VA awards $65.9M Deloitte contract for Enterprise Measurement and Configuration Services, spanning three years

Contract Overview

Contract Amount: $65,909,963 ($65.9M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-09-30

End Date: 2026-09-29

Contract Duration: 1,095 days

Daily Burn Rate: $60.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ENTERPRISE MEASUREMENT AND CONFIGURATION SERVICES (EMACS)

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $65.9 million to DELOITTE CONSULTING LLP for work described as: ENTERPRISE MEASUREMENT AND CONFIGURATION SERVICES (EMACS) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for Computer Systems Design Services, a critical area for government IT infrastructure. 3. A firm-fixed-price contract type helps manage cost certainty for the government. 4. The awardee, Deloitte Consulting LLP, is a major player in the federal contracting space. 5. The contract duration of three years provides a stable period for service delivery. 6. The contract is managed by the Department of Veterans Affairs, indicating a focus on supporting veteran services. 7. The base contract value is approximately $60.2 million, with potential for growth.

Value Assessment

Rating: good

The contract value of $65.9 million over three years for Enterprise Measurement and Configuration Services appears reasonable given the scope of IT system design and support. Benchmarking against similar large-scale IT service contracts within the federal government suggests this pricing is within expected ranges. The firm-fixed-price structure provides cost predictability, which is a positive indicator for value.

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 presence of three bidders suggests a moderate level of competition for this significant IT services contract. While more bidders could potentially drive prices lower, three offers generally provide a basis for price discovery and selection of a qualified vendor.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and a wider selection of qualified contractors.

Public Impact

The Department of Veterans Affairs (VA) is the primary beneficiary, receiving essential IT services for its enterprise measurement and configuration systems. This contract supports the modernization and efficiency of VA's IT infrastructure, indirectly benefiting veterans through improved service delivery. The services are likely to have a broad impact across the VA's national operations, given the enterprise-wide nature of the contract. The contract supports a significant IT services provider, likely involving skilled personnel in computer systems design and configuration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services become highly specialized and integrated.
Reliance on a single large contractor for critical IT functions could pose risks if performance falters.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm-fixed-price contract type helps control costs and provides budget certainty.
Deloitte Consulting LLP is an established contractor with significant experience in federal IT services.
The contract duration allows for sustained service delivery and potential for long-term system improvements.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. The federal government consistently spends billions annually on IT services, including system design, integration, and maintenance. This contract for Enterprise Measurement and Configuration Services (EMACS) is a component of the VA's broader IT modernization efforts, aiming to improve operational efficiency and data management.

Small Business Impact

The contract was awarded through full and open competition and does not indicate a specific small business set-aside. While Deloitte Consulting LLP is a large business, there is no explicit information provided regarding subcontracting plans for small businesses. Further analysis would be needed to determine the extent of small business participation in fulfilling this contract.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. Oversight mechanisms would typically include regular performance reviews, milestone tracking, and financial audits. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver within the agreed-upon budget. Transparency would be enhanced through contract award databases and reporting requirements.

Related Government Programs

VA IT Modernization Programs
Federal Enterprise Architecture Services
IT Consulting and Professional Services
Computer Systems Design Services

Risk Flags

Potential for vendor lock-in
Reliance on a single large contractor for critical IT functions
Cybersecurity risks associated with sensitive data

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $65.9 million to DELOITTE CONSULTING LLP. ENTERPRISE MEASUREMENT AND CONFIGURATION SERVICES (EMACS)

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $65.9 million.

What is the period of performance?

Start: 2023-09-30. End: 2026-09-29.

What is Deloitte Consulting LLP's track record with the Department of Veterans Affairs and similar federal IT contracts?

Deloitte Consulting LLP has a substantial history of contracting with the federal government, including the Department of Veterans Affairs. They are a major provider of IT and management consulting services across various agencies. Their track record typically involves large-scale system implementations, digital transformation initiatives, and cybersecurity solutions. For the VA specifically, Deloitte has been involved in numerous projects related to healthcare IT, claims processing, and data analytics. While specific performance metrics for past VA contracts are not detailed here, their consistent award of significant contracts suggests a generally positive performance history and capability to handle complex federal IT requirements. However, like any large contractor, past performance reviews and any documented issues would provide a more complete picture.

How does the awarded value compare to similar IT system design contracts within the federal government?

The awarded value of $65.9 million over three years for Enterprise Measurement and Configuration Services (EMACS) is substantial but falls within the typical range for large-scale IT system design and support contracts awarded by federal agencies. Contracts for enterprise resource planning (ERP) implementation, cloud migration, or comprehensive IT infrastructure management often reach tens or even hundreds of millions of dollars. The specific nature of 'measurement and configuration services' suggests a focus on optimizing existing systems or implementing new ones for data tracking and operational efficiency. When compared to similar contracts for computer systems design services, particularly those involving enterprise-wide solutions for large agencies like the VA, this award appears to be competitively priced and proportionate to the expected scope of work and duration.

What are the primary risks associated with this contract for the VA?

Key risks for the VA in this contract include potential performance issues where Deloitte may not meet the required service levels or deliver the expected outcomes for the EMACS. There's also a risk of cost overruns if the firm-fixed-price contract has poorly defined scope or unforeseen technical challenges arise, although the contract type aims to mitigate this. Vendor lock-in is another concern; as Deloitte implements and manages these critical systems, the VA might become heavily reliant on their expertise, making future transitions difficult or costly. Furthermore, cybersecurity risks are inherent in any IT contract, requiring robust security protocols to protect sensitive VA data. Finally, ensuring effective knowledge transfer and maintaining institutional knowledge within the VA regarding the configured systems is crucial for long-term sustainability.

What is the expected impact of these services on the VA's operational effectiveness?

The Enterprise Measurement and Configuration Services (EMACS) are expected to significantly enhance the VA's operational effectiveness by providing better tools and processes for measuring performance and configuring IT systems. This can lead to improved data accuracy, more efficient resource allocation, and enhanced decision-making capabilities across the department. By ensuring systems are correctly configured and performance is accurately tracked, the VA can identify bottlenecks, optimize workflows, and ensure that IT investments are yielding the desired results. Ultimately, these improvements are intended to support the VA's core mission of serving veterans more efficiently and effectively, potentially leading to better healthcare delivery, claims processing, and overall veteran satisfaction.

How has federal spending on IT services, specifically computer systems design, evolved over the past five years?

Federal spending on IT services, including computer systems design, has seen a consistent upward trend over the past five years, driven by the government's ongoing digital transformation initiatives. Agencies are increasingly investing in modernizing legacy systems, migrating to cloud-based solutions, enhancing cybersecurity, and leveraging data analytics. The Computer Systems Design Services category, NAICS code 541512, represents a significant portion of this spending. Factors contributing to this growth include the need for more agile and responsive IT infrastructure, the increasing complexity of cyber threats, and the push for greater efficiency and cost savings through technology. The COVID-19 pandemic further accelerated spending in areas like remote work capabilities and digital service delivery. This sustained investment reflects the critical role IT plays in government operations and service provision.

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: 36C10A23R0006

Offers Received: 3

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: $119,167,562

Exercised Options: $65,909,963

Current Obligation: $65,909,963

Actual Outlays: $48,775,680

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $29,794,577

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0029

IDV Type: GWAC

Timeline