HHS awards $20.6M for IT program management, with Deloitte securing the contract

Contract Overview

Contract Amount: $20,571,544 ($20.6M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2009-08-18

End Date: 2014-06-03

Contract Duration: 1,750 days

Daily Burn Rate: $11.8K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: PROGRAM MANAGEMENT/SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $20.6 million to DELOITTE CONSULTING LLP for work described as: PROGRAM MANAGEMENT/SUPPORT SERVICES Key points: 1. Contract awarded through a competitive process, suggesting potential for good value. 2. The contract falls under IT program management and computer systems design services. 3. Performance period spans over 5 years, indicating a long-term need. 4. The award was a delivery order, likely part of a larger indefinite delivery/indefinite quantity (IDIQ) contract. 5. The contractor, Deloitte Consulting LLP, is a large, established firm with significant federal contracting experience. 6. The contract type is Time and Materials, which can pose cost control risks if not managed closely.

Value Assessment

Rating: good

The contract value of $20.6 million over approximately 5 years suggests a moderate annual spend for IT program management services. Benchmarking against similar contracts for computer systems design services within the federal government would provide a clearer picture of value for money. The Time and Materials pricing structure requires careful monitoring to ensure costs remain aligned with the work performed and market rates for IT consulting services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded as a 'COMPETITIVE DELIVERY ORDER', indicating it was competed under a broader contract vehicle. The specific number of bidders for this delivery order is not provided, but the 'full-and-open' competition suggests multiple interested parties had the opportunity to bid. This level of competition is generally favorable for price discovery and achieving competitive pricing.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by fostering a market-driven price for the services rendered.

Public Impact

Benefits the Department of Health and Human Services (HHS) by providing essential IT program management and computer systems design services. Supports the operational efficiency and effectiveness of HHS's administrative functions. The services delivered are crucial for maintaining and improving the IT infrastructure that underpins HHS operations. Geographic impact is primarily within Virginia, where the contractor's site is located, but the services support a national agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely managed and monitored.
Lack of specific performance metrics in the provided data makes it difficult to assess the quality of services delivered.
The duration of the contract (over 5 years) necessitates ongoing scrutiny to ensure continued relevance and value.

Positive Signals

Awarded through a full and open competitive process, indicating a healthy market response.
Contractor is a large, reputable firm (Deloitte Consulting LLP) with extensive experience in federal IT services.
The contract supports a critical function within a major federal agency (HHS).

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and related program management. The federal IT services market is substantial, with agencies consistently investing in modernizing systems and improving digital capabilities. Contracts like this are common as agencies outsource specialized IT expertise to manage complex projects and ensure technological advancements align with mission objectives. Benchmarks for similar IT consulting services vary widely based on scope and complexity, but this award represents a typical investment for program support.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). As a delivery order likely under a larger IDIQ, subcontracting opportunities for small businesses may exist, depending on the prime contractor's strategy and the specific requirements of the task order. However, without further details on subcontracting plans, the direct impact on the small business ecosystem is not fully discernible from this data alone.

Oversight & Accountability

Oversight for this contract would typically reside within the Office of the Assistant Secretary for Administration at HHS, responsible for managing administrative and IT functions. The contract's Time and Materials nature necessitates robust oversight to track labor hours, costs, and ensure deliverables meet expectations. Transparency is generally maintained through contract reporting mechanisms and agency procurement oversight bodies. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

HHS IT Modernization Initiatives
Federal Civilian IT Services
Computer Systems Design Services
Program Management Support Contracts
Department of Health and Human Services Contracts

Risk Flags

Time and Materials contract type requires close monitoring for cost control.
Lack of specific performance metrics in summary data.
Potential for scope creep in program management services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $20.6 million to DELOITTE CONSULTING LLP. PROGRAM MANAGEMENT/SUPPORT SERVICES

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 $20.6 million.

What is the period of performance?

Start: 2009-08-18. End: 2014-06-03.

What is the historical spending pattern for this specific contract or similar services at HHS?

The provided data shows a single award of $20,571,544.24 for this contract, with a start date of 2009-08-18 and an end date of 2014-06-03. This indicates a total spend of approximately $20.6 million over its duration. To understand historical patterns, one would need to examine prior contracts for similar IT program management and computer systems design services awarded by HHS, as well as track any subsequent awards for these functions. Analyzing trends in annual spending, contract types, and awarded contractors over multiple fiscal years would reveal patterns in HHS's investment in these critical IT support services.

How does the awarded amount compare to the estimated value or ceiling of the parent IDIQ contract, if applicable?

The provided data indicates this is a 'COMPETITIVE DELIVERY ORDER' (CT: COMPETITIVE DELIVERY ORDER, AW: DO) with a total award value of $20,571,544.24. Delivery orders are typically issued against an existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract. Without knowing the specific IDIQ contract vehicle under which this delivery order was placed, it is impossible to compare this award amount to the parent contract's ceiling or estimated value. IDIQ contracts often have broad ceilings that can span many years and multiple delivery orders, making direct comparison difficult without access to the overarching contract documentation.

What specific IT program management and computer systems design services were delivered under this contract?

The NationalНаименование (NA) code '541512' signifies 'Computer Systems Design Services'. The description (D) is 'PROGRAM MANAGEMENT/SUPPORT SERVICES'. While the data confirms the broad categories of services, it does not detail the specific tasks performed. These services likely encompassed a range of activities such as IT strategy development, system architecture design, project planning and execution, IT infrastructure management, software development lifecycle support, cybersecurity integration, and general program oversight for HHS IT initiatives. A more granular understanding would require reviewing the Statement of Work (SOW) associated with this delivery order.

What was the contractor's performance history prior to and during this contract?

The provided data identifies Deloitte Consulting LLP as the contractor. Deloitte is a large, well-established professional services firm with extensive experience in federal contracting, including significant work with the Department of Health and Human Services. While this data does not include specific performance ratings or past performance evaluations for this particular contract, Deloitte's general track record suggests a capacity to handle complex IT program management and systems design. A thorough assessment would involve reviewing contract performance reports (e.g., CPARS) if available, and examining their broader history with federal agencies.

What are the potential risks associated with the Time and Materials (T&M) contract type for this service?

The Time and Materials (T&M) contract type, used here (PT: TIME AND MATERIALS), carries inherent risks for the government. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. The primary risk is that costs can escalate beyond initial expectations if the scope of work is not well-defined or if the project duration extends significantly. Without strong oversight, cost controls, and clear task definitions, T&M contracts can lead to cost overruns and potentially less value for money compared to other contract types. Effective management requires diligent tracking of hours and costs, and clear communication to ensure the work remains aligned with program objectives.

Industry Classification

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

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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

Financial Breakdown

Contract Ceiling: $25,138,317

Exercised Options: $20,571,544

Current Obligation: $20,571,544

Parent Contract

Parent Award PIID: GS35F0060L

IDV Type: FSS

Timeline