VA's T4NG Task Order awards $1.37B for IT services to Booz Allen Hamilton, running through May 2026

Contract Overview

Contract Amount: $1,365,285,600 ($1.4B)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-05-17

End Date: 2026-05-18

Contract Duration: 1,827 days

Daily Burn Rate: $747.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) TASK ORDER - BENEFITS INTEGRATED DELIVERY

Place of Performance

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

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $1.37 billion to BOOZ ALLEN HAMILTON INC for work described as: TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) TASK ORDER - BENEFITS INTEGRATED DELIVERY Key points: 1. Significant contract value indicates a substantial need for IT modernization within the VA. 2. Booz Allen Hamilton, a major player, likely faces competition from other large IT firms for future task orders. 3. The firm-fixed-price structure aims to control costs, but scope creep could introduce risk. 4. This contract falls within the Computer Systems Design Services sector, a critical area for government operations.

Value Assessment

Rating: good

The contract's firm-fixed-price nature suggests an effort to establish clear pricing. Benchmarking against similar large-scale IT service contracts is necessary to fully assess value, but the scale implies competitive pricing was sought.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing and allows for a broad range of qualified vendors to bid. This method is expected to yield fair market value.

Taxpayer Impact: Full and open competition aims to ensure taxpayer dollars are spent efficiently by fostering a competitive environment that drives down prices.

Public Impact

Modernization of VA IT systems impacts millions of veterans relying on these services. Improved IT infrastructure can lead to more efficient healthcare delivery and benefits processing. Data security and privacy are paramount given the sensitive nature of veteran information. The success of this contract could influence future large-scale IT procurements across federal agencies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep impacting budget and timeline.
Dependence on a single large contractor for critical IT functions.
Ensuring effective knowledge transfer and avoiding vendor lock-in.

Positive Signals

Awarded through full and open competition.
Firm-fixed-price contract type.
Long-term duration allows for sustained IT modernization efforts.

Sector Analysis

This contract is within the IT sector, specifically computer systems design services. Spending in this area is substantial across government, driven by the need for digital transformation and modernization of legacy systems.

Small Business Impact

While this specific task order was awarded to a large business, the overall T4NG Indefinite Delivery/Indefinite Quantity (IDIQ) contract vehicle may have provisions or goals for small business participation on subsequent task orders. Analysis of subcontracting plans is crucial.

Oversight & Accountability

The Department of Veterans Affairs is responsible for oversight. Regular performance reviews, milestone tracking, and adherence to contract terms are essential for accountability and ensuring successful delivery.

Related Government Programs

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

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Risk of vendor lock-in due to the scale and duration.
Dependence on contractor's cybersecurity practices.
Ensuring effective transition and knowledge transfer upon contract completion.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $1.37 billion to BOOZ ALLEN HAMILTON INC. TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) TASK ORDER - BENEFITS INTEGRATED DELIVERY

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 $1.37 billion.

What is the period of performance?

Start: 2021-05-17. End: 2026-05-18.

How does the awarded price compare to industry benchmarks for similar IT transformation projects of this scale?

Benchmarking requires detailed analysis of the specific services rendered, labor categories, and geographic locations. However, given the firm-fixed-price nature and full-and-open competition, the VA likely aimed for competitive pricing. Comparing the total contract value against the duration and scope of work against similar government or large commercial IT transformation projects would be the next step.

What are the key performance indicators (KPIs) for this contract, and how will they be monitored to mitigate performance risks?

Key performance indicators are crucial for managing risks associated with large IT contracts. While not detailed here, typical KPIs would include system uptime, response times, security compliance, project completion rates, and user satisfaction. The VA's contracting officer and technical team will monitor these KPIs through regular reporting, site visits, and performance evaluations to ensure Booz Allen Hamilton meets its obligations and to identify potential issues early.

What is the potential impact of this contract on the VA's ability to adopt emerging technologies and adapt to future IT needs?

The success of this contract in delivering modern IT solutions could significantly enhance the VA's technological capabilities. However, the long-term nature and specific scope might also pose a risk if it limits flexibility in adopting rapidly evolving technologies. The VA must ensure the contract includes mechanisms for innovation and adaptation, or supplement it with other agile procurements to remain technologically current.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

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: $1,521,528,359

Exercised Options: $1,365,285,600

Current Obligation: $1,365,285,600

Actual Outlays: $955,475,550

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $272,020,135

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