VA awards $30.3M to Deloitte for VBMS claims backlog elimination support

Contract Overview

Contract Amount: $30,333,496 ($30.3M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Veterans Affairs

Start Date: 2013-02-05

End Date: 2016-09-30

Contract Duration: 1,333 days

Daily Burn Rate: $22.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 22

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::CT::IGF THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE SUPPORT TO THE VETERANS BENEFITS MANAGEMENT SYSTEM (VBMS) TO ELIMIATE TEH CLAIMS BACKLOG, BEGINNING WITH THE COMPENSATION BUSINESS LINE FOR DISABILITY CLAIMS, THEN CONTINUING TO THE OTHER FIVE BUSINESS LINES OF VBA. TASKS INCLUDE TASK ORDER MANAGEMENT; BUSINESS ARCHITECTURE; BUSINESS PROCESS MANAGEMENT; SCOPE MANAGEMENT; REQUIREMENTS ELICITATION AND DEFINITION; SUPPORTING REQUIREMENTS DOCUMENTATION; AND TESTING.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20420

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $30.3 million to DELOITTE CONSULTING LLP for work described as: IGF::CT::IGF THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE SUPPORT TO THE VETERANS BENEFITS MANAGEMENT SYSTEM (VBMS) TO ELIMIATE TEH CLAIMS BACKLOG, BEGINNING WITH THE COMPENSATION BUSINESS LINE FOR DISABILITY CLAIMS, THEN CONTINUING TO THE OTHER FIVE BUSINESS LINES OF VBA. TASK… Key points: 1. Focuses on critical Veterans Benefits Management System (VBMS) to reduce claims backlog. 2. Includes task management, business architecture, process management, and requirements definition. 3. Contract awarded via full and open competition, indicating market availability. 4. Long duration (1333 days) suggests a complex, multi-phase project.

Value Assessment

Rating: good

The contract value of $30.3M over approximately 3.5 years appears reasonable for comprehensive system support. Benchmarking against similar large-scale IT modernization projects would provide further context.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.

Taxpayer Impact: The investment aims to improve efficiency in processing veterans' claims, potentially leading to faster benefit delivery and reduced administrative costs for taxpayers.

Public Impact

Directly impacts veterans by aiming to reduce the backlog of disability claims. Enhances the efficiency and effectiveness of the Veterans Benefits Administration (VBA). Supports modernization of a critical government IT system (VBMS).

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in a long-term project.
Dependency on successful integration with existing VBA systems.
Risk of vendor lock-in if not managed carefully.

Positive Signals

Clear objective to address a significant backlog.
Awarded through competitive process.
Experienced contractor (Deloitte Consulting LLP).

Sector Analysis

This contract falls within the IT consulting and administrative management sector. Spending benchmarks for similar large-scale government IT modernization projects vary widely but often involve multi-million dollar investments.

Small Business Impact

The data does not indicate any specific subcontracting goals for small businesses. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract is a delivery order under a larger contract, suggesting existing oversight mechanisms. The Department of Veterans Affairs is responsible for monitoring performance and ensuring accountability.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Long contract duration increases risk of changing requirements.
Potential for integration challenges with legacy systems.
Success is heavily reliant on effective project management by the contractor.
Measuring the true impact on veterans' benefit timeliness requires robust tracking.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $30.3 million to DELOITTE CONSULTING LLP. IGF::CT::IGF THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE SUPPORT TO THE VETERANS BENEFITS MANAGEMENT SYSTEM (VBMS) TO ELIMIATE TEH CLAIMS BACKLOG, BEGINNING WITH THE COMPENSATION BUSINESS LINE FOR DISABILITY CLAIMS, THEN CONTINUING TO THE OTHER FIVE BUSINESS LINES OF VBA. TASKS INCLUDE TASK ORDER MANAGEMENT; BUSINESS ARCHITECTURE; BUSINESS PROCESS MANAGEMENT; SCOPE MANAGEMENT; REQUIREMENTS ELICITATION AND DEFINITION; SUPPORTING REQUIREMENTS DOCUMENTATION; AND TESTING.

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

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 $30.3 million.

What is the period of performance?

Start: 2013-02-05. End: 2016-09-30.

What is the projected impact of this contract on the claims backlog reduction timeline?

The contract aims to eliminate the claims backlog across six business lines, starting with compensation for disability claims. While a specific timeline for backlog elimination isn't provided, the contract duration of over three years suggests a phased approach. Success will depend on the contractor's ability to deliver on task order management, business architecture, and process improvements effectively.

What are the key performance indicators (KPIs) for measuring the success of this contract?

Key performance indicators would likely include metrics related to claims processing time reduction, backlog volume decrease, system uptime and performance, and user satisfaction. Specific KPIs should be defined in the task order to ensure measurable progress towards the objective of eliminating the claims backlog and improving VBA operations.

How does the pricing structure ensure value for money given the fixed-price nature?

The firm fixed-price (FFP) contract structure shifts most of the risk to the contractor, incentivizing efficient performance. Value for money is achieved if Deloitte delivers the defined scope within budget and meets performance expectations. Regular performance reviews and milestone tracking are crucial to ensure the government receives the intended benefits.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 22

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte LLP (UEI: 014127109)

Address: 1725 DUKE ST, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,333,497

Exercised Options: $30,333,497

Current Obligation: $30,333,496

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $10,508,402

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA79811D0124

IDV Type: IDC

Timeline