DoD's FAMIS-WCF contract awarded to Deloitte Consulting LLP for $46.6M shows strong competition and long-term sustainment

Contract Overview

Contract Amount: $46,611,672 ($46.6M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2021-12-21

End Date: 2026-12-20

Contract Duration: 1,825 days

Daily Burn Rate: $25.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THE FINANCIAL ACCOUNTING MANAGEMENT INFORMATION SYSTEM - WORKING CAPITAL FUND (FAMIS-WCF) SUSTAINMENT AND ENHANCEMENT CONTRACT PROVIDES SERVICES AND PRODUCTS FOR THE OPERATION, SUSTAINMENT AND DEVELOPMENT OF THE FULLY OPERATIONAL FAMIS-WCF CAPABILITY

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $46.6 million to DELOITTE CONSULTING LLP for work described as: THE FINANCIAL ACCOUNTING MANAGEMENT INFORMATION SYSTEM - WORKING CAPITAL FUND (FAMIS-WCF) SUSTAINMENT AND ENHANCEMENT CONTRACT PROVIDES SERVICES AND PRODUCTS FOR THE OPERATION, SUSTAINMENT AND DEVELOPMENT OF THE FULLY OPERATIONAL FAMIS-WCF CAPABILITY Key points: 1. The contract focuses on sustaining and enhancing a critical financial accounting system for the Department of Defense. 2. Awarded through full and open competition, indicating a robust bidding process. 3. The firm-fixed-price contract type helps manage cost certainty for the government. 4. A duration of five years suggests a long-term commitment to system stability and development. 5. The contract is positioned within the IT services sector, specifically computer systems design. 6. The value of the contract is substantial, reflecting the importance of the FAMIS-WCF system.

Value Assessment

Rating: good

The contract value of $46.6 million over five years for sustainment and enhancement of a major financial system appears reasonable. Benchmarking against similar large-scale IT sustainment contracts for federal agencies suggests this is within expected ranges, especially considering the critical nature of financial management systems. The firm-fixed-price structure provides cost predictability, which is a positive indicator for value. However, a detailed cost breakdown and comparison of specific labor rates would be needed for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The presence of two bidders (as indicated by 'no': 2) is a positive sign for competition, though more bidders would typically indicate a more dynamic price discovery process. The full and open nature of the competition likely drove competitive pricing and ensured the government selected a capable vendor.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and higher quality services, ensuring government funds are used efficiently.

Public Impact

The primary beneficiaries are the Department of Defense and its various components, which rely on the FAMIS-WCF for accurate financial accounting and management. The services delivered include the operation, sustainment, and development of the FAMIS-WCF capability, ensuring its continued functionality and improvement. The geographic impact is likely nationwide, supporting DoD operations across various locations. Workforce implications may include the need for specialized IT personnel for system maintenance, development, and support, both within the contractor's organization and potentially within the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if enhancements are highly proprietary.
Reliance on a single contractor for critical financial system sustainment carries inherent risk.
Scope creep could increase costs beyond the initial $46.6M if not managed tightly.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Firm-fixed-price contract type provides cost certainty.
Long contract duration (5 years) indicates a stable, long-term partnership for critical system support.
The contractor, Deloitte Consulting LLP, is a well-established firm with significant experience in government contracting.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and related services. The market for IT sustainment and enhancement for large federal agencies is substantial, with significant spending allocated to maintaining and modernizing mission-critical systems. Comparable spending benchmarks for similar large-scale financial system support contracts within the federal government often range in the tens to hundreds of millions of dollars over several years, depending on system complexity and scope.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for small businesses arising from a set-aside. The primary contractor, Deloitte Consulting LLP, is a large business. Any subcontracting opportunities would be at the discretion of the prime contractor and would not be mandated by a small business set-aside provision.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Information Systems Agency (DISA) and the Department of Defense. Accountability measures are embedded within the firm-fixed-price contract terms, requiring delivery of specified services and products. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

DoD Financial Management Systems
Enterprise Resource Planning (ERP) Systems
IT Sustainment Contracts
Defense Information Systems Agency (DISA) Contracts
Working Capital Fund Contracts

Risk Flags

Potential for scope creep
Cybersecurity risks
System obsolescence
Reliance on single vendor for critical system

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.6 million to DELOITTE CONSULTING LLP. THE FINANCIAL ACCOUNTING MANAGEMENT INFORMATION SYSTEM - WORKING CAPITAL FUND (FAMIS-WCF) SUSTAINMENT AND ENHANCEMENT CONTRACT PROVIDES SERVICES AND PRODUCTS FOR THE OPERATION, SUSTAINMENT AND DEVELOPMENT OF THE FULLY OPERATIONAL FAMIS-WCF CAPABILITY

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 $46.6 million.

What is the period of performance?

Start: 2021-12-21. End: 2026-12-20.

What is the track record of Deloitte Consulting LLP with the Department of Defense for similar IT sustainment contracts?

Deloitte Consulting LLP has a significant track record with the Department of Defense, having been awarded numerous contracts across various IT services, consulting, and financial management areas. Their experience often includes large-scale system implementations, sustainment, and modernization efforts. For financial systems specifically, Deloitte has supported various government agencies in managing and enhancing their financial accounting capabilities. Their extensive history suggests a deep understanding of federal procurement processes and the unique requirements of defense agencies. While this specific contract is for FAMIS-WCF, Deloitte's broader portfolio with DoD indicates a capacity to handle complex, long-term IT support engagements.

How does the $46.6 million contract value compare to other large federal IT sustainment contracts?

The $46.6 million contract value over five years, averaging approximately $9.3 million annually, is substantial but falls within the typical range for large federal IT sustainment and enhancement contracts. Major federal agencies often award contracts in the tens to hundreds of millions of dollars for maintaining complex, mission-critical systems like financial management, logistics, or human resources platforms. For instance, contracts supporting enterprise resource planning (ERP) systems or large data center operations can easily exceed this value. The comparison suggests that the FAMIS-WCF contract is a significant investment, reflecting the system's importance and the scope of services required for its ongoing operation and development.

What are the primary risks associated with sustaining a critical financial accounting system like FAMIS-WCF?

The primary risks associated with sustaining a critical financial accounting system like FAMIS-WCF include cybersecurity threats, potential for system obsolescence, data integrity issues, and the risk of vendor lock-in. Cybersecurity is paramount, as a breach could compromise sensitive financial data and disrupt operations. System obsolescence is a constant concern, requiring continuous updates and modernization to keep pace with technological advancements and evolving requirements. Data integrity is crucial for accurate financial reporting and decision-making; errors or corruption can have severe consequences. Vendor lock-in can occur if the contractor develops highly specialized solutions that are difficult for others to replicate or maintain, potentially limiting future competition and increasing long-term costs.

How effective is a firm-fixed-price contract type for IT sustainment in ensuring program effectiveness?

A firm-fixed-price (FFP) contract type can be effective for IT sustainment by providing cost certainty and incentivizing the contractor to perform efficiently. Under an FFP contract, the contractor assumes most of the risk for cost overruns, which encourages them to manage resources effectively and deliver the agreed-upon scope within the set price. This can lead to greater predictability in budgeting for the government. For sustainment, where the scope of work is generally well-defined (e.g., maintaining existing functionality, providing support), FFP can be a suitable choice. However, for enhancement efforts that involve significant research, development, or evolving requirements, an FFP contract might be less appropriate and could stifle innovation or lead to disputes if the scope is not precisely defined.

What are historical spending patterns for the FAMIS-WCF system or similar DoD financial systems?

Historical spending patterns for the FAMIS-WCF system, or similar large-scale DoD financial systems, typically show consistent, significant investment over many years. These systems require ongoing funding for sustainment, maintenance, security updates, and periodic enhancements or upgrades to meet evolving regulatory requirements and technological standards. Annual spending can range from several million to tens of millions of dollars, depending on the system's complexity, user base, and the extent of modernization efforts. The $46.6 million awarded over five years for this contract suggests a continuation of this pattern, reflecting the enduring need for robust financial management capabilities within the Department of Defense.

What is the significance of the contract being awarded to Deloitte Consulting LLP, a large business?

The significance of the contract being awarded to Deloitte Consulting LLP, a large business, is that it reflects the scale and complexity of the FAMIS-WCF system and its sustainment requirements. Large federal IT contracts, especially those involving mission-critical systems like financial management for the DoD, often require the resources, expertise, and established processes that large contracting firms possess. While large businesses can bring significant capabilities, it also means that opportunities for small businesses to directly participate in this specific contract as prime are limited, unless they are involved as subcontractors. The award signifies confidence in Deloitte's ability to deliver the required services reliably over the contract's duration.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HC104717R0001

Offers Received: 2

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: $49,850,712

Exercised Options: $48,893,647

Current Obligation: $46,611,672

Actual Outlays: $16,089,847

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $12,586,555

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC104718D2005

IDV Type: IDC

Timeline