VA's VBMS Project Awarded to Engility Services for $47.6M, Utilizing Agile Methodology

Contract Overview

Contract Amount: $47,650,112 ($47.7M)

Contractor: Engility Services, LLC

Awarding Agency: Department of Defense

Start Date: 2014-09-19

End Date: 2016-09-18

Contract Duration: 730 days

Daily Burn Rate: $65.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: THIS RFP IS FOR THE VETERANS BENEFITS MANAGEMENT SYSTEM (VBMS) EXECUTION REQUIREMENT. VBMS WILL BE DELIVERED INCREMENTALLY USING AN AGILE DEVELOPMENT METHODOLOGY BASED ON PRIORITIES DETERMINED BY THE VA. VBMS IS A MULTI-PHASE PROJECT WITH EXISTING POLICIES, PROCEDURES, GUIDELINES AND OTHER EXECUTION ARTIFACTS WHICH ARE CURRENTLY IN EXISTENCE AND SHALL BE ADHERED TO.

Place of Performance

Location: CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29409

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $47.7 million to ENGILITY SERVICES, LLC for work described as: THIS RFP IS FOR THE VETERANS BENEFITS MANAGEMENT SYSTEM (VBMS) EXECUTION REQUIREMENT. VBMS WILL BE DELIVERED INCREMENTALLY USING AN AGILE DEVELOPMENT METHODOLOGY BASED ON PRIORITIES DETERMINED BY THE VA. VBMS IS A MULTI-PHASE PROJECT WITH EXISTING POLICIES, PROCEDURES, GUIDELINE… Key points: 1. The Veterans Benefits Management System (VBMS) is a multi-phase project with existing policies and procedures. 2. Engility Services, LLC received the award for this execution requirement. 3. The contract utilizes an agile development methodology for incremental delivery. 4. This award falls under the Engineering Services NAICS code (541330).

Value Assessment

Rating: good

The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to cost overruns if not managed carefully. The total award amount is $47.6 million.

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 can lead to better value for the government.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for the development of the VBMS.

Public Impact

Improved efficiency for veterans accessing benefits through the VBMS. Potential for enhanced user experience and streamlined processes. Agile methodology allows for flexibility and adaptation to VA priorities. Long-term impact on the VA's ability to manage veteran benefits effectively.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Agile development requires strong project management and clear requirements.
Dependence on existing policies and procedures may limit innovation.

Positive Signals

Full and open competition promotes market-driven pricing.
Incremental delivery allows for early feedback and course correction.
Focus on a critical system for veteran services.

Sector Analysis

This contract falls within the Engineering Services sector. Spending in this sector is often driven by complex government projects requiring specialized technical expertise and project management.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract award.

Oversight & Accountability

The contract specifies adherence to existing policies, procedures, and guidelines, suggesting a framework for oversight. However, the effectiveness of oversight will depend on the VA's implementation and monitoring.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to CPFF contract type.
Risk of scope creep if agile requirements are not managed tightly.
Dependency on existing, potentially outdated, policies and procedures.
Challenges in integrating agile with traditional government oversight structures.
Ensuring consistent and effective communication between development teams and VA stakeholders.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.7 million to ENGILITY SERVICES, LLC. THIS RFP IS FOR THE VETERANS BENEFITS MANAGEMENT SYSTEM (VBMS) EXECUTION REQUIREMENT. VBMS WILL BE DELIVERED INCREMENTALLY USING AN AGILE DEVELOPMENT METHODOLOGY BASED ON PRIORITIES DETERMINED BY THE VA. VBMS IS A MULTI-PHASE PROJECT WITH EXISTING POLICIES, PROCEDURES, GUIDELINES AND OTHER EXECUTION ARTIFACTS WHICH ARE CURRENTLY IN EXISTENCE AND SHALL BE ADHERED TO.

Who is the contractor on this award?

The obligated recipient is ENGILITY SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $47.7 million.

What is the period of performance?

Start: 2014-09-19. End: 2016-09-18.

What is the estimated cost savings or value proposition of using an agile methodology for VBMS compared to traditional waterfall approaches?

Agile methodologies aim to deliver value incrementally, allowing for early user feedback and adaptation to changing requirements. This can lead to a more relevant and effective final product, potentially reducing rework and associated costs. However, precise cost savings are difficult to quantify without a direct comparison and depend heavily on effective agile implementation and scope management.

What are the key performance indicators (KPIs) being used to measure the success and effectiveness of the VBMS development under this contract?

The provided data does not specify the key performance indicators (KPIs) for the VBMS project. Effective oversight would require clearly defined KPIs related to delivery timelines, budget adherence, system functionality, user satisfaction, and the achievement of intended benefits for veterans. These should be actively monitored by the contracting agency.

How will the VA ensure that the existing policies, procedures, and guidelines do not hinder the flexibility and adaptability inherent in the agile development methodology?

Ensuring alignment between agile flexibility and existing rigid policies requires careful planning and communication. The VA likely needs to establish a process for reviewing and potentially adapting policies to accommodate agile sprints and iterative development. This may involve creating specific agile governance frameworks or designating points of contact to bridge the gap between traditional structures and agile practices.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Engility Corporation (UEI: 783837672)

Address: 35 NEW ENGLAND BUSINESS CTR DR STE 200, ANDOVER, MA, 01810

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

Financial Breakdown

Contract Ceiling: $57,050,299

Exercised Options: $57,050,299

Current Obligation: $47,650,112

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6523613D4903

IDV Type: IDC

Timeline