VA Awards $349M for Benefits Integration Platform Support to Booz Allen Hamilton
Contract Overview
Contract Amount: $348,959,729 ($349.0M)
Contractor: Booz Allen Hamilton Inc
Awarding Agency: Department of Veterans Affairs
Start Date: 2017-09-21
End Date: 2021-09-20
Contract Duration: 1,460 days
Daily Burn Rate: $239.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF THE SUBJECT TO SHALL PROVIDE SYSTEMS ENGINEERING, DEVELOPMENT AND PRODUCTION SUPPORT SERVICES FOR BENEFITS INTEGRATION PLATFORM (BIP)
Place of Performance
Location: CHARLESTON, CHARLESTON County, SOUTH CAROLINA, 29401
Plain-Language Summary
Department of Veterans Affairs obligated $349.0 million to BOOZ ALLEN HAMILTON INC for work described as: IGF::OT::IGF THE SUBJECT TO SHALL PROVIDE SYSTEMS ENGINEERING, DEVELOPMENT AND PRODUCTION SUPPORT SERVICES FOR BENEFITS INTEGRATION PLATFORM (BIP) Key points: 1. Significant contract value for critical IT systems supporting veteran benefits. 2. Booz Allen Hamilton, a large established contractor, holds the award. 3. Potential risk associated with long-term system development and integration. 4. Spending falls within the Computer Systems Design Services sector.
Value Assessment
Rating: good
The contract value of $349M over four years suggests a substantial investment. Benchmarking against similar large-scale IT system development contracts is necessary for a precise value assessment, but the scope appears aligned with industry standards for complex platforms.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and ensures the government receives competitive pricing for the services rendered.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential IT services supporting veterans.
Public Impact
Ensures continued operation and enhancement of the Benefits Integration Platform (BIP). Supports the Department of Veterans Affairs' mission to provide benefits to veterans. Impacts the technological infrastructure enabling efficient benefit processing and delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long-term reliance on a single vendor for critical system support.
- Potential for scope creep in system engineering and development tasks.
Positive Signals
- Awarded through full and open competition.
- Supports a vital government function for veteran services.
Sector Analysis
This contract falls under Computer Systems Design Services, a sector characterized by complex IT solutions and long development cycles. Spending benchmarks for similar large-scale platform development and support contracts are typically in the hundreds of millions of dollars.
Small Business Impact
The contract was awarded to Booz Allen Hamilton Inc., a large business. There is no explicit indication of small business subcontracting goals or participation in the provided data.
Oversight & Accountability
The contract is managed by the Department of Veterans Affairs. Oversight would involve monitoring performance, adherence to contract terms, and ensuring the effective delivery of systems engineering and development support.
Related Government Programs
- Computer Systems Design Services
- Department of Veterans Affairs Contracting
- Department of Veterans Affairs Programs
Risk Flags
- Long-term contract duration may lead to vendor lock-in.
- Complexity of systems integration presents inherent technical risks.
- Dependence on a single contractor for critical infrastructure.
- Potential for cost overruns if scope is not tightly managed.
Tags
computer-systems-design-services, department-of-veterans-affairs, sc, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Veterans Affairs awarded $349.0 million to BOOZ ALLEN HAMILTON INC. IGF::OT::IGF THE SUBJECT TO SHALL PROVIDE SYSTEMS ENGINEERING, DEVELOPMENT AND PRODUCTION SUPPORT SERVICES FOR BENEFITS INTEGRATION PLATFORM (BIP)
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 $349.0 million.
What is the period of performance?
Start: 2017-09-21. End: 2021-09-20.
What is the projected return on investment for the Benefits Integration Platform (BIP) given this significant funding?
The return on investment for the BIP is primarily measured by its effectiveness in streamlining veteran benefit delivery, reducing administrative costs, and improving the accuracy and timeliness of payments. Quantifying ROI requires tracking metrics such as processing time reductions, error rate decreases, and improved veteran satisfaction scores over the contract's lifecycle.
What are the key performance indicators (KPIs) used to assess Booz Allen Hamilton's performance on this contract?
Key performance indicators likely include system uptime and availability, response times for critical functions, defect resolution rates, successful implementation of new features or updates, and adherence to project schedules and budget. Regular performance reviews and milestone achievements would be critical for oversight.
How does the ongoing development and support of the BIP contribute to the VA's overall digital transformation strategy?
The BIP is a foundational element of the VA's digital transformation, aiming to modernize and integrate disparate systems for a unified veteran experience. Continued support ensures the platform remains robust, secure, and capable of incorporating new technologies and services, thereby enhancing the VA's ability to serve veterans efficiently.
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: 4
Pricing Type: FIRM FIXED PRICE (J)
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: $408,903,111
Exercised Options: $348,959,729
Current Obligation: $348,959,729
Subaward Activity
Number of Subawards: 25
Total Subaward Amount: $17,901,788
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
Start Date: 2017-09-21
Current End Date: 2021-09-20
Potential End Date: 2021-09-20 00:00:00
Last Modified: 2023-01-27
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