HHS Awards $10.6M for DDPHSS PHDMI Support to Deloitte Consulting, Ending April 2025

Contract Overview

Contract Amount: $10,566,809 ($10.6M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2020-08-13

End Date: 2025-04-22

Contract Duration: 1,713 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: DDPHSS PHDMI SUPPORT

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30345

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.6 million to DELOITTE CONSULTING LLP for work described as: DDPHSS PHDMI SUPPORT Key points: 1. Significant contract value for specialized health IT support. 2. Deloitte Consulting is a major player in government IT services. 3. Potential risk associated with long-term support contracts. 4. Spending falls within the broad 'Engineering Services' NAICS code.

Value Assessment

Rating: good

The contract value of $10.6M over approximately 5 years suggests a reasonable annual spend. Benchmarking against similar IT support contracts for federal health agencies would provide a clearer picture of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The competitive award process is expected to yield fair pricing, maximizing taxpayer value for the services rendered.

Public Impact

Ensures continuity of critical health data management and IT infrastructure for the CDC. Supports public health initiatives by maintaining essential systems. Impacts federal health IT landscape through a major vendor's involvement.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may lead to cost creep if not managed.
Reliance on a single vendor for critical support.
Potential for scope expansion beyond initial requirements.

Positive Signals

Awarded through full and open competition.
Supports critical public health functions.
Experienced vendor with a strong track record.

Sector Analysis

This contract falls under Engineering Services, often encompassing IT support and system integration for complex government operations. Benchmarks for similar health IT support contracts are typically in the millions of dollars annually.

Small Business Impact

While the prime contractor is a large business, the contract does not indicate any specific set-asides for small businesses. Opportunities for small businesses may exist further down the subcontracting chain.

Oversight & Accountability

The contract's duration and value warrant ongoing oversight to ensure performance, cost control, and adherence to original scope. Regular performance reviews are crucial.

Related Government Programs

Engineering Services
Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

High estimated blended hourly rate.
Long contract duration.
Potential for vendor lock-in.
Lack of explicit small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.6 million to DELOITTE CONSULTING LLP. DDPHSS PHDMI SUPPORT

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 (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $10.6 million.

What is the period of performance?

Start: 2020-08-13. End: 2025-04-22.

How does the per-hour labor rate compare to industry benchmarks for similar IT support services in the federal sector?

Without specific labor hour details or the total number of hours, a precise per-unit cost benchmark is difficult. However, given the $10.6M award over ~1713 labor hours (estimated from duration), the average hourly rate would be approximately $6,169. This appears exceptionally high and likely represents a blended rate or includes significant overhead/profit, warranting further investigation into the labor categories and actual hours billed.

What are the key performance indicators (KPIs) for this contract, and how is performance being measured to mitigate risk?

The contract likely includes specific KPIs related to system uptime, response times for support requests, and successful implementation of updates or changes. Robust performance monitoring by the CDC is essential to ensure the contractor meets obligations and to identify any potential issues early, thereby mitigating risks associated with service delivery and cost.

To what extent does this contract support the CDC's core mission, and is the spending aligned with strategic priorities?

This contract directly supports the CDC's mission by ensuring the operational integrity of critical IT systems and data management platforms. The funding appears aligned with the need for robust technological infrastructure to manage public health data and initiatives, contributing to the agency's overall effectiveness in disease surveillance and response.

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: 75D301-20-Q-71711

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

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: $10,566,809

Exercised Options: $10,566,809

Current Obligation: $10,566,809

Actual Outlays: $8,828,113

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