DHS awards $17.5M to Deloitte for analytical support at Pacific Enforcement Response Center

Contract Overview

Contract Amount: $17,543,313 ($17.5M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Homeland Security

Start Date: 2023-12-01

End Date: 2026-11-30

Contract Duration: 1,095 days

Daily Burn Rate: $16.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROFESSIONAL ANALYTICAL SUPPORT SERVICES AT THE PACIFIC ENFORCEMENT RESPONSE CENTER

Place of Performance

Location: LAGUNA NIGUEL, ORANGE County, CALIFORNIA, 92677

State: California Government Spending

Plain-Language Summary

Department of Homeland Security obligated $17.5 million to DELOITTE CONSULTING LLP for work described as: PROFESSIONAL ANALYTICAL SUPPORT SERVICES AT THE PACIFIC ENFORCEMENT RESPONSE CENTER Key points: 1. Contract awarded to a single, large incumbent firm, suggesting potential for limited future competition. 2. The contract's duration of 1095 days indicates a long-term need for these analytical services. 3. Fixed-price contract type may offer cost certainty but could limit flexibility for evolving requirements. 4. The award falls under Engineering Services, though the description points to analytical and professional support. 5. Geographic focus on California for services at the Pacific Enforcement Response Center. 6. No small business set-aside was utilized for this significant contract.

Value Assessment

Rating: good

The contract value of $17.5 million over three years for professional analytical support services appears reasonable given the scope and the incumbent contractor's expertise. Benchmarking against similar large-scale analytical support contracts within federal agencies suggests this pricing is within expected ranges. The fixed-price nature of the award provides cost predictability for the agency, although it may not fully account for unforeseen shifts in analytical needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of three bidders suggests a competitive process, which generally benefits price discovery and ensures the government receives competitive offers. The specific details of the bidding process and the number of proposals received would provide further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by driving down prices and encouraging innovative solutions from a wider pool of contractors.

Public Impact

Benefits the Department of Homeland Security, specifically U.S. Immigration and Customs Enforcement (ICE), by providing critical analytical support. Services delivered are professional analytical support, likely contributing to intelligence gathering, threat assessment, and operational planning. Geographic impact is centered in California, supporting operations at the Pacific Enforcement Response Center. Workforce implications include the employment of skilled analysts and support staff by Deloitte Consulting LLP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long-term nature and incumbent status.
Risk of scope creep if analytical requirements are not clearly defined and managed.
Reliance on a single contractor for critical analytical functions could pose a risk if performance falters.

Positive Signals

Award to a reputable contractor with a strong track record in government services.
Fixed-price contract provides budget certainty for the agency.
Full and open competition suggests a robust selection process.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, a broad category encompassing a wide range of specialized expertise. The market for such services is highly competitive, with numerous firms offering analytical, engineering, and management consulting. Federal spending in this sector is substantial, driven by the need for specialized knowledge across various agencies to support complex missions. This specific award supports enforcement and response operations, a critical function within the Department of Homeland Security.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to a large prime contractor like Deloitte suggests that the primary focus was on securing specialized expertise, potentially overlooking opportunities to engage the small business ecosystem in this particular instance.

Oversight & Accountability

Oversight for this contract would typically fall under the U.S. Immigration and Customs Enforcement (ICE) contracting officers and program managers. Transparency is facilitated through contract award databases like FPDS. Accountability measures are inherent in the contract terms, including performance standards and payment schedules. The Inspector General for the Department of Homeland Security would have jurisdiction to investigate any potential fraud, waste, or abuse related to this award.

Related Government Programs

Professional, Scientific, and Technical Services
Management and Financial Consulting, Scientific Research, and Development, and Similar Services
Defense and National Security Services

Risk Flags

Potential for vendor lock-in
Long-term contract duration
Reliance on incumbent contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $17.5 million to DELOITTE CONSULTING LLP. PROFESSIONAL ANALYTICAL SUPPORT SERVICES AT THE PACIFIC ENFORCEMENT RESPONSE CENTER

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $17.5 million.

What is the period of performance?

Start: 2023-12-01. End: 2026-11-30.

What is Deloitte Consulting LLP's track record with federal contracts, particularly within DHS and ICE?

Deloitte Consulting LLP is a major federal contractor with a significant history of awards across numerous government agencies, including the Department of Homeland Security (DHS) and its sub-agencies like U.S. Immigration and Customs Enforcement (ICE). Their contract portfolio typically spans a wide range of services, including IT modernization, cybersecurity, management consulting, and analytical support. Reviewing historical contract data from sources like FPDS reveals numerous awards, many of which are substantial in value and duration. While specific performance ratings for individual contracts are often not publicly detailed, Deloitte's consistent presence as a prime contractor on large, complex federal procurements suggests a generally satisfactory performance record and the ability to meet agency requirements. However, a deeper dive into past performance reviews and any past performance issues or disputes would be necessary for a comprehensive assessment.

How does the $17.5 million value compare to similar analytical support contracts awarded by DHS or ICE?

The $17.5 million value for three years of professional analytical support services is a significant but not extraordinary amount for a contract of this nature within a large federal agency like DHS. Benchmarking requires comparing it to contracts with similar scopes of work, durations, and complexity. Contracts for intelligence analysis, program evaluation, or specialized operational support within agencies like ICE, Customs and Border Protection (CBP), or other national security components often fall within this range or higher. For instance, contracts supporting data analytics, threat assessment, or policy development can easily reach tens of millions of dollars over several years. The fixed-price nature also influences the perceived value, as it caps the government's expenditure. Without access to proprietary benchmarking data or a detailed breakdown of the specific services required, a precise comparison is difficult, but the award appears aligned with the typical scale of such professional services within the federal government.

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

Primary risks associated with this contract include potential scope creep, where the requirements may expand beyond the initial agreement, leading to cost overruns or delays. Another risk is vendor lock-in, given the long-term nature and the incumbent status of Deloitte, which could reduce future competition and potentially lead to complacency. Performance degradation is also a risk, where the quality or timeliness of the analytical support might decline over the contract period. Mitigation strategies typically involve robust contract management by ICE officials, including clear definition and monitoring of the Statement of Work (SOW), regular performance reviews, and maintaining open communication channels with the contractor. The fixed-price contract structure itself acts as a mitigation for cost overruns, provided the scope is well-defined. For vendor lock-in, agencies often plan for re-competition well in advance of contract expiration.

How effective is the 'full and open competition' process in ensuring value for money for this specific contract?

The 'full and open competition' process is designed to maximize value for money by allowing any responsible source to submit an offer, thereby fostering a competitive environment. For this $17.5 million contract, having three bidders suggests that the competition was meaningful, likely driving down prices and encouraging innovative approaches from the offerors. The effectiveness, however, depends on the clarity of the solicitation, the evaluation criteria, and the actual number and quality of proposals received. If the solicitation was well-defined and the evaluation process rigorous, this competition should have yielded a strong value proposition for ICE. The fixed-price contract type further supports value for money by establishing a ceiling on costs. Continuous monitoring of performance against the contract's objectives is crucial to ensure that the anticipated value is realized throughout the contract's life.

What are the historical spending patterns for analytical support services within ICE or similar DHS components?

Historical spending patterns for analytical support services within ICE and similar Department of Homeland Security components show a consistent and significant investment in acquiring specialized expertise. Agencies like ICE, CBP, and others within DHS frequently procure services related to intelligence analysis, data analytics, threat assessment, program evaluation, and policy support. These contracts often range from moderate to very large sums, reflecting the critical nature of these functions for national security and law enforcement operations. Spending in this category has generally trended upwards over the years, driven by increasing data volumes, evolving threat landscapes, and the need for advanced analytical capabilities. Contracts are often awarded through full and open competition, but sole-source or limited competition awards also occur for highly specialized or urgent needs. The duration of these contracts can vary, but multi-year awards are common for ongoing analytical requirements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 70CDCR23R00000009

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Financial Advisory Services LLP

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: $39,110,224

Exercised Options: $23,507,643

Current Obligation: $17,543,313

Actual Outlays: $11,875,386

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $30,582,043

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU113

IDV Type: IDC

Timeline