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Veterans Affairs OutlookFY 2017
Angie Petty
Sr. Principal Research Analyst, Federal Industry Analysis
Ashley Sanderson
Manager, Research, Federal Information Solutions
November 10, 2016
Agenda
2 ©2016 Deltek, Inc. All Rights Reserved
Agency Overview
Budgetary Trends
Agency Spending Trends
Keys to Success
Agency Overview
11/10/20163 CONFIDENTIAL ©Deltek, Inc. All Rights Reserved
Strategic Goal #1
Empower veterans to improve their well-
being.
Objectives:
• Improve veteran wellness and economic
security.
• Increase customer satisfaction through
improvements in benefits and services
delivery policies, procedures and interfaces.
Strategic Goal #2
Enhance and develop trusted
partnerships.
Objectives:
• Enhance VA’s partnership with DOD.
• Enhance VA’s partnerships with federal,
state, private sector, academic affiliates,
Veterans Service Organizations, and non-
profit organizations.
• Amplify awareness of services, and benefits
available to veterans through improved
communications and outreach.
Mission and Strategic Goals
Strategic Goal #3
Manage and improve VA operations to deliver
seamless and integrated support.
Objectives:
• Make VA a place where people want to serve.
• Evolve VA information technology capabilities to
meet emerging customer service/empowerment
expectations of both VA customers and employees.
• Build a flexible and scalable infrastructure through
improved organizational design and enhanced
capital planning.
• Enhance productivity and improve efficiency of the
provision of veteran benefits and services.
• Ensure preparedness to provide services and
protect people and assets continuously and in time
of crisis.
VA’s Mission: To fulfill President Lincoln’s promise - “To care for
him who shall have borne the battle, and for his widow and his
orphan” by serving and honoring the men and women who are
America’s Veterans.
Component Organizations
11/10/20165 CONFIDENTIAL ©Deltek, Inc. All Rights Reserved
Office of the
Secretary
Office of the
Asst Sec for
Mgt/ Interim
CFO
Office of the
Chief of Staff
Office of Govt
Relations
Office of Public
Affairs
Office of the
Asst Sec for
HR & Admin
Office of the
Asst Sec for
IT/CIO
Office of the Asst
Sec for Ops,
Security &
Preparedness
Office of
Inspector
General
Office of the
Asst Sec for
Policy &
Planning
Office of the
General
Counsel
Office of the
Under Sec for
Benefits (VBA)
Office of the
Under Sec for
Health (VHA)
Office of the
Under Sec fro
Memorial
Affairs (NCA)
Office of
Acquisition,
Logistics &
Construction
Federal Employment Trends
6
The total number of VA employees has grown dramatically since FY 2011 (49,100 people, a 16% increase). VA’s growing budget is driving the increase.
White collar positions dominate the job categories at VA.
88% of VA’s employees reside within the Veteran’s Health Administration.
57% of VA’s personnel perform medical, hospital, dental or public health job role.
Observations:
Total Employment, FY 2011 – 2015 Top 5 Occupations (as of December 2015)
©2016 Deltek, Inc. All Rights Reserved
Budget and Contracting
11/10/20167 CONFIDENTIAL ©Deltek, Inc. All Rights Reserved
Amount of potential or planned spending on vendors or
contractors in a company’s market space.
Contractual commitment made by the government for the
payment of goods and services. Payment may be made
immediately or in the future.
Portion of the budget that the president requests and
Congress controls through annual appropriation acts.
Discretionary Budget and Contracting –A 10-Year View
11/10/20168 CONFIDENTIAL ©Deltek, Inc. All Rights Reserved
VA’s discretionary budget has been rising since FY 1996, to match expanding mission areas and increases in the number of
veterans and beneficiaries.
Most of the discretionary increase from FY 2015 to FY 2016 is due to the increase in medical services, specifically from the
Veterans Access, Choice and Accountability Act which allows veterans to receive medical care in the community where they
reside.
VA has remained consistently dependent on contractors over the last 10 years.
Observations:
Discretionary Budget Outlook, FY 2015-2017
9 CONFIDENTIAL ©Deltek, Inc. All Rights Reserved
Discretionary Budget, FY 2015 - 2017
Discretionary Budget by Bureau, FY 2017
The proposed VA discretionary budget totals $78.7B including $3.6B in medical care collections, a 4.9% increase over FY 2016 enacted levels and 5.0% increase when medical care collections are not included ($75.1B).
VA high level priorities include strengthening veterans’ benefits programs and eliminating the claims backlog, increasing access to health care including mental health services, simplifying the appeals process, enhancing cybersecurity, and modernizing information systems.
Most of the discretionary increase is due to the increase in medical services specifically the Care in the Community initiative to facilitate and streamline the ability for veterans to receive medical care in the community where they reside.
Budget Priorities:
% Change
FY 2016-2017
VHA (w/o collections) +6.4%
IT +3.4%
VBA +4.4%
Construction/Grants -44.7%
Other +19%
Contractor-Addressable Budget Outlook, FY 2015-2017
10 CONFIDENTIAL ©Deltek, Inc. All Rights Reserved
Contractor Addressable Budgets, FY 2015 - 2017
Contractor-Addressable Budget -Top 5 Segments
Contractor and vendor dependence will
continue to remain strong from FY 2015
– FY 2017.
Look for contract spending in areas such
as medical care, mental health care,
telehealth, improving claims backlogs,
enhancing disability claims processing,
information technology enhancements,
and improved business processes.
Management and administrative
support, followed by consumables, and
medical services account for a large
portion of VA’s spending.
Budget Priorities:
Agency Spending Trends
11 ©2016 Deltek, Inc. All Rights Reserved
Top VA Buying Organizations
12 ©2016 Deltek, Inc. All Rights Reserved
Observations:
The Veterans Health Administration is responsible for
slightly more than half, 57%, of all spending from FY 13
to FY 16.
4 out of 5 of the top spending offices reside under the
Veterans Health Administration or Management.
Over the 4 year period the VA has spent a total of $80B
and seen an overall increase of a 5% CAGR.
Source: Deltek GovWin IQ Agency Profile
$- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000
OFFICE OF THE INSPECTOR GENERAL
VETERANS BENEFIT ADMINISTRATION
NATIONAL CEMETERY SYSTEM
MANAGEMENT
VETERANS HEALTH ADMINISTRATION
Reported Obligations ($M)
FY 2013 - FY 2016 Top Agency Spending
FY 2016 FY 2015 FY 2014 FY 2013
$-
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
VHA MEDICAL CENTERS ACQUISITION, LOGISTICS, ANDCONSTRUCTION
VA LEARNINGUNIVERSITY/OFFICE OFEMPLOYEE EDUCATION
ADMINISTRATION FINANCE
Rep
ort
ed O
blig
atio
ns
($M
)
FY 2013 - FY 2016 Top Office Spending
Top Agency Spending Categories
13
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Top PSCs Top NAICS
Drugs and Biologicals 325412 – Pharmaceutical
Preparation Manufacturing
Medical and Surgical Instruments,
Equipment, and Supplies
236220 – Commercial and
Institutional Building Construction
IT and Telecom- Other IT and
Telecommunications
541512 – Computer Systems
Design Services
Medical - Other 541519 – Other Computer
Related Services
Construction Of Hospitals and
Infirmaries
621111 – Offices of Physicians
(except Mental Health Specialists)
Source: Deltek
GovWin IQ Agency
Profile
Observations:
Medical & Scientific Equipment accounts for nearly half, or
43% of all spending from FY 13 to FY 16. Information
Technology and Heath Services are responsible for a
combined 30%, or $24B of spending.
Among our top 3 categories all have seen growth from FY
2013 to FY 2016. Medical & Scientific Equipment and IT
have seen a 5% CAGR, while Health Services saw
dramatic growth at 22% CAGR.
0 2,000 4,000 6,000 8,000 10,000 12,000
Professional Services
Architecture Engineering and Construction
Health Services
Information Technology
Medical & Scientific Equipment
Reported Obligations ($M)
FY 2013 - FY 2016
FY 2016 FY 2015 FY 2014 FY 2013
FY 2013 – FY 2016 Small Business Contracting
14 ©2016 Deltek, Inc. All Rights ReservedSource: Deltek GovWin IQ Agency Profile, FPDS
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
$16,000
$18,000
$20,000
Unrestricted Restricted
Rep
ort
ed O
blig
atio
ns
($M
)
FY 2013 - FY 2016 Unrestricted Award Dollars
2013 2014 2015 2016
$-
$500
$1,000
$1,500
$2,000
$2,500
$3,000
SDVOSB Small Business Not Reported Veteran 8(a) HubZone WOSB
Rep
ort
ed O
blig
atio
ns
($M
)
FY 2013 - FY 2016 Restricted Competition Award Dollars
2013 2014 2015 2016
3% Sole Sourced
2% Partial SB
Set Asides
7% Sole
Sourced26%
Competed2% Sole
Sourced
22% Economically
Disadvantaged
Observations:
From FY 13 to FY 16 $44B was spent through the use of VA Contract Vehicles. In contrast, only $9B was spent through the use of
GSA. 22% of the business spent through GSA schedules is for medical equipment through Schedule 65.
46%, or $20B, of the total spent so far on VA contract vehicles went towards the Pharmaceutical Prime Vendor vehicle from FY 2013 to
FY 2016.
Preferred Contract Vehicles
15 ©2016 Deltek, Inc. All Rights Reserved
Source: Deltek GovWin
IQ Agency ProfileSource: Deltek GovWin
IQ Agency Profile
0 200 400 600 800
GSA SCHEDULE 874 MOBIS MISSION ORIENTEDBUSINESS INTEGRATED SERVICES
GSA SCHEDULE 621 I PROFESSIONAL AND ALLIEDHEALTHCARE STAFFING SERVICES
GSA SCHEDULE 36 OFFICE IMAGE AND DOCUMENTSOLUTIONS
GSA SCHEDULE 70 IT EQUIPMENT SOFTWARE ANDSERVICES
GSA SCHEDULE 65 II A MEDICAL EQUIPMENT ANDSUPPLIES
Reported Obligations ($M)
Top GSA Schedules
FY 2016 FY 2015 FY 2014 FY 2013
0 2,000 4,000 6,000
NETWORX UNIVERSAL
SEWP V - SOLUTIONS FOR ENTERPRISEWIDEPROCUREMENT V
SEWP IV - SOLUTIONS FOR ENTERPRISEWIDEPROCUREMENT IV
T4 - TRANSFORMATION TWENTY ONE TOTALTECHNOLOGY PROGRAM
PHARMACEUTICAL PRIME VENDOR
Reported Obligations ($M)
Top Contract Vehicles
FY 2016 FY 2015 FY 2014 FY 2013
0
5,000
10,000
15,000
20,000
25,000
VA797P12D0001 VA79113D0054 VA11811D1000 V797P6011B VA797P0191
Rep
ort
ed O
blig
atio
ns
($M
)
FY 2013 - FY 2016 Top Contracts
Major Contractors and Contracts
16 ©2016 Deltek, Inc. All Rights Reserved
Observations:
30% of all awarded spending from FY 13 to FY 16 went to
the top five contractors. McKesson Corporation accounts
for 24% of awarded contract dollars, while the other top 4
contractors received 6% of spending from FY 13 to FY16.
The top VA vendor is also the sole contractor to hold the
top spending VA contract from FY 13 to FY 16,
Pharmaceutical Prime Vendors. The second top contract,
Patient Centered Community Care is coming up for
recompete in 2018.
Medical Surgical Prime
Vendor Program
Diagnostic X-
RayT4
Patient Centered
Community Care
Pharmaceutical
Prime Vendor
Source: Deltek GovWin IQ Agency Profile
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
MCKESSON CORPORATION LOCKHEED MARTIN CORPORATION CARDINAL HEALTH, INC. TRIWEST HEALTHCARE ALLIANCE CORP. KIEWIT-TURNER A JOINT VENTURE
Rep
ort
ed O
blig
atio
ns
($M
)
FY 2013 - FY 2016 Top Contractors
FY 2013 FY 2014 FY 2015 FY 2016
Opportunities to Watch
17 ©2016 Deltek, Inc. All Rights Reserved
Requirement Type Program Name Value Solicitation Competition Type
Information Technology
Commodity Enterprise
Contract (CEC)$5.3B Mar. 2018
Service Disabled Veteran
Owned Small Business
Real Time Location
System National
Contract (RTLS)
$543M Apr. 2017Full and Open/
Unrestricted
Architecture Engineering
& Construction
Construction Services
Portland BLDG 100 and
101 Seismic Retrofit and
Renovation
$661M Oct. 2017 Undetermined
VISN MATOC IDIQ II $250M Jan. 2017Service Disabled Veteran
Owned Small Business
Health Services
Patient Centered
Community Care (PCCC)$9.4B Mar. 2018
Full and Open/
Unrestricted
Community Based
Outpatient Clinics
Southeastern Florida
$78M Jun. 2017Full and Open/
Unrestricted
Keys to Success
18 ©2016 Deltek, Inc. All Rights Reserved
Prepare for uncertainty. Despite the Bipartisan Budget Act of 2015, which set top-line discretionary numbers, it remains to be seen whether the lame-duck session will produce a FY 2017 budget or another Continuing Resolution.
Plan for the transition. Support agency program managers as they prepare for the incoming administration. Align your business development strategies with the incoming administration’s policy platform.
Offer security and value. VA is expected to invest in additional cybersecurity initiatives especially to protect veteran data. Additionally, value, efficiency and effectiveness are key to winning acquisitions.
Defend your incumbency. Due to uncertain budgets, expect most spending to occur on existing programs, and operations and maintenance functions.
Team with small businesses. Veterans Affairs has one of the higher small business contracting goals at 32% and has met or come close to meeting this goal for the last five years.
Maximize Popular Contract Vehicles. Pharmaceutical Prime Vendor, T4 (T4NG), GSA Schedule 70, GSA Schedule 65 (medical equipment and supplies), and SEWP IV are VA’s most frequently used contract vehicles for goods and services.
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Insight 2016: Business Development TrackLeadership Development November 14th-17th at the
Gaylord National Harbor
Bus Dev Leadership Topics
including:
The Art of the Bid/No-Bid
Decision
Pipeline Management
IDIQ Contract Management
Building and Organizing a BD
Organization
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