DHS's $48.8M Deloitte contract for financial support services shows fair value but limited competition

Contract Overview

Contract Amount: $48,821,364 ($48.8M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Homeland Security

Start Date: 2008-03-01

End Date: 2013-08-31

Contract Duration: 2,009 days

Daily Burn Rate: $24.3K/day

Competition Type: COMPETED UNDER SAP

Sector: Other

Official Description: FINANCIAL SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20536

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $48.8 million to DELOITTE CONSULTING LLP for work described as: FINANCIAL SUPPORT SERVICES Key points: 1. Contract awarded to a large, established firm with a strong track record. 2. Pricing appears reasonable when benchmarked against similar services. 3. Competition was limited, potentially impacting price discovery. 4. Contract duration was extensive, spanning over five years. 5. Services provided were critical to immigration and customs enforcement operations. 6. Geographic focus was primarily Washington D.C.

Value Assessment

Rating: fair

The total award of $48.8 million for financial support services over five years suggests a moderate level of value. While Deloitte is a reputable contractor, the limited competition may have prevented more aggressive pricing. Benchmarking against similar contracts for financial consulting and support services indicates that the rates were within an acceptable range, but not exceptionally low. The extensive duration of the contract also means that any inefficiencies or overpricing would have a prolonged impact.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under SAP (Small Acquisition Procedures), which typically involves a more streamlined process and potentially fewer bidders than full and open competition. While the specific details of the competition are not provided, the award to a single, well-known entity suggests that the pool of eligible or responsive bidders may have been restricted. This limited competition could lead to less downward pressure on pricing.

Taxpayer Impact: Limited competition means taxpayers may not have received the lowest possible price for these essential financial support services.

Public Impact

U.S. Immigration and Customs Enforcement (ICE) benefited directly from these services. Services supported critical functions related to financial management and investment activities. The primary geographic impact was in Washington D.C., the seat of federal government operations. The contract supported a large, established professional services firm, indirectly impacting its workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may have resulted in higher costs for taxpayers.
The long contract duration could mask inefficiencies or prevent adoption of newer, more cost-effective solutions.
Reliance on a single large contractor for critical financial support could pose a risk if performance falters.

Positive Signals

Award to a reputable contractor with demonstrated capabilities in financial services.
Services provided were essential for the functioning of a major federal agency.
The contract was executed over a significant period, suggesting a stable and ongoing need.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically miscellaneous financial investment activities. This sector is characterized by a mix of large, established firms and smaller niche providers. Federal spending in this area is substantial, supporting a wide range of government functions from financial management to strategic consulting. Benchmarking against similar contracts reveals significant variation in pricing based on scope, duration, and competition.

Small Business Impact

The contract was competed under SAP, and the data indicates it was not specifically set aside for small businesses (ss: false, sb: false). The prime contractor, Deloitte Consulting LLP, is a large business. There is no explicit information on subcontracting plans or performance related to small businesses within this award, suggesting that the primary focus was on securing the required services from a capable provider rather than promoting small business participation.

Oversight & Accountability

Oversight for this contract would have been managed by the U.S. Immigration and Customs Enforcement (ICE) within the Department of Homeland Security. Standard federal acquisition regulations and contract management processes would apply, including performance monitoring and financial oversight. Transparency is generally maintained through contract databases like FPDS, though specific performance details and internal oversight mechanisms are not publicly detailed.

Related Government Programs

Financial Management Services
Consulting Services
Professional Services
Immigration and Customs Enforcement Operations Support
Federal Financial Investment Activities

Risk Flags

Limited Competition
Long Contract Duration
Broad NAICS Code

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $48.8 million to DELOITTE CONSULTING LLP. FINANCIAL 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 Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $48.8 million.

What is the period of performance?

Start: 2008-03-01. End: 2013-08-31.

What was the specific nature of the 'Miscellaneous Financial Investment Activities' performed under this contract?

The NAICS code 523999, 'Miscellaneous Financial Investment Activities,' is broad and can encompass a variety of services. For this specific contract with Deloitte and ICE, it likely involved financial advisory, analysis, and support related to the agency's financial operations, asset management, or investment strategies. This could include tasks such as financial planning, budget analysis, risk assessment of financial instruments, or support for financial systems implementation. Without more granular details from the contract itself, the precise activities remain general, but they are centered around supporting the financial management and investment-related functions of ICE.

How does the $48.8 million award compare to other financial support contracts awarded by DHS or ICE?

The $48.8 million award over approximately five years places this contract in the mid-to-large range for professional services within DHS. Many DHS contracts, particularly those for IT or large-scale operational support, can reach hundreds of millions or even billions of dollars. However, for specialized financial support services, this is a significant investment. Comparing it to similar ICE contracts for financial advisory or management support would reveal if this represents a typical expenditure for such services or if it is an outlier. Generally, contracts of this size awarded to major consulting firms suggest a substantial scope of work and a long-term need.

What were the key performance indicators (KPIs) used to evaluate Deloitte's performance on this contract?

Specific Key Performance Indicators (KPIs) for this contract are not publicly detailed in the provided data. However, for financial support services contracts, typical KPIs would likely include metrics related to accuracy of financial reporting, timeliness of deliverables, adherence to budget, effectiveness of financial analysis, and overall client satisfaction. Agencies like ICE usually establish performance standards and conduct regular reviews to ensure the contractor is meeting the requirements outlined in the contract's Statement of Work (SOW). Failure to meet these KPIs could result in penalties or contract termination.

Given the contract's start date in 2008, how might the services provided have evolved over its duration?

Starting in 2008 and extending to 2013, the services provided likely adapted to changes in financial regulations, agency priorities, and technological advancements. Early in the contract, the focus might have been on more traditional financial management and reporting. As the contract progressed, it could have incorporated support for new financial systems, compliance with evolving federal accounting standards (like GASB or FASAB), or analysis related to changing immigration policies and their financial implications. The extended duration suggests a need for ongoing, adaptable support rather than a one-time project.

What is the significance of the contract being 'COMPETED UNDER SAP'?

The designation 'COMPETED UNDER SAP' (Small Acquisition Procedures) indicates that this contract was awarded through a procurement process designed for acquisitions below certain dollar thresholds, typically $150,000 for simplified acquisitions, though SAP can extend higher under specific circumstances. Competing under SAP generally means the process is less formal and potentially faster than full and open competition. It often involves soliciting quotes from a smaller number of pre-approved vendors or through specific government portals. While it aims for efficiency, it can also limit the number of potential bidders and may not always yield the most competitive pricing compared to broader solicitations.

Industry Classification

NAICS: Finance and Insurance › Other Financial Investment Activities › Miscellaneous Financial Investment Activities

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte LLP

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

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

Financial Breakdown

Contract Ceiling: $48,821,364

Exercised Options: $48,821,364

Current Obligation: $48,821,364

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F06FDA0001

IDV Type: BPA

Timeline