HHS awards $24.9M for FDA IT operations and maintenance support to Deloitte Consulting LLP

Contract Overview

Contract Amount: $24,889,850 ($24.9M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2010-09-16

End Date: 2016-10-28

Contract Duration: 2,234 days

Daily Burn Rate: $11.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TAS::75 0600::TAS USER FEE OPERATIONS MAINTENANCE SUPPORT

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $24.9 million to DELOITTE CONSULTING LLP for work described as: TAS::75 0600::TAS USER FEE OPERATIONS MAINTENANCE SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. The duration of the contract was 2234 days, indicating a long-term need for these services. 4. The award was a Delivery Order, suggesting it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The North American Industry Classification System (NAICS) code 541512 points to computer systems design services. 6. The contract was awarded to a single vendor, Deloitte Consulting LLP. 7. The contract was awarded in Maryland, a hub for federal contracting.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without knowing the specific services rendered and the scope of work. However, the total award amount of approximately $24.9 million over roughly six years suggests an average annual spend of around $4.15 million. This figure needs to be compared against similar IT operations and maintenance support contracts within the federal government, particularly those for agencies of similar size and complexity to the FDA. Without access to detailed performance metrics or a breakdown of labor categories and rates, a definitive value-for-money assessment is difficult. The firm fixed-price structure provides some cost certainty, but the overall efficiency and effectiveness of the services are not directly quantifiable from the provided data.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The fact that it resulted in a single delivery order suggests that while the initial competition may have been broad, the subsequent award was made to a specific contractor. The number of bidders is not specified, but the 'full and open' designation generally implies a robust competitive environment, which should theoretically lead to better pricing and service offerings for the government.

Taxpayer Impact: A competitive bidding process like 'full and open' is generally favorable for taxpayers as it encourages multiple vendors to offer their best prices and solutions, potentially driving down costs and improving service quality.

Public Impact

The primary beneficiary of this contract is the Food and Drug Administration (FDA), which receives essential IT operations and maintenance support. Services delivered likely include maintaining critical IT infrastructure, ensuring system uptime, providing technical support, and potentially managing software and hardware for the FDA. The geographic impact is primarily within the FDA's operational locations, likely concentrated in Maryland where the contract was awarded. The contract supports a workforce of IT professionals employed by Deloitte Consulting LLP, contributing to the federal IT services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the services provided.
The duration of the contract (over 6 years) could lead to vendor lock-in if not managed carefully.
Without details on the competitive landscape beyond 'full and open,' it's hard to gauge if the best possible pricing was achieved.
The specific IT systems supported are not detailed, making it hard to assess the criticality and potential risks associated with their maintenance.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent process.
Firm Fixed Price contract type helps control costs and shifts risk to the contractor.
The contract supports critical IT operations for a major federal health agency (FDA).
The contractor, Deloitte Consulting LLP, is a well-established entity in the IT services sector.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and related services. The federal IT market is substantial, with agencies across all departments relying heavily on contractors for system design, implementation, maintenance, and support. The FDA, as a regulatory and scientific body, requires robust and reliable IT infrastructure to manage vast amounts of data, facilitate research, and ensure public safety. This contract represents a typical expenditure for maintaining such critical operational capabilities within a large federal agency.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from this particular award. The focus appears to be on large-scale IT support, likely handled by the prime contractor's resources or their larger partners.

Oversight & Accountability

Oversight for this contract would typically be managed by the Food and Drug Administration's contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract structure, requiring the contractor to deliver specified services within the agreed-upon budget. Transparency is facilitated through federal contract databases like FPDS, where award details are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

FDA IT Modernization Initiatives
Federal Civilian IT Services Contracts
Department of Health and Human Services IT Support
Computer Systems Design and Related Services

Risk Flags

Potential for vendor lock-in due to long contract duration.
Lack of detailed performance metrics hinders value assessment.
Limited insight into the specific IT systems supported.
No indication of small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $24.9 million to DELOITTE CONSULTING LLP. TAS::75 0600::TAS USER FEE OPERATIONS MAINTENANCE SUPPORT

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 $24.9 million.

What is the period of performance?

Start: 2010-09-16. End: 2016-10-28.

What specific IT systems and services were covered under this contract?

The provided data indicates the contract was for 'TAS USER FEE OPERATIONS MAINTENANCE SUPPORT' under NAICS code 541512 (Computer Systems Design Services). While the specific systems are not detailed, this typically encompasses a broad range of IT support functions. These could include maintaining the operational integrity of user fee processing systems, ensuring uptime and availability of related databases and applications, providing help desk support, performing routine maintenance, applying patches and updates, and potentially managing the underlying hardware infrastructure. The 'TAS' likely refers to the Treasury's Account Services, suggesting a connection to financial systems or user fee collection processes managed by the FDA. The scope would be critical for the FDA's ability to collect and process user fees essential for its operations.

How does the $24.9 million award compare to other similar IT support contracts at the FDA or HHS?

Comparing the $24.9 million award for approximately six years of IT operations and maintenance support requires context regarding the scope and complexity of services. The average annual spend of roughly $4.15 million needs to be benchmarked against other contracts for similar IT support functions within the FDA and the broader HHS. Large federal agencies often have multiple contracts for IT services, ranging from infrastructure management to software development. Without specific details on the number of users supported, the criticality of the systems, or the specific deliverables, a direct comparison is difficult. However, for a major agency like the FDA, this amount appears to be within a reasonable range for comprehensive IT operations and maintenance, assuming it covers a significant portion of their operational IT needs.

What is Deloitte Consulting LLP's track record with federal IT contracts, particularly with HHS and FDA?

Deloitte Consulting LLP is a major federal contractor with a significant history of providing IT and professional services across numerous government agencies, including HHS and its sub-agencies like the FDA. They are known for handling large, complex IT projects. Their track record generally includes a wide array of services such as systems integration, cybersecurity, cloud migration, data analytics, and IT operations support. While specific performance details for this particular contract are not provided, Deloitte's consistent presence and substantial contract awards across the federal government suggest a demonstrated capability to meet government requirements. Agencies often award contracts to established firms like Deloitte based on past performance, technical expertise, and capacity to deliver.

What are the potential risks associated with a long-term IT support contract like this?

Long-term IT support contracts, such as this one spanning over six years, carry several potential risks. One primary risk is vendor lock-in, where the agency becomes overly reliant on a single contractor, making it difficult and costly to switch providers or adopt new technologies. There's also the risk of complacency, where the contractor may reduce innovation or service quality over time if competition is limited or oversight is lax. Cost escalation can be a concern, even with fixed-price contracts, if the scope of work expands or unforeseen issues arise. Furthermore, a prolonged relationship might lead to a decline in the contractor's understanding of evolving technological landscapes if they don't proactively invest in their workforce's skills, potentially leaving the agency with outdated systems or support.

How does the Firm Fixed Price (FFP) contract type benefit the government in this scenario?

The Firm Fixed Price (FFP) contract type is generally advantageous for the government, especially for IT operations and maintenance where the scope of work is well-defined. Under an FFP contract, the contractor assumes the primary responsibility for all costs incurred to complete the work, and the price is not subject to adjustment based on the contractor's cost experience. This provides the government with cost certainty and predictability, making budgeting more straightforward. It incentivizes the contractor to manage their costs efficiently and to perform the work effectively to maximize their profit margin. For routine IT operations and maintenance, where requirements are relatively stable, FFP helps mitigate the risk of cost overruns that could occur with cost-reimbursement contracts.

What does the NAICS code 541512 imply about the nature of the services provided?

The North American Industry Classification System (NAICS) code 541512, 'Computer Systems Design Services,' indicates that the primary purpose of this contract was to provide services related to the design, development, integration, and implementation of computer systems. This broad category can encompass a wide range of activities, including IT consulting, systems integration, network design, software engineering, and IT project management. For an 'Operations and Maintenance Support' contract, it suggests that the services involved ensuring the ongoing functionality, reliability, and security of existing IT systems, potentially including troubleshooting, system upgrades, performance tuning, and user support, all within the framework of computer systems design and management principles.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Deloitte LLP (UEI: 014127109)

Address: 12010 SUNSET HILLS RD, RESTON, VA, 20190

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $29,237,836

Exercised Options: $26,773,461

Current Obligation: $24,889,850

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $64,063,385

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F0060L

IDV Type: FSS

Timeline