DHS's $10M Deloitte contract for financial management support shows fair value with 3 bidders

Contract Overview

Contract Amount: $10,006,331 ($10.0M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Homeland Security

Start Date: 2005-11-29

End Date: 2007-12-01

Contract Duration: 732 days

Daily Burn Rate: $13.7K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: Other

Official Description: FINANCIAL MANAGEMENT SUPPORT

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 $10.0 million to DELOITTE CONSULTING LLP for work described as: FINANCIAL MANAGEMENT SUPPORT Key points: 1. The contract demonstrates a reasonable value for financial management consulting services. 2. Competition was present, with three bidders vying for the contract. 3. The contract duration of 732 days suggests a significant, ongoing need for these services. 4. The services provided fall under administrative and general management consulting. 5. The contract was awarded as a competitive delivery order, indicating a structured procurement process. 6. The geographic location of performance is Washington D.C.

Value Assessment

Rating: fair

The contract value of approximately $10 million over two years for financial management support appears reasonable when benchmarked against similar consulting engagements. While specific per-unit cost data is not provided, the overall award amount suggests a fair market price for the services rendered by a large firm like Deloitte. The competitive nature of the award further supports the assessment of fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a competitive delivery order process, indicating that multiple vendors were likely considered. The presence of three bidders suggests a moderate level of competition for this specific requirement. A competitive process generally allows for better price discovery and ensures that the government receives proposals from various qualified sources.

Taxpayer Impact: The competitive award process helps ensure that taxpayer dollars are used efficiently by fostering a marketplace where contractors offer their best pricing and capabilities.

Public Impact

The primary beneficiary of this contract is U.S. Immigration and Customs Enforcement (ICE), a component of DHS. The services delivered are crucial for effective financial management and administrative operations within ICE. The geographic impact is concentrated in Washington D.C., where the performance is located. The contract supports a team of consultants, implying a workforce impact within the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the labor hours contract type.
Reliance on a single large contractor could limit future competition or innovation.
Ensuring consistent quality of service delivery over the contract duration.

Positive Signals

Awarded through a competitive process, suggesting fair pricing.
Services are critical for essential government functions.
Contract duration aligns with the scope of financial management support.

Sector Analysis

The administrative management and general management consulting services sector is a significant part of the federal contracting landscape. This contract, valued at over $10 million, represents a substantial engagement within this sector. It aligns with the government's ongoing need for specialized expertise in financial operations, particularly within large agencies like DHS. Comparable spending in this sector often involves large, established consulting firms providing a wide range of support services.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, and there is no explicit mention of subcontracting goals. As a delivery order under a larger contract, the prime contractor, Deloitte, is a large business. Further analysis would be needed to determine if small business subcontracting opportunities were pursued or mandated.

Oversight & Accountability

As a competitive delivery order, this contract likely falls under the oversight of DHS's contracting officers and potentially the U.S. Immigration and Customs Enforcement's program management. Transparency would be assessed through contract databases and reporting mechanisms. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise.

Related Government Programs

DHS Financial Management Systems
ICE Administrative Support Contracts
Federal Management Consulting Services
Government Financial Operations Support

Risk Flags

Contract duration may indicate potential for long-term dependency.
Labor-hours contract type requires diligent oversight to manage costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $10.0 million to DELOITTE CONSULTING LLP. FINANCIAL 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 Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $10.0 million.

What is the period of performance?

Start: 2005-11-29. End: 2007-12-01.

What is Deloitte's track record with DHS for similar financial management contracts?

Deloitte Consulting LLP has a substantial history of contracting with the Department of Homeland Security (DHS) across various services, including financial management and administrative support. Analyzing past performance on similar contracts would involve reviewing DHS's contract databases and performance evaluations. Generally, large consulting firms like Deloitte are awarded significant contracts due to their established expertise and capacity. However, specific details regarding their performance on prior ICE financial management contracts would require a deeper dive into contract award histories and any associated performance metrics or disputes.

How does the $10 million value compare to other financial management support contracts awarded by DHS or similar agencies?

The $10 million value for this two-year contract for financial management support is within a typical range for large federal agencies like DHS requiring specialized consulting services. Benchmarking against similar contracts would involve comparing the total value, duration, and scope of services. For instance, contracts for enterprise resource planning (ERP) implementation, audit support, or budget formulation within agencies of similar size often fall within the multi-million dollar range. The fact that this was a competitive delivery order with three bidders suggests the pricing was deemed fair relative to market rates for such services.

What are the primary risks associated with this type of labor-hours contract for consulting services?

Labor-hours contracts, like this one, carry inherent risks primarily related to cost control and performance management. A key risk is the potential for cost overruns if the scope of work expands beyond initial estimates or if consultant hours are not efficiently utilized. There's also a risk of 'scope creep,' where the project's objectives gradually expand without formal change orders, leading to increased costs. Ensuring adequate oversight to monitor consultant productivity, adherence to the defined scope, and the quality of deliverables is crucial to mitigate these risks and ensure value for taxpayer money.

How effective has Deloitte been in delivering administrative management and general management consulting services to the federal government?

Deloitte Consulting LLP is a major player in the federal consulting market, consistently awarded large contracts for a wide array of services, including administrative and general management consulting. Their effectiveness is generally reflected in their ability to secure numerous high-value awards and maintain long-term relationships with agencies. However, assessing effectiveness is nuanced and would ideally involve reviewing past performance evaluations, client satisfaction surveys, and the successful achievement of contract objectives. While their market presence suggests a degree of effectiveness, specific outcomes for individual contracts would require detailed performance data.

What is the historical spending pattern for administrative management and general management consulting services at ICE?

Historical spending patterns for administrative management and general management consulting services at U.S. Immigration and Customs Enforcement (ICE) would likely show a consistent need for external expertise to support complex operations. Agencies like ICE often rely on contractors for specialized functions, including financial management, process improvement, and strategic planning, especially during periods of growth or transformation. Analyzing past spending would involve examining contract award data over several fiscal years to identify trends in contract values, types of services procured, and the primary contractors utilized. This specific $10 million contract fits within the broader pattern of agencies outsourcing specialized support functions.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte LLP (UEI: 014127109)

Address: 1725 DUKE ST, ALEXANDRIA, VA, 08

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

Financial Breakdown

Contract Ceiling: $18,279,779

Exercised Options: $14,843,473

Current Obligation: $10,006,331

Parent Contract

Parent Award PIID: GS10F0083L

IDV Type: FSS

Timeline