VA awards $48.8M to McKinsey for Pandemic Response and Scenario Planning
Contract Overview
Contract Amount: $48,820,085 ($48.8M)
Contractor: Mckinsey & Company, Inc. Washington D.C.
Awarding Agency: Department of Veterans Affairs
Start Date: 2021-09-20
End Date: 2024-04-19
Contract Duration: 942 days
Daily Burn Rate: $51.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: COVID-19 PANDEMIC RESPONSE AND SCENARIO PLANNING
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20036
Plain-Language Summary
Department of Veterans Affairs obligated $48.8 million to MCKINSEY & COMPANY, INC. WASHINGTON D.C. for work described as: COVID-19 PANDEMIC RESPONSE AND SCENARIO PLANNING Key points: 1. McKinsey & Company, a well-known consulting firm, secured this contract. 2. The contract falls under Administrative Management and General Management Consulting Services. 3. Awarded via full and open competition, suggesting a competitive bidding process. 4. The contract duration is substantial at 942 days, indicating a long-term need.
Value Assessment
Rating: good
The contract value of $48.8M for a 942-day period appears reasonable for comprehensive pandemic response and scenario planning services from a major consulting firm like McKinsey.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for a broad range of bidders and can lead to better price discovery and value for the government.
Taxpayer Impact: Taxpayer funds are being used for critical pandemic preparedness and response planning, aiming to improve the VA's resilience and effectiveness during public health crises.
Public Impact
Enhances VA's preparedness for future public health emergencies. Supports strategic planning and resource allocation for pandemic scenarios. Leverages external expertise for complex management and operational challenges.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to scope creep or evolving needs.
- Reliance on a single large firm for critical planning.
Positive Signals
- Full and open competition promotes fairness and potential cost savings.
- Clear focus on pandemic response addresses a significant public health concern.
Sector Analysis
This contract falls within the management consulting sector, which is crucial for government agencies to navigate complex challenges like public health crises. Benchmarks for similar large-scale consulting engagements vary widely based on scope and duration.
Small Business Impact
The contract was awarded to McKinsey & Company, Inc., a large, well-established firm. There is no indication of specific provisions or set-asides for small businesses in this award.
Oversight & Accountability
The contract is managed by the Department of Veterans Affairs. Oversight would involve monitoring performance against contract deliverables and ensuring adherence to the firm-fixed-price terms.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Contract duration is long, increasing risk of scope changes.
- High dollar value requires diligent oversight.
- Potential for vendor lock-in if knowledge transfer is insufficient.
- Effectiveness of scenario planning is inherently difficult to quantify until tested.
Tags
administrative-management-and-general-ma, department-of-veterans-affairs, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $48.8 million to MCKINSEY & COMPANY, INC. WASHINGTON D.C.. COVID-19 PANDEMIC RESPONSE AND SCENARIO PLANNING
Who is the contractor on this award?
The obligated recipient is MCKINSEY & COMPANY, INC. WASHINGTON D.C..
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 $48.8 million.
What is the period of performance?
Start: 2021-09-20. End: 2024-04-19.
What specific deliverables are expected from McKinsey for this pandemic response and scenario planning contract?
The contract likely requires detailed scenario analyses, risk assessments, strategic recommendations for resource allocation, operational continuity plans, and potentially training materials or frameworks for VA personnel. Specific deliverables would be outlined in the contract's Statement of Work (SOW), detailing expected reports, presentations, and actionable plans to enhance the VA's pandemic preparedness and response capabilities.
How will the effectiveness of McKinsey's scenario planning be measured, especially given the unpredictable nature of pandemics?
Effectiveness can be measured through the VA's adoption and implementation of McKinsey's recommendations, the clarity and usability of the developed plans, and the VA's demonstrated improvement in response times or resource management during simulated or actual public health events. Post-contract reviews and feedback from VA leadership on the practical value of the planning will also be key indicators.
What is the potential long-term value of this investment beyond the immediate pandemic response needs?
The long-term value lies in building institutional capacity for crisis management. The scenario planning and strategic frameworks developed can be adapted for other types of emergencies, improving the VA's overall resilience and ability to protect veterans and staff. This investment can lead to more efficient resource utilization and better decision-making during future crises, saving costs and lives.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 36C77621R0041
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Mckinsey & Company, Inc.
Address: 1200 19TH ST NW STE 1000, WASHINGTON, DC, 20036
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $60,723,582
Exercised Options: $48,820,265
Current Obligation: $48,820,085
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2021-09-20
Current End Date: 2024-04-19
Potential End Date: 2024-04-19 00:00:00
Last Modified: 2024-04-18
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