NIH awards Deloitte $14.6M for data analytics, highlighting need for specialized IT support

Contract Overview

Contract Amount: $14,652,417 ($14.7M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of the Interior

Start Date: 2024-08-16

End Date: 2025-08-15

Contract Duration: 364 days

Daily Burn Rate: $40.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: NATIONAL INSTITUTES OF HEALTH (NIH), NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES (NIAID) BUSINESS AND SCIENCE DATA ANALYTICS SUPPORT SERVICES (BSDA)

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of the Interior obligated $14.7 million to DELOITTE CONSULTING LLP for work described as: NATIONAL INSTITUTES OF HEALTH (NIH), NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES (NIAID) BUSINESS AND SCIENCE DATA ANALYTICS SUPPORT SERVICES (BSDA) Key points: 1. Contract addresses critical data analytics needs for NIAID's research and business operations. 2. Deloitte's selection suggests strong capabilities in complex IT systems and data management. 3. The Time and Materials pricing model introduces potential cost variability. 4. Performance period of one year allows for agile adaptation to evolving requirements. 5. This award falls within the broader category of IT services supporting federal research. 6. The contract's value is moderate within the context of large-scale federal IT procurements.

Value Assessment

Rating: good

The contract value of $14.6 million for a one-year period appears reasonable for specialized data analytics support. Benchmarking against similar IT services contracts for scientific agencies, this award is within expected ranges. The Time and Materials (T&M) pricing structure, while common for evolving IT needs, warrants close monitoring to ensure cost efficiency and prevent scope creep. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the award to a large, established firm like Deloitte suggests a baseline level of expected quality and expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This process is designed to foster a competitive environment, potentially leading to better pricing and service quality. The specific number of bidders is not provided, but the full and open nature suggests a robust competition. This approach generally benefits the government by ensuring a wide pool of potential solutions are considered.

Taxpayer Impact: Full and open competition maximizes the chances of obtaining the best value for taxpayer dollars by encouraging a wide range of vendors to offer competitive bids.

Public Impact

Researchers and scientists at NIAID will benefit from enhanced data analysis capabilities, potentially accelerating infectious disease research. Improved business operations support for NIAID through better data management and analytics. The services delivered will support the agency's mission in understanding and combating infectious diseases. Workforce implications include potential reliance on Deloitte's expertise for specialized data tasks, complementing NIH's internal staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the Time and Materials pricing model if not closely managed.
Dependence on a single contractor for critical data analytics functions could pose a risk if performance falters.
Ensuring adequate knowledge transfer to NIH staff to build internal capacity.

Positive Signals

Award to a reputable contractor with a proven track record in IT and data services.
Full and open competition suggests a thorough vetting process and potential for competitive pricing.
The contract directly supports a critical mission area for NIH, indicating strategic importance.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and related services. The market for federal IT services is vast and highly competitive, with significant spending allocated to data analytics, cloud computing, cybersecurity, and software development. Agencies like NIH require sophisticated IT support to manage the massive datasets generated by research and to streamline operational efficiencies. Comparable spending benchmarks for similar data analytics support services can range from millions to tens of millions annually, depending on the scope and duration.

Small Business Impact

The contract was not set aside for small businesses, and the awardee, Deloitte Consulting LLP, is a large business. There is no explicit mention of subcontracting requirements for small businesses in the provided data. This means that opportunities for small businesses to participate in this specific contract are likely limited unless they are part of Deloitte's supply chain or are engaged for highly specialized, niche services not covered by the prime contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Institute of Allergy and Infectious Diseases (NIAID) contracting officer and program managers. The Department of the Interior's role as the awarding agency suggests a level of inter-agency agreement or shared service. Transparency is facilitated by the public nature of federal contract awards. Accountability will be driven by performance clauses within the contract and the T&M structure, which requires detailed reporting of hours and costs. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

NIH IT Support Services
NIAID Research Data Management
Federal Data Analytics Contracts
Department of Health and Human Services IT Procurement
Computer Systems Design Services

Risk Flags

Potential for cost overruns due to T&M pricing.
Need for strong government oversight to manage scope and costs.
Ensuring adequate knowledge transfer and capacity building within NIH.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $14.7 million to DELOITTE CONSULTING LLP. NATIONAL INSTITUTES OF HEALTH (NIH), NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES (NIAID) BUSINESS AND SCIENCE DATA ANALYTICS SUPPORT SERVICES (BSDA)

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 $14.7 million.

What is the period of performance?

Start: 2024-08-16. End: 2025-08-15.

What is Deloitte's track record with federal IT and data analytics contracts, particularly with health and research agencies?

Deloitte Consulting LLP has an extensive history of performing IT and data analytics services for various U.S. federal agencies, including those in the health and research sectors. They have secured numerous large contracts involving system modernization, data management, cybersecurity, and advanced analytics. For instance, Deloitte has previously worked with agencies like the Centers for Medicare & Medicaid Services (CMS) and the Department of Veterans Affairs (VA) on complex IT initiatives. Their experience often includes supporting scientific research through data infrastructure development and analytical tool implementation. While specific performance details on past contracts are often proprietary or found in detailed CPARS reports, Deloitte's consistent presence as a prime contractor on significant federal IT awards indicates a generally strong capability and a substantial portfolio of relevant past performance.

How does the $14.6 million contract value compare to similar data analytics support services awarded by NIH or other research institutions?

The $14.6 million contract value for a one-year period for data analytics support services at NIH is within a moderate range for specialized IT services. Large federal agencies, especially those involved in extensive research like NIH, often award IT contracts ranging from several million to tens or even hundreds of millions of dollars annually. Contracts for data analytics can vary significantly based on scope, complexity, and duration. For example, a contract focused solely on data warehousing might differ in cost from one involving advanced AI-driven predictive modeling across vast datasets. Compared to broader IT modernization efforts or large-scale system implementations, this award appears focused and appropriately sized for dedicated business and science data analytics support. However, without knowing the specific deliverables and the number of full-time equivalents (FTEs) supported, a precise benchmark is difficult.

What are the primary risks associated with a Time and Materials (T&M) contract for data analytics services?

The primary risk associated with a Time and Materials (T&M) contract for data analytics services is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified rates and for the actual cost of materials. This structure can lead to increased costs if the project scope expands, if inefficiencies arise, or if the contractor's labor hours exceed initial estimates. For the government, this necessitates robust oversight and diligent monitoring of labor hours, rates, and material expenses to ensure that costs remain reasonable and aligned with the work performed. Scope creep is a significant concern, as it can inflate the total contract value beyond what was initially anticipated. Effective project management and clear communication channels are crucial to mitigate these risks.

How does this contract contribute to NIAID's overall mission effectiveness in infectious disease research?

This contract directly supports NIAID's mission effectiveness by providing essential Business and Science Data Analytics Support Services (BSDA). NIAID generates vast amounts of data from its research activities, including clinical trials, laboratory experiments, and epidemiological studies. Effective analysis of this data is critical for identifying trends, understanding disease mechanisms, evaluating treatment efficacy, and accelerating the development of vaccines and therapies. By enhancing NIAID's capabilities in data management, processing, and interpretation, this contract enables researchers and program managers to make more informed decisions, optimize research strategies, and ultimately speed up the pace of scientific discovery and public health interventions related to infectious diseases.

What historical spending patterns exist for similar data analytics support services at NIH or NIAID?

Historical spending patterns for data analytics support services at NIH and its institutes like NIAID typically show a consistent and often increasing investment in IT and data-related capabilities. As research becomes more data-intensive and computational, agencies allocate more resources to manage, analyze, and derive insights from this data. Prior contracts for similar services might have varied in scope, duration, and value, reflecting evolving technological needs and research priorities. For example, spending might have shifted from basic data management to more advanced analytics, machine learning, and AI applications over time. Analyzing past contract awards for IT support, data science, and bioinformatics within NIAID or across NIH can reveal trends in average contract values, common service providers, and the types of analytical capabilities being procured, indicating a sustained need for such expertise.

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

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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: $17,511,691

Exercised Options: $17,511,691

Current Obligation: $14,652,417

Actual Outlays: $14,652,417

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $978,684

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200018W

IDV Type: GWAC

Timeline