Department of the Interior awards $2.35M contract for Financial System Development and Management to Deloitte Consulting LLP

Contract Overview

Contract Amount: $2,352,133 ($2.4M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of the Interior

Start Date: 2023-05-01

End Date: 2026-04-30

Contract Duration: 1,095 days

Daily Burn Rate: $2.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: FINANCIAL SYSTEM DEVELOPMENT AND MANAGEMENT (FSDM)

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $2.4 million to DELOITTE CONSULTING LLP for work described as: FINANCIAL SYSTEM DEVELOPMENT AND MANAGEMENT (FSDM) Key points: 1. Contract focuses on consulting services for financial system development and management. 2. The contract duration is 3 years, indicating a medium-term engagement. 3. Awarded via full and open competition, suggesting a competitive bidding process. 4. The North American Industry Classification System (NAICS) code 541690 points to specialized consulting services. 5. The contract is a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 6. The primary place of performance is Maryland, a hub for federal contracting.

Value Assessment

Rating: good

The contract value of $2.35 million over three years for financial system development and management consulting appears reasonable. Benchmarking against similar IT consulting services for federal agencies suggests this is within expected ranges. Without specific deliverables or performance metrics, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The fact that it was competed suggests that the agency sought the best value through a transparent process. The number of bidders is not specified, but the open competition is a positive sign for price discovery and potentially better terms for the government.

Taxpayer Impact: Full and open competition generally leads to more competitive pricing, which benefits taxpayers by ensuring the government is not overpaying for essential services.

Public Impact

The Department of the Interior benefits from improved financial system development and management. Federal financial operations and reporting are likely to be enhanced. The contract supports specialized consulting services within the federal IT sector. Workforce implications include the engagement of skilled consultants in financial management and IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not clearly defined.
Dependence on contractor expertise could create knowledge transfer challenges.
Ensuring alignment with evolving federal financial regulations and cybersecurity standards.

Positive Signals

Award to a well-established consulting firm like Deloitte suggests a high level of expertise.
The use of full and open competition indicates a commitment to seeking competitive solutions.
The multi-year duration allows for sustained focus on complex financial system improvements.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on IT consulting for financial systems. The federal IT consulting market is substantial, with agencies consistently investing in modernizing their financial management capabilities. Comparable spending benchmarks for similar system development and management contracts vary widely based on scope and complexity, but this award appears to be a moderate-sized engagement.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, Deloitte Consulting LLP, may engage small businesses as subcontractors depending on their own subcontracting plans and the specific needs of the project.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program's technical point of contact within the Department of the Interior. Transparency is facilitated by public contract databases like FPDS. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Financial Management Systems
IT Consulting Services
Departmental Financial Operations
Federal Financial Management Improvement

Risk Flags

Potential for vendor lock-in if knowledge transfer is insufficient.
Risk of project delays if requirements are not clearly defined upfront.
Cybersecurity vulnerabilities in newly developed or managed systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $2.4 million to DELOITTE CONSULTING LLP. FINANCIAL SYSTEM DEVELOPMENT AND MANAGEMENT (FSDM)

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 $2.4 million.

What is the period of performance?

Start: 2023-05-01. End: 2026-04-30.

What is Deloitte Consulting LLP's track record with similar federal financial system development contracts?

Deloitte Consulting LLP has a significant track record in providing IT and financial consulting services to various federal agencies. They have been involved in numerous large-scale system modernization projects, including financial management systems, enterprise resource planning (ERP) implementations, and data analytics solutions. Their experience often spans across departments like Defense, Treasury, and Health and Human Services. Specific to financial systems, Deloitte has a history of assisting agencies in meeting compliance requirements (e.g., FISMA, FFMIA), improving financial reporting accuracy, and enhancing operational efficiency through technology. Their extensive portfolio suggests a deep understanding of the complexities and regulatory landscape of federal financial management.

How does the awarded amount compare to the average cost of similar federal IT consulting contracts?

The awarded amount of $2.35 million over three years for Financial System Development and Management (FSDM) consulting services is within a reasonable range for federal IT projects of this nature. Average costs for similar contracts can vary significantly based on the specific services required, the complexity of the systems involved, the duration, and the level of expertise needed. Contracts for system development, integration, and ongoing management often run into millions of dollars. Given that this is a delivery order, it might represent a portion of a larger IDIQ contract, making direct comparison difficult without knowing the overall ceiling. However, for specialized consulting in financial systems, this figure suggests a focused engagement rather than a complete system overhaul, which aligns with typical project scopes.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential scope creep, where project requirements expand beyond the initial agreement, leading to cost overruns and schedule delays. Another risk is the potential for inadequate knowledge transfer from the contractor to government personnel, creating long-term dependency. Ensuring the developed systems meet evolving federal financial regulations and cybersecurity standards is also critical. Mitigation strategies likely involve robust contract management, clearly defined performance work statements (PWS), regular progress reviews, and strong government oversight. The use of a delivery order structure under a potentially larger IDIQ may also allow for phased implementation and risk management. The selection of an experienced contractor like Deloitte also mitigates some execution risks.

What is the expected effectiveness of the services delivered under this contract for the Department of the Interior's financial operations?

The expected effectiveness hinges on the specific objectives outlined in the contract's Statement of Work (SOW). Generally, contracts for Financial System Development and Management aim to improve the accuracy, efficiency, and security of financial data and processes. This could involve modernizing legacy systems, implementing new accounting functionalities, enhancing reporting capabilities to meet federal mandates, or improving internal controls. If successful, the Department of the Interior should experience more streamlined financial operations, better decision-making through reliable data, and improved compliance with financial regulations. The ultimate effectiveness will be measured by the contractor's ability to meet defined performance metrics and deliver tangible improvements to the agency's financial infrastructure.

How has the Department of the Interior's spending on financial system development and management evolved over the past five years?

Analyzing the Department of the Interior's spending trends on financial system development and management over the past five years would require access to historical contract data. However, federal agencies, including the DOI, generally face continuous pressure to modernize their financial systems to comply with evolving regulations, enhance cybersecurity, and improve operational efficiency. This often translates into consistent, and sometimes increasing, investment in IT modernization and consulting services related to financial management. Spending patterns can fluctuate based on specific modernization initiatives, budget allocations, and the lifecycle of existing systems. Without specific historical data, it's presumed that the DOI maintains a steady investment in this area to ensure the integrity and efficiency of its financial operations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting 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: 140D0423R0049

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Address: 1919 N LYNN ST, ARLINGTON, VA, 22209

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

Financial Breakdown

Contract Ceiling: $3,394,623

Exercised Options: $2,358,675

Current Obligation: $2,352,133

Actual Outlays: $2,173,684

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 140D0421D0006

IDV Type: IDC

Timeline