VA awards $34.9M for administrative management consulting, with 5 bids received

Contract Overview

Contract Amount: $34,914,341 ($34.9M)

Contractor: Grant Thornton LLP

Awarding Agency: Department of Veterans Affairs

Start Date: 2021-05-11

End Date: 2025-05-10

Contract Duration: 1,460 days

Daily Burn Rate: $23.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE CONTRACTOR SHALL PROVIDE FINANCIAL AND OTHER SUPPORT SERVICES TO THE ITRM OFFICES AND SUB-OFFICES DEFINED HEREIN

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $34.9 million to GRANT THORNTON LLP for work described as: THE CONTRACTOR SHALL PROVIDE FINANCIAL AND OTHER SUPPORT SERVICES TO THE ITRM OFFICES AND SUB-OFFICES DEFINED HEREIN Key points: 1. Contract provides essential support services for the ITRM offices, ensuring operational continuity. 2. Competition was robust with 5 bids, suggesting a healthy market for these services. 3. The firm fixed-price contract type helps manage cost certainty for the government. 4. Performance period spans 4 years, indicating a long-term need for these consulting services. 5. The contractor, Grant Thornton LLP, is a well-established firm in the professional services sector.

Value Assessment

Rating: good

The contract value of $34.9 million over four years for administrative management and general management consulting services appears reasonable given the scope. Benchmarking against similar large-scale consulting contracts within federal agencies suggests this pricing is within expected ranges. The firm fixed-price structure provides cost predictability, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five distinct bids submitted. This level of competition is a strong positive signal, indicating that multiple capable firms vied for the opportunity. It suggests the government received a range of proposals and pricing, likely leading to a more competitive final award price.

Taxpayer Impact: The robust competition ensures that taxpayer dollars are being used efficiently, as multiple bidders were incentivized to offer their best pricing and service offerings to secure the contract.

Public Impact

The Department of Veterans Affairs (VA) ITRM offices and sub-offices are the primary beneficiaries, receiving critical support services. Services include administrative management and general management consulting, aimed at improving operational efficiency. The contract's impact is concentrated within the District of Columbia, where the supported offices are located. While not directly creating new jobs, the contract supports the existing workforce within the VA's ITRM functions by providing necessary expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if consulting services extend beyond initial defined support.
Reliance on a single contractor for critical administrative functions could pose a risk if performance falters.

Positive Signals

Firm fixed-price contract limits cost overruns for the government.
Full and open competition suggests a competitive award process.
Contractor is a reputable firm with experience in government contracting.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector (NAICS 541611). This is a broad category encompassing a wide range of advisory and assistance services to government and private entities. The federal government is a significant consumer of these services, particularly for strategic planning, operational improvements, and IT-related management. Spending in this sector can fluctuate based on agency needs for specialized expertise and project support.

Small Business Impact

There is no indication of a small business set-aside for this contract, nor are there specific subcontracting requirements mentioned in the provided data. As a large contract awarded to a major firm, the primary focus is likely on the prime contractor's capabilities. Opportunities for small businesses would typically arise through subcontracting if Grant Thornton LLP chooses to engage them, which is not guaranteed.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The Department of Veterans Affairs is responsible for monitoring performance and ensuring compliance with contract terms. As a firm fixed-price contract, financial oversight focuses on deliverables and adherence to the agreed-upon scope. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Management and Financial Consulting, Acquisition and Commercialization
Professional, Scientific, and Technical Services
IT Management Consulting Services

Risk Flags

Performance Risk: Potential for contractor underperformance impacting critical ITRM functions.
Scope Management Risk: Possibility of scope creep leading to increased costs or extended timelines.
Key Personnel Risk: Reliance on specific individuals within the contractor's team.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $34.9 million to GRANT THORNTON LLP. THE CONTRACTOR SHALL PROVIDE FINANCIAL AND OTHER SUPPORT SERVICES TO THE ITRM OFFICES AND SUB-OFFICES DEFINED HEREIN

Who is the contractor on this award?

The obligated recipient is GRANT THORNTON 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 $34.9 million.

What is the period of performance?

Start: 2021-05-11. End: 2025-05-10.

What is Grant Thornton LLP's track record with the Department of Veterans Affairs and other federal agencies?

Grant Thornton LLP has a significant track record of contracting with federal agencies, including the Department of Veterans Affairs. They are a large, established professional services firm known for providing audit, tax, and advisory services. Their federal contracting history includes numerous awards across various agencies for a wide range of services, from financial management and cybersecurity to program management and IT consulting. Specific to the VA, they have been involved in contracts related to financial systems, healthcare operations, and administrative support. Their extensive experience suggests a familiarity with federal procurement regulations and agency operational needs, which is generally a positive indicator for contract performance.

How does the $34.9 million contract value compare to similar administrative consulting contracts awarded by the VA?

The $34.9 million contract value for administrative management and general management consulting services over four years is substantial but falls within the expected range for large-scale support contracts awarded by major federal agencies like the VA. The average value for such contracts can vary widely based on scope, duration, and specific services. However, given the VA's size and complexity, and the duration of this Delivery Order (DO) under a larger contract vehicle, this amount is not considered unusually high. It reflects a significant commitment to obtaining specialized expertise for the ITRM offices. Without direct comparison to identical scopes, it's difficult to pinpoint precise value, but it aligns with the scale of consulting engagements for federal IT and administrative functions.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential performance issues if the contractor fails to deliver the required support services effectively, leading to disruptions in the ITRM offices' operations. Another risk is the potential for scope creep, where the services requested may expand beyond the initially defined parameters, potentially leading to cost inefficiencies if not managed. Mitigation strategies include the firm fixed-price contract type, which incentivizes the contractor to manage costs within the agreed budget. The VA's oversight mechanisms, including performance monitoring and regular reviews, are crucial for ensuring deliverables are met and the scope remains controlled. The contractor's established reputation also serves as a mitigating factor, suggesting a commitment to quality service delivery.

How effective is the firm fixed-price contract type in ensuring value for money in this context?

The firm fixed-price (FFP) contract type is generally effective in ensuring value for money for services where the scope of work is well-defined, as is the case with administrative support. Under an FFP contract, the contractor assumes the primary risk for cost overruns, meaning they are obligated to complete the work for the agreed-upon price. This incentivizes the contractor to be efficient and manage their resources effectively. For the government, it provides cost certainty, making budgeting more predictable and reducing the risk of unexpected price increases. In this scenario, where Grant Thornton LLP is providing defined support services, the FFP structure helps ensure that the $34.9 million award represents the total cost for the specified services, thereby promoting value by limiting financial exposure.

What does the level of competition (5 bidders) indicate about the market for administrative consulting services for the VA?

The fact that five bids were received for this contract indicates a healthy and competitive market for administrative management and general management consulting services relevant to the VA. A higher number of bidders generally suggests that there are multiple capable firms interested in and able to perform this type of work for the agency. This level of competition is beneficial for the government as it typically leads to more competitive pricing, a wider range of innovative solutions, and better overall service quality as contractors strive to differentiate themselves. It also suggests that the barriers to entry for qualified firms are not excessively high, allowing for a reasonable pool of potential providers.

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: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 171 N CLARK ST, CHICAGO, IL, 60601

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

Financial Breakdown

Contract Ceiling: $45,289,770

Exercised Options: $34,914,341

Current Obligation: $34,914,341

Actual Outlays: $19,727,832

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F143CA

IDV Type: FSS

Timeline