DoD's $16.5M FIAR IT Systems Contract Awarded to Deloitte & Touche LLP

Contract Overview

Contract Amount: $16,552,958 ($16.6M)

Contractor: Deloitte & Touche LLP

Awarding Agency: Department of Defense

Start Date: 2018-08-16

End Date: 2023-07-22

Contract Duration: 1,801 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TASK 5: FIAR IT SYSTEMS/INTREGRATION/SUP

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20330

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $16.6 million to DELOITTE & TOUCHE LLP for work described as: TASK 5: FIAR IT SYSTEMS/INTREGRATION/SUP Key points: 1. Significant investment in financial improvement and audit readiness for IT systems. 2. Deloitte & Touche LLP, a major consulting firm, secured the contract. 3. The contract spans nearly five years, indicating a substantial project. 4. Focus on accounting services suggests a need for specialized financial expertise.

Value Assessment

Rating: good

The contract value of $16.5M over 1801 days appears reasonable for a complex IT integration and audit readiness project. Benchmarking against similar large-scale IT system integration contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple qualified vendors can bid.

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

Public Impact

Enhances financial transparency and accountability within the Department of the Air Force. Supports the government's broader Financial Improvement and Audit Readiness (FIAR) goals. Potential for improved data integrity and cybersecurity of critical IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 91 / 10

Warning Flags

Contract duration is long (1801 days), potentially leading to scope creep or evolving requirements.
No specific small business participation noted, which could be a missed opportunity for economic development.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm Fixed Price contract type helps control costs and manage budget.
High score suggests strong performance or favorable contract terms.

Sector Analysis

This contract falls within the professional services sector, specifically IT consulting and accounting. Spending in this area is crucial for modernizing government operations and ensuring financial compliance.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the prime contractor is a large firm, and subcontracting opportunities for small businesses were either not pursued or not required.

Oversight & Accountability

The contract's duration and complexity necessitate robust oversight from the Department of the Air Force to ensure deliverables are met on time and within budget. Regular performance reviews and milestone tracking are essential.

Related Government Programs

Offices of Certified Public Accountants
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Long contract duration may increase risk of cost overruns or scope creep.
Lack of explicit small business participation noted.
Complexity of IT system integration can lead to unforeseen challenges.
Dependence on a single large contractor for critical financial IT functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.6 million to DELOITTE & TOUCHE LLP. TASK 5: FIAR IT SYSTEMS/INTREGRATION/SUP

Who is the contractor on this award?

The obligated recipient is DELOITTE & TOUCHE LLP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $16.6 million.

What is the period of performance?

Start: 2018-08-16. End: 2023-07-22.

What specific FIAR IT systems are being integrated or improved under this contract, and what are the key performance indicators for success?

The contract focuses on 'FIAR IT SYSTEMS/INTEGRATION/SUP', implying support for systems critical to financial improvement and audit readiness. Key performance indicators would likely include successful system integration, data accuracy improvements, audit trail enhancements, and timely reporting. Specifics would be detailed in the Statement of Work, which is not provided here.

What are the primary risks associated with integrating complex IT systems for financial audit readiness, and how are they being mitigated?

Risks include data migration errors, cybersecurity vulnerabilities during integration, user adoption challenges, and potential cost overruns due to unforeseen technical complexities. Mitigation strategies typically involve phased rollouts, rigorous testing protocols, comprehensive security assessments, and strong project management with clear communication channels.

How does this $16.5M investment contribute to the overall effectiveness and efficiency of the Department of Defense's financial management and auditability?

This investment is crucial for modernizing legacy systems and establishing robust IT infrastructure necessary for meeting auditability requirements. By improving data integrity, streamlining financial processes, and enhancing reporting capabilities, it directly contributes to greater financial transparency, accountability, and ultimately, more effective resource allocation within the DoD.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Offices of Certified Public Accountants

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Solicitation ID: FA701417R5002

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: $17,013,368

Exercised Options: $16,585,649

Current Obligation: $16,552,958

Actual Outlays: $10,093,001

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $5,876,714

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA701418D5000

IDV Type: IDC

Timeline