DHS awards $97.9M contract for financial management program support to Deloitte Consulting LLP

Contract Overview

Contract Amount: $97,922,958 ($97.9M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Homeland Security

Start Date: 2022-09-30

End Date: 2027-01-29

Contract Duration: 1,582 days

Daily Burn Rate: $61.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TO PROVIDE PROGRAM MANAGEMENT SERVICES IN SUPPORT OF THE FINANCIAL MANAGEMENT OFFICE.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20528

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $97.9 million to DELOITTE CONSULTING LLP for work described as: TO PROVIDE PROGRAM MANAGEMENT SERVICES IN SUPPORT OF THE FINANCIAL MANAGEMENT OFFICE. Key points: 1. Contract awarded through a full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. The duration of the contract is over 4 years, indicating a long-term need for these services. 4. The award is a BPA Call, suggesting it leverages an existing contract vehicle. 5. The services are categorized under Computer Systems Design Services, aligning with IT support functions. 6. The contractor, Deloitte Consulting LLP, is a large, established firm with significant federal contracting experience.

Value Assessment

Rating: good

The contract's value of $97.9 million over approximately 4 years for program management services appears reasonable given the scope. Benchmarking against similar large-scale IT and management support contracts within DHS and other agencies suggests this pricing is within expected ranges for complex program support. The firm fixed-price nature of the contract provides cost certainty for the government, although it relies on the contractor's accurate cost estimation.

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 a bid. The data shows 2 bids were received. A competitive process like this generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are likely being used efficiently by fostering a competitive environment that drives down costs and improves service quality.

Public Impact

The primary beneficiary is the Department of Homeland Security's Financial Management Office, which will receive program management services. The services delivered will support the effective operation and oversight of DHS's financial management functions. The contract is geographically focused on the District of Columbia, where DHS headquarters is located. The contract supports professional services roles, potentially impacting a workforce of program managers and analysts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Reliance on a single large contractor for critical financial management support functions.

Positive Signals

Award to a well-established contractor with a proven track record in federal IT and management consulting.
Firm fixed-price contract structure aligns incentives for contractor efficiency.
Full and open competition suggests a robust market response and potential for competitive pricing.

Sector Analysis

This contract falls within the professional services sector, specifically IT and management consulting, which is a significant area of federal spending. The market for these services is large and highly competitive, with numerous large and small businesses vying for government contracts. This award to Deloitte Consulting LLP is consistent with the trend of large, experienced firms winning major program management and IT support contracts across various federal agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss=false, sb=false). As a large contract awarded to a major consulting firm, it is unlikely to involve significant direct subcontracting opportunities for small businesses unless explicitly mandated or if the prime contractor voluntarily engages them. The absence of small business set-asides means the direct economic benefit to the small business ecosystem from this specific award is minimal.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Homeland Security's Financial Management Office. Accountability is driven by the firm fixed-price terms and performance metrics outlined in the contract. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance details may be internal.

Related Government Programs

Financial Management Systems Modernization
IT Program Management Support
Department of Homeland Security Financial Operations
Consulting Services for Federal Agencies

Risk Flags

Contract Duration
Contract Value
Contractor Performance History
Competition Level

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $97.9 million to DELOITTE CONSULTING LLP. TO PROVIDE PROGRAM MANAGEMENT SERVICES IN SUPPORT OF THE FINANCIAL MANAGEMENT OFFICE.

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 (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $97.9 million.

What is the period of performance?

Start: 2022-09-30. End: 2027-01-29.

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

Deloitte Consulting LLP is a major federal contractor with a substantial history of awards across numerous agencies, including the Department of Homeland Security. Their federal portfolio often includes large-scale IT services, program management, cybersecurity, and financial consulting. Within DHS, Deloitte has secured contracts related to various operational and administrative functions. Their extensive experience suggests a capacity to handle complex requirements, but also necessitates scrutiny to ensure performance aligns with contractual obligations and value for money, especially on contracts of this magnitude.

How does the $97.9 million value compare to similar program management contracts for financial services within DHS?

The $97.9 million value for program management services over approximately 4 years is substantial, reflecting the complexity and importance of financial management within a large agency like DHS. Benchmarking against similar contracts for program management and IT support within DHS and comparable agencies (e.g., DoD, HHS) reveals that contracts in the tens of millions to over a hundred million dollars are common for comprehensive support over multi-year periods. Factors influencing this value include the scope of services, required expertise, number of personnel, and duration. Without specific line-item details, a precise comparison is difficult, but the overall value appears aligned with the scale of support typically required for federal financial management modernization and operations.

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

Key risks include potential cost overruns if the firm fixed-price estimate is inaccurate, performance deficiencies by the contractor, or a lack of adaptability to evolving financial management needs. Mitigation strategies are embedded in the contract structure: the firm fixed-price nature shifts cost risk to Deloitte. DHS oversight, through contract administration and performance monitoring, is crucial for identifying and addressing performance issues early. The competitive award process also mitigates risk by selecting a contractor with a demonstrated capability. However, ongoing vigilance regarding scope creep and contractor performance remains essential.

How effective is the 'full and open competition' approach for contracts of this nature in ensuring value for taxpayers?

The 'full and open competition' approach is generally considered the most effective method for ensuring value for taxpayers on large contracts. By allowing all responsible sources to compete, it maximizes the pool of potential bidders, fostering robust competition that drives down prices and encourages innovation. In this case, with 2 bids received, the competition, while not extensive, still provides a basis for price discovery. The effectiveness is further enhanced when evaluation criteria are clearly defined and rigorously applied to select the best overall value, not just the lowest price.

What is the historical spending trend for program management services within DHS's Financial Management Office?

Analyzing historical spending trends for program management services within DHS's Financial Management Office requires access to detailed historical contract data. However, it is reasonable to infer that spending in this area has likely been consistent or increasing, driven by ongoing needs for financial system modernization, regulatory compliance, and efficient financial operations. Large agencies like DHS typically allocate significant resources to program management to ensure the successful execution of complex financial initiatives. This $97.9 million award suggests a sustained or elevated level of investment in these critical support functions.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 70RDAD22Q00000012

Offers Received: 2

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: $105,744,697

Exercised Options: $99,749,705

Current Obligation: $97,922,958

Actual Outlays: $71,874,859

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $27,466,220

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RDAD21A00000006

IDV Type: BPA

Timeline