VA Awards Booz Allen Hamilton $7.57M for Software Development Support Through Full and Open Competition

Contract Overview

Contract Amount: $7,572,919 ($7.6M)

Contractor: Booz Allen Hamilton Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-18

End Date: 2027-02-17

Contract Duration: 852 days

Daily Burn Rate: $8.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SOFTWARE ENGINEERING AND DEVELOPMENT SUPPORT, SOFTWARE ARCHITECTURE EXPERTISE, APPLICATION ADMINISTRATION AND SUPPORT TO PERFORM SOFTWARE DEVELOPMENT LIFE CYCLE TASKS AND SUPPORT OF APPLICATIONS AND SYSTEMS WITH CURRENT AND FUTURE DMC ENVIRONMENTS.

Place of Performance

Location: EATONTOWN, MONMOUTH County, NEW JERSEY, 07724

State: New Jersey Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $7.6 million to BOOZ ALLEN HAMILTON INC for work described as: SOFTWARE ENGINEERING AND DEVELOPMENT SUPPORT, SOFTWARE ARCHITECTURE EXPERTISE, APPLICATION ADMINISTRATION AND SUPPORT TO PERFORM SOFTWARE DEVELOPMENT LIFE CYCLE TASKS AND SUPPORT OF APPLICATIONS AND SYSTEMS WITH CURRENT AND FUTURE DMC ENVIRONMENTS. Key points: 1. Contract awarded to Booz Allen Hamilton for critical software engineering and development support. 2. The contract spans over two years, indicating a need for sustained application and system support. 3. Full and open competition was utilized, suggesting a robust price discovery process. 4. The award is for Firm Fixed Price, providing cost certainty for the VA.

Value Assessment

Rating: good

The $7.57M award for a Delivery Order under a larger contract appears reasonable given the scope of software engineering, architecture, and administration services required over 852 days. Benchmarking against similar custom computer programming services contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for achieving competitive pricing. This method allows all eligible contractors to bid, fostering a market-driven price discovery process and potentially leading to better value for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting efficiency and cost-effectiveness in government procurement.

Public Impact

Veterans will benefit from improved and sustained software applications and systems. The contract supports the Department of Veterans Affairs' IT infrastructure modernization efforts. This award ensures continuity of essential software development life cycle tasks.

Waste & Efficiency Indicators

Waste Risk Score: 88 / 10

Warning Flags

Potential for scope creep given the broad nature of 'software development life cycle tasks'.
Reliance on a single delivery order may limit long-term strategic IT planning flexibility.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract provides cost certainty.
Long-term engagement (over 2 years) ensures stability.

Sector Analysis

This contract falls under Custom Computer Programming Services (NAICS 541511), a sector characterized by high demand for specialized IT skills. Spending in this area is crucial for government agencies to maintain and modernize their digital infrastructure.

Small Business Impact

The contract data indicates the awardee is Booz Allen Hamilton Inc., a large business. There is no explicit mention of small business participation in this specific delivery order, which warrants further investigation to ensure opportunities for small businesses are being maximized across the broader contract vehicle.

Oversight & Accountability

The Department of Veterans Affairs is the contracting and administrative agency. Oversight will involve monitoring performance against the contract requirements and ensuring adherence to the Firm Fixed Price terms. The existence of a Delivery Order suggests it's part of a larger Indefinite Delivery/Indefinite Quantity (IDIQ) contract, which may have its own oversight mechanisms.

Related Government Programs

Custom Computer Programming Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Potential for vendor lock-in if not managed carefully.
Scope definition clarity is crucial for managing expectations and costs.
Need to ensure alignment with broader VA IT strategy.
Lack of explicit small business set-aside noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $7.6 million to BOOZ ALLEN HAMILTON INC. SOFTWARE ENGINEERING AND DEVELOPMENT SUPPORT, SOFTWARE ARCHITECTURE EXPERTISE, APPLICATION ADMINISTRATION AND SUPPORT TO PERFORM SOFTWARE DEVELOPMENT LIFE CYCLE TASKS AND SUPPORT OF APPLICATIONS AND SYSTEMS WITH CURRENT AND FUTURE DMC ENVIRONMENTS.

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 $7.6 million.

What is the period of performance?

Start: 2024-10-18. End: 2027-02-17.

What is the specific breakdown of tasks within 'software development life cycle tasks' and how do they align with the VA's strategic IT goals?

The contract encompasses a wide range of activities including software engineering, architecture expertise, and application administration. A detailed task breakdown would clarify how these services directly contribute to the VA's modernization objectives and ensure efficient resource allocation. Understanding the specific deliverables and performance metrics is key to assessing the value and effectiveness of this support.

How does the $7.57M cost compare to industry benchmarks for similar custom computer programming services, considering the duration and scope?

Benchmarking this $7.57M award against similar contracts for custom computer programming services, factoring in the 852-day duration and the breadth of services (development, architecture, administration), is essential. Without specific comparable data, it's difficult to definitively assess cost-effectiveness. However, the use of full and open competition suggests an effort to achieve a competitive price.

What mechanisms are in place to ensure the quality and effectiveness of the software engineering and development support provided by Booz Allen Hamilton?

Quality assurance for this contract likely involves performance metrics defined in the Statement of Work (SOW) and regular progress reviews between the VA and Booz Allen Hamilton. The Firm Fixed Price structure incentivizes the contractor to deliver efficiently. The VA's contracting officer's representative (COR) plays a crucial role in monitoring performance and ensuring the delivered software meets requirements.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Booz Allen Hamilton Holding Corporation

Address: 8283 GREENSBORO DR, MCLEAN, VA, 22102

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

Financial Breakdown

Contract Ceiling: $32,371,828

Exercised Options: $7,572,919

Current Obligation: $7,572,919

Actual Outlays: $4,639,090

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $3,701,191

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F386DA

IDV Type: FSS

Timeline