Deloitte Consulting LLP awarded $11.3M for Military Health System charge description master support

Contract Overview

Contract Amount: $11,286,633 ($11.3M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of the Interior

Start Date: 2021-09-23

End Date: 2024-09-22

Contract Duration: 1,095 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: PROGRAM AND TECHNICAL SUPPORT FOR THE DEVELOPMENT AND MAINTENANCE OF A MILITARY HEALTH SYSTEM (MHS) CHARGE DESCRIPTION MASTER.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $11.3 million to DELOITTE CONSULTING LLP for work described as: PROGRAM AND TECHNICAL SUPPORT FOR THE DEVELOPMENT AND MAINTENANCE OF A MILITARY HEALTH SYSTEM (MHS) CHARGE DESCRIPTION MASTER. Key points: 1. Contract provides essential technical support for a critical military health system database. 2. The fixed-price contract structure aims to control costs for the duration of the award. 3. Competition was full and open, suggesting a robust market for these specialized services. 4. The duration of the contract is three years, indicating a need for sustained support. 5. This award falls within the Computer Systems Design Services category, a common area for IT support contracts. 6. The value of the contract is moderate, suggesting it is not a flagship program but a necessary operational support function.

Value Assessment

Rating: good

The contract value of $11.3 million over three years for IT support services appears reasonable. Benchmarking against similar contracts for IT system development and maintenance, especially within the defense or health sectors, would provide a clearer picture of value for money. The fixed-price nature of the contract helps in cost predictability. However, without specific details on the scope of work and deliverables, a definitive assessment of cost-effectiveness is challenging. The contract's value is also relatively small compared to major IT system overhauls, suggesting it's for ongoing maintenance and support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The presence of three bidders (no=3) suggests a competitive environment, which generally leads to better pricing and service quality for the government. The open competition process allows for a wide range of qualified contractors to participate, fostering innovation and ensuring that the government receives the best possible solution at a competitive price.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures that government funds are used efficiently by selecting the most cost-effective and capable provider.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who rely on the Military Health System for healthcare services. The contract ensures the continued development and maintenance of the MHS Charge Description Master, which is crucial for accurate billing and record-keeping within the healthcare system. This support directly impacts the operational efficiency and data integrity of the MHS. The services delivered are technical in nature, focusing on software development and system maintenance, rather than direct patient care.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'development and maintenance' is not strictly managed.
Reliance on a single contractor for critical system support could pose a risk if performance issues arise.
The effectiveness of the charge description master itself is dependent on the quality of the underlying data and system architecture.

Positive Signals

The use of a fixed-price contract provides cost certainty for the government.
Full and open competition suggests a healthy market and potential for competitive pricing.
The contract duration of three years indicates a stable, long-term need for these services, allowing for focused development and expertise building.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and related services. The market for such services is vast and highly competitive, with numerous firms offering specialized expertise. The MHS Charge Description Master is a critical component of the healthcare IT infrastructure, requiring specialized knowledge of healthcare billing codes and systems. Comparable spending benchmarks in this area would typically involve IT support for large-scale healthcare systems, often in the hundreds of millions or billions for major system overhauls, making this $11.3M award for specific support relatively modest.

Small Business Impact

There is no indication that this contract included a small business set-aside. The prime contractor, Deloitte Consulting LLP, is a large business. This means that opportunities for small businesses would primarily be through subcontracting, if Deloitte chooses to engage them. The impact on the small business ecosystem is likely minimal unless significant subcontracting opportunities are created.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Interior, overseeing the services provided to the Department of Defense's Military Health System. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Military Health System (MHS)
Defense Health Agency (DHA)
Healthcare IT Systems
Computer Systems Design Services
Federal IT Support Contracts

Risk Flags

Potential for vendor lock-in
Reliance on contractor for critical system maintenance
Scope definition clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $11.3 million to DELOITTE CONSULTING LLP. PROGRAM AND TECHNICAL SUPPORT FOR THE DEVELOPMENT AND MAINTENANCE OF A MILITARY HEALTH SYSTEM (MHS) CHARGE DESCRIPTION MASTER.

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $11.3 million.

What is the period of performance?

Start: 2021-09-23. End: 2024-09-22.

What is the specific scope of 'development and maintenance' for the MHS Charge Description Master under this contract?

The contract data indicates that the services provided by Deloitte Consulting LLP are for the 'PROGRAM AND TECHNICAL SUPPORT FOR THE DEVELOPMENT AND MAINTENANCE OF A MILITARY HEALTH SYSTEM (MHS) CHARGE DESCRIPTION MASTER.' While the exact scope is not detailed in the provided data, 'development' typically implies enhancements, updates, or new feature implementation, while 'maintenance' covers bug fixes, system upkeep, and ensuring operational stability. For the MHS Charge Description Master, this likely involves updating billing codes, ensuring compliance with healthcare regulations (like ICD-10, CPT codes), optimizing database performance, and potentially integrating with other MHS IT systems. The fixed-price nature suggests a well-defined scope to manage costs effectively over the three-year period.

How does the $11.3 million contract value compare to historical spending on MHS Charge Description Master support?

The provided data does not include historical spending figures for the MHS Charge Description Master support. However, the $11.3 million award over three years ($3.76 million annually) represents a moderate investment for specialized IT support within a large federal healthcare system. To assess its comparability, one would need to examine past contracts for similar services, looking at both the total value and the annual expenditure. Without this historical context, it's difficult to determine if this award represents an increase, decrease, or stable level of investment in this particular function. The fixed-price contract type suggests an effort to control costs compared to potentially more variable cost-plus contracts.

What are the key performance indicators (KPIs) used to evaluate Deloitte Consulting LLP's performance on this contract?

Specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data. However, for a contract focused on 'development and maintenance' of a critical system like the MHS Charge Description Master, typical KPIs would likely include metrics related to system uptime, response times for technical support requests, the number and severity of bugs or defects identified and resolved, the timeliness of updates and code deployments, and adherence to project schedules for development tasks. Performance would also be assessed against the accuracy and completeness of the charge description master itself, ensuring it aligns with current healthcare coding standards and regulatory requirements. The contracting officer's representative (COR) would be responsible for monitoring these KPIs.

What is the potential risk associated with relying on Deloitte Consulting LLP for the MHS Charge Description Master?

The primary risk associated with relying on a single contractor, such as Deloitte Consulting LLP, for critical system support is vendor lock-in and potential performance degradation. If Deloitte's performance falters or if they become unresponsive, the MHS could face significant disruptions to its billing and record-keeping processes. There's also a risk that institutional knowledge becomes concentrated within the contractor's team, making it difficult for the government to transition to a new vendor or bring the function in-house if needed. However, the full and open competition process mitigates some of this risk by ensuring a competitive market exists, and contract clauses typically include provisions for performance standards and remedies for non-compliance.

How does the Computer Systems Design Services (NAICS 541512) category typically perform in terms of cost and competition for federal contracts?

The Computer Systems Design Services category (NAICS 541512) is a very common and broad area for federal IT contracting. It encompasses a wide range of services, from custom software development to IT infrastructure integration and technical consulting. Historically, this sector sees robust competition, especially for well-defined projects, as many companies possess the necessary capabilities. Pricing can vary significantly based on the complexity, duration, and specific requirements of the service. Full and open competition is frequent in this category, leading to competitive pricing. However, specialized niche services within this category, like those requiring deep domain knowledge in areas such as military health systems, might see fewer bidders but potentially higher per-hour rates due to the specialized expertise required.

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 › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 140D0421Q0266

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1725 DUKE ST, ALEXANDRIA, VA, 22314

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

Financial Breakdown

Contract Ceiling: $18,643,399

Exercised Options: $11,621,596

Current Obligation: $11,286,633

Actual Outlays: $11,267,283

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200018W

IDV Type: GWAC

Timeline