HHS awards $36.3M for Computer Systems Design Services to Deloitte Consulting LLP

Contract Overview

Contract Amount: $36,282,800 ($36.3M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2017-07-24

End Date: 2021-07-12

Contract Duration: 1,449 days

Daily Burn Rate: $25.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF - DELOITTE CONSULTING LLP:1167543 [17-001402]

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20817

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $36.3 million to DELOITTE CONSULTING LLP for work described as: IGF::OT::IGF - DELOITTE CONSULTING LLP:1167543 [17-001402] Key points: 1. Deloitte Consulting LLP secured a significant contract for IT services. 2. The contract falls under the Computer Systems Design Services category. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract duration is substantial, spanning over 1400 days.

Value Assessment

Rating: good

The award amount of $36.3M for computer systems design services appears reasonable given the contract duration of 1449 days. Benchmarking against similar contracts for complex IT solutions would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds were likely used efficiently, with pricing driven by market forces.

Public Impact

Enhances NIH's IT infrastructure and capabilities. Supports critical research and health initiatives through advanced systems. Potential for improved data management and analysis for public health.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is long, potentially leading to scope creep or outdated technology if not managed well.
Reliance on a single vendor for a significant period could pose risks if performance issues arise.

Positive Signals

Awarded through full and open competition, indicating a fair process.
Firm Fixed Price contract type helps control costs.
Significant investment in IT infrastructure for a key health agency.

Sector Analysis

This contract falls within the Information Technology sector, specifically computer systems design. Spending in this area is crucial for government modernization and operational efficiency. Benchmarks for similar IT services contracts vary widely based on scope and complexity.

Small Business Impact

The data indicates that this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.

Oversight & Accountability

Oversight would focus on contract performance, adherence to scope, and financial management to ensure the effective use of funds and achievement of project goals.

Related Government Programs

Computer Systems Design Services
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Long contract duration may lead to technology obsolescence.
Potential for vendor lock-in if not managed proactively.
Lack of small business participation noted.
Specific deliverables and performance metrics not detailed in summary.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $36.3 million to DELOITTE CONSULTING LLP. IGF::OT::IGF - DELOITTE CONSULTING LLP:1167543 [17-001402]

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 (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $36.3 million.

What is the period of performance?

Start: 2017-07-24. End: 2021-07-12.

What specific systems or services are being designed or improved under this contract, and how do they align with NIH's strategic objectives?

The contract specifies 'Computer Systems Design Services' (NAICS 541512). While the exact systems are not detailed, these services typically involve designing, developing, and integrating complex IT solutions. For NIH, this likely supports critical research data management, health information systems, or operational infrastructure, directly aligning with their mission to advance health and prevent disease through research.

Given the 4-year duration, what mechanisms are in place to ensure the technology remains current and the vendor's performance remains high?

The contract's duration necessitates robust performance monitoring and management by NIH. Mechanisms likely include regular progress reviews, defined performance metrics (Service Level Agreements), and potential for contract modifications or re-competition if technology shifts significantly or performance falters. The Firm Fixed Price structure incentivizes the vendor to deliver efficiently within the agreed scope.

How does the $36.3M award compare to the typical cost for similar large-scale IT system design projects within federal health agencies?

Benchmarking this $36.3M award requires detailed comparison with contracts of similar scope, duration, and complexity within federal health agencies. Factors like the specific technologies involved, the level of customization, and the vendor's overhead contribute to cost variations. Without specific project details, it's difficult to definitively assess if this represents a high or low cost, but it falls within the range for substantial IT modernization efforts.

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

Solicitation ID: NIHJT2010001

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Financial Advisory Services LLP

Address: 1725 DUKE ST, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $76,829,515

Exercised Options: $36,282,800

Current Obligation: $36,282,800

Actual Outlays: $247,850

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $6,451,744

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200018W

IDV Type: GWAC

Timeline