VA awards $20M IT services contract to Booz Allen Hamilton for EVEAH PMO Task Order

Contract Overview

Contract Amount: $20,037,839 ($20.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2011-07-18

End Date: 2013-07-17

Contract Duration: 730 days

Daily Burn Rate: $27.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EVEAH PMO TASK ORDER.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $20.0 million to BOOZ ALLEN HAMILTON INC for work described as: EVEAH PMO TASK ORDER. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for Computer Systems Design Services, a common IT support function. 3. The duration of 730 days (2 years) indicates a medium-term engagement. 4. The firm fixed-price contract type aims to control costs for the government. 5. The award amount of approximately $20 million falls within a moderate spending range for IT services. 6. The contractor, Booz Allen Hamilton, is a large, established firm with extensive government contracting experience.

Value Assessment

Rating: good

The contract value of $20 million for two years of Computer Systems Design Services appears reasonable for a task order of this nature. Benchmarking against similar IT support contracts awarded by the VA or other agencies would provide a more precise value-for-money assessment. However, given the contractor's experience and the firm fixed-price structure, the pricing is likely competitive. The award amount is not exceptionally high or low, suggesting a standard market rate was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The VA's choice of this procurement method suggests they sought the best value through a broad market solicitation.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential contractors, increasing the likelihood of receiving competitive bids and potentially lower prices.

Public Impact

The Department of Veterans Affairs benefits from enhanced IT project management support. Services delivered likely include system design, integration, and management for VA programs. The geographic impact is primarily within the VA's operational sphere, supporting its national IT infrastructure. The contract supports the IT workforce, potentially through Booz Allen Hamilton's employees and any subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if task order requirements are not clearly defined and managed.
Reliance on a single large contractor may limit opportunities for smaller, specialized firms in the long term.

Positive Signals

Award to an experienced contractor like Booz Allen Hamilton suggests a lower risk of performance issues.
Firm fixed-price contract provides cost certainty for the government.
Full and open competition indicates a robust procurement process.

Sector Analysis

This contract falls within the IT services sector, specifically Computer Systems Design Services. The federal IT services market is substantial, with agencies like the VA being significant spenders. This contract represents a portion of the VA's broader IT modernization and support efforts. Comparable spending benchmarks for similar system design and PMO support contracts within the federal government would typically range from several million to tens of millions of dollars annually, depending on scope and duration.

Small Business Impact

The contract was not set aside for small businesses, and the awardee is a large business. This suggests that small businesses were either not primary bidders or were not selected. There is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem is neutral to potentially negative if subcontracting opportunities are not pursued.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Veterans Affairs. Performance monitoring, quality assurance, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases like FPDS. The Inspector General's office within the VA may conduct audits or investigations if performance or financial irregularities are suspected.

Related Government Programs

VA IT Modernization Programs
Federal IT Consulting Services
Project Management Support Contracts
Computer Systems Design Services

Risk Flags

Potential for vendor lock-in
Risk of scope creep
Performance dependency on contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $20.0 million to BOOZ ALLEN HAMILTON INC. EVEAH PMO TASK ORDER.

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 $20.0 million.

What is the period of performance?

Start: 2011-07-18. End: 2013-07-17.

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 contracting with the Department of Veterans Affairs across various service areas, including IT, management consulting, and program support. They have been awarded numerous contracts, ranging in value and duration, to assist the VA in achieving its mission. Their history with the VA indicates a deep understanding of the agency's complex needs and operational environment. While specific performance metrics for each contract are not publicly detailed, their continued success in securing VA contracts suggests a generally positive working relationship and satisfactory performance, though like any large contractor, there may have been instances of performance issues or contract disputes that were resolved.

How does the $20 million award compare to similar IT services contracts for PMO support?

The $20 million award for two years of Computer Systems Design Services for the EVEAH PMO Task Order is within a typical range for IT project management and systems design support contracts of this duration and scope. Federal agencies frequently award contracts in the multi-million dollar range for specialized IT services. For instance, similar task orders for system design, integration, and program management support for large federal IT initiatives can range from $5 million to $50 million over a similar timeframe. The firm fixed-price nature of this contract also suggests a defined scope, which helps in cost predictability compared to cost-plus contracts.

What are the primary risks associated with this contract for the VA?

The primary risks associated with this contract for the VA include potential vendor lock-in if the EVEAH PMO system becomes highly customized to Booz Allen Hamilton's proprietary tools or methodologies. There's also a risk of scope creep, where the requirements may expand beyond the initial agreement, potentially leading to cost overruns if not managed strictly under the firm fixed-price terms. Performance risk, although mitigated by the contractor's experience, always exists; failure to deliver critical system design services could impact VA operations. Finally, ensuring adequate knowledge transfer and documentation to VA personnel is crucial for long-term sustainability and to reduce reliance on the contractor post-contract.

How effective is the firm fixed-price contract type in managing costs for this IT service?

The firm fixed-price (FFP) contract type is generally considered effective for managing costs in IT services when the scope of work is well-defined and unlikely to change significantly. For the EVEAH PMO Task Order, FFP provides the VA with cost certainty, as the contractor assumes the risk of cost overruns. This incentivizes Booz Allen Hamilton to perform efficiently and manage resources effectively to maintain profitability. However, if unforeseen technical challenges arise or requirements evolve substantially, the contractor may resist changes or seek modifications, potentially leading to disputes or a less-than-optimal outcome if not managed carefully through contract modifications.

What is the historical spending trend for Computer Systems Design Services at the VA?

The Department of Veterans Affairs has consistently been a significant spender on Computer Systems Design Services, reflecting the critical role of IT in supporting its vast healthcare and benefits systems. Historical spending data indicates a steady demand for these services, often awarded through task orders under larger indefinite-delivery/indefinite-quantity (IDIQ) contracts or through direct solicitations. Spending in this category has generally increased over the years, driven by the need for system modernization, cybersecurity enhancements, and the implementation of new digital services for veterans. The VA's overall IT budget is substantial, and a notable portion is allocated to design, development, and integration services.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation (UEI: 964725688)

Address: 8283 GREENSBORO DR, MCLEAN, VA, 90

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,037,839

Exercised Options: $20,037,839

Current Obligation: $20,037,839

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $18,145,248

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11811D1008

IDV Type: IDC

Timeline