Deloitte Consulting awarded $285M IT support contract by GSA for Defense Security Service

Contract Overview

Contract Amount: $296,963,650 ($297.0M)

Contractor: Deloitte Consulting LLP

Awarding Agency: General Services Administration

Start Date: 2017-09-19

End Date: 2022-04-18

Contract Duration: 1,672 days

Daily Burn Rate: $177.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: IGF::OT::IGF TASK ORDER (TO) GSQ0017AJ0046 IS HEREBY AWARDED TO DELOITTE CONSULTING, LLP (DELOITTE) TO PROVIDE CONTRACTOR SUPPORT TO ASSIST THE DEFENSE SECURITY SERVICE (DSS) OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO) WITH ITS ENTERPRISE INFORMATION TECHNOLOGY SUPPORT (EITS) WITHIN ITS QUANTICO, VA HEADQUARTERS AND FIELD OFFICE LOCATIONS THROUGHOUT THE UNITED STATES (U.S.).THE PERIOD OF PERFORMANCE FOR THIS TO WILL BE SEPTEMBER 19, 2017 THROUGH MARCH 18, 2023. THE TOTAL VALUE OF THE TO WILL BE $285,303,312 AND THE TO WILL BE FUNDED IN THE AMOUNT OF $10,830,000 AT AWARD. SEE ATTACHED COPY OF TO GSQ0017AJ0046, TO ATTACHMENTS, AND THE OFFICIAL NOTIFICATION OF AWARD.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $297.0 million to DELOITTE CONSULTING LLP for work described as: IGF::OT::IGF TASK ORDER (TO) GSQ0017AJ0046 IS HEREBY AWARDED TO DELOITTE CONSULTING, LLP (DELOITTE) TO PROVIDE CONTRACTOR SUPPORT TO ASSIST THE DEFENSE SECURITY SERVICE (DSS) OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO) WITH ITS ENTERPRISE INFORMATION TECHNOLOGY SUPPORT (EITS) … Key points: 1. Contract provides enterprise IT support services to the Defense Security Service (DSS) OCIO. 2. Performance period spans over 5 years, from September 2017 to March 2023. 3. The contract was awarded under full and open competition. 4. Deloitte Consulting LLP is the prime contractor for this task order. 5. Services will be delivered at DSS headquarters in Quantico, VA, and field offices nationwide. 6. The contract type is Cost Plus Award Fee, indicating performance-based incentives. 7. Total obligated amount at award was $10.83 million, with a total value of $285.3 million.

Value Assessment

Rating: good

The total value of $285.3 million over approximately 5 years suggests a significant investment in IT support for a critical defense agency. Benchmarking this against similar large-scale IT support contracts for federal agencies would provide a clearer picture of value for money. The Cost Plus Award Fee structure allows for flexibility and incentivizes performance, which can be beneficial if managed effectively. However, without specific performance metrics and outcomes, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The data shows 6 bidders participated in the competition. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a marketplace where contractors vie for the best price and performance, ultimately benefiting the government's budget.

Public Impact

The primary beneficiaries are the Defense Security Service (DSS) and its personnel, who will receive enhanced IT support. The contract delivers essential enterprise information technology support services. Services will impact DSS operations at its headquarters in Quantico, Virginia, and across its various field offices throughout the United States. The contract supports the IT infrastructure and personnel necessary for the DSS's mission-critical functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Award Fee contracts if not closely monitored.
Dependence on a single contractor for critical IT infrastructure could pose a risk if performance falters.
The long performance period requires sustained oversight to ensure continued value and alignment with evolving IT needs.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Cost Plus Award Fee structure incentivizes contractor performance and quality.
The contract supports a vital national security function within the Department of Defense.

Sector Analysis

This contract falls within the broader Information Technology services sector, specifically focusing on computer systems design and related services. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract represents a significant portion of spending for IT support within the defense sector, aiming to ensure the operational readiness and security of the DSS's information systems.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Deloitte Consulting LLP, may engage small businesses as subcontractors, but this information is not detailed in the award notice.

Oversight & Accountability

Oversight for this task order would typically fall under the purview of the General Services Administration (GSA) and the Defense Security Service (DSS) contracting officers and program managers. The Cost Plus Award Fee structure necessitates robust performance monitoring to ensure that award fees are justified. Transparency is facilitated through contract award databases, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Security Service IT Support Contracts
GSA IT Services Task Orders
Department of Defense Enterprise IT Modernization
Computer Systems Design Services Federal Contracts

Risk Flags

Long-term contract duration requires sustained oversight.
Potential for cost creep in CPAF contracts.
Dependence on contractor performance for critical IT functions.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $297.0 million to DELOITTE CONSULTING LLP. IGF::OT::IGF TASK ORDER (TO) GSQ0017AJ0046 IS HEREBY AWARDED TO DELOITTE CONSULTING, LLP (DELOITTE) TO PROVIDE CONTRACTOR SUPPORT TO ASSIST THE DEFENSE SECURITY SERVICE (DSS) OFFICE OF THE CHIEF INFORMATION OFFICER (OCIO) WITH ITS ENTERPRISE INFORMATION TECHNOLOGY SUPPORT (EITS) WITHIN ITS QUANTICO, VA HEADQUARTERS AND FIELD OFFICE LOCATIONS THROUGHOUT THE UNITED STATES (U.S.).THE PERIOD OF PERFORMANCE FOR THIS TO WILL BE SEPTEMBER 19, 2017 THROUGH MARCH 18, 2023. THE TOTAL VALUE OF THE TO WILL

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $297.0 million.

What is the period of performance?

Start: 2017-09-19. End: 2022-04-18.

What is the historical spending pattern for IT support services by the Defense Security Service?

Analyzing historical spending patterns for IT support by the Defense Security Service (DSS) is crucial for understanding the context of this $285 million task order. While specific historical data for DSS IT support is not provided in this award notice, federal agencies like DSS typically have ongoing needs for IT infrastructure maintenance, cybersecurity, software development, and user support. Spending in this area often fluctuates based on modernization initiatives, security threats, and overall budget allocations. Agencies often rely on a mix of contract vehicles, including task orders against larger indefinite-delivery/indefinite-quantity (IDIQ) contracts, to procure these services. Understanding past spending levels, the types of services procured, and the contractors involved can help identify trends, potential cost efficiencies, and areas where spending may have increased or decreased over time, providing a baseline against which the current contract's value and scope can be assessed.

How does the pricing structure (Cost Plus Award Fee) compare to other IT support contracts for similar agencies?

The Cost Plus Award Fee (CPAF) pricing structure used for this task order is common in federal IT support contracts, particularly for services where performance outcomes are critical and can be objectively measured. CPAF allows the government to reimburse the contractor for allowable costs plus a base fee, with the potential for an award fee based on performance against defined criteria. Compared to fixed-price contracts, CPAF offers more flexibility for the government if requirements change, but it requires diligent oversight to manage costs and ensure award fees are earned legitimately. For similar IT support contracts within the Department of Defense or other large federal agencies, CPAF is often favored for complex projects where performance metrics are key to success. However, agencies also utilize other structures like Cost Plus Incentive Fee (CPIF) or various fixed-price arrangements depending on the clarity of requirements and the level of risk.

What are the key performance indicators (KPIs) used to determine the award fee for Deloitte Consulting?

The specific Key Performance Indicators (KPIs) used to determine the award fee for Deloitte Consulting on this task order are not detailed in the provided award notice. However, in Cost Plus Award Fee (CPAF) contracts, KPIs are typically established in the contract's Performance Work Statement (PWS) or a separate Award Fee Plan. For enterprise IT support services, common KPIs might include system uptime and availability, response times for help desk tickets, successful implementation of software updates and patches, cybersecurity compliance metrics, project completion rates for IT initiatives, and user satisfaction surveys. The government's contracting officer or a designated representative evaluates the contractor's performance against these KPIs, and the resulting score or rating directly influences the amount of the award fee paid. Effective KPIs are measurable, achievable, relevant, and time-bound (SMART) to ensure fair and objective assessment.

What is Deloitte Consulting's track record with similar large-scale IT support contracts within the federal government?

Deloitte Consulting LLP has a significant track record of performing large-scale IT support and systems integration contracts across various federal agencies. They are a major federal contractor with extensive experience in areas such as enterprise resource planning (ERP) implementation, cloud migration, cybersecurity, data analytics, and IT modernization. For contracts similar to this one, involving comprehensive IT support for defense or intelligence agencies, Deloitte has historically demonstrated the capacity to manage complex projects and large teams. Their past performance is typically assessed during the procurement process through references and past performance questionnaires. While this specific task order is for the Defense Security Service (DSS), Deloitte has likely held numerous comparable contracts with agencies like the Department of Defense (DoD) components, the Department of Homeland Security (DHS), and civilian agencies requiring robust IT infrastructure and services.

What are the potential risks associated with relying on a single contractor for critical IT support services for the DSS?

Relying on a single contractor, such as Deloitte Consulting in this case, for critical IT support services for the Defense Security Service (DSS) presents several potential risks. One primary risk is vendor lock-in, where the government becomes heavily dependent on the contractor's specific systems, processes, and personnel, making it difficult and costly to switch providers if performance issues arise or needs change. Another risk is a potential decline in service quality or innovation over time if the contractor faces less competitive pressure due to the long-term nature of the contract. Furthermore, a disruption in the contractor's operations, such as key personnel departures, financial instability, or cybersecurity breaches within the contractor's own environment, could directly impact the DSS's IT infrastructure and mission-critical functions. Robust contract management, clear performance standards, and contingency planning are essential to mitigate these risks.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

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: $311,091,125

Exercised Options: $311,091,125

Current Obligation: $296,963,650

Actual Outlays: $-258,812

Subaward Activity

Number of Subawards: 36

Total Subaward Amount: $106,402,333

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0018

IDV Type: GWAC

Timeline