0 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF SYSTEMS ENGINEERING SUPPORT FOR INFORMATION ASSURANCE AND CYBER SECURITY

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $69.0 million.

What is the period of performance?

Start: 2014-11-24. End: 2020-03-31.

What is Booz Allen Hamilton's track record with similar DoD cybersecurity contracts?

Booz Allen Hamilton has a long and extensive history of providing IT, cybersecurity, and engineering services to the Department of Defense and other federal agencies. They are a major incumbent contractor in this space, frequently winning large-scale, complex contracts. Their track record includes significant work on information assurance, network security, threat analysis, and system integration for various military branches and defense agencies. While specific performance metrics for this particular contract are not detailed, their overall reputation and market presence suggest a capacity to handle such demanding requirements. However, like any large contractor, they have faced scrutiny and audits on specific contracts, underscoring the importance of ongoing oversight.

How does the value of this contract compare to similar engineering support contracts for cybersecurity within the DoD?

The total value of $68.95 million over approximately 5.4 years places this contract in the mid-to-large tier for specialized engineering support within the DoD. Annualized, this represents roughly $12.7 million per year. This figure is comparable to other significant contracts awarded for systems engineering, IT support, and cybersecurity services to large defense contractors. For instance, other large indefinite-delivery/indefinite-quantity (IDIQ) vehicles or prime contracts for similar services can range from tens to hundreds of millions of dollars annually, depending on the scope, duration, and specific technological requirements. The competitive nature of the award (3 bidders) suggests the pricing was deemed fair relative to market rates for such specialized expertise.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like this one, is that the contractor may have less incentive to control costs compared to fixed-price contracts, as costs are reimbursed. The 'plus' aspect means the government pays the allowable costs incurred by the contractor plus a predetermined fixed fee representing profit. While the fixed fee is intended to provide some incentive for efficiency, the government bears the risk of cost overruns if costs exceed projections. For cybersecurity engineering, this risk is amplified because the threat landscape and technological requirements can evolve rapidly, potentially leading to unforeseen costs. Robust government oversight, detailed cost accounting, and clear performance metrics are crucial to mitigate these risks and ensure value for money.

How effective are engineering support contracts like this in enhancing overall DoD cybersecurity posture?

Contracts for specialized engineering support, such as this one for IGF systems engineering, are crucial for enhancing the DoD's overall cybersecurity posture. They provide the necessary technical expertise, research, development, and implementation capabilities that may not exist in-house or need augmentation. These services often involve designing secure systems, developing defensive strategies, analyzing vulnerabilities, and ensuring compliance with stringent security protocols. By leveraging external expertise, the DoD can stay abreast of evolving threats and technologies, thereby strengthening its defenses. The effectiveness hinges on clear requirements, strong contractor performance, and continuous adaptation to the dynamic cybersecurity environment.

What has been the historical spending trend for similar engineering support services within the DoD over the past decade?

Over the past decade, federal spending on IT, cybersecurity, and engineering support services for the Department of Defense has generally trended upwards, reflecting the increasing reliance on technology and the escalating nature of cyber threats. While specific figures for 'IGF Systems Engineering Support' are tied to this contract, the broader category of defense IT and cybersecurity spending has seen significant growth. Agencies like the DoD consistently allocate substantial portions of their budgets to maintaining and modernizing their digital infrastructure, defending against sophisticated adversaries, and ensuring information assurance. This trend is driven by geopolitical factors, technological advancements, and the critical need to protect national security information and systems.

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: N0002414R3283

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: $88,104,332

Exercised Options: $88,104,332

Current Obligation: $68,954,763

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $92,400,000

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