HHS awards $24.7M for ADP & Telecommunications Services to Deloitte Consulting LLP

Contract Overview

Contract Amount: $24,725,087 ($24.7M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2006-06-30

End Date: 2011-05-28

Contract Duration: 1,793 days

Daily Burn Rate: $13.8K/day

Competition Type: NON-COMPETITIVE DELIVERY ORDER

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: OTHER ADP & TELECOMMUNICATIONS SVCS

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24.7 million to DELOITTE CONSULTING LLP for work described as: OTHER ADP & TELECOMMUNICATIONS SVCS Key points: 1. Significant contract value of $24.7 million awarded. 2. Deloitte Consulting LLP is the sole awardee. 3. Contract falls under 'Other ADP & Telecommunications Services' and 'Computer Systems Design Services'. 4. Awarded as a non-competitive delivery order, raising questions about price discovery.

Value Assessment

Rating: questionable

The contract is a Time and Materials type, which can lead to cost overruns if not managed carefully. Without competitive bidding, it's difficult to assess if the pricing is optimal compared to market rates for similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This was a non-competitive delivery order, meaning there was no opportunity for other vendors to bid. This lack of competition limits price discovery and potentially leads to higher costs for the government.

Taxpayer Impact: The absence of competition suggests taxpayers may not have received the best possible price for these services.

Public Impact

Taxpayers may be overpaying due to the lack of competitive bidding. The long duration (1793 days) of the contract could indicate a substantial need or a lack of agile procurement. The specific services provided under 'ADP & Telecommunications Services' are not detailed, impacting public understanding of the expenditure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Non-competitive award
Time and Materials contract type
Lack of detailed service description

Positive Signals

Awarded to a known entity (Deloitte Consulting LLP)

Sector Analysis

This contract falls under IT services, specifically computer systems design. The value is moderate for a federal IT contract, but the non-competitive nature warrants scrutiny. Benchmarks for similar services are hard to establish without competitive data.

Small Business Impact

The awardee is Deloitte Consulting LLP, a large business. There is no indication that small businesses were involved in this specific contract, either as prime contractors or subcontractors.

Oversight & Accountability

The non-competitive nature of this award suggests a potential area for oversight to ensure the government received fair value and that competition was appropriately waived.

Related Government Programs

Computer Systems Design Services
Department of Health and Human Services Contracting
Food and Drug Administration Programs

Risk Flags

Potential for overpayment due to non-competitive award.
Lack of transparency regarding specific services provided.
Time and Materials contract type increases cost risk.
No small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24.7 million to DELOITTE CONSULTING LLP. OTHER ADP & TELECOMMUNICATIONS SVCS

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 (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $24.7 million.

What is the period of performance?

Start: 2006-06-30. End: 2011-05-28.

What specific ADP and telecommunications services were provided under this contract?

The provided data does not specify the exact nature of the ADP and telecommunications services rendered. This lack of detail makes it challenging to assess the necessity and value of the contract. Further investigation into contract line item details would be required to understand the scope of work.

What was the justification for awarding this contract on a non-competitive basis?

The justification for a sole-source or non-competitive award is typically based on specific criteria, such as the existence of only one responsible source or urgent and compelling needs. Without this justification, it's impossible to determine if the deviation from full and open competition was warranted.

How does the final cost compare to the estimated cost or market benchmarks for similar services?

As this was a non-competitive Time and Materials contract, a direct comparison to market benchmarks is difficult. The absence of competitive bids means there's no established baseline for price discovery. A post-award audit or review of internal cost estimates would be needed to assess value for money.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: NON-COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte LLP (UEI: 014127109)

Address: 12010 SUNSET HILLS RD, RESTON, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $35,500,958

Exercised Options: $24,725,087

Current Obligation: $24,725,087

Parent Contract

Parent Award PIID: GS35F0060L

IDV Type: FSS

Timeline