VA awards $320M IT modernization contract to Booz Allen Hamilton, emphasizing system integration

Contract Overview

Contract Amount: $320,404,495 ($320.4M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-09-25

End Date: 2024-09-26

Contract Duration: 1,828 days

Daily Burn Rate: $175.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF:OT:IGF HEALTH INTEGRATION AND MODERNIZATION TASK ORDER

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $320.4 million to BOOZ ALLEN HAMILTON INC for work described as: IGF:OT:IGF HEALTH INTEGRATION AND MODERNIZATION TASK ORDER Key points: 1. Contract focuses on integrating and modernizing health IT systems for improved efficiency. 2. Competition was robust, with 7 bidders vying for this significant IT services task order. 3. Performance risk appears moderate given the contractor's extensive experience in federal IT. 4. The contract's duration of over 5 years suggests a long-term strategic investment. 5. This award aligns with broader government efforts to update legacy health information systems.

Value Assessment

Rating: good

The contract's value of $320 million over five years for IT system integration and modernization appears reasonable when benchmarked against similar large-scale federal health IT projects. While specific per-unit cost data is not available, the firm-fixed-price structure suggests a degree of cost certainty for the government. Booz Allen Hamilton's established presence and track record in delivering complex IT solutions for federal agencies further support the assessment of good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, attracting seven distinct bidders. The high level of competition is a positive indicator, suggesting that the government received a range of proposals and potentially competitive pricing. This process allows for a thorough evaluation of technical capabilities and cost-effectiveness, ensuring the best value is secured for the Department of Veterans Affairs.

Taxpayer Impact: The robust competition for this contract likely resulted in more favorable pricing for taxpayers, as multiple firms vied to win the work. It also signals that the market has sufficient capacity to meet the VA's needs for complex IT modernization services.

Public Impact

Veterans will benefit from potentially more streamlined and integrated health information systems. The contract delivers critical IT modernization and integration services for the VA's health infrastructure. The primary geographic impact is within the Department of Veterans Affairs' national operations. This contract supports IT professionals and potentially creates or sustains jobs in the federal IT sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex IT modernization projects.
Dependence on a single contractor for critical health IT infrastructure.
Ensuring seamless integration with existing legacy systems can be challenging.

Positive Signals

Booz Allen Hamilton has a strong track record with federal IT contracts.
Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a well-defined requirement and market responsiveness.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader IT industry. The federal government is a major consumer of these services, particularly for modernizing complex systems like those used in healthcare. The market for such services is competitive, with large system integrators often competing for multi-year, high-value contracts. Benchmarks for similar IT modernization efforts within federal health agencies often range in the hundreds of millions of dollars.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, large prime contractors like Booz Allen Hamilton are often required to meet subcontracting goals. The extent to which small businesses will participate in fulfilling this contract's requirements will depend on the prime contractor's subcontracting plan and the specific technical needs that can be met by smaller, specialized firms within the IT ecosystem.

Oversight & Accountability

Oversight for this contract is primarily managed by the Department of Veterans Affairs contracting officers and program managers. The firm-fixed-price nature of the award provides a degree of cost control. Transparency is facilitated through contract award databases and reporting requirements. While no specific Inspector General jurisdiction is mentioned, the VA's Office of Inspector General would likely have oversight capabilities for significant health IT investments.

Related Government Programs

VA Health Information Systems
Federal Health IT Modernization Programs
IT Services for Healthcare Agencies
Enterprise IT Modernization Contracts

Risk Flags

Potential for integration challenges with legacy systems.
Contract duration requires sustained oversight.
Cybersecurity risks inherent in health IT modernization.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $320.4 million to BOOZ ALLEN HAMILTON INC. IGF:OT:IGF HEALTH INTEGRATION AND MODERNIZATION TASK ORDER

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 $320.4 million.

What is the period of performance?

Start: 2019-09-25. End: 2024-09-26.

What is Booz Allen Hamilton's past performance record with the Department of Veterans Affairs, particularly on similar IT modernization projects?

Booz Allen Hamilton has a substantial history of working with the Department of Veterans Affairs, undertaking numerous contracts related to IT services, system modernization, and health information technology. Their performance record with the VA includes projects focused on electronic health records, data analytics, cybersecurity, and enterprise architecture. While specific details of past performance on projects directly comparable to this $320 million task order would require deeper analysis of contract performance reports and CPARs (Contractor Performance Assessment Reports), their extensive engagement with the VA suggests a familiarity with the agency's complex IT environment and requirements. Generally, their performance has been rated positively, though like any large contractor, specific project outcomes can vary. Their ability to secure this significant award indicates a satisfactory or better performance history relevant to the VA's needs.

How does the awarded amount of $320 million compare to other large-scale IT modernization contracts within the federal health sector?

The $320 million award for IT system integration and modernization by the VA is substantial and falls within the typical range for large-scale federal health IT projects. For context, major initiatives such as the modernization of the Defense Department's Electronic Health Record (EHR) system, MHS GENESIS, involve billions of dollars over many years. Other large federal health IT contracts, including those for data analytics platforms, cybersecurity enhancements, or cloud migrations within agencies like HHS or CMS, frequently reach hundreds of millions of dollars. This VA contract's value is consistent with the significant investment required to update and integrate complex, mission-critical health information systems, reflecting the challenges and scope of modernizing legacy infrastructure in a highly regulated environment.

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

While the specific Key Performance Indicators (KPIs) for this contract are not publicly detailed in the provided data, typical metrics for IT system integration and modernization projects within federal health agencies often include system uptime and availability, data accuracy and integrity, successful data migration rates, user adoption rates, reduction in system errors or downtime, achievement of interoperability standards, and timely completion of project milestones. For a contract focused on health IT modernization, KPIs would likely also encompass improvements in clinical workflow efficiency, enhanced data security, and compliance with healthcare regulations (e.g., HIPAA). The firm-fixed-price nature suggests that meeting defined scope, schedule, and quality requirements are paramount for successful performance evaluation.

What is the potential impact of this contract on the VA's ability to achieve its digital transformation goals?

This $320 million contract is likely a significant enabler for the VA's digital transformation goals, particularly concerning its health IT infrastructure. By focusing on integration and modernization, it addresses the critical need to move away from siloed or outdated systems towards a more unified, efficient, and data-driven approach. Successful execution of this task order could lead to improved data sharing across different VA facilities and services, enhanced patient care through better access to comprehensive health records, and increased operational efficiency for healthcare providers. It represents a strategic investment aimed at modernizing the technological backbone that supports the VA's mission, aligning with broader government objectives for digital modernization and improved service delivery.

How does the 'Computer Systems Design Services' (NAICS 541512) classification influence the scope and expected outcomes of this contract?

The NAICS code 541512, 'Computer Systems Design Services,' indicates that the primary focus of this contract is on designing and developing integrated computer systems. This typically involves analyzing a client's needs, designing system architecture, integrating hardware and software components, and providing consultation services on IT infrastructure. For this VA contract, it means the scope likely includes assessing current health IT systems, designing new or improved integrated solutions, managing the implementation of these solutions, and ensuring they function cohesively. The expected outcomes revolve around creating a more seamless, efficient, and modern IT environment for the VA's health services, rather than solely providing off-the-shelf software or hardware.

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: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 1 CHRISTOPHER WAY, 13, EATONTOWN, NJ, 07724

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

Financial Breakdown

Contract Ceiling: $320,404,495

Exercised Options: $320,404,495

Current Obligation: $320,404,495

Actual Outlays: $111,797,032

Subaward Activity

Number of Subawards: 49

Total Subaward Amount: $38,788,133

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA11816D1015

IDV Type: IDC

Timeline