VA awards Booz Allen Hamilton $661M for Health Services IT, spanning 5 years
Contract Overview
Contract Amount: $661,393,964 ($661.4M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Veterans Affairs
Start Date: 2021-09-30
End Date: 2027-01-23
Contract Duration: 1,941 days
Daily Burn Rate: $340.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THE CONTRACTOR SHALL PROVIDE SHIPPABLE PRODUCTS, OPERATIONS SUPPORT, AND SECURITY COMPLIANCE FOR THE HEALTH SERVICES PORTFOLIO.
Place of Performance
Location: HERNDON, FAIRFAX County, VIRGINIA, 20171
State: Virginia Government Spending
Plain-Language Summary
Department of Veterans Affairs obligated $661.4 million to BOOZ ALLEN HAMILTON INC for work described as: THE CONTRACTOR SHALL PROVIDE SHIPPABLE PRODUCTS, OPERATIONS SUPPORT, AND SECURITY COMPLIANCE FOR THE HEALTH SERVICES PORTFOLIO. Key points: 1. Significant contract value indicates critical IT support for VA's health services. 2. Booz Allen Hamilton, a large established contractor, holds this award. 3. Potential risks include vendor lock-in and ensuring ongoing security compliance. 4. IT services sector, specifically computer systems design, is the focus.
Value Assessment
Rating: good
The contract value of $661M over approximately 5 years suggests a substantial investment. Benchmarking against similar large-scale IT support contracts for federal health portfolios is necessary for a precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Awarded under full and open competition, this method generally promotes competitive pricing. The specific pricing discovery mechanism within this delivery order structure requires further review.
Taxpayer Impact: The competitive award process aims to secure fair market value, optimizing taxpayer investment in essential health IT services.
Public Impact
Ensures continuity of critical health services IT operations for veterans. Supports ongoing security compliance, a vital aspect of healthcare data. Provides necessary operational support for the VA's health services portfolio.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration and value may lead to vendor dependency.
- Ensuring robust security compliance throughout the contract term is crucial.
Positive Signals
- Awarded through full and open competition.
- Supports critical national infrastructure (veteran healthcare).
Sector Analysis
This contract falls within the IT services sector, specifically computer systems design. Federal spending in this area is substantial, driven by the need for modernizing and maintaining complex IT infrastructures.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as the prime contractor is Booz Allen Hamilton. Opportunities for small business subcontracting should be investigated.
Oversight & Accountability
Oversight will be critical to ensure Booz Allen Hamilton meets all performance requirements, security mandates, and delivers value for the $661M investment.
Related Government Programs
- Computer Systems Design Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Large contract value may indicate limited competition for follow-on work.
- Reliance on a single large contractor for critical health IT.
- Ensuring consistent security compliance across a broad portfolio.
- Potential for scope creep or unmanaged cost growth if not tightly controlled.
Tags
computer-systems-design-services, department-of-veterans-affairs, va, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $661.4 million to BOOZ ALLEN HAMILTON INC. THE CONTRACTOR SHALL PROVIDE SHIPPABLE PRODUCTS, OPERATIONS SUPPORT, AND SECURITY COMPLIANCE FOR THE HEALTH SERVICES PORTFOLIO.
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 $661.4 million.
What is the period of performance?
Start: 2021-09-30. End: 2027-01-23.
How does the pricing structure ensure cost-effectiveness for the VA over the contract's lifespan?
The contract is firm-fixed-price, which shifts cost risk to the contractor. However, the overall value of $661M necessitates ongoing monitoring to ensure the fixed price remains competitive and reflects actual service delivery costs and market rates throughout the contract's duration.
What are the specific performance metrics used to evaluate Booz Allen Hamilton's success in providing operations support and security compliance?
Performance metrics are not detailed in the provided data. Effective oversight would require clearly defined Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) related to system uptime, response times, security incident resolution, and compliance audit results.
To what extent does this contract leverage innovative solutions or technologies to improve VA health services?
The provided data focuses on the provision of shippable products, operations support, and security compliance. It does not specify whether the contract incentivizes or requires the adoption of innovative technologies. Further review of the SOW and performance reports would be needed to assess innovation.
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: 8
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: $696,734,219
Exercised Options: $663,029,252
Current Obligation: $661,393,964
Actual Outlays: $448,437,057
Subaward Activity
Number of Subawards: 528
Total Subaward Amount: $183,779,063
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
Start Date: 2021-09-30
Current End Date: 2027-01-23
Potential End Date: 2027-01-23 00:00:00
Last Modified: 2026-04-13
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