HHS awards $42.7M for Hospital Preparedness Program services to Deloitte Consulting LLP

Contract Overview

Contract Amount: $42,655,665 ($42.7M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2019-09-30

End Date: 2024-09-29

Contract Duration: 1,826 days

Daily Burn Rate: $23.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HOSPITAL PREPAREDNESS PROGRAM CAPABILITIES AND CRITICAL INFRASTRUCTURE PROTECTION PROGRAM SERVICES (HPP)

Place of Performance

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

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $42.7 million to DELOITTE CONSULTING LLP for work described as: HOSPITAL PREPAREDNESS PROGRAM CAPABILITIES AND CRITICAL INFRASTRUCTURE PROTECTION PROGRAM SERVICES (HPP) Key points: 1. Deloitte Consulting LLP secured a $42.7M contract for critical infrastructure protection services. 2. The contract was awarded under full and open competition. 3. The services support the Hospital Preparedness Program (HPP). 4. This contract represents a significant investment in public health infrastructure. 5. The firm fixed price contract aims to control costs.

Value Assessment

Rating: good

The contract's fixed-price structure suggests an effort to control costs. Benchmarking against similar management consulting services for government programs is needed for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded via full and open competition, this method generally promotes competitive pricing and allows a broad range of qualified contractors to bid, potentially leading to better value for the government.

Taxpayer Impact: Taxpayer funds are being used to enhance national health security and preparedness through expert consulting services.

Public Impact

Enhances national health security and emergency response capabilities. Supports critical infrastructure protection for healthcare facilities. Ensures readiness for public health emergencies and disasters. Leverages expert consulting to improve preparedness strategies. Contributes to the resilience of the healthcare system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in provided data.
Potential for scope creep in long-term consulting contracts.
Dependence on a single contractor for critical services.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract type.
Supports a vital national program (HPP).
Long-term contract duration allows for sustained support.

Sector Analysis

The contract falls under 'Other Management Consulting Services' (NAICS 541618), a broad category. Spending in this sector often supports program management, policy development, and operational improvements across various government agencies.

Small Business Impact

The contract was not awarded to small businesses, as indicated by 'sb': false. This suggests that the scope or nature of the services required may have favored larger, established consulting firms.

Oversight & Accountability

Awarded under full and open competition, the contract implies a structured procurement process. Oversight would typically involve regular performance reviews and milestone tracking by the Department of Health and Human Services (HHS).

Related Government Programs

Other Management Consulting Services
Department of Health and Human Services Contracting
Office of Assistant Secretary for Preparedness and Response Programs

Risk Flags

Contract awarded to a single large business.
Long contract duration (5 years).
Lack of specific performance metrics in summary data.
Potential for vendor lock-in.
Services are critical to national preparedness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $42.7 million to DELOITTE CONSULTING LLP. HOSPITAL PREPAREDNESS PROGRAM CAPABILITIES AND CRITICAL INFRASTRUCTURE PROTECTION PROGRAM SERVICES (HPP)

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Office of Assistant Secretary for Preparedness and Response).

What is the total obligated amount?

The obligated amount is $42.7 million.

What is the period of performance?

Start: 2019-09-30. End: 2024-09-29.

What specific deliverables and performance metrics are outlined in the contract to ensure effective service delivery and value for money?

The provided data does not detail specific deliverables or performance metrics. A thorough review of the contract's Statement of Work (SOW) would be necessary to assess these. Effective contracts typically include measurable outcomes, key performance indicators (KPIs), and regular reporting requirements to ensure accountability and track progress towards program goals.

How does the pricing structure compare to industry benchmarks for similar large-scale management consulting services in the public health sector?

Without access to the detailed pricing breakdown and specific service components, a direct benchmark comparison is challenging. However, the firm fixed-price nature suggests an attempt to establish a ceiling on costs. Further analysis would require comparing Deloitte's proposed rates and total contract value against publicly available data for comparable government or private sector contracts.

What is the potential risk associated with relying on a single contractor for critical infrastructure protection and hospital preparedness services over a five-year period?

Reliance on a single contractor for five years carries risks such as potential complacency, reduced innovation, and vendor lock-in. If the contractor underperforms or faces financial instability, it could disrupt critical services. Mitigation strategies often include robust contract management, clear performance expectations, and contingency planning for service continuity.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 75A50119R00049

Offers Received: 1

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: $42,655,665

Exercised Options: $42,655,665

Current Obligation: $42,655,665

Actual Outlays: $30,830,457

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $3,210,185

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline