HHS awards $465.5M for NIH IT system integration and hosting support to Deloitte Consulting LLP

Contract Overview

Contract Amount: $465,552,113 ($465.6M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2014-01-10

End Date: 2025-10-12

Contract Duration: 4,293 days

Daily Burn Rate: $108.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE REDETERMINATION

Sector: IT

Official Description: IGF::CT::IGF R12 UPGRADE - SYSTEM INTEGRATION AND HOSTING SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $465.6 million to DELOITTE CONSULTING LLP for work described as: IGF::CT::IGF R12 UPGRADE - SYSTEM INTEGRATION AND HOSTING SUPPORT Key points: 1. Significant contract value for IT system integration and hosting services. 2. Deloitte Consulting LLP is the sole awardee for this delivery order. 3. The contract spans over 10 years, indicating a long-term need. 4. The sector is IT services, specifically Computer Systems Design Services.

Value Assessment

Rating: good

The contract's fixed-price redetermination structure allows for adjustments, which is common for long-term IT projects. Benchmarking against similar large-scale IT integration contracts is necessary to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, this specific award is a delivery order, implying it's part of a larger IDIQ vehicle.

Taxpayer Impact: The substantial value of this contract represents a significant investment of taxpayer funds for critical IT infrastructure.

Public Impact

Ensures continued operation and modernization of essential health research IT systems at NIH. Supports the Department of Health and Human Services' mission through reliable technology infrastructure. Potential for innovation and improved data management in health research. Long-term commitment may lead to vendor lock-in if not managed carefully.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (10 years)
Fixed Price Redetermination pricing
Sole awardee for this delivery order

Positive Signals

Awarded under full and open competition
Supports critical health research infrastructure
Experienced contractor

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending in this area is substantial across federal agencies, supporting everything from administrative functions to complex research platforms. Benchmarks for similar large-scale IT integration projects are typically in the hundreds of millions over multi-year periods.

Small Business Impact

The data indicates the prime contractor is Deloitte Consulting LLP, a large business. There is no explicit information on small business subcontracting goals or performance within this specific delivery order, which warrants further investigation.

Oversight & Accountability

The contract's long duration and significant value necessitate ongoing oversight to ensure performance, cost control, and adherence to contract terms. Regular reviews of deliverables and financial expenditures are crucial for accountability.

Related Government Programs

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

Risk Flags

Long-term contract duration increases risk of cost escalation and vendor lock-in.
Fixed Price Redetermination pricing requires careful monitoring to control costs.
Lack of specific performance metrics in provided data.
No clear indication of small business subcontracting participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $465.6 million to DELOITTE CONSULTING LLP. IGF::CT::IGF R12 UPGRADE - SYSTEM INTEGRATION AND HOSTING 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 (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $465.6 million.

What is the period of performance?

Start: 2014-01-10. End: 2025-10-12.

What is the breakdown of costs within this contract, and how do they compare to industry standards for system integration and hosting?

The provided data does not detail the cost breakdown. A thorough analysis would require access to the contract's schedule of services and pricing. Comparing specific line items for labor, software, hardware, and hosting against industry benchmarks for similar-sized federal IT projects would be essential to determine cost-effectiveness and identify potential overspending.

What are the specific performance metrics and service level agreements (SLAs) for this contract, and how is Deloitte's performance being monitored?

The data does not specify performance metrics or SLAs. Effective oversight requires clearly defined, measurable performance standards for system uptime, response times, security, and data integrity. The contracting agency must have a robust system for monitoring Deloitte's adherence to these SLAs and addressing any performance deficiencies promptly to mitigate risks to NIH operations.

How does the fixed-price redetermination pricing model impact the government's ability to control costs over the 10-year period?

The fixed-price redetermination model allows for price adjustments based on agreed-upon criteria, which can be beneficial for long-term IT projects where costs may fluctuate. However, it also introduces risk if the redetermination process is not rigorously managed or if the criteria for adjustment are too broad, potentially leading to cost increases beyond initial expectations.

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: NIHJT2013010

Offers Received: 3

Pricing Type: FIXED PRICE REDETERMINATION (A)

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: $484,450,990

Exercised Options: $465,552,113

Current Obligation: $465,552,113

Actual Outlays: $184,154,596

Subaward Activity

Number of Subawards: 71

Total Subaward Amount: $231,482,731

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200018W

IDV Type: GWAC

Timeline