HHS awards $85.6M for Unified Communications Support, with NIH as the primary beneficiary

Contract Overview

Contract Amount: $85,583,361 ($85.6M)

Contractor: Deloitte & Touche LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2022-03-15

End Date: 2027-02-28

Contract Duration: 1,811 days

Daily Burn Rate: $47.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: UNIFIED COMMUNICATIONS AND COLLABORATION (UCC) PROFESSIONAL SUPPORT SERVICES

Place of Performance

Location: SMITHSBURG, WASHINGTON County, MARYLAND, 21783

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $85.6 million to DELOITTE & TOUCHE LLP for work described as: UNIFIED COMMUNICATIONS AND COLLABORATION (UCC) PROFESSIONAL SUPPORT SERVICES Key points: 1. Value for money appears fair, given the firm-fixed-price contract type and the broad scope of professional support services. 2. Competition dynamics indicate a full and open process, suggesting potential for competitive pricing. 3. Risk indicators are moderate, with a long performance period and a single award potentially concentrating risk. 4. Performance context is set by the need for ongoing professional support in a critical IT service area. 5. Sector positioning is within IT professional services, supporting essential government operations.

Value Assessment

Rating: fair

The contract's value of $85.6 million over approximately five years for professional support services in Unified Communications and Collaboration (UCC) is within a reasonable range for large-scale IT support. The firm-fixed-price structure provides cost certainty for the government. Benchmarking against similar large-scale IT professional services contracts would be necessary for a more precise value assessment, but the scale suggests a significant undertaking.

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 offers. The data does not specify the number of bidders, but the designation suggests a robust competitive process was intended. A full and open competition generally promotes price discovery and allows the government to select the best value offering from a wide pool of potential contractors.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it maximizes the potential for competitive pricing and ensures that the government is not limited to a single provider, which could lead to inflated costs.

Public Impact

The National Institutes of Health (NIH) within the Department of Health and Human Services (HHS) benefits directly from these UCC professional support services. Services delivered include professional support crucial for maintaining and enhancing unified communications and collaboration systems. The geographic impact is primarily focused on the locations where NIH and other HHS operating divisions require these services, likely concentrated around major federal IT hubs. Workforce implications may involve the need for specialized IT professionals to manage and support these complex communication systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long performance period (nearly 5 years) could lead to scope creep or evolving requirements not fully captured in initial pricing.
Single award for a large contract value concentrates risk with one vendor.
Dependence on a single vendor for critical UCC infrastructure could pose continuity of service risks if the vendor faces challenges.

Positive Signals

Firm-fixed-price contract type provides cost certainty and limits the government's exposure to cost overruns.
Full and open competition suggests a competitive environment that should drive better pricing and service quality.
The contract supports essential IT infrastructure for a major federal health agency, indicating strategic importance.

Sector Analysis

The Unified Communications and Collaboration (UCC) professional support services sector is a critical component of modern IT infrastructure for government agencies. This contract falls under IT professional services, specifically focusing on the systems that enable seamless communication and collaboration. The market for such services is competitive, with numerous large and small businesses offering specialized expertise. The total addressable market for government IT professional services is substantial, with agencies continually investing in upgrading and maintaining their communication platforms to enhance efficiency and security.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). As a large contract awarded under full and open competition, it is likely that the prime contractor, Deloitte & Touche LLP, is a large business. While there is no explicit mention of small business subcontracting goals in the provided data, large federal contracts often include subcontracting requirements to ensure small business participation. The impact on the small business ecosystem would depend on whether Deloitte & Touche LLP actively seeks out and utilizes small businesses for specialized UCC support services.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of Health and Human Services, specifically the National Institutes of Health. Accountability measures are typically embedded within the contract's performance work statement, including service level agreements and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

HHS IT Professional Services Contracts
NIH IT Support Services
Unified Communications Services
Federal IT Modernization Programs
Large-Scale IT Service Delivery Contracts

Risk Flags

Long contract duration
Single award for significant value
Potential for evolving requirements

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $85.6 million to DELOITTE & TOUCHE LLP. UNIFIED COMMUNICATIONS AND COLLABORATION (UCC) PROFESSIONAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is DELOITTE & TOUCHE LLP.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $85.6 million.

What is the period of performance?

Start: 2022-03-15. End: 2027-02-28.

What is the historical spending pattern for Unified Communications and Collaboration (UCC) professional support services at NIH?

Analyzing historical spending for UCC professional support services at NIH requires access to detailed procurement data over multiple fiscal years. Without specific historical data for this contract or similar UCC support services at NIH, it's difficult to establish a precise pattern. However, federal agencies, including NIH, have consistently invested in IT infrastructure and support services to maintain operational efficiency and enhance collaboration capabilities. Spending in this area is often driven by the need to upgrade legacy systems, implement new communication technologies, and ensure robust cybersecurity. Trends may show an increase in spending on cloud-based collaboration tools and integrated communication platforms. A review of past contracts for UCC support, including their value, duration, and competition levels, would reveal whether this $85.6 million award represents a significant increase, a continuation of existing investment levels, or a shift in strategy.

How does the per-unit cost of this contract compare to similar UCC professional support services contracts awarded by other federal agencies?

Determining the per-unit cost comparison for this $85.6 million contract requires a detailed breakdown of the services provided and their associated quantities, which are not fully detailed in the provided summary. Per-unit costs could be analyzed based on metrics like 'per user,' 'per service hour,' or 'per managed system.' Without this granular data, a direct comparison to similar contracts is challenging. However, the contract's firm-fixed-price nature suggests that the government has negotiated a set price for the defined scope of work. Benchmarking would involve identifying contracts with comparable service scopes (e.g., comprehensive UCC support, network integration, help desk services) awarded by agencies like GSA, DoD, or other HHS operating divisions. Factors such as contract duration, geographic scope, and the specific technologies supported would need to be aligned to ensure a fair comparison of pricing efficiency.

What is Deloitte & Touche LLP's track record with similar large-scale IT professional support contracts for federal health agencies?

Deloitte & Touche LLP has a significant track record of performing large-scale IT professional support services for federal agencies, including those in the health sector. As a major consulting and professional services firm, they frequently engage in contracts involving IT modernization, system integration, cybersecurity, and operational support. For federal health agencies like HHS and its components such as NIH, Deloitte has historically provided a wide range of services, from health IT system implementation to data analytics and program management. Their experience often includes managing complex, multi-year contracts with substantial budgets. A review of their past performance on similar contracts, including client satisfaction ratings, successful delivery metrics, and any past performance issues or disputes, would provide a comprehensive understanding of their capabilities and reliability in supporting critical IT functions for agencies like NIH.

What are the key performance indicators (KPIs) used to measure the success of this UCC professional support services contract?

The key performance indicators (KPIs) for this Unified Communications and Collaboration (UCC) professional support services contract are not explicitly detailed in the provided summary data. However, typical KPIs for such IT support contracts often include metrics related to system availability and uptime, response times for service requests and incident resolution, user satisfaction rates, and the successful implementation of new features or upgrades. For UCC services, specific KPIs might also focus on call completion rates, collaboration tool adoption, network latency, and the security posture of the communication systems. The contract's performance work statement (PWS) would outline these specific KPIs, along with the methodologies for measurement and the acceptable performance thresholds. Failure to meet these KPIs could result in contractual remedies or penalties.

What is the potential impact of this contract on the broader federal IT services market, particularly concerning UCC solutions?

This $85.6 million contract awarded to Deloitte & Touche LLP for UCC professional support services at NIH has several implications for the broader federal IT services market. Firstly, it signifies continued government investment in robust communication and collaboration infrastructure, highlighting the ongoing demand for specialized UCC expertise. Secondly, the full and open competition aspect suggests that the market is sufficiently mature and competitive to support such large-scale awards, potentially encouraging other firms to invest in their UCC capabilities to bid on future opportunities. Thirdly, the scale of the contract could influence market pricing and service delivery models, as the awarded vendor's approach and efficiency may set benchmarks. Finally, it reinforces the trend of agencies consolidating IT support services under larger, comprehensive contracts, which can impact how smaller, specialized UCC providers engage with the federal market, potentially through subcontracting opportunities.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75N92022Q062

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: $91,766,717

Exercised Options: $85,583,361

Current Obligation: $85,583,361

Actual Outlays: $65,882,567

Subaward Activity

Number of Subawards: 27

Total Subaward Amount: $16,210,431

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F029DA

IDV Type: FSS

Timeline