DoD's $56.3M GRAMS Contract with Deloitte Raises Questions on Value and Competition
Contract Overview
Contract Amount: $56,320,596 ($56.3M)
Contractor: Deloitte Consulting LLP
Awarding Agency: Department of Defense
Start Date: 2017-11-28
End Date: 2023-03-27
Contract Duration: 1,945 days
Daily Burn Rate: $29.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF GOVERNANCE, REQUIREMENTS, ARCHITECTURE, MANAGEMENT SUPPORT SERVICES (GRAMS)
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $56.3 million to DELOITTE CONSULTING LLP for work described as: IGF::OT::IGF GOVERNANCE, REQUIREMENTS, ARCHITECTURE, MANAGEMENT SUPPORT SERVICES (GRAMS) Key points: 1. Significant contract value of $56.3M awarded to a single vendor. 2. Competition method is 'FULL AND OPEN COMPETITION', but vendor concentration warrants review. 3. Risk of vendor lock-in and potential for cost overruns exist. 4. IT sector spending on management support services is substantial.
Value Assessment
Rating: fair
The contract value of $56.3M for management support services appears high without clear benchmarks. Further analysis is needed to compare pricing against similar government and commercial contracts for Computer Systems Design Services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive. However, the award to a single entity, Deloitte Consulting LLP, suggests a need to ensure robust price discovery and prevent potential market concentration.
Taxpayer Impact: Taxpayer funds are being utilized for this contract. Ensuring competitive pricing and efficient service delivery is crucial for maximizing the value of these funds.
Public Impact
Impacts the Defense Health Agency's operational efficiency and IT infrastructure. Potential for improved or degraded services depending on vendor performance. Affects the broader IT services market within the federal government.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics provided.
- Limited transparency on cost breakdown.
- Potential for scope creep.
Positive Signals
- Awarded under full and open competition.
- Contract duration is defined.
- Firm Fixed Price contract type can limit cost overruns.
Sector Analysis
This contract falls within the IT sector, specifically Computer Systems Design Services. Federal spending in this area is extensive, supporting various agency operations and technological advancements. Benchmarks for similar contracts are essential for evaluating cost-effectiveness.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis could explore opportunities for small business subcontracting within this large contract.
Oversight & Accountability
Oversight is critical for a contract of this magnitude. The Defense Contract Audit Agency (DCAA) and the agency's Inspector General (IG) should monitor performance, costs, and adherence to contract terms to ensure accountability.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- High contract value awarded to a single vendor.
- Potential for vendor lock-in.
- Limited transparency on specific performance metrics.
- Need for further cost-effectiveness analysis against benchmarks.
Tags
computer-systems-design-services, department-of-defense, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $56.3 million to DELOITTE CONSULTING LLP. IGF::OT::IGF GOVERNANCE, REQUIREMENTS, ARCHITECTURE, MANAGEMENT SUPPORT SERVICES (GRAMS)
Who is the contractor on this award?
The obligated recipient is DELOITTE CONSULTING LLP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $56.3 million.
What is the period of performance?
Start: 2017-11-28. End: 2023-03-27.
What specific deliverables and performance metrics are associated with this $56.3M contract to ensure accountability and value for taxpayer money?
The provided data does not detail specific deliverables or performance metrics. A thorough review of the contract's Statement of Work (SOW) is necessary to identify these. Robust metrics are crucial for assessing vendor performance, ensuring the services meet the Defense Health Agency's needs, and justifying the significant expenditure.
Given the award to a single vendor, what measures were in place during the procurement process to ensure maximum price competition and prevent potential overpricing?
While the contract was awarded under 'FULL AND OPEN COMPETITION', the data doesn't specify the number of bids received or the negotiation strategies employed. Further investigation into the solicitation documents and award justification is needed to confirm the effectiveness of price discovery mechanisms and competitive pressures.
How does the cost of these 'Computer Systems Design Services' compare to industry benchmarks for similar IT governance, requirements, architecture, and management support services?
Without access to detailed cost breakdowns and specific service level agreements, a direct comparison to industry benchmarks is challenging. However, the $56.3M value over approximately 1945 days (dur) suggests a substantial per diem or project cost that warrants scrutiny against comparable federal and commercial contracts.
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: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HT001115R0010
Offers Received: 6
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: $62,054,142
Exercised Options: $56,320,596
Current Obligation: $56,320,596
Actual Outlays: $3,816,471
Subaward Activity
Number of Subawards: 10
Total Subaward Amount: $21,902,551
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2017-11-28
Current End Date: 2023-03-27
Potential End Date: 2023-03-27 00:00:00
Last Modified: 2024-02-26
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