Booz Allen Hamilton secured $50.7M for IT security services from NIH, spanning over three years

Contract Overview

Contract Amount: $50,678,460 ($50.7M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2008-07-24

End Date: 2012-01-24

Contract Duration: 1,279 days

Daily Burn Rate: $39.6K/day

Number of Offers Received: 4

Pricing Type: OTHER (APPLIES TO AWARDS WHERE NONE OF THE ABOVE APPLY)

Sector: IT

Official Description: C-2604 INFORMATION ASSURANCE AND INFOMATION TECHNOLOGY SECURITY SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20420, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $50.7 million to BOOZ ALLEN HAMILTON INC for work described as: C-2604 INFORMATION ASSURANCE AND INFOMATION TECHNOLOGY SECURITY SERVICES Key points: 1. The contract's value appears reasonable given the duration and scope of IT security services. 2. Competition dynamics for this contract are not fully detailed, but the award suggests a competitive process. 3. Key risk indicators include the long performance period, which necessitates ongoing monitoring of service delivery. 4. Performance context is framed by the critical need for information assurance within a major health research agency. 5. This contract positions Booz Allen Hamilton as a key provider of essential IT security solutions for federal health agencies.

Value Assessment

Rating: good

The contract value of approximately $50.7 million over 1279 days (roughly 3.5 years) for comprehensive IT security services appears to be within a reasonable range for a large federal agency like NIH. Benchmarking against similar large-scale IT security contracts awarded by federal entities suggests that the per-year cost is competitive, especially considering the specialized nature of information assurance and cybersecurity. Without specific details on the exact services rendered and their unit costs, a precise value-for-money assessment is challenging, but the overall award size does not immediately raise red flags for overpricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data does not specify the competition level for this contract. It is unclear whether this was a full and open competition, a limited competition among pre-qualified vendors, or a sole-source award. The number of bidders and the specific solicitation method would provide crucial insights into the effectiveness of the procurement process. If it was a competitive bid, the number of offers received would indicate the level of market interest and potential for price discovery.

Taxpayer Impact: The level of competition directly impacts taxpayer value. A robust, open competition typically drives down prices and encourages innovation, leading to better value for taxpayer dollars. Limited or sole-source awards may result in higher costs if competition is not adequately stimulated.

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH) and its researchers, who gain enhanced protection for sensitive health data and IT systems. Services delivered include crucial information assurance and IT security functions, safeguarding critical research data and operational infrastructure. The geographic impact is centered around NIH facilities, primarily in the Washington D.C. metropolitan area, ensuring the security of their core operations. Workforce implications include the employment of skilled cybersecurity professionals by Booz Allen Hamilton to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep over the contract's multi-year duration.
Ensuring consistent service quality and performance across all IT security functions.
Managing the transition of services if contract is not renewed or re-competed.

Positive Signals

Award to a well-established contractor with a strong track record in government IT services.
Focus on critical information assurance and security functions, aligning with agency priorities.
Long-term contract provides stability for service delivery and planning.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on computer systems design and related services, with a specialization in information assurance and cybersecurity. The market for these services is substantial and growing, driven by increasing cyber threats and the digitization of government operations. Comparable spending benchmarks for IT security services within federal agencies often run into the hundreds of millions or even billions annually, depending on the agency's size and mission. This $50.7 million award represents a significant, but not exceptionally large, investment in securing critical IT infrastructure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, as a large prime contract awarded to a major defense and IT contractor, there may be opportunities for small businesses to participate as subcontractors if Booz Allen Hamilton chooses to engage them for specific services or components. The absence of a set-aside suggests that the primary focus was on securing specialized IT security expertise, potentially from larger, established firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the National Institutes of Health. Performance monitoring, adherence to service level agreements, and financial accountability would be key oversight functions. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse related to the contract arise.

Related Government Programs

Federal Information Security Management Act (FISMA) Compliance
Cybersecurity Modernization Initiatives
Health Data Security Programs
IT Infrastructure Modernization Contracts
Information Assurance Services

Risk Flags

Potential for vendor lock-in due to specialized IT security services.
Cybersecurity threats evolve rapidly, requiring continuous adaptation.
Dependence on contractor performance for critical agency functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $50.7 million to BOOZ ALLEN HAMILTON INC. C-2604 INFORMATION ASSURANCE AND INFOMATION TECHNOLOGY SECURITY 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 Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $50.7 million.

What is the period of performance?

Start: 2008-07-24. End: 2012-01-24.

What is Booz Allen Hamilton's track record with federal IT security contracts?

Booz Allen Hamilton is a well-established and prominent contractor with extensive experience in providing IT, cybersecurity, and information assurance services to various U.S. federal agencies. They have a long history of securing and managing large, complex IT contracts, including those focused on sensitive data protection and system security. Their track record includes numerous awards across defense, intelligence, and civilian agencies. While specific performance metrics for individual contracts are not always publicly available, their continued success in winning significant federal contracts suggests a generally positive performance history and a strong understanding of government requirements in the IT security domain. They are known for their deep technical expertise and ability to scale resources to meet agency needs.

How does the $50.7 million contract value compare to similar IT security services procured by NIH or other health agencies?

The $50.7 million contract value for IT security services over approximately 3.5 years represents a substantial investment, averaging around $14.5 million per year. This figure is generally in line with, or potentially on the lower end of, what large federal health agencies like NIH might spend on comprehensive IT security solutions. Agencies of NIH's size manage vast amounts of sensitive data and complex IT infrastructures, requiring significant resources for cybersecurity. Comparable contracts for similar scope and duration within agencies like the Department of Veterans Affairs or Centers for Medicare & Medicaid Services could easily range from $20 million to $50 million annually, or even higher for broader cybersecurity modernization efforts. Therefore, this award appears competitive for the services rendered.

What are the primary risks associated with a multi-year IT security contract of this magnitude?

The primary risks associated with a multi-year IT security contract of this magnitude include technological obsolescence, evolving threat landscapes, potential for scope creep, contractor performance degradation over time, and budget fluctuations. Technology and cyber threats evolve rapidly, meaning the security solutions implemented early in the contract might become outdated or insufficient by its end. Managing scope creep is crucial to prevent cost overruns and ensure the contract remains focused on its core objectives. Ensuring consistent high performance from the contractor throughout the contract's life requires robust oversight and clear performance metrics. Furthermore, long-term reliance on a single contractor can create dependencies and potential vulnerabilities if not managed carefully, necessitating strong contract management and contingency planning.

What is the historical spending pattern for 'Computer Systems Design Services' (NAICS 541512) at the National Institutes of Health?

Historical spending data for NAICS code 541512 ('Computer Systems Design Services') at the National Institutes of Health (NIH) indicates a consistent and significant investment in this category over the years. NIH regularly procures a wide array of IT services under this code, including system design, integration, cybersecurity, and IT support. Annual spending can fluctuate based on specific project needs and budget allocations, but it typically runs into the hundreds of millions of dollars across all contracts within this NAICS category. The $50.7 million award to Booz Allen Hamilton for information assurance is a notable component within this broader spending trend, highlighting NIH's commitment to securing its IT infrastructure.

How does the 'Award Type' (AW: DO) influence the interpretation of this contract's value and competition?

The 'Award Type' (AW: DO) signifies a 'Delivery Order' against an existing indefinite-delivery indefinite-quantity (IDIQ) contract or a similar type of pre-negotiated agreement. This implies that the underlying contract vehicle was previously competed and awarded, establishing terms, conditions, and potentially pricing structures. A Delivery Order itself is typically not a new competition but rather an order placed under the established contract. Therefore, the competition level for this specific $50.7 million award is determined by the competition that occurred when the parent IDIQ contract was initially awarded. The value is interpreted within the framework of that pre-negotiated agreement, suggesting that pricing was vetted during the initial competition phase.

Industry Classification

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

Product/Service Code: MISCELLANEOUS

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)

Address: 8283 GREENSBORO DR, MCLEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $50,678,460

Exercised Options: $50,678,460

Current Obligation: $50,678,460

Parent Contract

Parent Award PIID: 263010072

IDV Type: IDC

Timeline