DoD Reissues $9.4M Deloitte Contract for Computer Systems Design Amidst System Migration Issues

Contract Overview

Contract Amount: $9,402,182 ($9.4M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2025-06-17

End Date: 2026-12-31

Contract Duration: 562 days

Daily Burn Rate: $16.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: THIS IS A REISSUE OF ORDER HC104725FE001 ACCOMPLISHED DUE TO ISSUES AND DELAYS WITH THE MIGRATION TO ECWM THE NEW CONTRACT WRITING SYSTEM AND THIS AWARD SUBJECT TO THE SAME TERMS AND CONDITIONS OF THE ORIGINAL AWARD.

Place of Performance

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

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $9.4 million to DELOITTE CONSULTING LLP for work described as: THIS IS A REISSUE OF ORDER HC104725FE001 ACCOMPLISHED DUE TO ISSUES AND DELAYS WITH THE MIGRATION TO ECWM THE NEW CONTRACT WRITING SYSTEM AND THIS AWARD SUBJECT TO THE SAME TERMS AND CONDITIONS OF THE ORIGINAL AWARD. Key points: 1. Contract value is $9.4 million, awarded to Deloitte Consulting LLP. 2. This is a reissue of a previous order due to issues with a new contract writing system. 3. The contract falls under Computer Systems Design Services, a common area for IT spending. 4. Risk is moderate due to reliance on a single vendor for system design services.

Value Assessment

Rating: good

The contract value of $9.4 million for computer systems design services appears reasonable given the duration and the vendor's established presence. Benchmarking against similar large-scale system design 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, indicating a competitive bidding process. However, this reissue suggests potential challenges in the original award or subsequent system integration, which could impact price discovery if not managed carefully.

Taxpayer Impact: Taxpayer funds are being used for essential defense IT infrastructure. The reissue due to system issues may indicate inefficiencies, but the core service remains necessary.

Public Impact

Ensures continuity of critical defense IT systems. Highlights challenges in government IT system modernization. Supports a major defense contractor, Deloitte Consulting LLP. Impacts the Defense Information Systems Agency's operational capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reissue due to system migration issues
Potential for scope creep or extended timelines
Reliance on a single vendor for critical services

Positive Signals

Awarded under full and open competition
Firm fixed price contract type
Experienced vendor (Deloitte Consulting LLP)

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending in this area is substantial across government, supporting everything from infrastructure to cybersecurity. Benchmarks vary widely based on complexity and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there is no direct analysis of small business participation in this specific award.

Oversight & Accountability

The reissue due to issues with the new contract writing system (ECWM) suggests potential oversight gaps in the system migration process. Accountability for the delays and their impact on contract execution will be crucial.

Related Government Programs

Computer Systems Design Services
Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

Contract reissue due to system issues
Potential for vendor lock-in
Reliance on a single system for contract writing
Complexity of defense IT systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.4 million to DELOITTE CONSULTING LLP. THIS IS A REISSUE OF ORDER HC104725FE001 ACCOMPLISHED DUE TO ISSUES AND DELAYS WITH THE MIGRATION TO ECWM THE NEW CONTRACT WRITING SYSTEM AND THIS AWARD SUBJECT TO THE SAME TERMS AND CONDITIONS OF THE ORIGINAL AWARD.

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 $9.4 million.

What is the period of performance?

Start: 2025-06-17. End: 2026-12-31.

What specific issues arose during the migration to ECWM that necessitated this reissue, and what is being done to prevent recurrence?

The provided data states 'issues and delays with the migration to ECWM'. Further investigation would be needed to detail the exact technical or procedural problems encountered. Mitigation strategies likely involve enhanced testing, phased rollouts, or additional training for personnel involved in the new system.

How does the firm fixed price structure mitigate risks associated with potential cost overruns given the contract reissue?

A firm fixed price (FFP) contract shifts the risk of cost overruns to the contractor, Deloitte Consulting LLP. Even with the reissue, the FFP structure means the government is obligated to pay the agreed-upon price, regardless of the contractor's actual costs. This protects the government from unexpected increases but requires careful initial pricing.

What is the long-term strategy for ensuring the stability and effectiveness of the ECWM system to avoid future contract disruptions?

The long-term strategy likely involves a comprehensive review of the ECWM migration, identification of root causes for the issues, and implementation of corrective actions. This could include further system development, user training, enhanced support, and revised deployment protocols to ensure future stability and prevent similar disruptions.

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 - DELIVERY

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Financial Advisory Services LLP

Address: 1725 DUKE ST, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,103,805

Exercised Options: $11,400,508

Current Obligation: $9,402,182

Actual Outlays: $1,788,196

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200018W

IDV Type: GWAC

Timeline