VA's $23.8M IT support contract awarded to Booz Allen Hamilton Inc. shows fair value

Contract Overview

Contract Amount: $23,843,391 ($23.8M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2014-09-17

End Date: 2017-09-16

Contract Duration: 1,095 days

Daily Burn Rate: $21.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TECHNOLOGY STRATEGIES ENTERPRISE DESIGN PATTERN TECHNICAL AND NONTECHNICAL SUPPORT IGF::OT::IGF

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $23.8 million to BOOZ ALLEN HAMILTON INC for work described as: TECHNOLOGY STRATEGIES ENTERPRISE DESIGN PATTERN TECHNICAL AND NONTECHNICAL SUPPORT IGF::OT::IGF Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. The contract's fixed-price nature helps mitigate cost overrun risks. 3. Performance period of three years provides a reasonable timeframe for service delivery. 4. The IT support services fall within a standard industry category for government contracting. 5. No small business set-aside was utilized, indicating potential missed opportunities for smaller firms.

Value Assessment

Rating: fair

The contract's total value of $23.8 million over three years averages to approximately $7.9 million annually. Benchmarking against similar IT support contracts for federal agencies of comparable size and scope suggests this pricing is within a reasonable range. The firm-fixed-price structure provides cost certainty, which is a positive indicator for value. However, without detailed performance metrics or specific service level agreements, a definitive assessment of 'excellent' value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of three bidders indicates a moderate level of competition for this specific contract. While competition is present, a higher number of bidders could potentially drive prices down further and increase the likelihood of selecting the most cost-effective solution.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and a wider selection of qualified contractors.

Public Impact

Veterans Affairs (VA) personnel benefit from reliable IT support, ensuring the smooth operation of systems critical to veteran services. The contract delivers essential computer systems design and technical support services. The primary geographic impact is within the VA's operational areas, likely nationwide. The contract supports a workforce of IT professionals, contributing to the federal IT labor market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition with only three bidders could mean less aggressive pricing than a more crowded field.
The specific technical requirements and performance metrics are not detailed, making it hard to assess if the chosen solution is the most innovative or cost-effective.
The contract duration of three years might not be long enough to fully realize the benefits of complex IT system designs or support strategies.

Positive Signals

Awarded under full and open competition, ensuring a broad range of potential contractors could compete.
The firm-fixed-price contract type provides cost predictability and limits the government's exposure to cost overruns.
Booz Allen Hamilton Inc. is a well-established contractor with significant experience in federal IT services, suggesting a lower risk of performance issues.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. This sector encompasses a wide range of services, from custom software development to IT infrastructure management. Spending in this area is consistently high across federal agencies as they modernize systems and enhance digital capabilities. Comparable contracts often involve significant dollar values due to the complexity and criticality of IT systems.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that opportunities for small businesses to participate in this specific contract may be limited, potentially impacting the broader small business IT ecosystem that relies on federal contracts for growth.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The Department of Veterans Affairs' internal oversight processes, including contract performance monitoring and financial reviews, would apply. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

IT Support Services
Computer Systems Design
Federal IT Modernization
Department of Veterans Affairs IT Contracts

Risk Flags

Moderate competition level
Lack of detailed performance metrics for value assessment
No explicit small business subcontracting requirements

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $23.8 million to BOOZ ALLEN HAMILTON INC. TECHNOLOGY STRATEGIES ENTERPRISE DESIGN PATTERN TECHNICAL AND NONTECHNICAL SUPPORT IGF::OT::IGF

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 $23.8 million.

What is the period of performance?

Start: 2014-09-17. End: 2017-09-16.

What is the track record of Booz Allen Hamilton Inc. in delivering IT support services to the federal government?

Booz Allen Hamilton Inc. has a long and extensive track record of providing IT support and related services to various federal agencies. They are a major government contractor with a broad portfolio that includes IT modernization, cybersecurity, data analytics, and systems engineering. Their experience spans decades, and they have consistently secured large, complex contracts across defense, intelligence, and civilian sectors. While specific performance metrics for this particular contract are not detailed here, their overall history suggests a capacity to handle significant IT support requirements. Past performance reviews and contract award data from sources like FPDS can provide more granular insights into their success rates and client satisfaction across different engagements.

How does the value of this contract compare to similar IT support contracts awarded by the VA or other large federal agencies?

The total contract value of $23.8 million over three years, averaging approximately $7.9 million annually, places this contract in the mid-to-large tier for IT support services within the federal government. When compared to similar contracts for computer systems design and technical support, especially those awarded by agencies like the Department of Defense or HHS, this value appears reasonable. Larger agencies often award multi-year, multi-million dollar contracts for comprehensive IT support. The specific services rendered, the complexity of the systems supported, and the geographic scope would be key factors in a precise comparison. However, the amount is not unusually high or low for the type of services provided to an agency of the VA's size.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks for this contract include potential performance issues, cost overruns (though mitigated by fixed-price), and vendor lock-in. Performance risks are inherent in any IT support contract, where service disruptions or failures can impact agency operations. Mitigation typically involves robust performance monitoring, clearly defined Service Level Agreements (SLAs), and regular contractor reviews. The firm-fixed-price (FFP) contract type is a significant mitigation against cost overruns, as the contractor assumes most of the financial risk. Vendor lock-in is a potential long-term risk, but the competitive nature of federal contracting, especially when contracts are re-competed, helps to mitigate this by allowing new vendors to bid on future requirements.

What is the expected effectiveness of the IT support services delivered under this contract for the VA's mission?

The effectiveness of these IT support services is crucial for the VA's mission of serving veterans. Reliable IT infrastructure and timely technical support ensure that VA employees can access and utilize critical systems for managing veteran health records, benefits, and other essential services. By maintaining and potentially improving the performance of these systems, the contract directly contributes to the efficiency and quality of care and services provided to veterans. The success of the contract hinges on the contractor's ability to meet performance standards, resolve issues promptly, and adapt to evolving technological needs within the VA, thereby supporting seamless operations and data integrity.

How has the VA's spending on IT support services evolved over the past five years, and where does this contract fit in?

The VA's spending on IT support services has generally been substantial and has likely seen fluctuations over the past five years, driven by modernization initiatives, cybersecurity needs, and the increasing reliance on digital platforms. This $23.8 million contract, awarded in 2014 for a three-year period, represents a specific investment within that broader spending trend. It fits within the category of computer systems design and related technical services. Analyzing historical spending data would reveal if this contract's value is consistent with previous awards for similar services, or if it represents an increase or decrease, potentially indicating shifts in the VA's IT strategy or budget priorities during that timeframe.

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: 3

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, 22102

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

Financial Breakdown

Contract Ceiling: $28,968,865

Exercised Options: $23,843,391

Current Obligation: $23,843,391

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11811D1008

IDV Type: IDC

Timeline