HHS awards $3.5M for Future of Work Asset Management, with Deloitte Consulting leading

Contract Overview

Contract Amount: $3,548,367 ($3.5M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2022-06-30

End Date: 2026-10-10

Contract Duration: 1,563 days

Daily Burn Rate: $2.3K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FUTURE OF WORK BPA CALL - ASSET MANAGEMENT SERVICES OFFICES (AMSO) IMPLEMENTING FUTURE OF WORK

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30341

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $3.5 million to DELOITTE CONSULTING LLP for work described as: FUTURE OF WORK BPA CALL - ASSET MANAGEMENT SERVICES OFFICES (AMSO) IMPLEMENTING FUTURE OF WORK Key points: 1. Contract focuses on administrative management and general management consulting services. 2. The contract is a BPA Call awarded under a broader Blanket Purchase Agreement. 3. Fixed-price contract type suggests defined scope and predictable costs. 4. The duration of the contract extends over four years. 5. The award was made under the GSA Schedule. 6. The contract is not set aside for small businesses.

Value Assessment

Rating: good

The total award amount of $3.55 million for a four-year period for asset management services appears reasonable for the scope of administrative and management consulting. Benchmarking against similar large-scale consulting contracts within federal agencies suggests this is within a typical range. The fixed-price nature of the contract provides cost certainty, which is a positive indicator for value. Further analysis would require comparing specific deliverables and labor categories to market rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under GSA Schedule, indicating a full and open competition process. While the specific number of bidders for this particular BPA Call is not detailed, the use of a GSA Schedule generally allows for a wide range of qualified vendors to participate. This competitive environment is expected to drive fair pricing and ensure the government receives competitive offers.

Taxpayer Impact: The full and open competition under the GSA Schedule likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The Centers for Disease Control and Prevention (CDC) is the primary beneficiary of these asset management services. The services aim to improve the efficiency and effectiveness of the CDC's operations. The contract supports the 'Future of Work' initiative, suggesting modernization of government operations. The geographic impact is primarily within the Department of Health and Human Services, with potential implications for federal workforce management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if 'Future of Work' objectives are not clearly defined.
Reliance on a single large contractor could limit flexibility in adapting to unforeseen needs.

Positive Signals

Fixed-price contract provides cost predictability.
Awarded under GSA Schedule, indicating adherence to procurement regulations.
Long-term contract allows for sustained focus on asset management improvements.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is a significant area of federal spending, supporting a wide array of agency functions from strategic planning to operational efficiency. The market for these services is competitive, with numerous large and small firms offering specialized expertise. The award to Deloitte Consulting LLP places this within the context of major federal IT and management consulting engagements.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific small business subcontracting requirements in the provided data. This means that opportunities for small businesses to participate in this specific award are limited to potential subcontracting roles, if any are established by the prime contractor. The absence of a small business set-aside suggests the primary focus was on securing specialized capabilities from a broader pool of vendors.

Oversight & Accountability

The contract is managed under the GSA Schedule, which has established procurement and oversight mechanisms. The fixed-price nature of the award provides a degree of financial oversight by limiting cost overruns. Further oversight would typically involve regular performance reviews, deliverable acceptance processes, and potentially reviews by the agency's Inspector General if performance issues or financial irregularities arise.

Related Government Programs

Future of Work Initiatives
Asset Management Systems
Management and Consulting Services
GSA Schedule Contracts
Department of Health and Human Services Contracts

Risk Flags

Potential for scope creep
Long contract duration may not adapt to rapid technological change
Lack of specific small business subcontracting requirements

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $3.5 million to DELOITTE CONSULTING LLP. FUTURE OF WORK BPA CALL - ASSET MANAGEMENT SERVICES OFFICES (AMSO) IMPLEMENTING FUTURE OF WORK

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 $3.5 million.

What is the period of performance?

Start: 2022-06-30. End: 2026-10-10.

What specific asset management services are being provided under this BPA Call?

The provided data indicates the contract is for 'Asset Management Services Offices (AMSO) Implementing Future of Work.' While specific service details are not enumerated, this generally encompasses a range of activities aimed at optimizing the lifecycle of an organization's assets. This could include inventory management, asset tracking, maintenance planning, disposal strategies, and ensuring compliance with relevant regulations. The 'Future of Work' aspect suggests a focus on modernizing these processes, potentially incorporating digital tools, data analytics, and new operational models to enhance efficiency and support evolving workplace dynamics within the CDC.

How does the $3.55 million award compare to similar asset management consulting contracts within HHS or other federal agencies?

Without specific details on the scope and duration of comparable contracts, a precise benchmark is difficult. However, $3.55 million over approximately four years for comprehensive asset management consulting services for a major agency like the CDC is generally considered a moderate-sized federal contract. Larger, more complex IT system implementations or agency-wide strategic overhauls can run into tens or hundreds of millions of dollars. Smaller, more targeted consulting engagements might be in the hundreds of thousands. This award appears to be in a reasonable range for specialized administrative and management consulting focused on asset management within a large federal entity.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or metrics for this contract. However, for asset management consulting, typical KPIs often include improvements in asset utilization rates, reduction in asset lifecycle costs, enhanced data accuracy for asset inventories, successful implementation of new asset management technologies or processes, and improved compliance with asset management policies. The 'Future of Work' aspect might also introduce KPIs related to workforce productivity, adoption of new tools, and adaptability of asset management strategies to changing work environments. These would be detailed in the contract's Statement of Work (SOW) and performance management plan.

What is Deloitte Consulting LLP's track record with similar federal contracts, particularly in asset management or 'Future of Work' initiatives?

Deloitte Consulting LLP is a major federal contractor with extensive experience across various domains, including management consulting, IT services, and strategic planning. They have a significant history of supporting federal agencies in modernizing operations and implementing new initiatives. While specific contract details for asset management or 'Future of Work' projects are not in the provided data, Deloitte frequently engages in large-scale transformation projects for agencies like HHS. Their track record generally includes successful delivery of complex services, though like any large contractor, specific project outcomes can vary. Past performance information would typically be available through federal procurement databases like SAM.gov.

What is the historical spending trend for administrative management and general management consulting services at the CDC or HHS?

The provided data focuses on a single contract award and does not offer historical spending trends. However, federal agencies, including HHS and its sub-agencies like the CDC, consistently utilize management and consulting services to address complex operational challenges, implement new policies, and improve efficiency. Spending in this category can fluctuate based on specific agency priorities, budget allocations, and the initiation of new strategic programs like 'Future of Work' initiatives. A comprehensive analysis would require examining historical contract data for the CDC and HHS over several fiscal years, looking at both the number and value of contracts awarded for NAICS code 541611.

What are the potential risks associated with a four-year fixed-price contract for consulting services?

A significant risk with a four-year fixed-price contract for consulting services is the potential for scope creep if the 'Future of Work' objectives are not precisely defined and managed. If the scope expands beyond the initial agreement without corresponding adjustments to price or timeline, the contractor may incur losses, or the government may not receive the full value intended. Another risk is that the fixed price might not adequately account for unforeseen market changes or technological advancements over the four-year period, potentially leading to suboptimal solutions or the need for costly modifications. Contractor performance degradation over a long period is also a risk that requires diligent oversight.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 75D301-22-Q-74941

Offers Received: 4

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: $3,548,367

Exercised Options: $3,548,367

Current Obligation: $3,548,367

Actual Outlays: $2,998,864

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75D30120A07340

IDV Type: BPA

Timeline