VA Awards $826.6M IT Operations Support Contract to Booz Allen Hamilton

Contract Overview

Contract Amount: $826,583,512 ($826.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-05-17

End Date: 2025-01-22

Contract Duration: 2,077 days

Daily Burn Rate: $398.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF INFORMATION TECHNOLOGY OPERATIONS AND SERVICES TRANSFORMATION SUPPORT SERVICES

Place of Performance

Location: RED BANK, MONMOUTH County, NEW JERSEY, 07701

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $826.6 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF INFORMATION TECHNOLOGY OPERATIONS AND SERVICES TRANSFORMATION SUPPORT SERVICES Key points: 1. Significant contract value highlights substantial IT support needs. 2. Booz Allen Hamilton, a major player, secured this large award. 3. Full and open competition suggests a robust bidding process. 4. The contract spans IT operations and transformation services.

Value Assessment

Rating: good

The contract value of $826.6M over its period is substantial. Benchmarking against similar large-scale IT transformation and operations support contracts is difficult without more granular data, but the duration and scope suggest a competitive pricing structure was likely sought.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for critical IT services.

Public Impact

Veterans will benefit from improved IT services supporting VA operations. The contract supports modernization and transformation of IT infrastructure. Job creation is likely within the IT sector due to this award.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration extends into 2025, requiring ongoing monitoring.
Time and Materials pricing could lead to cost overruns if not managed.
Small business participation is not indicated.

Positive Signals

Awarded through full and open competition.
Supports critical IT operations for a major federal agency.
Long-term engagement allows for sustained service improvement.

Sector Analysis

This contract falls within the IT professional services sector, specifically computer systems design. Spending in this area is consistently high as agencies modernize and maintain complex IT infrastructures.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if small business subcontracting goals were established or met.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight of this contract. Regular performance reviews and audits are crucial to ensure service delivery and cost control.

Related Government Programs

Computer Systems Design Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of explicit small business participation.
Long contract duration requires sustained oversight.
Dependence on a single large contractor for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $826.6 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF INFORMATION TECHNOLOGY OPERATIONS AND SERVICES TRANSFORMATION 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 $826.6 million.

What is the period of performance?

Start: 2019-05-17. End: 2025-01-22.

What specific IT transformation initiatives are included in this contract?

The contract focuses on 'IT Operations and Services Transformation Support Services.' While specific initiatives are not detailed in the provided data, this typically encompasses modernizing legacy systems, implementing cloud solutions, enhancing cybersecurity, improving data management, and streamlining IT service delivery to better support the VA's mission.

What are the primary risks associated with a Time and Materials contract of this magnitude?

The primary risk with Time and Materials (T&M) contracts, especially large ones, is the potential for cost overruns if not closely managed. Without fixed pricing, the government pays for actual labor hours and material costs, which can escalate if project scope creeps or if contractor efficiency is low. Robust oversight and clear task definitions are essential to mitigate this risk.

How does this contract contribute to the VA's overall IT modernization goals?

This contract is likely a significant component of the VA's IT modernization strategy by providing essential support for transforming and operating its IT services. It enables the agency to leverage external expertise for complex projects, ensuring that IT systems are updated, secure, and capable of supporting the evolving needs of veterans and VA staff.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 1 CHRISTOPHER WAY, 13, EATONTOWN, NJ, 07724

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

Financial Breakdown

Contract Ceiling: $999,622,896

Exercised Options: $826,583,512

Current Obligation: $826,583,512

Actual Outlays: $317,898,571

Subaward Activity

Number of Subawards: 124

Total Subaward Amount: $161,555,185

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1007

IDV Type: IDC

Timeline