Deloitte Consulting LLP awarded $17.6M for CRM support to CFPB, highlighting a need for robust system maintenance

Contract Overview

Contract Amount: $17,660,957 ($17.7M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Consumer Financial Protection Bureau

Start Date: 2021-05-30

End Date: 2026-06-29

Contract Duration: 1,856 days

Daily Burn Rate: $9.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CUSTOMER RELATIONSHIP MANAGEMENT (CRM) OPERATIONS, MAINTENANCE AND DEVELOPMENT SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20552

State: District of Columbia Government Spending

Plain-Language Summary

Consumer Financial Protection Bureau obligated $17.7 million to DELOITTE CONSULTING LLP for work described as: CUSTOMER RELATIONSHIP MANAGEMENT (CRM) OPERATIONS, MAINTENANCE AND DEVELOPMENT SUPPORT Key points: 1. Contract value of $17.6 million over approximately 5 years suggests a significant investment in maintaining critical customer relationship management systems. 2. The award to Deloitte Consulting LLP, a large established firm, indicates a focus on proven capabilities for complex IT operations. 3. A firm-fixed-price contract type generally shifts risk to the contractor, potentially leading to more predictable costs for the agency. 4. The contract's duration of over 1500 days points to the long-term strategic importance of CRM operations for the CFPB. 5. The absence of small business set-aside flags suggests this contract was not specifically targeted to smaller enterprises. 6. The Computer Systems Design Services NAICS code indicates a broad scope of work, likely encompassing development, integration, and maintenance.

Value Assessment

Rating: good

The contract value of $17.6 million over nearly 5 years for CRM operations and maintenance appears reasonable given the scope of services. Benchmarking against similar IT support contracts for federal agencies of comparable size and complexity would provide further context. The firm-fixed-price structure suggests the agency has a clear understanding of requirements, aiming for cost certainty. However, without specific details on the deliverables and service levels, a precise value-for-money assessment is challenging.

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 presence of 12 bidders suggests a healthy level of competition for this requirement. A competitive environment typically drives down prices and encourages contractors to offer their best value propositions, benefiting the agency.

Taxpayer Impact: The robust competition for this CRM support contract is beneficial for taxpayers, as it likely resulted in a more favorable price and higher quality service than would have been achieved through a less competitive process.

Public Impact

The Consumer Financial Protection Bureau (CFPB) is the primary beneficiary, receiving essential support for its customer relationship management systems. Services delivered include operations, maintenance, and development support for the CRM, ensuring continuity and potential enhancements. The contract's impact is primarily within the District of Columbia, where the CFPB is headquartered. The workforce implications involve skilled IT professionals employed by Deloitte Consulting LLP to fulfill the contract's technical requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if development is heavily customized without clear exit strategies.
Reliance on a single large contractor could limit future flexibility in adopting new technologies or service providers.
Scope creep could increase costs if not managed tightly under the firm-fixed-price structure.

Positive Signals

Firm-fixed-price contract shifts performance risk to the contractor.
Full and open competition with 12 bidders suggests a competitive market and potentially good pricing.
Long-term contract duration indicates a stable need and commitment to CRM system reliability.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on computer systems design and related services. The federal IT services market is substantial, with agencies heavily reliant on contractors for maintaining and upgrading complex systems like CRM platforms. The $17.6 million award is a significant, though not exceptionally large, investment within this domain, reflecting the ongoing need for specialized support to manage citizen and constituent interactions effectively.

Small Business Impact

This contract was not awarded as a small business set-aside, as indicated by the 'sb' field being false. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem appears limited for this specific award, though Deloitte may engage small businesses as subcontractors at their discretion.

Oversight & Accountability

Oversight for this contract would typically be managed by the Consumer Financial Protection Bureau's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through contract award databases and public reporting, though specific performance metrics and oversight activities may not be publicly detailed.

Related Government Programs

Federal IT Modernization Programs
Customer Relationship Management Systems Support
IT Operations and Maintenance Contracts
Computer Systems Design Services

Risk Flags

Potential for scope creep under firm-fixed-price contract.
Long-term reliance on a single large contractor.
Need for clear performance metrics and oversight.

Frequently Asked Questions

What is this federal contract paying for?

Consumer Financial Protection Bureau awarded $17.7 million to DELOITTE CONSULTING LLP. CUSTOMER RELATIONSHIP MANAGEMENT (CRM) OPERATIONS, MAINTENANCE AND DEVELOPMENT SUPPORT

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Consumer Financial Protection Bureau (Consumer Financial Protection Bureau).

What is the total obligated amount?

The obligated amount is $17.7 million.

What is the period of performance?

Start: 2021-05-30. End: 2026-06-29.

What is Deloitte Consulting LLP's track record with the CFPB and similar federal agencies for CRM support?

Deloitte Consulting LLP has a significant track record in providing IT and consulting services to various federal agencies, including the CFPB. Their experience often spans complex system integration, modernization, and ongoing operational support. For CRM systems specifically, Deloitte has been involved in large-scale implementations and maintenance contracts across government. While this specific contract is for $17.6 million, their broader portfolio includes larger and smaller engagements. A detailed review of past performance evaluations and any past disputes or contract modifications with the CFPB would offer deeper insight into their reliability and effectiveness in this specific context. Their general reputation as a large, established federal contractor suggests a baseline level of capability, but agency-specific performance is key.

How does the $17.6 million contract value compare to similar CRM support contracts awarded by other federal agencies?

The $17.6 million contract value for approximately five years of CRM operations, maintenance, and development support is within a common range for federal IT services of this nature. Agencies like the Social Security Administration, Department of Veterans Affairs, or IRS often award contracts in the tens of millions for similar comprehensive support of large-scale IT systems. The complexity of the CRM system, the number of users, the scope of development required, and the specific service level agreements (SLAs) heavily influence pricing. Given the CFPB's role and the competitive nature of this award (12 bidders), the price appears to be benchmarked against market rates for such specialized services. A direct comparison would require analyzing contracts with similar scope, duration, and agency size.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential scope creep, where requirements expand beyond the initial agreement, leading to cost overruns despite the firm-fixed-price structure. Another risk is vendor lock-in, where the agency becomes overly dependent on Deloitte's proprietary knowledge or specific implementation, making future transitions difficult or costly. Performance risk, where Deloitte may not meet service level agreements, is also present. Mitigation strategies include robust contract management by the CFPB, clear definition and control of scope changes, regular performance reviews, and potentially incorporating clauses that ensure knowledge transfer and data accessibility to facilitate future competition or transitions. The firm-fixed-price nature itself mitigates cost uncertainty for the agency, shifting financial risk to the contractor.

How effective is the full and open competition process in ensuring value for taxpayers in this instance?

The full and open competition process, with 12 bidders, is a strong indicator of potential value for taxpayers. This level of competition typically drives down prices as contractors vie for the award, forcing them to offer competitive rates and efficient solutions. It also allows the agency to select the offer that provides the best overall value, considering not just price but also technical approach, past performance, and other factors. The presence of multiple bidders suggests that the market has sufficient capacity and interest to support the requirement, preventing a situation where a single provider could dictate terms. This competitive dynamic is a fundamental mechanism for ensuring that taxpayer funds are used efficiently and effectively.

What is the historical spending pattern for CRM support at the CFPB, and how does this contract fit?

Without specific historical spending data for CRM support at the CFPB readily available in this dataset, it's difficult to provide a precise historical context. However, federal agencies typically have ongoing needs for CRM operations and maintenance, often reflected in multi-year contracts. This $17.6 million award, spanning nearly five years, suggests a sustained and significant investment in this capability. It likely represents either a continuation of essential services, a consolidation of previous smaller contracts, or a strategic upgrade/modernization effort. The duration and value indicate that CRM functions are considered critical to the CFPB's mission, and this contract is a substantial part of that ongoing operational budget.

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: 9531CB21Q0002

Offers Received: 12

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: $22,900,075

Exercised Options: $18,723,437

Current Obligation: $17,660,957

Actual Outlays: $15,924,853

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $4,877,130

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0617Y

IDV Type: FSS

Timeline