DoD's $10.8M contract for computer systems design services awarded to Deloitte Consulting LLP

Contract Overview

Contract Amount: $10,815,669 ($10.8M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2010-05-28

End Date: 2015-03-31

Contract Duration: 1,768 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: LABOR

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $10.8 million to DELOITTE CONSULTING LLP for work described as: LABOR Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1768 days indicates a long-term need for these services. 3. Fixed-price contract type may offer cost certainty but could limit flexibility. 4. The award was a delivery order, implying it was part of a larger contract vehicle. 5. The contractor, Deloitte Consulting LLP, is a major player in the consulting space. 6. The North American Industry Classification System (NAICS) code 541512 points to a focus on computer systems design. 7. The contract was issued by the Defense Information Systems Agency (DISA), a key IT provider for the DoD. 8. The contract's value is relatively modest in the context of large federal IT spending.

Value Assessment

Rating: fair

Benchmarking the value of this $10.8 million contract requires more context on the specific services delivered and the scope of work. Without detailed performance metrics or comparisons to similar DISA contracts, it's difficult to definitively assess value for money. However, the fixed-price nature suggests an attempt to control costs. The number of bidders (3) is low for a full and open competition, which could indicate either a highly specialized requirement or potential limitations in market reach.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. However, only three bids were received. This limited number of bidders, despite the open competition, could suggest a niche market, high barriers to entry for potential competitors, or perhaps that the solicitation was not widely disseminated or attractive to a broader range of firms.

Taxpayer Impact: While full and open competition is generally favorable for taxpayers, a low number of bids can sometimes lead to less aggressive pricing than might be achieved with more robust competition.

Public Impact

The Department of Defense benefits from enhanced computer systems design and integration capabilities. Military branches and associated agencies receive support for their IT infrastructure and operations. The contract supports the modernization and efficiency of defense-related IT systems. Workforce implications are likely within the IT consulting sector, with potential for specialized roles. Geographic impact is primarily within the Maryland region, where the contract is managed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (3 bidders) despite full and open status may indicate potential for higher prices than a more crowded field.
Fixed-price contract could incentivize cost-cutting that might impact quality if not carefully monitored.
Contract duration of nearly 5 years requires ongoing oversight to ensure continued relevance and performance.
Lack of specific performance metrics in the provided data makes it hard to gauge effectiveness.
The contract is a delivery order, suggesting it's part of a larger IDIQ, which can sometimes obscure true competition and pricing.

Positive Signals

Awarded via full and open competition, adhering to principles of broad market access.
Fixed-price contract type provides budget predictability for the agency.
Contractor is a well-established firm with significant experience in government contracting.
The contract supports critical IT infrastructure for the Department of Defense.
The contract was awarded to a single entity, simplifying management and accountability.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the IT services market. This sector encompasses establishments primarily engaged in planning and designing computer systems that integrate hardware, software, and communication technologies. The federal government is a major consumer of these services, particularly the Department of Defense, which relies heavily on advanced IT solutions for its operations. Comparable spending benchmarks would typically involve analyzing other large-scale IT system design and integration contracts awarded by DoD or other federal agencies.

Small Business Impact

The data indicates 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 requirement. However, as a large contract awarded to a major consulting firm, there may be opportunities for small businesses to participate as subcontractors if Deloitte chooses to engage them, though this is not mandated by the contract terms.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers at the Defense Information Systems Agency (DISA). As a delivery order under a larger contract vehicle, oversight might be distributed. Accountability measures are typically embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Information Technology Contracting Office
DoD IT Modernization Programs
DISA Enterprise IT Services
Federal Civilian IT Services
IT Consulting Services Contracts

Risk Flags

Limited competition despite full and open award
Potential for scope creep in long-term IT projects
Reliance on a single large contractor for critical systems design

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.8 million to DELOITTE CONSULTING LLP. LABOR

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $10.8 million.

What is the period of performance?

Start: 2010-05-28. End: 2015-03-31.

What specific computer systems design services were rendered under this contract?

The provided data indicates the contract falls under NAICS code 541512 (Computer Systems Design Services). This broad category typically includes services such as systems integration, IT consulting, network design, software engineering, and IT infrastructure planning. However, without access to the specific Statement of Work (SOW) or task orders associated with this delivery order, the precise nature of the services provided by Deloitte Consulting LLP remains unspecified. These services could range from designing new defense-specific IT architectures to integrating existing systems, or providing expert advice on technology adoption for the Department of Defense.

How does the $10.8 million value compare to similar contracts for computer systems design within the DoD?

The $10.8 million value for this contract is moderate within the vast landscape of Department of Defense IT spending. DoD frequently awards multi-million and even billion-dollar contracts for complex IT systems design and integration. For instance, major platform upgrades, enterprise resource planning implementations, or cybersecurity architecture designs can easily exceed this amount. This particular contract, awarded as a delivery order, suggests it might be a component of a larger program or a specific project. To provide a precise comparison, one would need to analyze the scope and duration of other similar contracts awarded by DISA or other DoD components for comparable services.

What are the key risks associated with this contract for the Department of Defense?

Key risks include potential cost overruns if the fixed-price structure doesn't adequately account for unforeseen complexities, although this is mitigated by the fixed-price nature. Performance risk exists, as the quality of systems design directly impacts operational effectiveness; a poorly designed system could lead to inefficiencies or security vulnerabilities. There's also a risk related to the limited competition (3 bidders), which might suggest a lack of readily available alternatives or potentially less competitive pricing than a more robustly competed contract. Finally, the long duration (1768 days) introduces the risk of technological obsolescence or changing requirements that the initial design may not accommodate without costly modifications.

What is Deloitte Consulting LLP's track record with federal IT contracts, particularly with the DoD?

Deloitte Consulting LLP is a major federal contractor with a substantial history of performing IT and consulting services for various government agencies, including the Department of Defense. They have been awarded numerous contracts across different domains, encompassing IT modernization, cybersecurity, cloud migration, and systems integration. Their track record generally reflects extensive experience and capability in handling large and complex federal projects. However, like any large contractor, specific contract performance can vary, and a detailed review of their past performance ratings on similar DoD contracts would be necessary for a comprehensive assessment.

How has spending on computer systems design services by the Defense Information Systems Agency (DISA) trended over the past five years?

Analyzing DISA's spending trends on computer systems design services (NAICS 541512) over the past five years would require accessing historical contract data from sources like the Federal Procurement Data System (FPDS). Generally, agencies like DISA have seen consistent and often increasing demand for these services due to the continuous need for IT modernization, cybersecurity enhancements, and the integration of new technologies within the defense apparatus. Factors such as evolving threats, new technological capabilities (e.g., AI, cloud computing), and strategic defense initiatives likely influence year-over-year spending fluctuations. A detailed analysis would reveal specific patterns and investment priorities.

What is the significance of this contract being a 'Delivery Order'?

The designation 'Delivery Order' indicates that this contract is a task order issued under a larger indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar type of multiple-award contract vehicle. This means that the $10.8 million award is not a standalone contract but rather a specific order for goods or services placed against a pre-existing contract framework. This approach allows agencies to procure services more efficiently over time from a pre-vetted pool of contractors. For taxpayers, it can mean streamlined acquisition, but it also necessitates careful oversight of the parent IDIQ contract to ensure overall competition and value are maintained across all issued orders.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Deloitte Financial Advisory Services LLP

Address: 12010 SUNSET HILLS RD, RESTON, VA, 20190

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,815,669

Exercised Options: $10,815,669

Current Obligation: $10,815,669

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS35F0060L

IDV Type: FSS

Timeline