VA's $16.7M T4NG ITSM contract awarded to Booz Allen Hamilton for computer systems design

Contract Overview

Contract Amount: $16,724,299 ($16.7M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-05-10

End Date: 2026-02-09

Contract Duration: 640 days

Daily Burn Rate: $26.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) ITSM

Place of Performance

Location: EATONTOWN, MONMOUTH County, NEW JERSEY, 07724

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $16.7 million to BOOZ ALLEN HAMILTON INC for work described as: TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) ITSM Key points: 1. Contract awarded under a full and open competition, suggesting a robust market. 2. The contract is for IT services, specifically computer systems design, a common requirement for federal agencies. 3. The duration of 640 days indicates a medium-term project. 4. The firm-fixed-price contract type shifts risk to the contractor. 5. The award was made by the Department of Veterans Affairs, a major federal IT consumer. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: good

The contract value of $16.7 million over approximately 21 months appears reasonable for IT service delivery. Benchmarking against similar IT service contracts for the VA or other large agencies would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government when scope is well-defined, as it caps costs. However, without detailed task order specifics, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 7 bidders suggests a healthy level of competition for this IT service requirement. A competitive process like this typically leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: A full and open competition benefits taxpayers by driving down prices through market forces and ensuring the government receives the best value available from a wide pool of potential providers.

Public Impact

The Department of Veterans Affairs benefits from enhanced IT service management capabilities. Veterans may indirectly benefit from improved IT infrastructure supporting VA operations. The contract supports IT service delivery within New Jersey. The contract likely supports a workforce of IT professionals and system designers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not tightly managed under the firm-fixed-price structure.
Dependence on a single contractor for critical IT service management functions.
Risk of vendor lock-in if transition to a new provider is complex.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a competitive market and potential for good value.
Award to a well-established contractor like Booz Allen Hamilton may indicate a lower execution risk.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. The federal government is a major purchaser of these services, with spending often concentrated within large agencies like the Department of Veterans Affairs. The T4NG IDIQ vehicle, under which this delivery order was likely issued, is a key procurement instrument for the VA's IT needs, facilitating competition and efficient acquisition of IT solutions.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. While Booz Allen Hamilton is a large business, the underlying IDIQ vehicle may have provisions for small business subcontracting. Further analysis would be needed to determine if small businesses are participating in the subcontracting plan for this specific delivery order.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Veterans Affairs. The firm-fixed-price nature provides a degree of cost control. Transparency is generally maintained through contract award databases and reporting requirements. The VA's Office of Inspector General may conduct audits or investigations if performance or financial irregularities are suspected.

Related Government Programs

T4NG IDIQ Vehicle
IT Service Management Contracts
Computer Systems Design Services
Department of Veterans Affairs IT Procurement

Risk Flags

Contract Type: Firm Fixed Price
Competition Level: Full and Open
Contracting Agency: Department of Veterans Affairs
Service Type: Computer Systems Design Services

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $16.7 million to BOOZ ALLEN HAMILTON INC. TRANSFORMATION TWENTY-ONE TOTAL TECHNOLOGY NEXT GENERATION (T4NG) ITSM

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 $16.7 million.

What is the period of performance?

Start: 2024-05-10. End: 2026-02-09.

What is the historical spending pattern for IT Service Management (ITSM) at the Department of Veterans Affairs?

The Department of Veterans Affairs (VA) has consistently invested significant resources in IT Service Management (ITSM) to support its vast healthcare and administrative systems. Historically, the VA has utilized various contract vehicles, including IDIQ contracts like T4NG, to procure ITSM services. Spending in this area has been substantial, driven by the need to maintain and modernize complex IT infrastructure, ensure cybersecurity, and improve the efficiency of services delivered to veterans. Annual ITSM spending can fluctuate based on specific modernization initiatives, cybersecurity threats, and the lifecycle of existing systems. Analyzing past VA IT budgets and contract awards reveals a sustained demand for services related to help desk support, network management, system integration, and IT governance, often amounting to hundreds of millions of dollars annually across multiple contracts and task orders.

How does the awarded price compare to similar ITSM contracts within the federal government?

Benchmarking the $16.7 million value for this 640-day (approx. 21-month) contract requires comparing it against similar IT Service Management (ITSM) contracts awarded by other federal agencies or even within the VA itself. Given the firm-fixed-price structure and the award to a large, established contractor like Booz Allen Hamilton, the price is likely competitive within the market for specialized IT services. However, a precise comparison would necessitate examining the specific scope of work, service level agreements (SLAs), and the complexity of the systems being managed. Contracts for broader IT modernization or system development might have higher dollar values, while smaller, more focused support contracts could be less expensive. Without access to the detailed task order requirements and the specific metrics used in the competition, it's difficult to definitively state if this price is exceptionally high or low, but the full and open competition suggests market forces were at play.

What is Booz Allen Hamilton's track record with the Department of Veterans Affairs?

Booz Allen Hamilton has a significant and long-standing track record of performing work for the Department of Veterans Affairs (VA). As a major federal contractor, they have been awarded numerous contracts across various IT and professional services domains. Their engagements with the VA have spanned areas such as IT modernization, data analytics, cybersecurity, program management, and strategic consulting. The VA has historically relied on contractors like Booz Allen Hamilton to support its complex mission, including the implementation and sustainment of critical systems like those related to veteran health records and benefits. The award of this T4NG delivery order further underscores their established presence and capability within the VA's IT acquisition landscape. Past performance reviews and contract data would provide a more granular view of their specific successes and challenges on prior VA engagements.

What are the potential risks associated with this specific contract award?

Several potential risks are associated with this contract award. Firstly, the firm-fixed-price (FFP) nature, while beneficial for cost control, can pose a risk if the scope of work is not precisely defined or if unforeseen technical challenges arise, potentially leading to contractor claims or reduced profit margins. Secondly, reliance on a single contractor, Booz Allen Hamilton, for critical ITSM functions creates a dependency. Any performance issues or disruptions from the contractor could impact the VA's operations. Thirdly, the transition of services, either during the contract period or upon its completion, can be complex and resource-intensive. Finally, ensuring continuous alignment with evolving VA IT strategies and emerging technologies requires proactive contract management and potential contract modifications, which themselves carry administrative and financial risks.

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

This contract, focused on IT Service Management (ITSM) under the T4NG vehicle, directly contributes to the VA's broader IT modernization goals by ensuring the stable and efficient operation of existing IT infrastructure. Effective ITSM is foundational for any IT environment, enabling seamless support, incident resolution, and change management. By outsourcing these functions to a capable provider like Booz Allen Hamilton, the VA can free up its internal resources to focus on more strategic modernization initiatives, such as implementing new electronic health record systems, enhancing data analytics capabilities, or adopting cloud technologies. A well-managed IT service layer reduces operational friction, improves user satisfaction among VA staff, and provides a reliable platform upon which new digital services and capabilities can be built and deployed, ultimately supporting the VA's mission to serve veterans more effectively.

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 - DELIVERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: T4NG-0715

Offers Received: 7

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: $89,959,169

Exercised Options: $16,724,299

Current Obligation: $16,724,299

Actual Outlays: $15,921,784

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $6,357,003

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