VA awards $32.4M for VRM CRM Hosting to Booz Allen Hamilton, a 5-year contract

Contract Overview

Contract Amount: $32,386,449 ($32.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2015-07-27

End Date: 2020-01-26

Contract Duration: 1,644 days

Daily Burn Rate: $19.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: VRM CRM HOSTING IGF::OT::IGF

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $32.4 million to BOOZ ALLEN HAMILTON INC for work described as: VRM CRM HOSTING IGF::OT::IGF Key points: 1. Contract awarded to a single large business, Booz Allen Hamilton. 2. Spending is within the IT sector, specifically computer systems design. 3. The contract duration is over 4 years, indicating a significant commitment. 4. Fixed-price contract type may offer cost certainty but limits flexibility. 5. No small business participation noted.

Value Assessment

Rating: good

The total award amount of $32.4M over approximately 4.5 years suggests a moderate annual spend. Benchmarking against similar IT hosting and system design contracts would be necessary for a precise valuation, but the fixed-price nature indicates a defined scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. The specific pricing discovery mechanisms within the solicitation and evaluation process are not detailed here but are crucial for ensuring fair market value.

Taxpayer Impact: Full and open competition aims to secure the best value for taxpayers by encouraging multiple bidders to offer competitive prices.

Public Impact

Veterans will benefit from improved CRM systems supporting their needs. The contract supports IT infrastructure for a major federal agency. Potential for service disruptions if hosting is not managed effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation.
Long contract duration could lead to vendor lock-in.
Fixed-price contract may not adapt well to evolving requirements.

Positive Signals

Awarded through full and open competition.
Fixed-price contract provides cost predictability.
Supports critical agency functions (Veterans Affairs).

Sector Analysis

This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Annual spending in this category can vary widely based on agency needs, but hosting and system design are core IT functions. The $32.4M award over 4.5 years represents a significant investment in IT infrastructure.

Small Business Impact

This contract does not appear to have any small business participation. Given the large contract value and the nature of IT services, there may have been opportunities for small businesses to participate as subcontractors, but this was not evident in the provided data.

Oversight & Accountability

The contract was awarded under full and open competition, suggesting a structured procurement process. Oversight would focus on performance metrics, service level agreements, and adherence to the fixed-price terms to ensure accountability and value delivery.

Related Government Programs

Computer Systems Design Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Lack of small business participation.
Potential for vendor lock-in due to contract length.
Fixed-price structure may limit adaptability to evolving needs.
No indication of specific performance metrics or penalties.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $32.4 million to BOOZ ALLEN HAMILTON INC. VRM CRM HOSTING 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 $32.4 million.

What is the period of performance?

Start: 2015-07-27. End: 2020-01-26.

What specific performance metrics were established to ensure the quality and reliability of the VRM CRM hosting services?

Performance metrics would typically include uptime guarantees, response times for critical functions, data security compliance, and disaster recovery capabilities. These are crucial for ensuring the VRM CRM system effectively supports veterans' needs and maintains data integrity. The contract details should specify Service Level Agreements (SLAs) and associated remedies for non-performance.

How did the full and open competition process ensure the government received competitive pricing for these hosting services?

Full and open competition allows any interested and capable vendor to submit a bid, fostering a competitive environment. The government likely evaluated proposals based on a combination of technical merit and price. The specific evaluation criteria and the number of bids received would determine the extent to which competitive pricing was achieved.

What is the potential impact of this long-term fixed-price contract on the VA's ability to adapt to future technological advancements in CRM hosting?

A long-term fixed-price contract can limit flexibility. If new, more efficient, or cost-effective hosting technologies emerge, the VA might be locked into the current solution, potentially incurring higher costs or missing out on innovation. Contract modifications or future re-competition would be necessary to adopt new technologies.

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, 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: $75,714,502

Exercised Options: $32,386,449

Current Obligation: $32,386,449

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $15,732,894

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11811D1008

IDV Type: IDC

Timeline