HHS awards $29M+ in management support services to Deloitte Consulting LLP over 5 years

Contract Overview

Contract Amount: $29,025,040 ($29.0M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2007-04-19

End Date: 2012-01-20

Contract Duration: 1,737 days

Daily Burn Rate: $16.7K/day

Competition Type: FULL AND OPEN COMPETITION

Sector: Other

Official Description: SERVICES (MANAGEMENT/SUPPORT)

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $29.0 million to DELOITTE CONSULTING LLP for work described as: SERVICES (MANAGEMENT/SUPPORT) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of approximately 5 years provides a stable period for service delivery. 3. Services fall under 'Other Computer Related Services,' indicating a focus on IT-adjacent support. 4. The award to a large, established firm like Deloitte suggests a need for significant expertise. 5. The contract's value is moderate within the context of large federal IT and management support contracts. 6. Performance is located in Maryland, a hub for federal contracting activity.

Value Assessment

Rating: good

The contract value of over $29 million spread across approximately five years suggests an average annual spend of around $5.8 million. Benchmarking this against similar management and support services contracts awarded by HHS or other agencies would provide a clearer picture of value for money. Without specific comparable contract data, it's difficult to definitively assess if the pricing was competitive, but the full and open competition suggests an attempt to achieve fair market value. The nature of the services (management/support) can vary widely in cost, making direct comparisons challenging without detailed scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method of procurement generally fosters price discovery and allows the government to select the best value offer. The open nature of the competition suggests that the agency sought a wide range of potential providers, aiming to leverage market forces to secure favorable terms.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the contract was awarded after a thorough evaluation of multiple offers, reducing the risk of overpayment.

Public Impact

The primary beneficiary is the Department of Health and Human Services, specifically the Office of the Assistant Secretary for Administration, receiving essential management and support services. These services likely contribute to the efficient operation and administration of departmental functions. The geographic impact is concentrated in Maryland, where the contractor will perform the work. The contract supports a workforce within Deloitte Consulting LLP, contributing to employment in the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or outcome data makes it difficult to assess the effectiveness of the services provided.
The broad category of 'Other Computer Related Services' could encompass a wide range of activities, potentially leading to scope creep or unclear deliverables if not tightly managed.
Long contract durations, while providing stability, can sometimes lead to complacency or a lack of agility in adapting to evolving needs without careful oversight.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
The contract is with a well-established firm (Deloitte Consulting LLP), suggesting a high likelihood of possessing the necessary expertise and resources.
The contract duration of nearly five years provides continuity of essential services for the agency.

Sector Analysis

The federal IT services market is vast and highly competitive, with significant spending allocated to management, consulting, and support functions. Contracts like this, falling under NAICS code 541519 (Other Computer Related Services), often involve a blend of IT support, project management, and administrative assistance. Spending in this category is driven by the government's continuous need for specialized expertise to manage complex operations and technology initiatives. Benchmarks for similar services vary widely based on scope, duration, and contractor, but multi-million dollar awards for several years are common for established firms supporting major agencies like HHS.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The award to Deloitte Consulting LLP, a large business, suggests that small businesses are unlikely to be direct prime contractors on this specific award. However, there may be opportunities for small businesses to participate as subcontractors, depending on the prime contractor's subcontracting plan and the specific nature of the services required. The absence of a set-aside means the primary focus was on competition among all eligible sources, potentially limiting direct opportunities for small businesses to win the prime contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Office of the Assistant Secretary for Administration at HHS. Performance monitoring, quality assurance, and adherence to contract terms are key oversight functions. Transparency is generally facilitated through contract award databases like FPDS. Accountability measures would be embedded in the contract's terms and conditions, including potential remedies for non-performance. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract were suspected.

Related Government Programs

HHS Management and Administrative Support Contracts
Federal IT Consulting Services
Professional Services Administration Contracts
Department of Health and Human Services IT Services

Risk Flags

Broad Service Classification
Long Contract Duration
Potential for Scope Creep
Limited Publicly Available Performance Data

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $29.0 million to DELOITTE CONSULTING LLP. SERVICES (MANAGEMENT/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 (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $29.0 million.

What is the period of performance?

Start: 2007-04-19. End: 2012-01-20.

What specific management and support services were included in this $29M+ contract?

The provided data indicates the contract was for 'SERVICES (MANAGEMENT/SUPPORT)' under NAICS code 541519 ('Other Computer Related Services'). This broad classification suggests services could range from IT project management, systems analysis, administrative support, business process improvement, to general consulting related to operational efficiency. Without access to the detailed Statement of Work (SOW) or contract modifications, the precise nature and scope of these services remain unspecified. However, given the agency (HHS Office of the Assistant Secretary for Administration) and the contractor (Deloitte), it likely involved supporting the administrative and operational functions of that office, potentially including IT strategy, implementation support, or program management assistance.

How does the $29M+ award compare to historical spending on similar services by HHS?

Comparing this $29 million award over approximately five years requires context regarding HHS's overall IT and management support spending. HHS is a large agency with substantial needs in these areas. Annual spending on such services can easily reach hundreds of millions or even billions of dollars across the department. This specific contract represents a moderate portion of that overall expenditure. To provide a precise comparison, one would need to analyze historical spending trends for the Office of the Assistant Secretary for Administration or similar administrative support functions within HHS, looking at the number, value, and duration of comparable contracts awarded over the past decade. Without that granular data, it's challenging to state definitively if this represents a significant increase or decrease in spending.

What is Deloitte Consulting LLP's track record with federal contracts, particularly with HHS?

Deloitte Consulting LLP is a major federal contractor with a long history of winning significant awards across numerous government agencies, including the Department of Health and Human Services. Their track record generally indicates extensive experience in providing a wide array of services, including IT, management consulting, cybersecurity, and administrative support. They are known for handling large, complex contracts. Within HHS, Deloitte has likely held numerous contracts over the years supporting various operating divisions and administrative functions. A detailed review of federal procurement data (like FPDS) would reveal the specific types, values, and performance history of their past HHS contracts, allowing for a more precise assessment of their performance and suitability for this particular award.

What are the potential risks associated with a contract of this nature and duration?

Potential risks for a contract of this nature and duration include scope creep, where the services expand beyond the original agreement without corresponding adjustments in cost or timeline. Another risk is vendor lock-in, where the agency becomes overly reliant on the contractor's specific expertise or systems, making future transitions difficult or costly. Performance degradation over time is also a risk, especially if contract oversight is insufficient. Furthermore, changes in agency priorities or technology could render the contracted services less relevant, requiring costly modifications or termination. Finally, the long duration could mean the initial pricing or service model becomes outdated relative to market rates or evolving needs.

How does the 'Other Computer Related Services' classification impact the assessment of this contract?

The classification 'Other Computer Related Services' (NAICS 541519) is quite broad and can encompass a wide range of activities that are not strictly IT development or infrastructure management. This could include IT consulting, data processing, computer systems integration design, and IT support services. For assessment purposes, this broadness means the specific deliverables and value proposition are less clear than if it were a more defined category like 'Software Development' or 'Network Support'. It necessitates a closer look at the contract's Statement of Work (SOW) to understand the precise nature of the services. It suggests the contract might be focused on advisory, planning, or support functions rather than direct IT product delivery, which can have different risk and value profiles.

What does the BPA Call award type signify for this contract?

The award type 'BPA CALL' indicates that this contract was issued under a Blanket Purchase Agreement (BPA). A BPA is a simplified acquisition vehicle that allows federal agencies to fill anticipated repetitive needs for supplies or services by establishing charge accounts with qualified sources. A 'BPA Call' is essentially an order placed against an existing BPA. This suggests that HHS had a pre-existing BPA in place, likely with Deloitte Consulting LLP, and this award represents a specific call or order under that agreement. BPA Calls are typically used for smaller, recurring needs and are often awarded on a sole-source or limited-competition basis if the BPA itself was established competitively. However, the data states 'FULL AND OPEN COMPETITION', which might imply the BPA itself was competed, or this specific call was competed among BPA holders, or it's an anomaly in the data.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Evaluated Preference: NONE

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: $53,793,376

Exercised Options: $53,793,376

Current Obligation: $29,025,040

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSP233200630003B

IDV Type: BPA

Timeline