DHS awards $14.3M contract to Deloitte for cargo risk model, raising questions on value

Contract Overview

Contract Amount: $14,322,636 ($14.3M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Homeland Security

Start Date: 2006-07-28

End Date: 2007-06-30

Contract Duration: 337 days

Daily Burn Rate: $42.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: FAS CARGO RISK MODEL

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $14.3 million to DELOITTE CONSULTING LLP for work described as: FAS CARGO RISK MODEL Key points: 1. Contract awarded to a single, well-known vendor. 2. Short contract duration suggests a specific, potentially limited scope. 3. Time and Materials pricing could lead to cost overruns. 4. The sector is critical for national security and supply chain integrity.

Value Assessment

Rating: questionable

The contract's value of $14.3M for a 337-day duration is difficult to assess without specific deliverables. Time and Materials pricing introduces uncertainty regarding the final cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, the specific vendor chosen and the pricing structure warrant scrutiny.

Taxpayer Impact: Taxpayer funds are being used for a critical security function. The effectiveness and efficiency of this spending will determine the ultimate taxpayer benefit.

Public Impact

Enhances cargo screening capabilities, potentially improving national security. Supports the Department of Homeland Security's mission to prevent terrorism. Impacts the efficiency and flow of international trade.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing
Lack of specific performance metrics
Potential for scope creep

Positive Signals

Awarded under full and open competition
Addresses a critical national security need

Sector Analysis

This contract falls within the IT and professional services sector, supporting government efforts in transportation security. Benchmarks for similar risk modeling contracts are highly variable.

Small Business Impact

No indication of small business participation is provided in the data. This contract appears to be awarded to a large, established firm.

Oversight & Accountability

Oversight is crucial given the Time and Materials contract type to ensure costs remain within reasonable bounds and deliverables are met. The Department of Homeland Security should have robust monitoring mechanisms.

Related Government Programs

Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Time and Materials pricing
Potential for cost overruns
Lack of defined performance metrics
Limited contract duration may indicate a narrow scope
Unclear integration with existing systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $14.3 million to DELOITTE CONSULTING LLP. FAS CARGO RISK MODEL

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 (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $14.3 million.

What is the period of performance?

Start: 2006-07-28. End: 2007-06-30.

What specific outcomes or improvements are expected from this cargo risk model, and how will they be measured to justify the $14.3M investment?

The expected outcomes likely involve enhanced threat detection capabilities, improved efficiency in cargo screening, and better resource allocation for security personnel. Measurement would involve metrics such as reduced false positive rates, faster screening times for low-risk cargo, and a quantifiable decrease in security incidents related to screened cargo. Without clear performance metrics tied to the contract, assessing the return on investment is challenging.

Given the Time and Materials pricing, what controls are in place to mitigate the risk of cost overruns and ensure the contractor remains focused on efficient delivery?

Effective controls would include strict oversight of labor hours, regular reviews of progress against milestones, and clear definitions of billable activities. A cap on total expenditure or phased funding based on performance could also be implemented. The contracting officer must actively manage the contract, ensuring that the contractor's efforts are aligned with the government's objectives and that costs are reasonable and allocable.

How does this cargo risk model integrate with existing TSA and DHS systems, and what is the projected long-term effectiveness and maintainability of the solution?

Integration details are not provided, but successful implementation requires seamless data flow with systems like the Automated Manifest System and other intelligence platforms. Long-term effectiveness depends on the model's adaptability to evolving threats and its ease of updating. Maintainability hinges on the chosen technology stack, vendor support, and the government's internal capacity to manage and evolve the system over time.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

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, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $14,322,636

Exercised Options: $14,322,636

Current Obligation: $14,322,636

Parent Contract

Parent Award PIID: DTSA2003D00758

IDV Type: IDC

Timeline