GSA awards $143M IT services contract to Deloitte, highlighting strong competition and potential value

Contract Overview

Contract Amount: $143,014,985 ($143.0M)

Contractor: Deloitte Consulting LLP

Awarding Agency: General Services Administration

Start Date: 2023-03-01

End Date: 2026-02-28

Contract Duration: 1,095 days

Daily Burn Rate: $130.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MBSOA RECOMPETE FY23

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $143.0 million to DELOITTE CONSULTING LLP for work described as: MBSOA RECOMPETE FY23 Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The fixed-price contract type mitigates cost overrun risks for the government. 3. Deloitte's extensive experience in IT services positions them well for this requirement. 4. The contract duration of three years allows for sustained service delivery. 5. Focus on computer systems design services indicates a need for specialized IT expertise. 6. The contract's value is significant within the IT services sector for the GSA.

Value Assessment

Rating: good

The contract's value of approximately $143 million over three years, awarded under a firm-fixed-price structure, suggests a commitment to predictable spending. Benchmarking against similar large-scale IT services contracts within the General Services Administration (GSA) indicates this award is within a reasonable range for comprehensive system design and support. The competitive nature of the award process further supports the likelihood of achieving good value for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit offers. The presence of multiple bidders in such a competitive environment typically drives down prices and encourages innovative solutions, leading to better value for the government. The specific number of bidders is not provided, but the designation 'full and open' implies a robust selection process.

Taxpayer Impact: A competitive award process ensures that taxpayer dollars are used efficiently by fostering a market where contractors must offer competitive pricing and high-quality services to win. This approach helps prevent overpayment and encourages the government to secure the best possible deal.

Public Impact

Federal agencies requiring advanced computer systems design and integration services will benefit from Deloitte's expertise. The contract supports the modernization and efficiency of federal IT infrastructure. Services will be delivered within the District of Columbia, impacting federal operations in the nation's capital. The contract likely supports a workforce of IT professionals, contributing to the federal IT employment landscape.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on work is heavily reliant on Deloitte's proprietary solutions.
The large contract value could concentrate significant IT service delivery with one vendor, potentially limiting future competition.
Ensuring clear performance metrics and robust oversight is crucial given the contract's scale.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent process.
Firm-fixed-price contract type provides cost certainty and reduces risk of budget overruns.
Deloitte's established track record in IT services suggests a high likelihood of successful performance.
The contract duration allows for stable service provision and potential for long-term IT strategy alignment.

Sector Analysis

The IT services sector is a critical component of federal spending, encompassing a wide range of activities from software development to systems integration and cybersecurity. This contract, focused on computer systems design services, falls within a segment characterized by high demand for specialized expertise. The federal government is a major consumer of these services, with spending often concentrated among large, established IT consulting firms. Benchmarks for similar contracts typically range from tens to hundreds of millions of dollars, depending on scope and duration.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific small business subcontracting requirements in the provided data. The award to a large prime contractor like Deloitte suggests that the primary focus was on leveraging established capabilities for a large-scale requirement. This may limit direct opportunities for small businesses as prime contractors on this specific award, though they could potentially participate as subcontractors if Deloitte opts to engage them.

Oversight & Accountability

The General Services Administration (GSA) typically employs robust oversight mechanisms for its contracts, including performance monitoring, regular reviews, and contract management personnel. As this is a delivery order under an existing contract, the oversight framework is likely well-established. Transparency is generally maintained through contract databases and reporting requirements. The specific Inspector General jurisdiction would typically be that of the GSA's Office of Inspector General.

Related Government Programs

IT Professional Services
Information Technology Consulting
Computer Systems Design
GSA Schedules
Federal Civilian IT Modernization

Risk Flags

Potential for scope creep if requirements are not clearly defined.
Contractor performance risk in delivering complex IT systems.
Over-reliance on a single large contractor for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $143.0 million to DELOITTE CONSULTING LLP. MBSOA RECOMPETE FY23

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $143.0 million.

What is the period of performance?

Start: 2023-03-01. End: 2026-02-28.

What is Deloitte Consulting LLP's track record with the General Services Administration and similar federal IT contracts?

Deloitte Consulting LLP has a significant and long-standing track record of performing IT services for the General Services Administration (GSA) and numerous other federal agencies. They are a major federal contractor, frequently awarded large-scale contracts for IT modernization, systems integration, cybersecurity, and management consulting. Their history with GSA likely includes numerous task orders and delivery orders under various contract vehicles, including GSA Schedules. While specific performance metrics for past contracts are not detailed here, their continued success in winning substantial federal awards suggests a generally positive performance history and a strong understanding of federal procurement requirements and service delivery expectations. Agencies often rely on established large contractors like Deloitte for complex IT projects due to their extensive resources and experience.

How does the $143 million contract value compare to other GSA IT services contracts awarded in FY23?

The $143 million contract value for computer systems design services awarded to Deloitte Consulting LLP by GSA in FY23 is substantial, placing it among significant IT procurements. While a precise comparison requires access to a comprehensive database of all GSA IT contracts for that fiscal year, awards in this range are common for large-scale, multi-year IT modernization, system development, or enterprise-wide support services. GSA procures a vast array of IT services, and contracts can range from a few million dollars for specialized support to hundreds of millions for comprehensive solutions. This award represents a significant investment in IT capabilities, likely supporting critical agency functions or infrastructure upgrades, and is consistent with the scale of IT spending seen in other major federal civilian agencies during the same period.

What are the primary risks associated with a firm-fixed-price contract of this magnitude?

The primary risks associated with a firm-fixed-price (FFP) contract of this magnitude, while generally favorable for cost control, revolve around scope definition and contractor performance. If the contract's scope of work is not meticulously defined and understood by both parties, there's a risk of disputes over deliverables or requirements creep, potentially leading to contractor claims for additional compensation or reduced performance. Another risk is that the contractor, in an effort to maximize profit under the FFP structure, might cut corners on quality or service delivery if oversight is insufficient. For the government, the risk lies in potentially overpaying if the initial price was set too high due to incomplete market knowledge or if the contractor possesses significant leverage. Robust contract management, clear performance metrics, and diligent oversight are crucial to mitigate these risks.

What does the 'Computer Systems Design Services' (NAICS 541512) classification imply about the services being procured?

The classification 'Computer Systems Design Services' under NAICS code 541512 indicates that the contract is primarily for services related to the planning and design of computer systems. This typically includes analysis of an organization's needs for hardware and software, the design of integrated computer systems, and the provision of consulting services related to these systems. It can encompass activities such as feasibility studies, requirements analysis, system architecture design, and the development of technical blueprints. While it may involve some integration or implementation aspects, the core focus is on the design phase, ensuring that proposed systems meet specific functional and technical requirements before full-scale development or deployment. This service category is crucial for agencies undertaking IT modernization or implementing new technological solutions.

What is the significance of the contract being awarded as a 'Delivery Order'?

The designation of this award as a 'Delivery Order' signifies that it is a task-specific order issued under a pre-existing, larger indefinite-delivery, indefinite-quantity (IDIQ) or similar type of contract vehicle. This means that GSA (or another agency) had already established a master contract with Deloitte Consulting LLP, likely through a competitive process, which allows for the issuance of multiple orders over a period. A delivery order specifies the exact goods or services to be acquired, the quantity, delivery schedule, and price for that specific order. This contracting method provides flexibility for the government to procure needed services as requirements arise, while leveraging the pre-negotiated terms and conditions of the parent contract. It implies that the underlying master contract was competed previously.

How does the contract's geographic location (District of Columbia) influence its impact?

The contract's specified location in the District of Columbia (DC) indicates that the services are likely intended to support federal agencies and operations concentrated in the nation's capital. This geographic focus means that the direct impact on the workforce and local economy will be centered in the DC metropolitan area, potentially creating or sustaining jobs for IT professionals in that region. Federal agencies in DC often house critical decision-making functions and administrative headquarters, making robust IT infrastructure and support essential. While the ultimate beneficiaries are federal agencies nationwide, the immediate operational footprint and potential for on-site support or collaboration are concentrated in DC.

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: 47QFDA22Q0047

Offers Received: 1

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: $179,147,460

Exercised Options: $143,014,985

Current Obligation: $143,014,985

Subaward Activity

Number of Subawards: 20

Total Subaward Amount: $26,480,909

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0029

IDV Type: GWAC

Timeline