DHS awards $148.5M for Human Capital Operations Support to Deloitte, extending services through April 2026

Contract Overview

Contract Amount: $148,507,025 ($148.5M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Homeland Security

Start Date: 2023-06-01

End Date: 2026-04-19

Contract Duration: 1,053 days

Daily Burn Rate: $141.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HUMAN CAPITAL OPERATION SUPPORT (HCOS) SERVICES AFTER 2ND STOP WORK WAS LIFTED, POP START DATE UPDATED TO 6/1/2023. IT CARRIES OVER, SO HAD TO BE UPDATED ON THE BASE CAR.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $148.5 million to DELOITTE CONSULTING LLP for work described as: HUMAN CAPITAL OPERATION SUPPORT (HCOS) SERVICES AFTER 2ND STOP WORK WAS LIFTED, POP START DATE UPDATED TO 6/1/2023. IT CARRIES OVER, SO HAD TO BE UPDATED ON THE BASE CAR. Key points: 1. Contract value of $148.5 million over its duration indicates a significant investment in human capital support services. 2. The contract was awarded using full and open competition, suggesting a competitive bidding process. 3. The fixed-price contract type aims to control costs by establishing a set price for services. 4. The services are crucial for the Transportation Security Administration's operational continuity, especially following a stop-work order. 5. Deloitte Consulting LLP, a large established firm, is the contractor, implying a focus on experienced providers. 6. The contract duration of 1053 days (approx. 3 years) suggests a need for sustained support. 7. The North American Industry Classification System (NAICS) code 611430 points to professional and management development training.

Value Assessment

Rating: good

The contract's value of $148.5 million for human capital operations support over approximately three years appears reasonable given the scope of services for a major agency like DHS. Benchmarking against similar large-scale professional services contracts for federal agencies suggests this pricing is within expected ranges. The firm-fixed-price structure provides cost certainty for the government, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit offers. The fact that it was competed suggests that the agency sought to leverage market competition to obtain the best value. While the number of bidders is not specified, full and open competition generally leads to a more robust price discovery process compared to sole-source or limited competition awards.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices and encourages innovation from a wider pool of potential contractors, ensuring government funds are used efficiently.

Public Impact

The primary beneficiaries are the Department of Homeland Security and its Transportation Security Administration, which will receive essential human capital operational support. Services delivered likely include professional and management development training, human resources consulting, and other support functions critical to agency operations. The geographic impact is primarily within the United States, supporting federal employees and operations. Workforce implications include the potential for employment opportunities within Deloitte and its subcontractors, as well as improved efficiency and effectiveness of the TSA workforce through enhanced human capital services.

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 may limit future competitive opportunities if not managed carefully.
The need for a stop-work order to be lifted suggests prior performance issues or contract disputes that warrant monitoring.
The complexity of human capital operations can lead to scope creep if not tightly managed.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield good value.
Firm-fixed-price contract type provides cost certainty and encourages contractor efficiency.
Deloitte Consulting LLP is a well-established contractor with significant experience in government services.
The contract duration suggests a stable, long-term need for these critical support services.
The update to the base contract indicates a continuation of necessary services, implying prior successful performance.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on management development training and human capital support. The market for these services within the federal government is substantial, with agencies consistently investing in workforce development and HR support to ensure operational effectiveness. Comparable spending benchmarks for large federal IT and professional services contracts often run into the tens or hundreds of millions of dollars, aligning with the scale of this award.

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 prime contractor, Deloitte Consulting LLP, the primary impact on small businesses would be through subcontracting opportunities. The extent to which Deloitte engages small businesses as subcontractors will determine the direct benefit to the small business ecosystem. Agencies are increasingly encouraged to ensure small business participation in larger prime contracts.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting agency, the Department of Homeland Security, and specifically the Transportation Security Administration. Mechanisms likely include regular performance reviews, contract management oversight by contracting officers' representatives (CORs), and adherence to the terms of the firm-fixed-price agreement. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Federal Human Capital Management Services
Professional and Management Development Training
Department of Homeland Security IT and Professional Services
Transportation Security Administration Support Contracts
Large Federal Consulting Contracts

Risk Flags

Prior Stop-Work Order: Indicates potential performance issues or disputes that led to a halt in services, requiring careful monitoring.
Large Contract Value: Significant financial commitment requires diligent oversight to ensure value for money.
Reliance on Single Prime Contractor: Potential for vendor lock-in and limited future competition.
NAICS Code 611430: Focus on training and development, ensure services align with broader HR and operational needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $148.5 million to DELOITTE CONSULTING LLP. HUMAN CAPITAL OPERATION SUPPORT (HCOS) SERVICES AFTER 2ND STOP WORK WAS LIFTED, POP START DATE UPDATED TO 6/1/2023. IT CARRIES OVER, SO HAD TO BE UPDATED ON THE BASE CAR.

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 (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $148.5 million.

What is the period of performance?

Start: 2023-06-01. End: 2026-04-19.

What is Deloitte Consulting LLP's track record with the Department of Homeland Security and similar federal contracts?

Deloitte Consulting LLP is a major federal contractor with a long history of performing a wide range of services for various government agencies, including the Department of Homeland Security (DHS). Their track record typically includes large-scale IT modernization, cybersecurity, management consulting, and human capital services. For DHS specifically, Deloitte has held numerous contracts across different components, including the Transportation Security Administration (TSA). While specific performance metrics for past contracts are not detailed here, their consistent award of significant contracts suggests a generally positive performance history and established relationship with agencies like DHS. However, it's important to note that like any large contractor, they may have experienced contract challenges or disputes on specific projects, as potentially indicated by the prior stop-work order mentioned in the data.

How does the $148.5 million contract value compare to similar human capital support contracts within the federal government?

The $148.5 million contract value for Human Capital Operations Support (HCOS) services awarded to Deloitte Consulting LLP by the TSA is substantial, placing it among larger federal professional services contracts. Benchmarking against similar contracts for human capital management, training, and HR consulting across agencies like the Department of Defense, GSA, or HHS reveals that contracts of this magnitude are not uncommon for comprehensive, multi-year support of major federal components. For instance, large-scale HR system implementations or agency-wide workforce development programs can easily reach or exceed this value. The firm-fixed-price nature and the duration (over 1000 days) further contextualize this as a significant, long-term commitment, suggesting the scope of services is broad and critical to TSA's operations.

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

Primary risks include potential scope creep, where the services required expand beyond the initial agreement, leading to cost overruns despite the fixed-price structure. Another risk is vendor lock-in, making it difficult and costly to switch providers in the future. Performance issues or delays, especially given the mention of a prior stop-work order, could also pose a risk to TSA's operations. Mitigation strategies likely involve robust contract management by the TSA COR, clear definition and monitoring of deliverables, regular performance reviews, and strong communication channels with Deloitte. The firm-fixed-price contract itself incentivizes Deloitte to manage costs and performance efficiently to ensure profitability. The competitive award process also serves as a baseline mitigation, selecting a contractor deemed capable of meeting requirements.

What is the expected effectiveness of these Human Capital Operations Support services for the TSA?

The expected effectiveness hinges on the successful delivery of professional and management development training, and broader human capital operational support. For the TSA, effective HCOS can lead to improved employee performance, better leadership development, enhanced recruitment and retention, and more efficient HR processes. This ultimately supports the TSA's core mission of ensuring security and facilitating travel. Given the contract's continuation after a stop-work order, the services are deemed essential. The effectiveness will be measured by the TSA's ability to achieve its human capital strategic goals, maintain operational readiness, and adapt to evolving workforce needs, all facilitated by the support provided under this contract.

How have historical spending patterns for human capital support services at TSA or DHS influenced this contract?

While specific historical spending data for TSA's HCOS is not provided, the existence and scale of this $148.5 million contract suggest a sustained and significant investment in human capital functions. Agencies like TSA and DHS typically require ongoing support for their large workforces, encompassing training, HR administration, and strategic workforce planning. Historical spending patterns likely show a consistent need for such services, potentially increasing over time due to workforce growth, evolving federal regulations, or modernization efforts. The fact that this contract was awarded as a delivery order on a base contract implies a pre-existing framework and potentially a history of similar services being procured, allowing for a more streamlined award process but also indicating a long-term strategic commitment to outsourcing or supplementing these functions.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training

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

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: $235,213,884

Exercised Options: $218,972,455

Current Obligation: $148,507,025

Actual Outlays: $100,421,352

Subaward Activity

Number of Subawards: 29

Total Subaward Amount: $108,506,897

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS02Q16DCR0013

IDV Type: IDC

Timeline