HHS awards $38.5M to Deloitte for management consulting services to CDC

Contract Overview

Contract Amount: $38,539,523 ($38.5M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2003-09-15

End Date: 2007-03-31

Contract Duration: 1,293 days

Daily Burn Rate: $29.8K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200-2003-F-03069 DELOITTE (PEMS/EHARS)

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $38.5 million to DELOITTE CONSULTING LLP for work described as: 200-2003-F-03069 DELOITTE (PEMS/EHARS) Key points: 1. Contract awarded for administrative management and general management consulting services. 2. The contract was competitively awarded, indicating potential for price discovery. 3. Performance period spans over three years, suggesting a need for sustained support. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The award falls under the broad category of management consulting services. 6. The contract was issued as a delivery order under a larger contract vehicle.

Value Assessment

Rating: good

The contract value of $38.5 million over approximately 3.5 years for management consulting services appears reasonable when benchmarked against similar large-scale federal contracts for professional services. The firm fixed-price structure helps control costs, though the specific value proposition depends on the quality and impact of the services delivered. Without detailed performance metrics or comparison to specific task orders, a precise value-for-money assessment is challenging, but the competitive nature of the award suggests a degree of price efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, suggesting it was competed under a broader contract vehicle that allowed for full and open competition. The fact that it is a competitive delivery order implies that multiple vendors likely had the opportunity to bid on this specific task, leading to a more robust price discovery process. The presence of competition generally benefits the government by encouraging lower bids and better service offerings.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers as it likely resulted in a more favorable price compared to a sole-source or limited competition scenario. It ensures that taxpayer funds are used more efficiently by leveraging market forces.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from enhanced administrative and management support. Services delivered likely improve operational efficiency and program management within the CDC. The geographic impact is primarily within the CDC's operational centers, likely in Atlanta, Georgia. The contract supports professional services roles, potentially impacting a segment of the management consulting workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if task orders are not tightly managed.
Reliance on a single large contractor for critical management functions.
Ensuring consistent quality of consulting services throughout the contract duration.

Positive Signals

Firm Fixed Price contract type limits cost overruns for the government.
Competitive award process suggests potential for good value.
Longer performance period allows for sustained support and knowledge transfer.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. This is a significant area of federal spending, supporting a wide range of agency functions from administrative operations to strategic planning. The market for federal management consulting is large and competitive, with numerous firms vying for government contracts. This award to Deloitte, a major player in the consulting industry, is consistent with the trend of large, established firms securing substantial government contracts.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While Deloitte is a large business, there is no information provided on subcontracting plans. It is possible that small businesses could be involved as subcontractors, but this contract does not appear to directly benefit the small business ecosystem through a primary set-aside.

Oversight & Accountability

Oversight would typically be managed by the contracting officer and program officials within the CDC. As a delivery order under a larger contract vehicle, there may be established oversight mechanisms for that vehicle. Transparency is generally provided through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Management and Consulting Services
Centers for Disease Control and Prevention Contracts
Department of Health and Human Services IT and Professional Services

Risk Flags

Potential for cost overruns if scope is not managed
Ensuring contractor performance meets agency needs
Dependency on external expertise for core functions

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $38.5 million to DELOITTE CONSULTING LLP. 200-2003-F-03069 DELOITTE (PEMS/EHARS)

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $38.5 million.

What is the period of performance?

Start: 2003-09-15. End: 2007-03-31.

What specific management and administrative tasks did Deloitte perform under this contract?

The contract NAICS code 541611 indicates 'Administrative Management and General Management Consulting Services.' While the specific task orders are not detailed in the provided data, these services typically encompass areas such as organizational structure analysis, process improvement, strategic planning support, operational efficiency assessments, and policy development assistance. For the CDC, this could translate to supporting public health program management, improving data collection and analysis processes, or enhancing administrative workflows to ensure efficient operations and effective response to health threats.

How does the $38.5 million award compare to other CDC management consulting contracts?

Benchmarking this $38.5 million contract requires comparing it to similar management consulting awards made by the CDC or HHS over comparable periods. Given the contract duration of approximately 3.5 years (from Sept 2003 to Mar 2007), the average annual value is roughly $11 million. This figure is substantial but not unusual for large federal agencies like the CDC requiring extensive management support. Larger, more complex contracts for similar services can range from tens to hundreds of millions of dollars, depending on the scope and duration. Without access to a detailed database of CDC's consulting expenditures, a precise comparison is difficult, but the award size is consistent with significant support needs.

What were the key performance indicators (KPIs) or success metrics for this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or success metrics for this contract. Typically, for management consulting services, KPIs would be defined in the contract's Statement of Work (SOW) and could include metrics related to process improvement implementation, cost savings achieved, efficiency gains measured by time or resource reduction, successful development and rollout of strategic plans, or improvements in organizational effectiveness as assessed through surveys or audits. The effectiveness of Deloitte's performance would be evaluated against these pre-defined metrics by the CDC's contracting officer's representative (COR).

What is Deloitte's track record with federal management consulting contracts?

Deloitte Consulting LLP is a major global professional services firm with a long and extensive track record of performing management and technology consulting services for the U.S. federal government. They have held numerous large contracts across various agencies, including HHS, Department of Defense, and others, covering a wide array of services from IT modernization to strategic planning and operational improvements. Their history includes both successes and challenges, as is common with large contractors. Federal procurement data typically shows Deloitte as a significant recipient of federal contracts, indicating a substantial capacity and experience in serving government needs.

Were there any notable risks or challenges associated with this specific contract award?

The primary risks associated with a contract of this nature and size generally revolve around ensuring the delivered services align with the agency's evolving needs, managing scope creep, and achieving measurable improvements in efficiency or effectiveness. For this specific award, the data doesn't highlight any unique or exceptional risks beyond the standard challenges of large consulting engagements. The firm fixed-price nature mitigates financial risk for the government regarding cost overruns, but the risk of not achieving the desired outcomes or impact remains. Effective project management and clear communication between the contractor and the CDC would be crucial to mitigate these risks.

How has federal spending on management consulting services evolved since this contract was awarded?

Federal spending on management consulting services has generally increased significantly since the period of this contract (2003-2007). Factors contributing to this trend include increasing complexity of government operations, demand for specialized expertise in areas like cybersecurity, data analytics, and digital transformation, and a continued reliance on external expertise to supplement government workforce capabilities. While specific figures fluctuate annually based on budget priorities and economic conditions, the overall trajectory has been upward, with agencies consistently leveraging consulting services to address critical mission needs and improve performance.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 2003Q00908

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte LLP (UEI: 014127109)

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: $466,581,021

Exercised Options: $466,581,021

Current Obligation: $38,539,523

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS10F0083L

IDV Type: FSS

Timeline