Deloitte Consulting LLP awarded $14.6M contract for IT services by Pension Benefit Guaranty Corporation

Contract Overview

Contract Amount: $14,585,015 ($14.6M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Pension Benefit Guaranty Corporation

Start Date: 2005-09-29

End Date: 2010-09-30

Contract Duration: 1,827 days

Daily Burn Rate: $8.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: OTHER ADP SVCS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Pension Benefit Guaranty Corporation obligated $14.6 million to DELOITTE CONSULTING LLP for work described as: OTHER ADP SVCS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1827 days indicates a long-term need for these services. 3. The fixed-price contract type aims to control costs by establishing a set price upfront. 4. The North American Industry Classification System (NAICS) code 541519 points to a broad range of IT services. 5. The contract was awarded to a single vendor, Deloitte Consulting LLP. 6. The contract was awarded by the Pension Benefit Guaranty Corporation (PBGC).

Value Assessment

Rating: fair

The total award amount of $14.6 million over approximately five years suggests a moderate annual spend. Benchmarking this against similar IT service contracts requires more granular data on the specific services rendered. However, the fixed-price nature of the contract provides some cost certainty for the PBGC. Without specific performance metrics or comparison to industry benchmarks for the exact services, a definitive value-for-money assessment is challenging.

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 was competed suggests that the PBGC sought to leverage market competition to obtain the best value. The number of bids received (2) is on the lower side for a full and open competition, which could potentially limit the price discovery and the range of solutions considered.

Taxpayer Impact: A competitive award process, even with two bidders, generally benefits taxpayers by encouraging vendors to offer competitive pricing and better terms to secure the contract.

Public Impact

The Pension Benefit Guaranty Corporation benefits from the provision of essential IT services to support its operations. The contract likely supports the agency's mission of protecting retirement security for millions of Americans. The services delivered are expected to enhance the efficiency and effectiveness of the PBGC's IT infrastructure. The contract's impact is primarily within the District of Columbia, where the PBGC is headquartered.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may have reduced price pressure.
Lack of detailed service scope makes it difficult to assess true value for money.
Long contract duration could lead to vendor lock-in or outdated technology if not managed well.

Positive Signals

Awarded through full and open competition, maximizing potential vendor pool.
Fixed-price contract type provides cost predictability.
Award to a well-established contractor like Deloitte suggests a level of confidence in their capabilities.

Sector Analysis

This contract falls within the broader IT services sector, specifically 'Other Computer Related Services'. This sector is characterized by a wide range of providers, from large system integrators to specialized niche firms. The market is highly competitive, with significant government spending allocated to IT modernization and support across various agencies. The PBGC's spending on these services is likely part of its ongoing efforts to maintain and upgrade its technological infrastructure to support its critical mission.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The prime contractor, Deloitte Consulting LLP, is a large business, and any subcontracting would be at their discretion, potentially offering opportunities if they choose to engage small businesses for specific tasks.

Oversight & Accountability

Oversight for this contract would typically be managed by the Pension Benefit Guaranty Corporation's contracting officers and program managers. Accountability measures are inherent in the fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated by the contract award data being publicly available. While specific Inspector General (IG) jurisdiction for this particular contract isn't detailed, the PBGC OIG generally oversees the agency's operations and expenditures.

Related Government Programs

IT Professional Services
IT Managed Services
Cloud Computing Services
Cybersecurity Services
Software Development

Risk Flags

Limited competition
Lack of detailed service scope
Potential for cost overruns if scope changes significantly

Frequently Asked Questions

What is this federal contract paying for?

Pension Benefit Guaranty Corporation awarded $14.6 million to DELOITTE CONSULTING LLP. OTHER ADP SVCS

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Pension Benefit Guaranty Corporation (Pension Benefit Guaranty Corporation).

What is the total obligated amount?

The obligated amount is $14.6 million.

What is the period of performance?

Start: 2005-09-29. End: 2010-09-30.

What specific IT services were provided under this contract?

The contract's NAICS code (541519) indicates 'Other Computer Related Services,' which is a broad category. This could encompass a wide array of services such as IT consulting, system integration, custom software development, IT support, network management, data processing, and potentially cloud services. Without a more detailed statement of work or contract line item details, the precise nature of the services rendered remains unspecified. Understanding the exact services is crucial for a thorough assessment of value for money and performance.

How does the $14.6 million award compare to typical IT spending by agencies of similar size to PBGC?

Comparing the $14.6 million award to IT spending by similarly sized agencies requires access to comparative budget data and IT expenditure reports across federal agencies. The Pension Benefit Guaranty Corporation (PBGC) is a unique government corporation with a specific mission. Its IT spending would be influenced by its operational scale, the complexity of its systems, and its strategic IT priorities. A direct comparison would necessitate analyzing IT budgets and contract awards for other independent agencies or government corporations with comparable employee counts and functional responsibilities, adjusting for inflation and service scope differences.

What is Deloitte Consulting LLP's track record with the Pension Benefit Guaranty Corporation and similar federal agencies?

Deloitte Consulting LLP is a major federal contractor with a significant history of awards across numerous government agencies. Their track record with the Pension Benefit Guaranty Corporation (PBGC) specifically would be reflected in past contract awards and performance evaluations. Generally, Deloitte has extensive experience in providing IT, consulting, and professional services to federal entities. Assessing their specific performance on this contract would involve reviewing past performance information (PPI) and any available CPARS (Contractor Performance Assessment Reporting System) reports related to this or similar PBGC contracts.

What were the key performance indicators (KPIs) for this contract, and were they met?

The provided data does not include specific Key Performance Indicators (KPIs) or performance assessment reports for this contract. Typically, KPIs would be defined in the contract's Statement of Work (SOW) and would relate to service availability, response times, project completion milestones, system uptime, or user satisfaction. Performance evaluations, such as CPARS, would document whether these KPIs were met. Without this information, it's impossible to definitively assess the contractor's performance against contractual requirements.

What is the historical spending trend for 'Other Computer Related Services' at the Pension Benefit Guaranty Corporation?

To determine the historical spending trend for 'Other Computer Related Services' (NAICS 541519) at the Pension Benefit Guaranty Corporation (PBGC), one would need to analyze the agency's contract awards data over several fiscal years. This would involve querying federal procurement databases for all contracts awarded under this specific NAICS code by the PBGC. Observing the total dollar amounts awarded annually, the number of contracts, and the primary awardees would reveal trends such as increasing, decreasing, or stable spending in this category, indicating shifts in IT service needs or budget allocations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte LLP (UEI: 014127109)

Address: 12010 SUNSET HILLS RD STE 500, RESTON, VA, 11

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

Financial Breakdown

Contract Ceiling: $15,123,722

Exercised Options: $14,893,020

Current Obligation: $14,585,015

Timeline