DHS awards $54M engineering services contract to Booz Allen Hamilton for CISA support

Contract Overview

Contract Amount: $54,003,654 ($54.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Homeland Security

Start Date: 2020-09-30

End Date: 2025-03-31

Contract Duration: 1,643 days

Daily Burn Rate: $32.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THE DEPARTMENT OF HOMELAND SECURITY (DHS), CYBERSECURITY AND INFRASTRUCTURE SECURITY AGENCY ACQUISITIONS DIVISION (CISAAD) IS ISSUING THIS SINGLE TIME-AND-MATERIALS TASK ORDER TO BOOZ ALLEN HAMILTON, INC. UNDER THE ONE ACQUISITION SOLUTION FOR INTEGR

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $54.0 million to BOOZ ALLEN HAMILTON INC for work described as: THE DEPARTMENT OF HOMELAND SECURITY (DHS), CYBERSECURITY AND INFRASTRUCTURE SECURITY AGENCY ACQUISITIONS DIVISION (CISAAD) IS ISSUING THIS SINGLE TIME-AND-MATERIALS TASK ORDER TO BOOZ ALLEN HAMILTON, INC. UNDER THE ONE ACQUISITION SOLUTION FOR INTEGR Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 4 years indicates a long-term need for these services. 3. Engineering services are critical for cybersecurity and infrastructure protection. 4. The award to a large, established contractor like Booz Allen Hamilton suggests a focus on experience and capability. 5. The use of Time and Materials pricing may require close monitoring to ensure cost control. 6. The contract is for support to CISA, a key agency within DHS.

Value Assessment

Rating: good

The contract value of $54 million over approximately 4.5 years averages to about $12 million annually. Benchmarking this against similar engineering services contracts for federal agencies requires detailed analysis of scope and specific deliverables. However, for a large, established firm like Booz Allen Hamilton supporting a critical agency like CISA, this pricing appears within a reasonable range, assuming the scope of work is substantial and complex. Further analysis would involve comparing specific labor rates and overhead costs to industry standards for similar federal contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The data does not specify the number of bids received, but the nature of the competition suggests that multiple companies likely vied for this opportunity. Full and open competition is generally expected to drive competitive pricing and encourage innovative solutions by allowing a wide range of contractors to participate.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider selection of qualified contractors, leading to better value for government spending.

Public Impact

The primary beneficiary is the Cybersecurity and Infrastructure Security Agency (CISA), receiving essential engineering support. Services delivered likely include technical expertise, strategic planning, and operational support for CISA's mission. The geographic impact is primarily within the District of Columbia, where the contractor is located. The contract supports a workforce of engineers and technical specialists, contributing to the federal cybersecurity sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with Time and Materials contract type if not closely managed.
Reliance on a single large contractor may limit future competition or flexibility.
Scope creep could increase the overall cost beyond the initial $54 million estimate.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Booz Allen Hamilton is a well-established contractor with a proven track record in federal IT and engineering services.
The contract supports a critical national security mission within CISA.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330), which is a significant part of the federal contracting landscape, particularly for agencies focused on infrastructure, defense, and technology. The federal market for engineering services is substantial, with agencies like DHS consistently investing in expertise to manage complex systems and emerging threats. This contract with CISA aligns with broader government spending trends aimed at enhancing cybersecurity and protecting critical national infrastructure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Booz Allen Hamilton is a large business. While there is no direct indication of small business subcontracting requirements in the provided data, large federal contracts often include provisions for small business participation. The absence of a small business set-aside means that opportunities for small businesses to directly bid on this prime contract were limited.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within CISA. The Department of Homeland Security has an Office of Inspector General (OIG) that provides independent oversight of DHS programs and operations, including contract compliance and financial integrity. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and detailed spending breakdowns may not always be publicly accessible.

Related Government Programs

DHS IT Services Contracts
Cybersecurity Support Services
Engineering and Technical Services
CISA Operations Support

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Contract duration extends over multiple fiscal years, requiring ongoing budget allocation.
Reliance on a single large contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $54.0 million to BOOZ ALLEN HAMILTON INC. THE DEPARTMENT OF HOMELAND SECURITY (DHS), CYBERSECURITY AND INFRASTRUCTURE SECURITY AGENCY ACQUISITIONS DIVISION (CISAAD) IS ISSUING THIS SINGLE TIME-AND-MATERIALS TASK ORDER TO BOOZ ALLEN HAMILTON, INC. UNDER THE ONE ACQUISITION SOLUTION FOR INTEGR

Who is the contractor on this award?

The obligated recipient is BOOZ ALLEN HAMILTON INC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $54.0 million.

What is the period of performance?

Start: 2020-09-30. End: 2025-03-31.

What is Booz Allen Hamilton's track record with DHS and CISA specifically?

Booz Allen Hamilton has a long-standing relationship with the Department of Homeland Security (DHS) and its various components, including CISA. They have historically secured numerous contracts across a wide range of services, including cybersecurity, IT modernization, intelligence analysis, and management consulting. For CISA, their support often involves providing expertise in areas such as threat intelligence, risk assessment, infrastructure protection, and emergency preparedness. Their extensive experience with DHS suggests a deep understanding of the agency's mission, challenges, and operational environment, which likely contributed to their success in winning this engineering services task order.

How does the $54 million value compare to similar engineering services contracts for CISA or DHS?

The $54 million value for this 4.5-year engineering services contract represents an average annual value of approximately $12 million. This figure is substantial but not extraordinary within the context of large federal agencies like DHS, which manage complex and critical infrastructure. Comparing it directly to 'similar' contracts is challenging without knowing the precise scope of work, but DHS and CISA frequently award multi-million dollar contracts for specialized technical and engineering support. For instance, contracts for cybersecurity solutions, system integration, or advanced research and development can easily reach or exceed this value. The key factor is the specific nature of the engineering services provided; if they involve high-level strategic planning, complex system design, or critical infrastructure protection, the $12 million annual average is likely competitive.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude?

The primary risk with a Time and Materials (T&M) contract, especially one valued at $54 million, is the potential for cost overruns if not rigorously managed. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. This structure can incentivize longer project durations or less efficient work if oversight is lax. For DHS and CISA, risks include scope creep (where the project expands beyond its original intent), inefficient labor utilization, and inflated material costs. Effective risk mitigation requires strong contract administration, detailed tracking of labor hours and material expenses, clear definition of milestones, and regular performance reviews to ensure the contractor is delivering value efficiently.

How does this contract contribute to CISA's overall mission effectiveness?

This contract directly supports CISA's core mission of leading the national effort to understand, manage, and reduce risks to cyber and physical infrastructure. The engineering services provided by Booz Allen Hamilton are likely crucial for tasks such as developing and implementing cybersecurity strategies, assessing the security of critical infrastructure, providing technical guidance to public and private sector partners, and responding to cyber incidents. By securing specialized engineering expertise, CISA can enhance its capabilities in areas like network defense, threat analysis, and resilience planning, ultimately strengthening the nation's security posture against evolving threats.

What are the historical spending patterns for engineering services within DHS over the last five years?

Historical spending patterns for engineering services within DHS over the last five years show a consistent and significant investment, reflecting the agency's broad responsibilities in national security, infrastructure protection, and emergency management. While precise figures fluctuate annually based on agency priorities and emerging threats, DHS consistently allocates substantial funds to engineering and technical support across its various components, including CISA, FEMA, and the Transportation Security Administration (TSA). Spending in this category often increases during periods of heightened cyber threats or when major infrastructure projects are undertaken. The trend generally indicates a sustained demand for specialized engineering expertise to manage complex systems, develop new technologies, and ensure the resilience of critical national assets.

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

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MC LEAN, 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: $55,552,288

Exercised Options: $55,192,147

Current Obligation: $54,003,654

Actual Outlays: $28,390,047

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $293,045

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU108

IDV Type: IDC

Timeline