VA awards $33M+ for data analysis and business intelligence to Booz Allen Hamilton

Contract Overview

Contract Amount: $33,016,741 ($33.0M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2018-08-16

End Date: 2023-01-04

Contract Duration: 1,602 days

Daily Burn Rate: $20.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: IGF::OT::IGF THIS ACTION IS FOR FSC DATA ANALYSIS AND BUSINESS INTELLIGENCE.

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78744

State: Texas Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $33.0 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF THIS ACTION IS FOR FSC DATA ANALYSIS AND BUSINESS INTELLIGENCE. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1602 days indicates a long-term need for these services. 3. Delivery order type suggests this is part of a larger contract vehicle. 4. The use of Time and Materials pricing may present cost control challenges. 5. The contractor, Booz Allen Hamilton, is a large, established firm with significant federal contracting experience. 6. The contract is for computer systems design services, a critical area for federal agencies. 7. The contract was awarded to a single vendor, Booz Allen Hamilton.

Value Assessment

Rating: fair

Benchmarking the value for this specific contract is challenging without more detailed cost breakdowns and comparisons to similar data analysis and business intelligence contracts. The Time and Materials (T&M) pricing structure, while common for services where scope can evolve, can sometimes lead to higher overall costs if not managed closely. The total award amount of over $33 million over approximately 4.4 years suggests a significant investment in these capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. The presence of 7 bidders (as indicated by 'no': 7) suggests a healthy level of competition for this requirement. A competitive process generally helps in achieving better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government receives competitive offers for its spending.

Public Impact

The Department of Veterans Affairs (VA) is the primary beneficiary, receiving enhanced data analysis and business intelligence capabilities. These services are expected to support improved decision-making, operational efficiency, and potentially better service delivery within the VA. The contract's impact is primarily within the federal government sector, specifically supporting the VA's mission. The workforce implications are likely related to the personnel at Booz Allen Hamilton performing the services, rather than direct VA hiring.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to cost overruns if not meticulously managed and monitored.
The long contract duration could potentially lead to vendor lock-in or reduced flexibility if needs change significantly.
Reliance on a single large contractor for critical data analysis may pose risks if performance falters or strategic priorities shift.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Booz Allen Hamilton is a well-established contractor with a proven track record in federal IT and analytics.
The contract addresses a critical need for data analysis and business intelligence within the VA.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. Spending in this area supports agencies' efforts to modernize systems, improve data utilization, and enhance cybersecurity. Comparable spending benchmarks would typically involve analyzing other large IT service contracts awarded by the VA or other large federal agencies for similar analytical and intelligence capabilities.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, as a large prime contractor, Booz Allen Hamilton may engage small businesses as subcontractors, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Veterans Affairs. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

Federal IT Services
Business Intelligence Solutions
Data Analytics Contracts
Department of Veterans Affairs IT Spending
Computer Systems Design Services

Risk Flags

Time and Materials Pricing
Long Contract Duration
Single Source Awardee (within this specific delivery order context, though competed)
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $33.0 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF THIS ACTION IS FOR FSC DATA ANALYSIS AND BUSINESS INTELLIGENCE.

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 $33.0 million.

What is the period of performance?

Start: 2018-08-16. End: 2023-01-04.

What is the historical spending pattern for Booz Allen Hamilton with the Department of Veterans Affairs?

Booz Allen Hamilton has a substantial history of contracting with the Department of Veterans Affairs across various service areas. While this specific contract is for data analysis and business intelligence, the firm has secured numerous awards from the VA for IT modernization, consulting, cybersecurity, and program management support. Analyzing the total value and frequency of these awards over time would provide a clearer picture of the depth of their relationship and reliance on the VA as a client. This historical context is crucial for understanding the contractor's established presence and potential institutional knowledge within the agency.

How does the per-unit cost of this contract compare to similar data analysis contracts within the federal government?

Determining a precise per-unit cost benchmark for this contract is difficult without specific details on the units of service delivered (e.g., hours, reports, analyses) and their associated rates. The contract utilizes a Time and Materials (T&M) pricing structure, which means costs are based on the actual labor hours and material costs incurred. To compare, one would need to identify similar T&M contracts for data analysis and business intelligence services awarded by agencies like the VA, DoD, or HHS, and then normalize the costs based on labor categories, experience levels, and the complexity of the services. Without such granular data, a direct comparison remains speculative, though the overall award value suggests a significant scope of work.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for a contract focused on data analysis and business intelligence, typical KPIs would likely include metrics related to the accuracy and timeliness of data insights, the development and delivery of actionable reports, the efficiency of data processing, the successful integration of analytical tools, and user satisfaction with the delivered intelligence. Performance would also be assessed against the contract's defined objectives, such as improving specific VA operational metrics or supporting strategic decision-making processes. The contracting officer's representative (COR) would typically monitor these KPIs.

What is the risk profile associated with Booz Allen Hamilton as a contractor for this type of service?

Booz Allen Hamilton is a large, well-established federal contractor with extensive experience in IT, data analytics, and business intelligence. Their risk profile is generally considered moderate to low due to their size, financial stability, and long history of performance. Potential risks could include challenges in adapting to rapidly evolving data technologies, ensuring consistent high-level performance across a long contract duration, or managing the complexities of large-scale data integration. However, their established processes and resources typically mitigate many common contracting risks. Past performance reviews and any past issues (e.g., protests, performance disputes) would provide a more nuanced risk assessment.

How has the VA's spending on data analysis and business intelligence evolved over the past five years?

The provided data focuses on a single contract award. To assess the VA's evolving spending on data analysis and business intelligence, a broader analysis of federal procurement data (e.g., FPDS) over the past five years would be necessary. This would involve identifying all contracts categorized under relevant NAICS codes (like 541512) and PSC codes related to data analytics and business intelligence, and then aggregating spending by agency. Trends might show an increasing investment in these areas as the VA, like other federal agencies, seeks to leverage data for improved healthcare outcomes, operational efficiency, and veteran services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 7

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 141 W FRONT ST, RED BANK, NJ, 07701

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

Financial Breakdown

Contract Ceiling: $33,016,741

Exercised Options: $33,016,741

Current Obligation: $33,016,741

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $1,666,391

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1007

IDV Type: IDC

Timeline