DHS awards $32.6M for IT investment management and budget planning services to Deloitte Consulting LLP

Contract Overview

Contract Amount: $32,628,307 ($32.6M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Homeland Security

Start Date: 2017-09-21

End Date: 2024-03-26

Contract Duration: 2,378 days

Daily Burn Rate: $13.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF SUPPORT TO PROVIDE OFFICE OF INFORMATION TECHNOLOGY (OIT) INVESTMENT MANAGEMENT AND BUDGET PLANNING SERVICES

Place of Performance

Location: SPRINGFIELD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20598

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $32.6 million to DELOITTE CONSULTING LLP for work described as: IGF::OT::IGF SUPPORT TO PROVIDE OFFICE OF INFORMATION TECHNOLOGY (OIT) INVESTMENT MANAGEMENT AND BUDGET PLANNING SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2378 days (over 6 years) indicates a long-term need for these services. 3. The firm-fixed-price contract type helps manage cost certainty for the government. 4. Services are for the Office of Information Technology (OIT) Investment Management and Budget Planning. 5. The contract was awarded as a delivery order, implying it's part of a larger contract vehicle. 6. The contractor, Deloitte Consulting LLP, is a large, established firm with extensive government contracting experience.

Value Assessment

Rating: good

The total award amount of $32.6 million over approximately six years suggests a moderate annual spend for IT investment management and budget planning. Benchmarking this against similar contracts for IT consulting and strategic planning services would provide a clearer picture of value for money. The firm-fixed-price nature of the contract offers cost predictability. Without specific performance metrics or comparison data, a definitive value assessment is challenging, but the duration and scope suggest a significant, ongoing requirement.

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 fact that it resulted in a single delivery order suggests that the initial solicitation or contract vehicle attracted multiple interested parties, but ultimately one was selected for this specific task. The level of competition at the initial stage is not detailed, but 'full and open' generally promotes price discovery and potentially better pricing.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple bidders to offer competitive pricing, potentially leading to cost savings for the government.

Public Impact

The primary beneficiary is the Department of Homeland Security's Office of Information Technology (OIT). The services delivered will support investment management and budget planning for IT initiatives. This contract impacts the strategic direction and financial allocation of technology resources within DHS. The workforce implications are indirect, focusing on enhancing the efficiency and effectiveness of IT planning rather than direct job creation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long contract duration.
Reliance on a single large contractor for critical IT planning functions.
The effectiveness of IT investment decisions hinges on the quality of the contractor's analysis.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm-fixed-price contract provides cost certainty.
Contractor is a well-established entity with significant experience in government contracting.
Long-term contract suggests a stable and ongoing need for these critical services.

Sector Analysis

This contract falls within the professional services sector, specifically IT consulting and management. The market for IT investment management and budget planning services is substantial within the federal government, with agencies constantly seeking to optimize technology spending and align IT investments with strategic goals. Comparable spending benchmarks would typically be found in reports analyzing IT consulting services procured by large federal agencies.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature of the services and the contractor (Deloitte Consulting LLP), it is likely that this is a large prime contract. The absence of small business participation metrics means its direct impact on the small business ecosystem is likely minimal unless significant subcontracting occurs.

Oversight & Accountability

Oversight for this contract would typically reside within the Department of Homeland Security's contracting and program management offices. The Inspector General's office may conduct audits or investigations into the contract's performance and financial management. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available.

Related Government Programs

DHS IT Modernization Initiatives
Federal IT Budgeting and Planning
IT Investment Management Services
Government IT Consulting Contracts

Risk Flags

Long contract duration may increase risk of obsolescence or vendor lock-in.
Reliance on a single contractor for critical planning functions.
Potential for misalignment between contractor recommendations and evolving agency needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $32.6 million to DELOITTE CONSULTING LLP. IGF::OT::IGF SUPPORT TO PROVIDE OFFICE OF INFORMATION TECHNOLOGY (OIT) INVESTMENT MANAGEMENT AND BUDGET PLANNING SERVICES

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $32.6 million.

What is the period of performance?

Start: 2017-09-21. End: 2024-03-26.

What is Deloitte Consulting LLP's track record with the Department of Homeland Security and similar IT consulting contracts?

Deloitte Consulting LLP has a significant history of contracting with the Department of Homeland Security (DHS) and other federal agencies, providing a wide range of IT, management, and consulting services. Their track record typically includes large-scale system implementations, strategic planning, cybersecurity, and financial management support. For DHS specifically, Deloitte has been involved in numerous contracts across various components, including Customs and Border Protection (CBP), Immigration and Customs Enforcement (ICE), and the Cybersecurity and Infrastructure Security Agency (CISA). Their extensive experience suggests a strong understanding of federal procurement processes and agency needs. However, like any large contractor, their performance history may include both successes and areas for improvement, which would be detailed in past performance evaluations during competitive solicitations.

How does the $32.6 million award compare to other federal IT investment management contracts?

The $32.6 million award for IT investment management and budget planning services over approximately six years represents a moderate-sized contract within the federal IT services landscape. Annual spending averages around $5.4 million. Larger federal agencies, particularly those undergoing significant IT modernization or facing complex budget challenges, often award contracts in the tens or even hundreds of millions for comprehensive IT strategy, planning, and implementation support. Smaller agencies or those with less complex IT infrastructures might award contracts in the low millions. This DHS contract appears to be in line with the typical scope and budget for specialized IT planning support within a large cabinet-level department, reflecting a sustained need for expert guidance in optimizing technology investments.

What are the primary risks associated with this contract for DHS?

Key risks for DHS associated with this contract include potential over-reliance on a single contractor for critical strategic planning, leading to a loss of internal expertise or vendor lock-in. There's also a risk that the contractor's recommendations may not be fully aligned with DHS's evolving mission needs or may be influenced by the contractor's own commercial interests. Performance risk is another factor; if Deloitte fails to deliver high-quality analysis and actionable insights, DHS's IT investment decisions could be suboptimal, leading to wasted resources or missed opportunities. Furthermore, the long duration of the contract (over six years) increases the risk of the services becoming outdated or less relevant if not actively managed and adapted to changing technological landscapes and agency priorities.

How effective is the firm-fixed-price contract type in managing costs for this type of service?

The firm-fixed-price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and unlikely to change significantly. For IT investment management and budget planning services, an FFP contract provides cost certainty for the government, as the contractor assumes the risk of cost overruns. This structure incentivizes the contractor to perform efficiently to maximize profit. However, if the scope of work is highly dynamic or requires significant adaptation due to unforeseen technological changes or evolving agency requirements, an FFP contract can sometimes lead to change order negotiations that might negate some of the initial cost benefits, or it could stifle innovation if the contractor is hesitant to deviate from the original SOW to avoid scope creep.

What is the historical spending pattern for IT investment management and budget planning services at DHS?

Historical spending patterns for IT investment management and budget planning services at DHS are likely characterized by consistent, long-term engagements, reflecting the ongoing need for strategic IT guidance within such a large and complex organization. Agencies like DHS typically allocate significant portions of their IT budgets to planning, analysis, and oversight functions. Spending may fluctuate based on major IT initiatives, budget cycles, and shifts in technology priorities. While this specific $32.6 million award covers a substantial period, DHS likely procures similar services through various contract vehicles and task orders, potentially with different contractors, to address diverse IT planning needs across its various components. Analyzing aggregated spending data over several fiscal years would reveal trends in investment priorities and the overall reliance on external expertise for IT governance.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Financial Advisory Services LLP

Address: 1919 N LYNN ST, ARLINGTON, VA, 22209

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $39,921,344

Exercised Options: $32,628,307

Current Obligation: $32,628,307

Actual Outlays: $3,494,111

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $9,538,994

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU113

IDV Type: IDC

Timeline