HHS Awards $72.1M for HSPD-12 Compliance and Cybersecurity Support to Deloitte

Contract Overview

Contract Amount: $72,110,253 ($72.1M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2021-04-01

End Date: 2023-12-31

Contract Duration: 1,004 days

Daily Burn Rate: $71.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS CONTRACT PROVIDES FOR THE UNINTERRUPTED AND CONTINUOUS SUPPORT FOR HHS' END-TO-END SOLUTION FOR IMPLEMENTATION AND COMPLIANCE WITH HSPD-12 AND RELATED REQUIREMENTS FOR CYBERSECURITY, EGOV INITIATIVES, AND PRIVACY.

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $72.1 million to DELOITTE CONSULTING LLP for work described as: THIS CONTRACT PROVIDES FOR THE UNINTERRUPTED AND CONTINUOUS SUPPORT FOR HHS' END-TO-END SOLUTION FOR IMPLEMENTATION AND COMPLIANCE WITH HSPD-12 AND RELATED REQUIREMENTS FOR CYBERSECURITY, EGOV INITIATIVES, AND PRIVACY. Key points: 1. Contract focuses on critical cybersecurity, e-Gov, and privacy compliance for HHS. 2. Deloitte Consulting LLP is the prime contractor for this significant IT support. 3. The contract value is substantial at $72.1 million over its duration. 4. This award falls under the Computer Systems Design Services NAICS code.

Value Assessment

Rating: good

The contract value of $72.1M for 1004 days of service appears reasonable given the scope of cybersecurity, compliance, and IT support for a major agency like HHS. Benchmarking against similar large-scale IT support contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially more favorable pricing for the government.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value through a competitive process.

Public Impact

Ensures continued compliance with federal mandates like HSPD-12. Enhances cybersecurity posture for sensitive HHS data and systems. Supports e-government initiatives, improving digital service delivery. Protects citizen privacy through robust data handling protocols.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on work is not competitively procured.
Reliance on a single vendor for critical IT infrastructure and compliance.

Positive Signals

Awarded through full and open competition.
Supports essential government functions and mandates.
Long-term support for critical IT systems.

Sector Analysis

This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Spending in this area is consistently high across federal agencies to maintain and upgrade complex IT infrastructures and ensure compliance with evolving regulations.

Small Business Impact

The data indicates this contract was not set aside for small businesses and the prime contractor is Deloitte Consulting LLP, a large business. There is no information provided on subcontracting opportunities for small businesses.

Oversight & Accountability

The contract is managed by the Department of Health and Human Services, Office of the Assistant Secretary for Administration. Oversight would involve monitoring performance, deliverables, and adherence to contract terms to ensure accountability and effective use of funds.

Related Government Programs

Computer Systems Design Services
Department of Health and Human Services Contracting
Office of the Assistant Secretary for Administration Programs

Risk Flags

Potential for scope creep if requirements are not clearly defined.
Dependency on a single large contractor for critical functions.
Risk of evolving cyber threats requiring continuous adaptation.
Ensuring effective knowledge transfer and continuity of service.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $72.1 million to DELOITTE CONSULTING LLP. THIS CONTRACT PROVIDES FOR THE UNINTERRUPTED AND CONTINUOUS SUPPORT FOR HHS' END-TO-END SOLUTION FOR IMPLEMENTATION AND COMPLIANCE WITH HSPD-12 AND RELATED REQUIREMENTS FOR CYBERSECURITY, EGOV INITIATIVES, AND PRIVACY.

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 the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $72.1 million.

What is the period of performance?

Start: 2021-04-01. End: 2023-12-31.

What specific metrics are used to measure the success of cybersecurity and compliance support under this contract?

Success metrics would likely include adherence to federal cybersecurity standards (e.g., NIST), successful completion of compliance audits for HSPD-12, reduction in security incidents, and timely implementation of e-gov initiatives. Performance reviews and regular reporting by Deloitte would track progress against these defined objectives.

How does the government ensure continued cost-effectiveness throughout the contract's duration, especially given the firm fixed-price structure?

The firm fixed-price structure shifts cost risk to the contractor. Cost-effectiveness is ensured through the initial competitive bidding process. Ongoing oversight by HHS, including performance monitoring and potential contract modifications only for scope changes, helps maintain cost control. Regular reviews of contractor performance against deliverables are crucial.

What is the potential impact on HHS operations if Deloitte's support is interrupted or proves ineffective?

An interruption or ineffectiveness in support could severely impact HHS's ability to comply with federal mandates like HSPD-12, potentially leading to audit failures and penalties. Cybersecurity vulnerabilities could increase, risking sensitive data breaches and compromising patient privacy. Delays in e-gov initiatives could hinder service delivery to the public.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75P00121R00034

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Touche Tohmatsu Limited

Address: 1725 DUKE ST, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $73,029,482

Exercised Options: $73,029,482

Current Obligation: $72,110,253

Actual Outlays: $62,363,476

Subaward Activity

Number of Subawards: 42

Total Subaward Amount: $5,159,676

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HHSN316201200018W

IDV Type: GWAC

Timeline