HHS awarded $10.3M to Deloitte Consulting for management consulting services over 5 years

Contract Overview

Contract Amount: $10,327,665 ($10.3M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2006-07-05

End Date: 2011-09-08

Contract Duration: 1,891 days

Daily Burn Rate: $5.5K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 000HCPE1-2006-31779 - DEVELOPMENT AND IMPLEMENTATION OF A MANAGE

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.3 million to DELOITTE CONSULTING LLP for work described as: 000HCPE1-2006-31779 - DEVELOPMENT AND IMPLEMENTATION OF A MANAGE Key points: 1. The contract was awarded on a firm-fixed-price basis, indicating a defined scope and cost. 2. The duration of the contract was 1891 days, suggesting a long-term project. 3. The contract was awarded as a competitive delivery order, implying multiple bids were considered. 4. The North American Industry Classification System (NAICS) code 541611 points to administrative management and general management consulting services. 5. The contract was awarded to a single vendor, Deloitte Consulting LLP. 6. The contract was not set aside for small businesses. 7. The contract was awarded under the Georgia state procurement system (ST: GA, SN: GEORGIA).

Value Assessment

Rating: fair

The contract value of $10.3 million over approximately five years for management consulting services appears moderate. Benchmarking against similar large-scale consulting contracts would be necessary for a definitive value assessment. However, the firm-fixed-price structure suggests that the government aimed to control costs by defining the scope and price upfront. Without specific deliverables or performance metrics, it is difficult to assess the true value for money achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' which implies that it was competed under a broader contract vehicle that allowed for full and open competition. The term 'delivery order' suggests it was one of potentially many orders placed against a larger indefinite-delivery indefinite-quantity (IDIQ) contract. The fact that it was competitive indicates that multiple vendors likely had the opportunity to bid on this specific order, leading to price discovery and potentially better pricing.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering a more efficient marketplace, driving down prices, and encouraging innovation among contractors vying for the business.

Public Impact

The primary beneficiary of this contract is the Department of Health and Human Services (HHS), specifically the Centers for Disease Control and Prevention (CDC). The services delivered were related to administrative management and general management consulting. The geographic impact is likely focused on the operations of the CDC, with potential implications for public health initiatives. The contract supported the development and implementation of managed services, contributing to the operational efficiency of the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the effectiveness of the consulting services.
The long duration of the contract (over 5 years) could lead to vendor lock-in or reduced flexibility if needs change.
Without detailed breakdown of services, it's hard to ascertain if the full scope was necessary or if there was potential for cost overruns within the fixed price.

Positive Signals

The contract was competitively awarded, suggesting a degree of market validation for the chosen vendor and price.
The firm-fixed-price contract type provides cost certainty for the government.
The award to a well-established firm like Deloitte Consulting LLP may indicate a reliance on proven expertise for critical management functions.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. This sector is a significant part of federal spending, supporting agencies across all domains with expertise in operational efficiency, strategic planning, and program management. The market for management consulting services is large and competitive, with numerous firms offering a wide range of specialized services. This contract represents a portion of the federal government's investment in optimizing its administrative and operational functions.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses. Therefore, its direct impact on the small business ecosystem is likely minimal. The award to a large, established firm suggests that the scope of work may have required extensive resources and expertise typically found in larger organizations, rather than being tailored for small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Centers for Disease Control and Prevention (CDC). As a delivery order under a larger contract, its specific oversight mechanisms would align with the terms of that parent contract. Transparency would be facilitated through contract award databases like FPDS-NG. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HHS Management and Administrative Support Contracts
CDC Consulting Services
Federal Management Consulting Services
Information Technology Management Consulting
Public Health Program Support

Risk Flags

Long contract duration may reduce flexibility
Lack of detailed performance metrics hinders value assessment

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.3 million to DELOITTE CONSULTING LLP. 000HCPE1-2006-31779 - DEVELOPMENT AND IMPLEMENTATION OF A MANAGE

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 $10.3 million.

What is the period of performance?

Start: 2006-07-05. End: 2011-09-08.

What specific management and administrative challenges was Deloitte Consulting engaged to address for the CDC?

The provided data indicates the contract was for 'DEVELOPMENT AND IMPLEMENTATION OF A MANAGE' services, falling under NAICS code 541611 (Administrative Management and General Management Consulting Services). While the exact nature of the challenges is not detailed, such contracts typically involve improving organizational efficiency, streamlining processes, implementing new management systems, or providing strategic guidance. For the CDC, this could range from enhancing data management and analysis capabilities to optimizing resource allocation or improving inter-agency coordination for public health initiatives. The 'development and implementation' aspect suggests a focus on creating and putting into practice new or improved management frameworks or systems.

How does the $10.3 million contract value compare to typical spending on management consulting by the CDC or HHS?

The $10.3 million awarded to Deloitte Consulting LLP represents a significant, but not extraordinary, investment for a five-year management consulting engagement within a large federal agency like the CDC. Federal agencies frequently contract for management consulting services to address complex operational, strategic, and administrative needs. Annual spending on consulting services across the federal government often runs into the billions of dollars. To provide a precise comparison, one would need to analyze historical spending patterns for similar services within the CDC and HHS, considering the scope and duration. However, in the context of major federal IT or program support contracts, $10.3 million is a moderate figure, suggesting a focused scope rather than an agency-wide overhaul.

What were the key performance indicators (KPIs) or deliverables expected under this contract?

The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for this contract. However, given the contract type ('COMPETITIVE DELIVERY ORDER') and the service category ('Administrative Management and General Management Consulting Services'), typical deliverables might include strategic plans, process improvement reports, system implementation roadmaps, training materials, or operational assessments. Performance would likely be evaluated based on the successful completion of these defined tasks, adherence to timelines, and the quality of the final outputs, as outlined in the contract's statement of work. The firm-fixed-price nature implies that the contractor was responsible for delivering the agreed-upon scope within the set budget.

What is Deloitte Consulting LLP's track record with federal management consulting contracts, particularly with HHS?

Deloitte Consulting LLP is a major global professional services firm with extensive experience providing management consulting services to various U.S. federal agencies, including the Department of Health and Human Services (HHS). They have a well-established track record in areas such as IT modernization, financial management, program management, and strategic planning. Their history with HHS likely includes numerous contracts supporting different operating divisions, potentially including the Centers for Disease Control and Prevention (CDC). While this specific $10.3 million contract is one data point, Deloitte's overall presence in the federal contracting space suggests a capacity to handle complex engagements. A deeper analysis would involve reviewing their past performance evaluations and the scope of previous HHS contracts.

Were there any identified risks or challenges associated with this contract during its performance period?

The provided data does not explicitly detail any risks or challenges encountered during the performance of this contract. However, common risks in large management consulting engagements include scope creep, difficulties in integrating new systems or processes, resistance to change within the client organization, and challenges in accurately measuring the impact of consulting interventions. Given the five-year duration, potential risks could also involve evolving technological landscapes or shifts in agency priorities that might necessitate contract modifications or adjustments. The firm-fixed-price structure, while beneficial for cost control, can also pose a risk to the contractor if unforeseen complexities arise that increase costs beyond the agreed price.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 2006Q08561

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte LLP (UEI: 014127109)

Address: 4301 N FAIRFAX DR STE 210, ARLINGTON, VA, 22203

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership

Financial Breakdown

Contract Ceiling: $82,349,720

Exercised Options: $72,011,683

Current Obligation: $10,327,665

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F9796H

IDV Type: FSS

Timeline