HHS CDC Awards $11.8M to Deloitte for Business Process Improvement

Contract Overview

Contract Amount: $11,767,816 ($11.8M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2006-01-06

End Date: 2009-01-05

Contract Duration: 1,095 days

Daily Burn Rate: $10.7K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FMO BUSINESS PROCESS IMPROVEMENT-DELOITTE

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $11.8 million to DELOITTE CONSULTING LLP for work described as: FMO BUSINESS PROCESS IMPROVEMENT-DELOITTE Key points: 1. Deloitte Consulting LLP secured a significant contract for administrative management consulting. 2. The contract was awarded under a competitive delivery order, suggesting some level of price discovery. 3. The total award value is $11.8 million over three years. 4. The service falls under Administrative Management and General Management Consulting Services. 5. The contract was awarded to a large business, with no indication of small business participation.

Value Assessment

Rating: fair

The contract's fixed price of $11.8 million over three years averages to approximately $3.9 million annually. Benchmarking against similar large-scale consulting engagements is difficult without more specific service details, but the annual spend appears moderate for a federal agency of this size.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Awarded as a competitive delivery order, this suggests that multiple vendors were considered, likely through a pre-existing contract vehicle. This method generally promotes price competition, although the specific impact depends on the bidding process and the number of qualified bidders.

Taxpayer Impact: Taxpayers are funding essential business process improvements within the CDC, aiming for greater efficiency and effectiveness in administrative functions.

Public Impact

Enhances operational efficiency within the Centers for Disease Control and Prevention. Supports critical public health functions by improving administrative processes. Leverages private sector expertise for government management challenges. Potential for cost savings through optimized business processes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it hard to gauge true value.
Consulting contracts can be prone to scope creep and cost overruns.
Limited transparency on the specific deliverables and outcomes achieved.

Positive Signals

Competitive award process likely ensured a reasonable price.
Focus on business process improvement can lead to long-term efficiencies.
Utilizes specialized expertise from a well-known consulting firm.

Sector Analysis

This contract falls within the professional services sector, specifically management and administrative consulting. Federal spending in this area is substantial, often driven by the need for specialized expertise to improve government operations and implement new technologies or policies.

Small Business Impact

The data indicates this contract was awarded to a large business (Deloitte Consulting LLP) and does not mention any small business subcontracting. There is no explicit small business set-aside or participation noted in this award.

Oversight & Accountability

The award was made under a competitive delivery order, implying a degree of oversight in the selection process. However, ongoing oversight of the contractor's performance and adherence to the fixed-price contract is crucial for ensuring value and accountability.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Health and Human Services Contracting
Centers for Disease Control and Prevention Programs

Risk Flags

Consulting contract with potential for scope creep.
Lack of detailed performance metrics in award data.
No explicit small business participation mentioned.
Long contract duration (3 years) increases risk of evolving needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $11.8 million to DELOITTE CONSULTING LLP. FMO BUSINESS PROCESS IMPROVEMENT-DELOITTE

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 $11.8 million.

What is the period of performance?

Start: 2006-01-06. End: 2009-01-05.

What specific business processes were targeted for improvement, and what were the measurable outcomes?

The contract focused on 'Business Process Improvement' for the CDC. Without detailed performance reports or final outcome assessments, it's difficult to ascertain the precise processes targeted or the quantifiable improvements achieved. Effective oversight would require clear metrics tied to efficiency gains, cost reductions, or enhanced service delivery.

How did the competitive delivery order process ensure the best value and mitigate risks compared to other contracting methods?

A competitive delivery order suggests that multiple vendors had the opportunity to bid, fostering price competition and allowing the agency to select based on a combination of factors like price, technical approach, and past performance. This method generally mitigates the risk of overpaying compared to sole-source awards, provided the competition was robust and the evaluation criteria were well-defined.

What is the long-term impact of this $11.8 million investment on the CDC's operational effectiveness and taxpayer value?

The long-term impact hinges on the successful implementation of the improved business processes and their sustained effect on the CDC's efficiency and effectiveness. If the improvements lead to significant cost savings, faster response times, or better data management, the $11.8 million investment could yield substantial taxpayer value. Conversely, if the improvements are superficial or not sustained, the value proposition diminishes.

Industry Classification

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

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 2005Q08217

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: $164,114,433

Exercised Options: $164,114,433

Current Obligation: $11,767,816

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS10F0083L

IDV Type: FSS

Timeline