VA awards $65.9M IT security contract to Booz Allen Hamilton, highlighting need for CISO support

Contract Overview

Contract Amount: $65,924,015 ($65.9M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2010-09-27

End Date: 2013-09-26

Contract Duration: 1,095 days

Daily Burn Rate: $60.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: SECURE VA - CHIEF INFORMATION SECURITY OFFICER SUPPORT SERVICES

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $65.9 million to BOOZ ALLEN HAMILTON INC for work described as: SECURE VA - CHIEF INFORMATION SECURITY OFFICER SUPPORT SERVICES Key points: 1. Contract addresses critical cybersecurity needs for the Department of Veterans Affairs. 2. Booz Allen Hamilton, a large incumbent, secured this significant IT services award. 3. The contract was awarded through full and open competition, suggesting a robust bidding process. 4. Performance period spans three years, indicating a medium-term commitment to these services. 5. The award falls under computer systems design services, a key area for federal IT infrastructure. 6. This spending reflects the ongoing investment in protecting sensitive veteran data.

Value Assessment

Rating: good

The contract value of $65.9 million over three years for CISO support services appears reasonable given the critical nature of cybersecurity for the VA. Benchmarking against similar large-scale IT security contracts within federal agencies suggests that pricing for specialized support services can range significantly. While specific per-unit costs are not detailed here, the overall award value indicates a substantial investment in safeguarding sensitive veteran information and IT systems. The use of Time and Materials pricing, while common, warrants careful monitoring to ensure cost efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of three bidders suggests a competitive environment, which typically benefits the government by driving down prices and encouraging innovation. The specific details of the bidding process and the number of proposals received would provide further insight into the intensity of the competition and its impact on the final award price.

Taxpayer Impact: Taxpayers benefit from full and open competition as it generally leads to more competitive pricing and a wider selection of qualified contractors, ensuring the government receives the best value for its investment.

Public Impact

Veterans benefit from enhanced protection of their sensitive personal and health information. The Department of Veterans Affairs improves its cybersecurity posture and ability to defend against threats. Federal IT infrastructure is strengthened through specialized Chief Information Security Officer support. The workforce involved includes cybersecurity professionals and IT specialists, potentially creating or sustaining jobs in these fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not closely managed and monitored.
The duration of the contract (3 years) may not be sufficient for long-term strategic cybersecurity planning and implementation.
Reliance on a single large contractor for critical cybersecurity functions could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
The contract addresses a critical need for cybersecurity support, aligning with federal priorities.
Booz Allen Hamilton is a well-established contractor with significant experience in federal IT services.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and related services. The federal cybersecurity market is substantial and growing, driven by increasing threats and the digitization of government operations. Comparable spending benchmarks for cybersecurity support services vary widely based on scope, duration, and contractor expertise. This award represents a significant investment in a specialized area crucial for national security and the protection of citizen data.

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 incumbent, it is unlikely to involve significant subcontracting opportunities for small businesses unless explicitly mandated or pursued by the prime contractor. The focus is on specialized CISO support, which typically requires extensive experience and resources often found in larger firms.

Oversight & Accountability

Oversight for this contract would primarily reside within the Department of Veterans Affairs' contracting and program management offices. Performance reviews, regular reporting, and adherence to contract terms are standard oversight mechanisms. The Inspector General's office for the VA may also conduct audits or investigations related to IT spending and cybersecurity effectiveness, ensuring accountability and transparency in the use of federal funds.

Related Government Programs

Federal Cybersecurity Strategy
IT Modernization Programs
Chief Information Security Officer (CISO) Services
Computer Systems Design Services
Department of Veterans Affairs IT Contracts

Risk Flags

Potential for cost overruns with Time and Materials pricing.
Reliance on a single large contractor for critical cybersecurity functions.
Need for continuous monitoring of evolving cyber threats.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $65.9 million to BOOZ ALLEN HAMILTON INC. SECURE VA - CHIEF INFORMATION SECURITY OFFICER SUPPORT 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 Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $65.9 million.

What is the period of performance?

Start: 2010-09-27. End: 2013-09-26.

What is the track record of Booz Allen Hamilton in delivering similar cybersecurity support services to federal agencies?

Booz Allen Hamilton has a long-standing and extensive track record of providing IT and cybersecurity services to numerous federal agencies, including the Department of Defense and various civilian departments. Their experience encompasses a wide range of services, from strategic cybersecurity planning and policy development to technical implementation and threat analysis. They are known for their large workforce of cleared professionals and their ability to handle complex, large-scale federal contracts. While specific performance metrics for this particular VA contract are not detailed in the provided data, their general reputation and history suggest a capacity to meet the requirements for CISO support services. However, as with any large contractor, performance can vary, and ongoing monitoring by the agency is crucial.

How does the $65.9 million contract value compare to other federal cybersecurity support contracts awarded in recent years?

The $65.9 million contract value for three years of CISO support services is substantial but falls within the typical range for large federal IT and cybersecurity contracts. Many federal agencies, particularly those handling vast amounts of sensitive data like the VA, invest tens to hundreds of millions of dollars annually in cybersecurity. For instance, contracts for broader cybersecurity services, including network defense, threat intelligence, and incident response, can easily exceed this amount, sometimes reaching billions over their lifecycle. Smaller, more specialized support contracts might be in the millions. This VA contract's value is indicative of the significant resources required to adequately support a Chief Information Security Officer function within a large agency, especially considering the complexity of the VA's IT environment and the critical nature of veteran data.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include potential cost overruns due to the Time and Materials (T&M) pricing structure, which requires diligent oversight to ensure efficiency. Another risk is the potential for vendor lock-in or over-reliance on a single large contractor for critical functions. Performance degradation or failure to adapt to evolving cyber threats could also pose a significant risk. Mitigation strategies typically involve robust contract management, including detailed performance metrics, regular progress reviews, and clear deliverables. The agency's contracting officers and technical monitors play a crucial role in overseeing T&M expenditures and ensuring the contractor meets performance expectations. Furthermore, the full and open competition process itself helps mitigate risks by ensuring a baseline level of capability and competitive pricing from the outset.

How effective is the Time and Materials (T&M) pricing model for a contract of this nature?

The Time and Materials (T&M) pricing model can be effective for contracts where the scope of work is not clearly defined at the outset or is expected to evolve, such as in cybersecurity support services. It allows for flexibility in adapting to changing requirements and unforeseen technical challenges. However, T&M contracts carry inherent risks of cost escalation if not managed rigorously. For this VA contract, the effectiveness hinges on the agency's ability to closely monitor labor hours, material costs, and task order ceilings. Without strong oversight, the total cost could exceed initial estimates. Agencies often use T&M for services where the level of effort is uncertain, but they must implement strict controls and reporting requirements to ensure value for taxpayer money.

What are the historical spending patterns for CISO support services at the Department of Veterans Affairs?

Historical spending patterns for CISO support services at the Department of Veterans Affairs (VA) indicate a consistent and significant investment in cybersecurity. While the specific data for this $65.9 million contract covers a 2010-2013 period, the VA has continued to allocate substantial resources to IT security in subsequent years. Federal budget documents and contract databases reveal ongoing procurements for cybersecurity expertise, tools, and services. The VA's large and complex IT infrastructure, coupled with the sensitive nature of veteran health and personal data, necessitates continuous spending on security measures. Trends likely show an increasing emphasis on advanced threat detection, data protection, and compliance with evolving federal mandates, suggesting that spending in this area remains a high priority for the agency.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $65,924,015

Exercised Options: $65,924,015

Current Obligation: $65,924,015

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 263010072

IDV Type: IDC

Timeline