HHS awarded $13.8M for enterprise-wide communication assessment to Deloitte Consulting LLP

Contract Overview

Contract Amount: $13,834,257 ($13.8M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2006-08-31

End Date: 2010-02-28

Contract Duration: 1,277 days

Daily Burn Rate: $10.8K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 000HCAU1-2006-35247.02 - ASSESS ENTERPRISE-WIDE COMMUNICATION

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13.8 million to DELOITTE CONSULTING LLP for work described as: 000HCAU1-2006-35247.02 - ASSESS ENTERPRISE-WIDE COMMUNICATION 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 over three years, suggesting a substantial project. 3. The award was a delivery order under a larger contract, implying a pre-existing relationship or framework. 4. The North American Industry Classification System (NAICS) code 541611 points to general management consulting services. 5. The contract was competitively awarded, suggesting potential for price discovery. 6. The small business set-aside flag is false, indicating it was not specifically targeted for small businesses.

Value Assessment

Rating: good

The contract value of $13.8 million for a three-year enterprise-wide communication assessment appears reasonable for a large federal agency like HHS. Benchmarking against similar large-scale consulting engagements for communication strategy and implementation within federal agencies suggests this price point is within expected ranges. The firm-fixed-price structure helps control costs, though the specific value-for-money depends on the quality of deliverables and impact on agency communication effectiveness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, suggesting that multiple vendors likely had the opportunity to bid. The 'full-and-open' competition level generally leads to a more robust price discovery process as vendors compete on both technical merit and cost. The specific number of bidders is not provided, but the competitive nature implies that the government sought the best value from the market.

Taxpayer Impact: A competitive award process is beneficial for taxpayers as it encourages lower pricing and higher quality services through market forces, ensuring federal dollars are used more efficiently.

Public Impact

The primary beneficiary is the Department of Health and Human Services (HHS), specifically the Centers for Disease Control and Prevention (CDC), through improved enterprise-wide communication strategies. The services delivered include assessment and consulting related to administrative and general management, focusing on communication infrastructure and effectiveness. The geographic impact is likely national, given the enterprise-wide scope within a federal agency, potentially affecting internal and external communications across the US. Workforce implications could include changes in communication protocols, training needs, and potentially the adoption of new communication technologies for federal employees.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the initial assessment is not clearly defined.
Risk of deliverables not fully aligning with the agency's evolving communication needs over the contract period.
Dependence on contractor expertise may limit internal knowledge transfer if not managed proactively.

Positive Signals

The firm-fixed-price contract provides cost certainty for the government.
Competitive award process suggests potential for strong value and quality.
The long duration allows for thorough assessment and implementation planning.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The federal market for management consulting services is substantial, with agencies frequently engaging firms to improve efficiency, strategy, and operations. This contract represents a specific investment in optimizing internal communication, a critical function for large, complex organizations like HHS, and aligns with broader trends of federal agencies seeking external expertise for specialized assessments.

Small Business Impact

The contract was not set aside for small businesses (SS=false, SB=false). This indicates that the competition was open to all eligible vendors, including large businesses. While this specific contract may not directly benefit small businesses through a set-aside, the prime contractor, Deloitte Consulting LLP, may engage small businesses as subcontractors to fulfill certain aspects of the work, contributing to the broader small business ecosystem.

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. Performance monitoring, deliverable reviews, and payment approvals are standard accountability measures. Transparency is generally maintained through contract databases like FPDS-NG, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

HHS Enterprise Communication Strategy
CDC IT Modernization Projects
Federal Management Consulting Services
Government-wide Communication Technology Investments

Risk Flags

Potential for vendor lock-in if recommendations are highly specific to contractor's proprietary solutions.
Risk of limited knowledge transfer to government personnel if not explicitly managed.
Effectiveness of assessment depends heavily on the quality of data provided by the agency and contractor's analytical rigor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13.8 million to DELOITTE CONSULTING LLP. 000HCAU1-2006-35247.02 - ASSESS ENTERPRISE-WIDE COMMUNICATION

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 $13.8 million.

What is the period of performance?

Start: 2006-08-31. End: 2010-02-28.

What was the specific scope of the 'enterprise-wide communication assessment' and what key performance indicators (KPIs) were used to measure success?

The provided data does not detail the specific scope of the 'enterprise-wide communication assessment' or the KPIs used. Typically, such assessments involve evaluating existing communication channels, technologies, strategies, and organizational structures to identify inefficiencies, redundancies, and opportunities for improvement. KPIs might include metrics related to message reach, employee engagement with internal communications, effectiveness of crisis communication, and cost-efficiency of communication platforms. A deeper dive into the contract's statement of work (SOW) and performance reports would be necessary to ascertain these specifics.

How does the $13.8 million contract value compare to similar federal contracts for communication assessment services?

Comparing the $13.8 million contract value requires identifying similar large-scale, enterprise-wide communication assessment contracts within federal agencies. Given the duration of over three years and the scope implied by 'enterprise-wide,' this value appears substantial but potentially reasonable for a major agency like HHS. Benchmarking against contracts for strategic communication planning, IT infrastructure assessment for communication, or organizational change management within large federal departments would provide a clearer picture. Without specific comparable contract data, it's difficult to definitively state if it's high or low, but it suggests a significant investment in communication infrastructure and strategy.

What is Deloitte Consulting LLP's track record with HHS and similar federal agencies for management consulting and communication-related projects?

Deloitte Consulting LLP is a major federal contractor with a significant history of performing management and IT consulting services for various government agencies, including HHS. Their track record generally includes large-scale system implementations, strategic planning, and operational improvements. Specific to communication assessments, their experience would likely involve evaluating communication strategies, technology platforms, and organizational readiness. A review of past performance evaluations and contract awards for Deloitte with HHS and other agencies would provide a more detailed understanding of their success rates and client satisfaction in similar engagements.

What were the primary risks identified during the solicitation or performance of this contract, and how were they mitigated?

The provided data does not explicitly list risks identified for this contract. However, common risks for large consulting engagements include scope creep, contractor performance issues, budget overruns (though mitigated by firm-fixed-price), and challenges in adoption of recommendations. Mitigation strategies typically involve robust contract management, clear definition of deliverables and milestones, regular progress reviews, and strong government oversight. The competitive nature of the award may have also incentivized the contractor to proactively identify and propose mitigation plans for potential risks.

What is the historical spending trend for administrative management and general management consulting services (NAICS 541611) at the CDC and HHS?

Analyzing historical spending trends for NAICS 541611 at the CDC and HHS would require accessing federal procurement data over several fiscal years. This specific contract represents one data point. Generally, federal agencies, particularly large ones like HHS and its sub-agencies like the CDC, consistently spend significant amounts on management consulting to address complex operational, strategic, and technological challenges. Spending can fluctuate based on agency priorities, budget allocations, and the initiation of major transformation initiatives. A trend analysis would reveal if this $13.8M award is an outlier or part of a consistent pattern of investment in consulting services.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 2006Q08778

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: $807,110,160

Exercised Options: $807,110,160

Current Obligation: $13,834,257

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F9796H

IDV Type: FSS

Timeline