HHS Awards $10.7M Contract to Deloitte for Business Transformation Activities

Contract Overview

Contract Amount: $10,676,704 ($10.7M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2007-07-25

End Date: 2009-03-31

Contract Duration: 615 days

Daily Burn Rate: $17.4K/day

Number of Offers Received: 1

Pricing Type: OTHER (NONE OF THE ABOVE)

Sector: IT

Official Description: SET UP NEW CONTRACT FOR BUSINESS TRANSFORMATION ACTIVITIES

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $10.7 million to DELOITTE CONSULTING LLP for work described as: SET UP NEW CONTRACT FOR BUSINESS TRANSFORMATION ACTIVITIES Key points: 1. Contract awarded to a single, large vendor, indicating potential for limited competition. 2. The contract duration of 615 days suggests a focused, project-based engagement. 3. Spending falls within the 'Computer Systems Design Services' NAICS code, a common area for IT consulting. 4. The award amount is moderate, but without benchmarks, value is difficult to assess.

Value Assessment

Rating: fair

The contract value of $10.7M over approximately 20 months is difficult to benchmark without specific details on the scope of 'business transformation activities'. Pricing appears moderate for a large consulting firm.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded sole-source, which limits price discovery and competition. This approach may be justified if only one vendor possesses the specialized expertise required for the business transformation.

Taxpayer Impact: Taxpayer funds are utilized for consulting services. The impact depends on the effectiveness and efficiency of the transformation achieved.

Public Impact

Enhances FDA's operational efficiency through business process improvements. Supports critical public health initiatives by modernizing business functions. Potential for improved data management and system integration within the FDA.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing.
Lack of detailed scope makes value assessment challenging.

Positive Signals

Addresses critical business transformation needs.
Awarded to a well-established consulting firm.

Sector Analysis

This contract falls under IT consulting services, specifically Computer Systems Design. Spending in this sector is substantial across government, with significant variation based on project complexity and duration.

Small Business Impact

The contract was awarded to Deloitte Consulting LLP, a large business. There is no indication of small business participation in this specific award.

Oversight & Accountability

Oversight would typically involve contract performance reviews and milestone tracking by the FDA to ensure deliverables are met and funds are used appropriately.

Related Government Programs

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

Risk Flags

Sole-source award
Limited transparency on specific deliverables
Potential for cost overruns without competitive pressure
Difficulty in benchmarking without detailed scope

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $10.7 million to DELOITTE CONSULTING LLP. SET UP NEW CONTRACT FOR BUSINESS TRANSFORMATION ACTIVITIES

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 $10.7 million.

What is the period of performance?

Start: 2007-07-25. End: 2009-03-31.

What specific business transformation activities were undertaken, and what were the measurable outcomes?

The contract aimed to improve business processes and potentially IT systems within the FDA. Specific activities could range from workflow optimization to system modernization. Measurable outcomes would ideally include quantifiable improvements in efficiency, cost savings, or enhanced service delivery, demonstrating the value derived from the $10.7M investment.

What was the justification for a sole-source award, and how was fair and reasonable pricing ensured?

A sole-source justification typically cites unique capabilities or critical needs unmet by other vendors. Ensuring fair and reasonable pricing in such cases often involves detailed cost analysis, comparison to historical data for similar services, or independent government cost estimates. The absence of competition necessitates rigorous internal review.

How did this contract contribute to the FDA's overall mission effectiveness?

The contract's contribution to mission effectiveness hinges on the successful implementation of business transformations that streamline operations, improve data utilization, or enhance regulatory processes. If the transformation led to more efficient drug approval, better food safety oversight, or improved public health data analysis, it directly supported the FDA's core mission.

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

Contractor Details

Parent Company: Deloitte LLP (UEI: 014127109)

Address: 4301 N FAIRFAX DR STE 210, ARLINGTON, VA, 08

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

Financial Breakdown

Contract Ceiling: $10,676,704

Exercised Options: $10,676,704

Current Obligation: $10,676,704

Parent Contract

Parent Award PIID: GS35F4338D

IDV Type: FSS

Timeline