VA's $37.7M Enterprise Data Warehouse contract with Grant Thornton LLP awarded competitively

Contract Overview

Contract Amount: $37,704,213 ($37.7M)

Contractor: Grant Thornton LLP

Awarding Agency: Department of Veterans Affairs

Start Date: 2007-10-01

End Date: 2014-05-30

Contract Duration: 2,433 days

Daily Burn Rate: $15.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE DATA WAREHOUSE (EDW)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20420

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $37.7 million to GRANT THORNTON LLP for work described as: ENTERPRISE DATA WAREHOUSE (EDW) Key points: 1. The contract value of $37.7M for data warehousing services falls within a moderate spending range for IT infrastructure. 2. Competition was present, indicated by 'COMPETITIVE DELIVERY ORDER', suggesting potential for price discovery. 3. The risk appears moderate, given the fixed-price contract type and competitive award, but long duration warrants monitoring. 4. The sector is IT services, specifically data management and related computer services.

Value Assessment

Rating: good

The $37.7M award for Enterprise Data Warehouse services appears reasonable given the 7-year duration and the nature of data management projects. Benchmarking against similar large-scale data warehouse implementations would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded as a 'COMPETITIVE DELIVERY ORDER', indicating that multiple vendors had the opportunity to bid. This competitive process likely contributed to a fair price discovery mechanism.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers received value for money, as the price was determined through a bidding process.

Public Impact

Veterans will benefit from improved data management and accessibility, potentially leading to better service delivery. The project supports the VA's modernization efforts, enhancing its technological capabilities. Data integrity and security are critical, impacting the reliability of veteran services and information.

Waste & Efficiency Indicators

Waste Risk Score: 70 / 10

Warning Flags

Long contract duration (7 years) can lead to scope creep and cost overruns if not managed effectively.
Reliance on a single vendor for a critical data infrastructure component poses a risk.
Potential for vendor lock-in if data architecture is proprietary.

Positive Signals

Competitive award process suggests potential for good value.
Firm Fixed Price contract type provides cost certainty.
Focus on Enterprise Data Warehouse aligns with modernization goals.

Sector Analysis

The IT services sector, particularly data warehousing and management, is crucial for government operations. Spending benchmarks vary widely based on project scope, duration, and complexity, but $37.7M over 7 years for an EDW is within a typical range for large federal agencies.

Small Business Impact

The data does not indicate specific participation or set-asides for small businesses. Larger IT contracts often involve subcontracting opportunities, but direct award information is not provided.

Oversight & Accountability

The 'COMPETITIVE DELIVERY ORDER' suggests a structured procurement process. Ongoing oversight by the Department of Veterans Affairs would be crucial to ensure performance, manage risks, and control costs throughout the contract's lifecycle.

Related Government Programs

Other Computer Related Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Long contract duration increases risk of obsolescence and scope creep.
Potential for vendor lock-in with critical data infrastructure.
Dependence on a single vendor for core data services.
Need for strong ongoing oversight to ensure performance and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $37.7 million to GRANT THORNTON LLP. ENTERPRISE DATA WAREHOUSE (EDW)

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 $37.7 million.

What is the period of performance?

Start: 2007-10-01. End: 2014-05-30.

What specific data management capabilities does the EDW provide, and how do they directly improve veteran services?

The Enterprise Data Warehouse (EDW) is designed to consolidate disparate data sources across the VA into a unified repository. This enables advanced analytics, reporting, and data-driven decision-making, which can lead to more efficient resource allocation, personalized veteran care plans, and improved identification of service gaps. Ultimately, it supports better operational efficiency and potentially faster, more accurate delivery of benefits and healthcare to veterans.

What are the key risks associated with a 7-year contract for an Enterprise Data Warehouse, and how are they mitigated?

The primary risks include technological obsolescence, evolving data requirements, and potential vendor performance issues over such a long period. Mitigation strategies typically involve robust contract management, regular performance reviews, incorporating flexibility for technology upgrades, and clear exit strategies. The VA would need to actively manage scope, ensure vendor accountability, and potentially include clauses for adapting to new technologies or data standards to maintain the EDW's relevance and effectiveness.

How does the firm fixed price contract type ensure cost-effectiveness for this complex IT project?

A firm fixed price (FFP) contract provides the greatest cost certainty for the government, as the price is set regardless of the contractor's actual costs. For an EDW project, this incentivizes the contractor to manage their resources efficiently and control expenses to maximize profit. However, it also places the risk of cost overruns on the contractor. For the government, it simplifies budgeting and financial management, assuming the initial scope and requirements were accurately defined.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Grant Thornton International Ltd (UEI: 347201258)

Address: 333 JOHN CARLYLE ST STE 500, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $37,704,213

Exercised Options: $37,704,213

Current Obligation: $37,704,213

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS35F5461H

IDV Type: FSS

Timeline