HHS awarded $23.6M for IT services to Deloitte Consulting, spanning 5 years

Contract Overview

Contract Amount: $23,562,293 ($23.6M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2006-09-21

End Date: 2011-09-24

Contract Duration: 1,829 days

Daily Burn Rate: $12.9K/day

Sector: Other

Official Description: OTHER ADP & TELECOMMUNICATIONS SVCS

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23.6 million to DELOITTE CONSULTING LLP for work described as: OTHER ADP & TELECOMMUNICATIONS SVCS Key points: 1. Value for money appears fair given the duration and scope of services. 2. Competition dynamics were not fully open, suggesting potential for better pricing. 3. Risk indicators are moderate, with a long contract duration and a single awardee. 4. Performance context shows a long-standing relationship between HHS and Deloitte. 5. Sector positioning is within IT services, a critical area for government operations.

Value Assessment

Rating: fair

The contract's value of $23.6 million over five years averages to approximately $4.7 million annually. Benchmarking this against similar IT services contracts is challenging without more specific service details. However, given the breadth of 'Other Computer Related Services,' the annual spend seems within a reasonable range for a large federal agency like HHS. The lack of competitive bidding in later stages might have impacted optimal value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The initial award details are not fully provided, making it difficult to ascertain the initial competition level. However, the contract was awarded as a BPA (Blanket Purchase Agreement), which can sometimes lead to less direct competition for individual task orders. The absence of specific details on the number of bidders or the solicitation method prevents a thorough assessment of price discovery.

Taxpayer Impact: The lack of robust competition could mean taxpayers did not benefit from the lowest possible prices achievable through a more open bidding process.

Public Impact

The Department of Health and Human Services benefits from ongoing IT support services. Services delivered likely include a range of computer-related support, maintenance, and potentially consulting. The geographic impact is primarily within the federal government's operational sphere, likely supporting HHS operations nationwide. Workforce implications are indirect, supporting the federal workforce through essential IT infrastructure and services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to long-term relationship and lack of re-competition.
Limited transparency on specific task order pricing and performance metrics.
Scope creep could be a risk if not managed tightly under the BPA.
Reliance on a single contractor for a significant period may reduce market innovation incentives.

Positive Signals

Demonstrated long-term relationship suggests consistent performance and understanding of HHS needs.
Consolidated IT services under one BPA can lead to administrative efficiencies.
Deloitte is a well-established contractor with significant resources.

Sector Analysis

This contract falls within the broader IT services sector, specifically 'Other Computer Related Services' (NAICS 541519). This is a large and competitive market. Federal spending in this category is substantial, supporting a wide array of government functions. Comparable spending benchmarks would depend heavily on the specific services rendered, but the $23.6M over five years represents a significant, though not exceptionally large, investment for a major agency.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). There is no information provided regarding subcontracting plans or performance. Therefore, the direct impact on the small business ecosystem is likely minimal unless Deloitte engaged small businesses as subcontractors, which is not specified.

Oversight & Accountability

Oversight would typically be managed by the contracting officer and program managers within HHS. As a BPA, oversight is crucial for individual task orders to ensure they align with the BPA's scope and represent fair value. Transparency is moderate, with contract awards generally public, but detailed performance metrics and specific task order justifications may not be readily accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Professional Services
IT Services
Computer Related Services
Blanket Purchase Agreements
Department of Health and Human Services IT Contracts

Risk Flags

Long contract duration with a single awardee.
Limited competition indicated by BPA structure.
Lack of specific performance metrics in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23.6 million to DELOITTE CONSULTING LLP. OTHER ADP & TELECOMMUNICATIONS SVCS

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 (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $23.6 million.

What is the period of performance?

Start: 2006-09-21. End: 2011-09-24.

What specific IT services were provided under this contract?

The contract falls under NAICS code 541519, 'Other Computer Related Services.' This broad category can encompass a wide range of services including IT consulting, systems integration, custom software development, IT support, and data processing services. Without access to the specific task orders issued under this Blanket Purchase Agreement (BPA), it is impossible to detail the exact services rendered. However, given the duration and the awarding agency (HHS), it likely supported critical IT infrastructure, administrative systems, or public health IT initiatives.

How does the total contract value compare to similar IT services contracts at HHS?

The total contract value of $23.6 million over five years equates to an average annual spend of approximately $4.7 million. This figure needs to be contextualized by the specific services provided. HHS, being a large agency with extensive IT needs, often awards multi-million dollar IT contracts. Compared to major system development or large-scale infrastructure projects, this contract's value might be considered moderate. However, for ongoing 'Other Computer Related Services,' it represents a significant commitment. A precise comparison would require analyzing contracts with similar NAICS codes and service scopes within HHS over the same period.

What is Deloitte Consulting LLP's track record with federal IT contracts?

Deloitte Consulting LLP is a major federal contractor with a long history of providing a wide array of services, including IT consulting, systems integration, and professional services, across numerous government agencies. They consistently rank among the top federal IT contractors. Their track record generally includes large, complex projects. While specific performance on individual contracts can vary, their overall presence indicates a capacity to handle significant government IT requirements. Federal procurement data would show numerous awards and task orders issued to Deloitte across different agencies and contract vehicles.

What are the potential risks associated with a long-term contract awarded to a single vendor?

A significant risk associated with long-term contracts awarded to a single vendor, like this $23.6M BPA to Deloitte Consulting LLP, is the potential for vendor lock-in. This can stifle innovation as the vendor may face less pressure to introduce cutting-edge solutions. It can also lead to complacency and potentially higher costs over time if competition is not reintroduced. Furthermore, if the vendor's performance degrades or their strategic direction diverges from the agency's needs, transitioning to a new vendor can be complex and costly. Effective contract management, including regular performance reviews and clear deliverables, is crucial to mitigate these risks.

Were there any specific performance metrics or outcomes tied to this contract?

The provided data does not include specific performance metrics or outcomes tied to this contract. Typically, federal contracts, especially those of this duration and value, would include a Performance Work Statement (PWS) or Statement of Work (SOW) outlining specific deliverables, service levels, and key performance indicators (KPIs). These metrics are essential for evaluating the contractor's success and ensuring the government receives the intended value. Without access to the contract's SOW or PWS, assessing the effectiveness and success of the services provided by Deloitte Consulting LLP is not possible based solely on the award data.

How does this contract fit into the overall IT spending landscape for the Department of Health and Human Services?

This contract, valued at $23.6 million over five years for 'Other Computer Related Services,' represents a component of HHS's broader IT spending. HHS manages a vast and complex IT infrastructure supporting everything from electronic health records and public health surveillance to administrative functions and research. While $4.7 million annually might seem substantial, it is likely one of many IT contracts supporting diverse needs across the department. Its specific role would depend on whether it supports core administrative systems, specific program initiatives, or general IT operational support. Understanding its place requires comparing it against HHS's total IT budget and other major IT procurements.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $53,434,664

Exercised Options: $53,434,664

Current Obligation: $23,562,293

Parent Contract

Parent Award PIID: HHSP233200630003B

IDV Type: BPA

Timeline