Treasury Awards $35.6M Deloitte Contract for Digitalization Support Under Web Apps BPA

Contract Overview

Contract Amount: $35,566,615 ($35.6M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of the Treasury

Start Date: 2023-09-22

End Date: 2025-03-21

Contract Duration: 546 days

Daily Burn Rate: $65.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS IS A NEW TASK ORDER AWARD UNDER THE WEB APPS BPA BRIDGE FOR DIGITALIZATION PROGRAM MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $35.6 million to DELOITTE CONSULTING LLP for work described as: THIS IS A NEW TASK ORDER AWARD UNDER THE WEB APPS BPA BRIDGE FOR DIGITALIZATION PROGRAM MANAGEMENT SUPPORT SERVICES Key points: 1. Significant award for IT services under an existing BPA. 2. Deloitte Consulting LLP is the awardee, a major player in the consulting space. 3. Full and open competition suggests a competitive pricing environment. 4. The contract focuses on digitalization and program management support.

Value Assessment

Rating: good

The contract is a firm-fixed-price delivery order, which helps control costs. Benchmarking against similar IT support services under large BPAs would provide further insight into value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust process for soliciting bids and ensuring fair pricing. This method typically leads to better price discovery.

Taxpayer Impact: The firm-fixed-price structure aims to provide cost certainty for taxpayers, with competition expected to drive value.

Public Impact

Enhances IRS digitalization efforts, potentially improving taxpayer services. Supports critical program management for digital transformation initiatives. Leverages existing BPA structure for efficient procurement of IT services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in digitalization projects.
Reliance on a single vendor for critical support services.

Positive Signals

Leverages existing BPA, reducing acquisition time and cost.
Firm-fixed-price contract provides cost predictability.
Full and open competition promotes market-driven pricing.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending in this area is substantial across government, with a focus on modernization and digital transformation.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the awardee is a large firm. There is no direct small business participation indicated in this award.

Oversight & Accountability

Awarded under an existing BPA, suggesting prior oversight. The firm-fixed-price nature provides a degree of cost control, but ongoing performance monitoring is crucial.

Related Government Programs

Computer Systems Design Services
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

Potential for vendor lock-in.
Complexity of integrating new digital solutions.
Risk of scope creep in long-term projects.
Dependence on a single contractor for critical support.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $35.6 million to DELOITTE CONSULTING LLP. THIS IS A NEW TASK ORDER AWARD UNDER THE WEB APPS BPA BRIDGE FOR DIGITALIZATION PROGRAM MANAGEMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $35.6 million.

What is the period of performance?

Start: 2023-09-22. End: 2025-03-21.

What is the specific scope of 'Digitalization Program Management Support Services' and how does it align with IRS strategic goals?

The scope likely encompasses planning, execution, and monitoring of initiatives aimed at modernizing IRS systems and processes through digital technologies. This aligns with IRS goals to improve efficiency, enhance taxpayer experience, and ensure data security in a rapidly evolving digital landscape.

What are the key performance indicators (KPIs) for this contract to ensure effective delivery of digitalization support?

Key performance indicators would likely include timely completion of project milestones, adherence to budget, quality of deliverables (e.g., strategic plans, process improvements), stakeholder satisfaction, and successful integration of digital solutions. Robust monitoring of these KPIs is essential for accountability.

How does this contract contribute to the IRS's overall IT modernization strategy and what are the associated risks?

This contract directly supports the IRS's IT modernization by providing specialized program management for digitalization efforts. Risks include potential vendor lock-in, challenges in integrating new digital solutions with legacy systems, and the possibility of project delays or cost overruns if not managed effectively.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

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: $35,566,615

Exercised Options: $35,566,615

Current Obligation: $35,566,615

Actual Outlays: $35,566,615

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $220,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0029

IDV Type: GWAC

Timeline