HHS awarded $20.6M to Deloitte for IT services, with a 1071-day duration

Contract Overview

Contract Amount: $20,647,906 ($20.6M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2007-09-28

End Date: 2010-09-03

Contract Duration: 1,071 days

Daily Burn Rate: $19.3K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: C-2376M INCREMENTAL FUNDING

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $20.6 million to DELOITTE CONSULTING LLP for work described as: C-2376M INCREMENTAL FUNDING Key points: 1. The contract was awarded on a competitive basis, suggesting potential for good value. 2. Deloitte's extensive experience in federal contracting may indicate a lower performance risk. 3. The Time and Materials pricing structure warrants scrutiny for cost control. 4. This contract falls within the broader IT services sector, a significant area of federal spending. 5. The National Institutes of Health (NIH) is a major consumer of IT support services.

Value Assessment

Rating: good

The awarded amount of $20.6 million for computer systems design services over 1071 days appears reasonable when benchmarked against similar federal contracts for IT support. While specific per-unit cost data is not provided, the competitive nature of the award suggests that pricing was likely evaluated against market rates. The Time and Materials (T&M) pricing model, however, introduces a degree of uncertainty regarding final costs, as it is dependent on actual hours worked and material used. Further analysis of the contractor's historical performance and adherence to estimated hours would provide a clearer picture of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a competitive delivery order, indicating that it was subject to full and open competition. This process typically involves multiple bidders vying for the contract, which allows the agency to select the offer that provides the best value. The presence of competition generally drives down prices and encourages innovation. The specific number of bidders is not detailed, but the 'COMPETITIVE DELIVERY ORDER' designation implies a robust bidding process.

Taxpayer Impact: A competitive award process is beneficial for taxpayers as it fosters a more efficient marketplace, leading to potentially lower costs and higher quality services compared to sole-source or limited competition awards.

Public Impact

The primary beneficiary of this contract is the National Institutes of Health (NIH), enabling them to maintain and enhance their critical IT infrastructure. The services delivered include computer systems design, which supports the operational needs of NIH research and administrative functions. The geographic impact is primarily within Maryland, where NIH facilities are located. This contract supports IT professionals employed by Deloitte, contributing to the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not closely monitored.
The duration of the contract (1071 days) requires ongoing performance management to ensure continued value.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive price.
Deloitte is a large, established federal contractor with a track record in IT services.
The contract supports a critical agency (NIH) with essential IT functions.

Sector Analysis

The federal IT services market is vast and highly competitive, encompassing a wide range of services from software development to systems integration and cybersecurity. Contracts like this, for computer systems design services, are fundamental to the operation of federal agencies. Spending in this sector is consistently high, with agencies like HHS relying heavily on external expertise to manage complex IT environments. Benchmarks for similar IT support contracts often vary based on scope, duration, and specific skill sets required, but competitive awards generally aim for market-aligned pricing.

Small Business Impact

This contract does not appear to have a specific small business set-aside component, as indicated by 'ss: false' and 'sb: false'. The prime contractor is Deloitte Consulting LLP, a large business. While there is no direct set-aside, large federal contracts often include subcontracting requirements that can provide opportunities for small businesses to participate in the federal marketplace. The specific subcontracting plan, if any, for this contract would need further investigation to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the National Institutes of Health (NIH). Performance reviews, regular reporting, and adherence to the contract's terms and conditions are standard oversight mechanisms. As a delivery order under a larger contract vehicle, the oversight framework is established by the parent contract. 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 IT Services Contracts
NIH IT Support
Computer Systems Design Services
Deloitte Federal Contracts

Risk Flags

Time and Materials Pricing
Potential for Cost Overruns
Contract Duration Requires Ongoing Oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $20.6 million to DELOITTE CONSULTING LLP. C-2376M INCREMENTAL FUNDING

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 $20.6 million.

What is the period of performance?

Start: 2007-09-28. End: 2010-09-03.

What is Deloitte's overall track record with federal IT contracts, particularly with agencies like HHS?

Deloitte Consulting LLP is a major federal contractor with a long history of providing IT and consulting services across numerous government agencies, including the Department of Health and Human Services (HHS). Their federal portfolio is extensive, encompassing a wide array of services such as systems modernization, cybersecurity, data analytics, and cloud migration. While specific performance metrics for individual contracts are not publicly detailed in aggregate, Deloitte's continued success in winning large federal contracts suggests a generally positive track record and satisfaction from agency clients. However, like any large contractor, there may be instances of performance issues or disputes on specific projects. A thorough review would involve examining past performance evaluations and any documented issues related to contracts of similar scope and value.

How does the $20.6 million award compare to other similar IT services contracts awarded by NIH or HHS?

The $20.6 million award for computer systems design services over approximately three years (1071 days) is within the typical range for IT support contracts at large federal agencies like NIH. NIH, being a primary research arm of HHS, frequently procures IT services to support its vast data processing, research infrastructure, and administrative systems. Comparable contracts can range from a few million to tens or even hundreds of millions of dollars, depending on the complexity, duration, and specific services. The 'COMPETITIVE DELIVERY ORDER' nature of this award suggests that the pricing was vetted against market competition, implying it is likely aligned with fair market value for the services rendered. Without access to detailed scope-of-work comparisons and specific performance metrics, a precise value-for-money assessment against other contracts is challenging, but the award mechanism provides a degree of confidence in its reasonableness.

What are the primary risks associated with a Time and Materials (T&M) contract for IT services?

The primary risk associated with Time and Materials (T&M) contracts, such as this one, is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual labor hours expended and the cost of materials used, plus a fixed fee or நிர்ணயிக்கப்பட்ட rate. This structure can incentivize contractors to extend project timelines or increase billable hours if not managed diligently. For the government, the risk lies in the unpredictability of the final cost. Effective oversight, including detailed tracking of hours, robust progress monitoring, and clear definition of 'materials,' is crucial to mitigate these risks and ensure the contract remains within budget and delivers value. Agencies often implement ceiling prices or task limits to control expenditures under T&M contracts.

What is the historical spending pattern for computer systems design services at NIH?

The National Institutes of Health (NIH) consistently allocates significant funding towards computer systems design services, reflecting its reliance on advanced IT infrastructure to support biomedical research and public health initiatives. Historical spending data indicates a steady demand for these services, driven by the need for sophisticated data management, research computing platforms, bioinformatics tools, and secure network infrastructure. NIH's budget for IT services, including systems design, typically runs into hundreds of millions of dollars annually across various contract vehicles and task orders. Spending patterns are influenced by evolving research needs, technological advancements (e.g., AI, cloud computing), and cybersecurity requirements. Contracts like the one awarded to Deloitte are part of this broader, ongoing investment in maintaining and upgrading NIH's technological capabilities.

How does the duration of 1071 days (approx. 3 years) impact the assessment of this contract's value?

A contract duration of 1071 days, approximately three years, is a standard length for many federal IT services contracts. This duration allows for continuity of services and project development, which is often necessary for complex IT systems. From a value perspective, a longer duration can provide stability for both the agency and the contractor, potentially leading to better project outcomes and knowledge retention. However, it also necessitates robust performance management and oversight throughout the contract's life to ensure that the services remain relevant, efficient, and cost-effective as technology and agency needs evolve. For a competitive award, the pricing is typically evaluated based on the total estimated effort over this period, making the duration a key factor in the initial value assessment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: MISCELLANEOUS

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte 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: $20,953,974

Exercised Options: $20,953,974

Current Obligation: $20,647,906

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 263010052

IDV Type: IDC

Timeline