HHS awarded $23.8M for health IT program management, with Deloitte Consulting LLP as the primary contractor

Contract Overview

Contract Amount: $23,763,057 ($23.8M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2006-06-05

End Date: 2010-11-16

Contract Duration: 1,625 days

Daily Burn Rate: $14.6K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 10

Pricing Type: TIME AND MATERIALS

Sector: Healthcare

Official Description: PROGRAM MANAGEMENT SUPPORT SERVICES FOR THE OFFICE OF THE NATIONAL COORDINATOR FOR HEALTH INFORMATION TECHNOLOGY

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20201, UNITED STATES OF AMERICA

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $23.8 million to DELOITTE CONSULTING LLP for work described as: PROGRAM MANAGEMENT SUPPORT SERVICES FOR THE OFFICE OF THE NATIONAL COORDINATOR FOR HEALTH INFORMATION TECHNOLOGY Key points: 1. The contract value of $23.8 million over approximately four years suggests a significant investment in program management support. 2. Deloitte Consulting LLP, a large established firm, was awarded this contract, indicating a reliance on experienced contractors for complex federal IT initiatives. 3. The contract was awarded as a competitive delivery order, implying that multiple vendors were considered, potentially leading to better pricing. 4. The 'Administrative Management and General Management Consulting Services' category (NAICS 541611) is broad, encompassing a wide range of support functions. 5. The contract's duration of 1625 days (approx. 4.5 years) indicates a long-term need for these services. 6. The contract was awarded in the District of Columbia, a common location for federal agency headquarters and major contracting activities.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the services provided and the scope of work. However, a $23.8 million award over roughly four years for program management support for a national office suggests a moderate level of investment. Comparing it to similar contracts for IT program management within HHS or other agencies would provide a clearer picture of whether the pricing is competitive. The time and materials pricing structure can sometimes lead to cost overruns if not carefully managed, which warrants scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' which indicates that it was competed under a broader indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework that allowed for multiple vendors to bid. The fact that it was a competitive award suggests that more than one offer was received, and the government evaluated proposals to select the best value. The level of competition, while not explicitly stated in terms of the number of bidders, is generally positive for price discovery.

Taxpayer Impact: A competitive award process generally benefits taxpayers by fostering price competition among vendors, potentially leading to lower overall costs for the government and ensuring that taxpayer funds are used more efficiently.

Public Impact

The primary beneficiaries are the Office of the National Coordinator for Health Information Technology (ONC) and its initiatives, which aim to improve health IT adoption and interoperability. The services delivered likely include strategic planning, project management, administrative support, and potentially policy analysis to support the ONC's mission. The geographic impact is national, as the ONC's work affects healthcare providers, patients, and technology developers across the United States. Workforce implications may include the employment of consultants and subject matter experts who contribute to the advancement of health information technology.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The time and materials (T&M) contract type can pose a risk of cost escalation if not closely monitored and managed, potentially exceeding the initial estimated value.
The broad nature of 'Administrative Management and General Management Consulting Services' could lead to scope creep if not clearly defined and controlled.
Reliance on a single large contractor for extended periods might limit opportunities for smaller, specialized firms to contribute to critical government programs.

Positive Signals

The contract was awarded competitively, suggesting that multiple vendors had the opportunity to bid, which can lead to better value and innovation.
Deloitte Consulting LLP is a well-established firm with significant experience in government contracting, potentially bringing a high level of expertise and reliability.
The long-term nature of the contract (over 4 years) indicates a stable and ongoing need for these services, suggesting a well-defined program requirement.

Sector Analysis

The health information technology sector is a rapidly evolving and critical area within the broader healthcare industry. This contract falls under administrative and management consulting services, which are essential for the effective execution of complex government programs like those managed by the ONC. The market for such services is competitive, with numerous large and small firms vying for federal contracts. Spending in this area is driven by the government's strategic goals to modernize healthcare systems, improve data exchange, and enhance patient care through technology.

Small Business Impact

This contract was not specifically set aside for small businesses, as indicated by the award to Deloitte Consulting LLP, a large business. There is no explicit information provided regarding subcontracting plans for small businesses. The absence of a small business set-aside suggests that the primary focus was on securing the most qualified large contractor for the services required. This may limit direct opportunities for small businesses to participate in this specific contract, though they might be involved in subcontracting if Deloitte utilizes them.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Health and Human Services (HHS). The Assistant Secretary for Administration (ASA) likely plays a key role in overseeing administrative functions. Transparency is generally maintained through contract award databases and public reporting, although specific performance metrics and detailed oversight activities are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

ONC Health IT Programs
HHS Program Management Support
Federal Health IT Consulting Services
Administrative Management Consulting

Risk Flags

Potential for cost overruns due to T&M contract type
Need for robust oversight to manage scope and labor hours
Broad service category may require careful definition of work

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $23.8 million to DELOITTE CONSULTING LLP. PROGRAM MANAGEMENT SUPPORT SERVICES FOR THE OFFICE OF THE NATIONAL COORDINATOR FOR HEALTH INFORMATION TECHNOLOGY

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 $23.8 million.

What is the period of performance?

Start: 2006-06-05. End: 2010-11-16.

What specific program management support services were provided under this contract?

While the contract is broadly categorized under 'Administrative Management and General Management Consulting Services,' the specific services provided to the Office of the National Coordinator for Health Information Technology (ONC) likely encompassed a range of activities crucial for program execution. These could include strategic planning and analysis, project management oversight, development and implementation of management policies and procedures, budget and financial management support, stakeholder engagement, and coordination of various ONC initiatives. The goal would be to ensure the efficient and effective operation of the ONC's mission to improve health information technology adoption and interoperability across the nation. The exact deliverables and tasks would be detailed in the Statement of Work (SOW) associated with the delivery order.

How does the $23.8 million contract value compare to similar health IT program management contracts?

Comparing the $23.8 million contract value for approximately 4.5 years of service requires context regarding the scope and complexity of the ONC's needs. For large-scale federal IT programs, this amount is within a reasonable range, reflecting the significant effort involved in managing national-level health IT initiatives. However, without specific details on the number of personnel, the level of expertise required, and the specific deliverables, a precise benchmark is difficult. Contracts for similar program management support within agencies like HHS or other departments involved in large IT modernization efforts could range from a few million to tens or even hundreds of millions of dollars, depending on the duration, scope, and criticality of the program. The competitive nature of this award suggests an effort to achieve fair market value.

What are the potential risks associated with a Time and Materials (T&M) contract for program management?

Time and Materials (T&M) contracts, like the one awarded here, carry inherent risks, primarily related to cost control. Since payment is based on the actual hours worked by contractor personnel and the cost of materials used, there is a risk of cost escalation if the project duration extends beyond initial estimates or if labor hours are not efficiently utilized. For the government, this necessitates robust oversight to ensure that contractor effort is reasonable and necessary. Scope creep can also be a significant issue, as T&M contracts can sometimes inadvertently incentivize longer project timelines. Effective management requires clear task definitions, regular progress reviews, and vigilant monitoring of labor hours and rates to prevent cost overruns and ensure that the contract remains within budget.

What is the track record of Deloitte Consulting LLP in federal health IT contracting?

Deloitte Consulting LLP has a substantial and long-standing track record in providing a wide array of professional services to the federal government, including extensive work in the health IT sector. They are a major player in government contracting, often securing large and complex awards across various agencies, including the Department of Health and Human Services (HHS). Their experience typically spans areas such as IT modernization, data analytics, cybersecurity, program management, and policy implementation within healthcare. Deloitte's history includes supporting significant federal health initiatives, contributing to the development and implementation of health information exchange standards, electronic health records, and public health programs. Their consistent presence and success in winning competitive bids suggest a strong capability and established reputation for delivering on complex government requirements.

How does this contract contribute to the broader goals of the Office of the National Coordinator for Health Information Technology (ONC)?

This contract directly supports the ONC's mission to advance the adoption and meaningful use of health information technology (Health IT) across the United States. The program management support services provided by Deloitte Consulting LLP are essential for the effective planning, execution, and oversight of the ONC's various strategic initiatives. These initiatives often focus on improving interoperability, promoting patient access to their health information, enhancing the security and privacy of health data, and fostering innovation in health IT. By ensuring efficient program operations, the contractor helps the ONC to achieve its objectives related to health IT standards, certification, and policy development, ultimately contributing to a more connected, efficient, and patient-centered healthcare system.

What is the historical spending trend for administrative and management consulting services within HHS?

Historical spending trends for administrative and management consulting services within HHS are generally substantial, reflecting the agency's vast scope and the complexity of its operations. HHS manages numerous large-scale programs across healthcare, human services, and public health, often requiring specialized external expertise for program management, strategic planning, IT modernization, and operational efficiency improvements. While specific figures fluctuate annually based on agency priorities and budget allocations, HHS consistently ranks among the top federal agencies for contracting consulting services. The demand for such services is driven by evolving healthcare policies, technological advancements, and the need for continuous program evaluation and improvement. This contract represents a portion of that broader, ongoing investment in external expertise to support HHS's mission.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 10

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte LLP (UEI: 014127109)

Address: 4301 N FAIRFAX DR STE 210, ARLINGTON, VA, 22203

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership

Financial Breakdown

Contract Ceiling: $23,763,057

Exercised Options: $23,763,057

Current Obligation: $23,763,057

Parent Contract

Parent Award PIID: GS23F9796H

IDV Type: FSS

Timeline