Booz Allen Hamilton awarded $25.16M for defensive cyberspace operations and intelligence support

Contract Overview

Contract Amount: $25,158,928 ($25.2M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Defense

Start Date: 2018-08-23

End Date: 2019-11-15

Contract Duration: 449 days

Daily Burn Rate: $56.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: DEFENSIVE CYBERSPACE OPERATIONS AND INTELLIGENCE SUPPORT TO GLOBAL CYBERSPACE OPERATIONS.

Place of Performance

Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85613

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $25.2 million to BOOZ ALLEN HAMILTON INC for work described as: DEFENSIVE CYBERSPACE OPERATIONS AND INTELLIGENCE SUPPORT TO GLOBAL CYBERSPACE OPERATIONS. Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, indicating potential for cost overruns. 2. Sole-source award limits opportunities for competitive pricing and innovation. 3. Contract duration of 449 days suggests a focused, short-term requirement. 4. Services provided are critical for national security in cyberspace. 5. Geographic location in Arizona may indicate a specific operational need. 6. The contract falls under 'Other Computer Related Services', a broad category.

Value Assessment

Rating: fair

The contract's value of $25.16 million for a period of approximately 15 months is substantial. Without specific performance metrics or benchmarks for defensive cyberspace operations and intelligence support, a direct value-for-money assessment is challenging. The cost-plus-fixed-fee structure inherently carries more risk for the government compared to fixed-price contracts, as costs can escalate. Benchmarking against similar intelligence support contracts would be necessary for a more precise evaluation of pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning there was no public solicitation or competition among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when urgency dictates a direct award. The lack of competition means the government did not benefit from a range of proposals or price negotiations that could have potentially led to a lower cost or better terms.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as the government may not achieve the most competitive pricing available in the market.

Public Impact

The Department of Defense benefits from enhanced defensive cyberspace operations and intelligence support. Services delivered are crucial for protecting national security interests in the digital domain. The contract's impact is primarily within the defense sector, supporting global cyberspace operations. Workforce implications are likely related to specialized cybersecurity and intelligence personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs.
Cost-plus-fixed-fee contract type can lead to cost overruns if not managed carefully.
Lack of transparency in the sole-source justification process.
Limited data available to assess the contractor's specific performance on this contract.
Broad service category ('Other Computer Related Services') may obscure specific deliverables.
Short contract duration might indicate a stop-gap measure rather than a long-term strategic solution.

Positive Signals

Addresses critical national security needs in cyberspace.
Awarded to a known contractor with significant experience in defense and cybersecurity.
Supports global cyberspace operations, indicating a broad strategic importance.
Contract value is clearly defined, providing a budget ceiling.

Sector Analysis

The contract falls within the broader IT services sector, specifically focusing on cybersecurity and intelligence support. The market for these services is highly specialized and dominated by a few large defense contractors. Spending in this area is driven by the increasing threat landscape in cyberspace and the need for robust defense capabilities. Comparable spending benchmarks would typically be found within other Department of Defense contracts for similar intelligence and cyber defense services.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to a large prime contractor like Booz Allen Hamilton suggests that the primary focus was on acquiring specialized capabilities, potentially overlooking opportunities to engage the small business ecosystem in this specific procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Defense's contracting and program management offices. Accountability measures are inherent in the cost-plus-fixed-fee structure, requiring detailed reporting of costs and performance. Transparency is limited due to the sole-source nature of the award. Inspector General jurisdiction would apply to any investigations of fraud, waste, or abuse related to the contract.

Related Government Programs

Cybersecurity Services
Intelligence Support Services
Department of Defense IT Contracts
Cyberspace Operations Support
Information Technology Professional Services

Risk Flags

Sole-source award
Cost-plus-fixed-fee contract type
Lack of competition
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.2 million to BOOZ ALLEN HAMILTON INC. DEFENSIVE CYBERSPACE OPERATIONS AND INTELLIGENCE SUPPORT TO GLOBAL CYBERSPACE OPERATIONS.

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 Army).

What is the total obligated amount?

The obligated amount is $25.2 million.

What is the period of performance?

Start: 2018-08-23. End: 2019-11-15.

What is the track record of Booz Allen Hamilton in providing defensive cyberspace operations and intelligence support to the Department of Defense?

Booz Allen Hamilton has a long-standing and extensive track record of providing a wide array of services to the Department of Defense, including significant contributions in cybersecurity, intelligence analysis, and IT modernization. They are a major contractor in the defense sector, known for their expertise in complex technological and strategic support. Their experience spans numerous programs and agencies within DoD, making them a frequent recipient of contracts for critical national security functions. While specific performance data for this particular contract is not detailed here, their overall presence and historical awards suggest a deep familiarity with DoD requirements in areas like defensive cyberspace operations and intelligence gathering.

How does the $25.16 million contract value compare to similar contracts for defensive cyberspace operations and intelligence support?

Benchmarking this $25.16 million contract requires comparing it to similar sole-source or competed contracts for defensive cyberspace operations and intelligence support within the Department of Defense or other federal agencies. Given the specialized nature of these services, contract values can vary significantly based on scope, duration, and required expertise. Contracts for large-scale, multi-year cyber defense initiatives can easily reach hundreds of millions or even billions of dollars. Conversely, smaller, more focused support contracts might be in the tens of millions. Without access to a database of comparable contracts, it's difficult to definitively state if $25.16 million is high or low, but it represents a substantial investment for the defined period and scope.

What are the primary risks associated with a sole-source, cost-plus-fixed-fee contract for critical cyber operations?

The primary risks associated with a sole-source, cost-plus-fixed-fee (CPFF) contract for critical cyber operations are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to higher prices than could be achieved through a competitive bidding process. The government may not be getting the best possible value. Secondly, the CPFF structure shifts much of the financial risk to the government. While the contractor's profit is fixed, their costs are reimbursed, creating less incentive for stringent cost control compared to fixed-price contracts. This can lead to cost overruns if the project's scope expands or if inefficiencies arise. For critical cyber operations, these risks are amplified due to the sensitive nature of the work and the potential for rapid technological changes.

How effective are defensive cyberspace operations and intelligence support contracts in enhancing national security?

Contracts for defensive cyberspace operations and intelligence support are generally considered highly effective, albeit essential, components of national security. They provide the specialized expertise, tools, and personnel necessary to detect, prevent, and respond to cyber threats targeting government networks and critical infrastructure. Intelligence support ensures that defensive measures are informed by the latest threat actor tactics, techniques, and procedures. The effectiveness hinges on the quality of services delivered, the integration of these services with existing military and intelligence frameworks, and the ability of contractors to adapt to the evolving threat landscape. While difficult to quantify directly due to the classified nature of many cyber operations, the absence of successful large-scale cyberattacks on protected systems is an indirect indicator of their efficacy.

What are the historical spending patterns for 'Other Computer Related Services' by the Department of the Army?

Historical spending patterns for 'Other Computer Related Services' (NAICS code 541519) by the Department of the Army, and the DoD more broadly, have shown a consistent and increasing trend over the past decade. This category encompasses a wide range of IT services beyond standard software development or hardware maintenance, including IT consulting, system integration, and specialized technical support like that provided in this contract. The significant growth in this spending reflects the increasing reliance on advanced IT solutions for military operations, intelligence gathering, and administrative functions. Budgets allocated to these services often fluctuate based on strategic priorities, technological advancements, and perceived threats, but the overall trajectory indicates a sustained investment in specialized IT capabilities.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W91RUS18R2059

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: $29,288,631

Exercised Options: $29,288,631

Current Obligation: $25,158,928

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $4,361,478

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline