VA awards $1.14B for IT ecosystem management, focusing on emerging tech and human-centered design

Contract Overview

Contract Amount: $1,139,008,033 ($1.1B)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-01-08

End Date: 2025-04-15

Contract Duration: 1,558 days

Daily Burn Rate: $731.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PRODUCT AND TECHNOLOGY ECOSYSTEM MANAGEMENT SERVICES (PTEMS)WHICH INCLUDES PRODUCT DELIVERY AND LIFECYCLE MANAGEMENT TO TRANSFORM VA BY TAPPING INTO EMERGING TECHNOLOGIES, CONNECTING DEVELOPERS WITH VA DATA, AND MAKING HUMAN CENTERED DESIGN (HCD).

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $1.14 billion to BOOZ ALLEN HAMILTON INC for work described as: PRODUCT AND TECHNOLOGY ECOSYSTEM MANAGEMENT SERVICES (PTEMS)WHICH INCLUDES PRODUCT DELIVERY AND LIFECYCLE MANAGEMENT TO TRANSFORM VA BY TAPPING INTO EMERGING TECHNOLOGIES, CONNECTING DEVELOPERS WITH VA DATA, AND MAKING HUMAN CENTERED DESIGN (HCD). Key points: 1. Contract aims to modernize VA's IT infrastructure through advanced technologies. 2. Emphasis on human-centered design suggests a focus on user experience for veterans. 3. The large contract value indicates a significant investment in IT transformation. 4. Competition dynamics will be crucial for ensuring cost-effectiveness. 5. Performance will be monitored to ensure delivery of intended technological advancements. 6. Sector positioning is within IT services, specifically systems design and lifecycle management.

Value Assessment

Rating: good

The contract value of $1.14 billion over its period of performance is substantial, reflecting the scope of IT ecosystem management. Benchmarking against similar large-scale IT transformation contracts within federal agencies is necessary for a precise value-for-money assessment. However, the focus on emerging technologies and human-centered design suggests a strategic investment aimed at long-term modernization, which can justify a higher initial cost if successful. The fixed-price nature of the contract provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 9 bidders suggests a healthy level of competition for this significant IT services contract. This broad competition is generally favorable for price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down costs through market forces and encouraging innovation among a wider pool of potential contractors.

Public Impact

Veterans will benefit from modernized IT systems and improved user experiences. The contract supports the delivery of advanced IT services and product lifecycle management. The geographic impact is primarily within the Department of Veterans Affairs' national infrastructure. Workforce implications may include the need for specialized IT skills within the VA and its contractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex IT transformation projects.
Ensuring effective integration of emerging technologies with existing VA systems.
Measuring the tangible impact of human-centered design on user satisfaction.

Positive Signals

Clear focus on modernization and emerging technologies.
Awarded through full and open competition, indicating market interest.
Long-term contract duration allows for sustained development and implementation.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and lifecycle management. The market for such services is large and competitive, with significant government spending allocated to IT modernization efforts across various agencies. The VA's investment aligns with broader federal initiatives to leverage technology for improved service delivery and operational efficiency. Comparable spending benchmarks would involve looking at other large-scale IT transformation contracts awarded by agencies like DoD or HHS.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary contractor, Booz Allen Hamilton, will likely manage the majority of the work. Further analysis would be needed to determine if there are any subcontracting opportunities for small businesses within the execution of this large IT services contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs' contracting officers and program managers. Accountability measures will be tied to the performance metrics and deliverables outlined in the contract. Transparency is expected through standard government reporting mechanisms for federal contracts. The Inspector General's office for the VA may also conduct audits or investigations related to the contract's execution and effectiveness.

Related Government Programs

VA IT Modernization Initiatives
Federal Cloud Computing Strategy
Digital Services Transformation Programs
Emerging Technology Adoption in Government

Risk Flags

Complexity of integrating emerging technologies
Potential for cost overruns if not managed tightly
Ensuring effective user adoption of new systems
Measuring ROI on advanced technology investments

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $1.14 billion to BOOZ ALLEN HAMILTON INC. PRODUCT AND TECHNOLOGY ECOSYSTEM MANAGEMENT SERVICES (PTEMS)WHICH INCLUDES PRODUCT DELIVERY AND LIFECYCLE MANAGEMENT TO TRANSFORM VA BY TAPPING INTO EMERGING TECHNOLOGIES, CONNECTING DEVELOPERS WITH VA DATA, AND MAKING HUMAN CENTERED DESIGN (HCD).

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 $1.14 billion.

What is the period of performance?

Start: 2021-01-08. End: 2025-04-15.

What is Booz Allen Hamilton's track record with large-scale IT transformation contracts for the VA or similar agencies?

Booz Allen Hamilton has a significant history of performing large-scale IT and management consulting services for various federal agencies, including the Department of Veterans Affairs. They have been involved in numerous complex projects related to IT modernization, cybersecurity, data analytics, and digital transformation. Their experience often includes managing multi-year, multi-billion dollar contracts. Specific to the VA, they have previously supported efforts in areas like electronic health records and IT infrastructure. A detailed review of their past performance on similar contracts would assess their ability to manage the scope, complexity, and technological demands of this PTEMS contract, looking at on-time delivery, budget adherence, and successful implementation of innovative solutions.

How does the $1.14 billion contract value compare to historical IT spending by the VA for similar services?

The $1.14 billion contract value represents a substantial investment in IT ecosystem management services over its duration. To benchmark this, one would compare it to the VA's historical spending on IT modernization, systems integration, and product lifecycle management over similar periods. For instance, analyzing annual IT budgets or specific large IT procurements from previous years would provide context. If the VA has historically spent similar amounts on large-scale IT overhauls, this contract might be in line with its strategic priorities. However, if this figure significantly deviates from past spending patterns, it warrants closer examination to understand the drivers behind the increased investment, such as the incorporation of emerging technologies or a broader scope of services.

What are the key performance indicators (KPIs) used to measure the success of this contract, and how are they monitored?

While specific KPIs are not detailed in the provided data, contracts of this nature typically include metrics related to system uptime, performance benchmarks for new technologies, successful integration of solutions, user adoption rates (especially for human-centered design elements), and adherence to project timelines and budget. Monitoring is usually conducted through regular progress reports submitted by the contractor, site visits, performance reviews, and potentially independent assessments. The VA's contracting officer's representative (COR) and program management office would be responsible for tracking these KPIs and ensuring the contractor meets its obligations. Failure to meet critical KPIs could lead to contractual remedies.

What specific emerging technologies are being prioritized under this contract, and what is the risk associated with their implementation?

The contract mentions tapping into 'emerging technologies' broadly. This could encompass areas such as artificial intelligence (AI), machine learning (ML), cloud computing advancements, data analytics platforms, blockchain, and potentially Internet of Things (IoT) applications relevant to veteran services. The risk associated with implementing emerging technologies is inherent due to their novelty, potential lack of maturity, integration challenges with legacy systems, and the need for specialized expertise. Successful implementation requires robust risk management strategies, phased rollouts, thorough testing, and continuous adaptation. The VA will need to carefully manage vendor performance and technological evolution to mitigate risks and realize the intended benefits.

How does the focus on 'human-centered design' translate into tangible benefits for veterans and VA staff?

Human-centered design (HCD) prioritizes understanding and meeting the needs of the end-users – in this case, veterans and VA staff – throughout the design and development process. For veterans, this could mean more intuitive online portals, easier access to benefits and healthcare services, and personalized digital experiences. For VA staff, it could translate to more efficient workflows, user-friendly interfaces for managing patient records or administrative tasks, and tools that reduce cognitive load. The tangible benefits are expected to be improved satisfaction, increased efficiency, reduced errors, and ultimately, better healthcare outcomes and service delivery for veterans. Measuring HCD success involves user feedback, usability testing, and tracking adoption rates.

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: 9

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: $1,143,130,746

Exercised Options: $1,139,020,224

Current Obligation: $1,139,008,033

Actual Outlays: $545,978,011

Subaward Activity

Number of Subawards: 75

Total Subaward Amount: $110,834,705

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1015

IDV Type: IDC

Timeline