VA awards $28M network defense task order to Booz Allen Hamilton

Contract Overview

Contract Amount: $27,988,068 ($28.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2015-09-20

End Date: 2018-04-30

Contract Duration: 953 days

Daily Burn Rate: $29.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF NEW TASK ORDER FOR ENTERPRISE NETWORK DEFENSE

Place of Performance

Location: MARTINSBURG, BERKELEY County, WEST VIRGINIA, 25405

State: West Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $28.0 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF NEW TASK ORDER FOR ENTERPRISE NETWORK DEFENSE Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. Task order for enterprise network defense services indicates a focus on cybersecurity within the VA. 3. The contract duration of 953 days (approx. 2.6 years) provides a moderate timeframe for service delivery. 4. Awarded as a Delivery Order under a larger contract, implying it's part of an existing framework. 5. The Time and Materials pricing structure can pose cost control challenges if not closely managed. 6. The specific NAICS code (541512) points to Computer Systems Design Services, a common area for IT support.

Value Assessment

Rating: fair

The contract value of approximately $28 million over roughly 2.6 years suggests a significant investment in network defense. Benchmarking this against similar contracts for enterprise network defense services is challenging without more specific details on the scope of work. However, the Time and Materials pricing model, while flexible, can lead to higher costs if not managed diligently, potentially impacting overall value for money compared to fixed-price contracts for well-defined services.

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 bids. The presence of 9 bidders suggests a healthy level of competition for this task order. A competitive environment generally benefits the government by driving down prices and encouraging innovation from contractors seeking to win the award.

Taxpayer Impact: Taxpayers benefit from a competitive process as it is more likely to result in a fair market price for the services rendered, reducing the risk of overpayment.

Public Impact

Veterans Affairs (VA) personnel and systems will benefit from enhanced network defense capabilities. Services delivered will focus on protecting the VA's enterprise network infrastructure. The geographic impact is likely nationwide, covering all VA facilities and users reliant on the enterprise network. Workforce implications may include the need for specialized cybersecurity personnel, potentially sourced from Booz Allen Hamilton or subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not closely monitored.
The specific scope of 'enterprise network defense' is broad and requires clear performance metrics.
Reliance on a single task order for critical defense functions may present concentration risk.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Booz Allen Hamilton is a large, established contractor with significant experience in government IT services.
The contract addresses a critical need for cybersecurity within a major federal agency.

Sector Analysis

The federal IT services market is vast, with significant spending allocated to cybersecurity and network infrastructure. This contract falls within the Computer Systems Design Services sector, which is a substantial segment of the broader IT services industry. Comparable spending benchmarks for enterprise network defense can vary widely based on agency size, complexity of the network, and specific threats addressed. The VA's significant IT footprint makes such investments crucial.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. As a large prime contract awarded to a major defense contractor, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, which are not detailed here. Without specific set-aside goals or reporting, the direct benefit to small businesses is unclear.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting and program management offices. As a delivery order under a larger contract, existing oversight mechanisms would likely apply. Transparency is generally facilitated through contract award databases like FPDS. Specific accountability measures would be defined within the task order's statement of work and performance metrics. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

VA Cybersecurity Initiatives
Federal Network Security Contracts
IT Services for Federal Agencies
Department of Veterans Affairs IT Modernization

Risk Flags

Time and Materials Pricing
Cybersecurity Service Scope Definition
Contractor Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $28.0 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF NEW TASK ORDER FOR ENTERPRISE NETWORK DEFENSE

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 $28.0 million.

What is the period of performance?

Start: 2015-09-20. End: 2018-04-30.

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

Booz Allen Hamilton has a substantial history of contracting with the Department of Veterans Affairs across various IT and professional services. Reviewing historical contract data reveals numerous awards for services ranging from IT modernization and cybersecurity to program management and data analytics. Their extensive portfolio with the VA suggests a deep understanding of the agency's operational needs and challenges. While specific performance metrics for each contract are not publicly detailed, the continued awarding of significant contracts indicates a generally satisfactory performance history, though like any large contractor, specific project outcomes can vary.

How does the $28 million value compare to similar network defense contracts within the VA or other large federal agencies?

The $28 million value for this 953-day task order is a significant but not extraordinary amount for enterprise network defense services within a large federal agency like the VA. Agencies with extensive networks and sensitive data, such as the VA, often award multi-million dollar contracts for cybersecurity solutions. For context, similar contracts for network security operations centers, threat intelligence platforms, or comprehensive endpoint security can range from tens to hundreds of millions of dollars over several years, depending on the scope and scale. This specific award appears to be within the expected range for robust network defense capabilities for an agency of the VA's size.

What are the primary risks associated with a Time and Materials (T&M) contract for network defense?

The primary risk with a Time and Materials (T&M) contract for network defense is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual labor hours and materials used, plus a fee. If the scope of work is not tightly defined, or if project management is weak, the contractor may incur more hours or use more expensive materials than initially anticipated, leading to a higher final cost. This necessitates robust oversight from the government to monitor labor hours, ensure efficiency, and validate the necessity of all expenditures to mitigate cost risks and ensure value for money.

How effective are full and open competitions in ensuring competitive pricing for IT services like network defense?

Full and open competition is generally considered the most effective method for ensuring competitive pricing for IT services. By allowing all responsible sources to bid, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive proposals. This competitive pressure incentivizes contractors to offer their best pricing and technical solutions to win the contract. While it doesn't guarantee the lowest price in all scenarios (as technical merit and past performance are also evaluated), it creates a strong foundation for price discovery and helps the government secure services at a fair market value.

What historical spending patterns exist for network defense services within the Department of Veterans Affairs?

Historical spending patterns for network defense services within the Department of Veterans Affairs show a consistent and increasing trend over the years, mirroring the broader federal government's focus on cybersecurity. The VA, managing vast amounts of sensitive veteran health and personal data, has continually invested in securing its networks against evolving threats. This includes spending on firewalls, intrusion detection/prevention systems, security information and event management (SIEM) tools, endpoint security, and specialized cybersecurity support services. The total annual spending on cybersecurity and network defense within the VA typically runs into hundreds of millions of dollars, reflecting the critical nature of these services.

What are the potential implications of this contract on the VA's overall IT infrastructure modernization efforts?

This task order for enterprise network defense is a critical component supporting the VA's broader IT infrastructure modernization efforts. A secure and resilient network is foundational for the successful implementation and operation of new technologies, applications, and data systems. By strengthening the network's defenses, this contract helps protect the integrity and availability of data and systems that are essential for modernization initiatives, such as cloud migration, electronic health record enhancements, and data analytics platforms. It ensures that as the VA upgrades its systems, the underlying network infrastructure is robust enough to support these advancements securely.

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: 9

Pricing Type: TIME AND MATERIALS (Y)

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: $27,988,068

Exercised Options: $27,988,068

Current Obligation: $27,988,068

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $7,000,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11811D1008

IDV Type: IDC

Timeline