VA awards $35.4M contract for IT support services to Deloitte Consulting LLP, spanning over 5 years

Contract Overview

Contract Amount: $35,449,230 ($35.4M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Veterans Affairs

Start Date: 2016-07-21

End Date: 2021-07-20

Contract Duration: 1,825 days

Daily Burn Rate: $19.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: ::IGF::CL::IGF:: THE CONTRACTOR SHALL PROVIDE TECHNICAL AND NON-TECHNICAL SUPPORT SERVICES TO PROVIDE A BROAD RANGE OF TASKS IN SUPPORT OF THE OSP PS&IM MISSION. THE CONTRACTOR SHALL PROVIDE A TEAM OF HIGHLY SUCCESSFUL AND KNOWLEDGEABLE SUBJECT MATTER EXPERTS (SMES) TO PROVIDE DIRECT EXPERT ADVICE AND TO SUPPORT THE PROVISION OR DEVELOPMENT OF PS&IM RELATED PROGRAM MANAGEMENT BEST PRACTICES, PROCESSES, STANDARDS, AND PROCEDURES MEETING THE REQUIREMENTS OF THE VA ENTERPRISE. SPECIFIC NEEDS RANGE FROM REQUIREMENTS IDENTIFICATION DURING STRATEGIC PLANNING, PROGRAM STARTUP TO COMPLETION OF EXECUTION AND CLOSEOUT. PROGRAM STARTUP INCLUDES ASSISTING THE PROGRAM MANAGER WITH PROGRAM STRUCTURE AND ROLE DEFINITIONS OF THE PROGRAM MANAGEMENT OFFICE (PMO) AS THEY EVOLVE FOR EACH OF THE PS&IM PMOS; ASSISTING WITH PROGRAM PLANNING TASKS INCLUDING, BUT NOT LIMITED TO THE REQUIREMENTS LIFE CYCLE (DETERMINATION, STRUCTURE, PLANNING), PREPARATION OF COST ESTIMATES, AND SCHEDULE PLANNING; ASSISTING WITH SYSTEMS ENGINEERING PROCESSES AND DOCUMENTATION AND VA-WIDE INTEGRATION ENGINEERING PLANNING; AND ASSISTING WITH THE PERFORMANCE OF THE PROGRAM MANAGEMENT OFFICE DURING THE ONBOARDING PROCESS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20420

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $35.4 million to DELOITTE CONSULTING LLP for work described as: ::IGF::CL::IGF:: THE CONTRACTOR SHALL PROVIDE TECHNICAL AND NON-TECHNICAL SUPPORT SERVICES TO PROVIDE A BROAD RANGE OF TASKS IN SUPPORT OF THE OSP PS&IM MISSION. THE CONTRACTOR SHALL PROVIDE A TEAM OF HIGHLY SUCCESSFUL AND KNOWLEDGEABLE SUBJECT MATTER EXPERTS (SMES) TO PROVID… Key points: 1. Contract focuses on providing technical and non-technical support for the VA's Enterprise Program, Strategy, and Integration (PS&IM) mission. 2. Services encompass a broad range of tasks from strategic planning and program startup to execution and closeout. 3. The contractor is expected to provide subject matter experts to advise on program management best practices and standards. 4. This contract supports the evolution of the Program Management Office (PMO) structure and roles within the VA. 5. The contract was awarded under full and open competition, suggesting a competitive bidding process. 6. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 7. The duration of the contract is approximately 5 years, indicating a long-term need for these services.

Value Assessment

Rating: good

The contract value of $35.4 million over five years for IT support services appears reasonable given the scope of work. Benchmarking against similar IT consulting contracts for large federal agencies suggests this is within a typical range. The firm fixed-price structure indicates that the contractor bears the risk of cost overruns, which is generally favorable for the government. However, without specific details on the hourly rates or the number of personnel assigned, a precise 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 a bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment. A competitive process is expected to lead to better pricing and a wider selection of qualified contractors, ultimately benefiting the government by ensuring it receives the best value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages multiple companies to bid, driving down prices and ensuring the government secures services at a competitive market rate.

Public Impact

The primary beneficiary is the Department of Veterans Affairs, which will receive critical IT support to enhance its program management capabilities. Services delivered will include expert advice, development of program management best practices, processes, standards, and procedures. The geographic impact is primarily within the VA's enterprise, supporting its national mission. Workforce implications include the engagement of highly successful and knowledgeable subject matter experts from Deloitte Consulting LLP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical program management support could pose a risk if performance issues arise.
Ensuring consistent quality of subject matter experts throughout the contract duration.

Positive Signals

Award to a well-established contractor like Deloitte suggests a high likelihood of successful performance.
Firm fixed-price contract aligns incentives for cost control with the contractor.
Long-term contract duration allows for continuity of services and knowledge retention.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the IT services market supporting government operations. The total federal spending on IT services is in the hundreds of billions annually, with a substantial portion allocated to consulting and support functions. This contract represents a portion of the VA's investment in modernizing its program management and IT infrastructure, aligning with broader government trends towards digital transformation and efficient service delivery.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As a large contract awarded to Deloitte Consulting LLP, it is unlikely to directly benefit small businesses through set-asides. However, the prime contractor may engage small businesses as subcontractors, though this is not explicitly detailed in the available information. The impact on the small business ecosystem would depend on the subcontracting plans, if any.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Veterans Affairs. Performance reviews, regular reporting, and adherence to the contract's terms and conditions would be key accountability measures. Transparency is facilitated through contract award databases, but detailed performance metrics are usually internal to the agency. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA IT Modernization Initiatives
Federal IT Consulting Services
Program Management Support Contracts
Enterprise Resource Planning (ERP) Support
IT Services for Healthcare Agencies

Risk Flags

Potential for cost overruns if scope is not well-defined.
Contractor performance risk.
Dependence on key personnel.
Integration challenges with existing VA systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $35.4 million to DELOITTE CONSULTING LLP. ::IGF::CL::IGF:: THE CONTRACTOR SHALL PROVIDE TECHNICAL AND NON-TECHNICAL SUPPORT SERVICES TO PROVIDE A BROAD RANGE OF TASKS IN SUPPORT OF THE OSP PS&IM MISSION. THE CONTRACTOR SHALL PROVIDE A TEAM OF HIGHLY SUCCESSFUL AND KNOWLEDGEABLE SUBJECT MATTER EXPERTS (SMES) TO PROVIDE DIRECT EXPERT ADVICE AND TO SUPPORT THE PROVISION OR DEVELOPMENT OF PS&IM RELATED PROGRAM MANAGEMENT BEST PRACTICES, PROCESSES, STANDARDS, AND PROCEDURES MEETING THE REQUIREMENTS OF THE VA ENTERPRISE. SPECIFIC NEEDS R

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $35.4 million.

What is the period of performance?

Start: 2016-07-21. End: 2021-07-20.

What is the track record of Deloitte Consulting LLP in delivering similar IT support services to federal agencies?

Deloitte Consulting LLP has a long and extensive track record of providing IT support, consulting, and program management services to numerous federal agencies, including the Department of Veterans Affairs. They are a major player in the federal IT contracting space, often winning large, complex contracts. Their experience spans areas such as systems integration, cybersecurity, cloud migration, and digital transformation. While specific performance metrics for this particular contract are not publicly detailed, Deloitte's general reputation and past performance on similar large-scale government contracts suggest a capability to meet the requirements. However, as with any large contractor, past performance reviews and specific contract outcomes can vary.

How does the awarded amount of $35.4 million compare to similar IT support contracts awarded by the VA or other large federal agencies?

The awarded amount of $35.4 million over a five-year period for comprehensive IT and program management support services is within the expected range for large federal agencies like the VA. Similar contracts for IT consulting, systems integration, and program management support for agencies such as the Department of Defense, Health and Human Services, or Homeland Security can range from tens to hundreds of millions of dollars, depending on the scope, duration, and complexity. Given that this contract covers a broad spectrum of PS&IM mission support, including strategic planning and PMO evolution, the price appears competitive for the services rendered. The firm fixed-price nature also suggests a degree of cost certainty for the government.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this contract include potential scope creep, contractor performance issues, and reliance on key personnel. Scope creep can occur if the VA's requirements evolve significantly without proper change control, potentially leading to cost overruns (though mitigated by the firm fixed-price structure) or schedule delays. Contractor performance issues could arise if Deloitte fails to deliver the expected quality or expertise. Reliance on key personnel is a risk if critical subject matter experts leave the project. Mitigation strategies typically involve robust contract management by the VA, clear definition and management of requirements, performance monitoring, and contractual clauses addressing personnel qualifications and retention. The firm fixed-price nature inherently shifts some financial risk to the contractor.

How effective is the firm fixed-price (FFP) contract type in ensuring value for money for this IT support service?

The firm fixed-price (FFP) contract type is generally considered effective in ensuring value for money for IT support services when the scope of work is well-defined and unlikely to change significantly. Under an FFP contract, the contractor assumes the primary risk for cost overruns, incentivizing them to manage their resources efficiently and control costs. This provides the government with cost certainty. For services like IT support and program management, where the tasks and deliverables can be clearly articulated, FFP encourages the contractor to perform the work within the agreed-upon price. However, if the scope is highly uncertain or subject to frequent changes, an FFP contract might lead the contractor to build in higher contingency costs, potentially making it less cost-effective than other contract types like cost-plus.

What is the historical spending pattern for similar IT support services at the Department of Veterans Affairs?

The Department of Veterans Affairs has historically allocated significant funding towards IT services, including support, modernization, and program management. Spending in this area has been substantial, driven by the need to upgrade legacy systems, implement new technologies, and improve the efficiency of its vast healthcare and benefits systems. Contracts for IT consulting, software development, and systems integration are common. The VA has faced scrutiny regarding its IT spending and project execution in the past, leading to increased emphasis on effective contract management and oversight. This $35.4 million contract for PS&IM support aligns with the VA's ongoing efforts to enhance its program management capabilities, a critical component of its overall IT strategy and spending.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Financial Advisory Services LLP

Address: 1725 DUKE ST, ALEXANDRIA, VA, 22314

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

Financial Breakdown

Contract Ceiling: $35,449,230

Exercised Options: $35,449,230

Current Obligation: $35,449,230

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200018W

IDV Type: GWAC

Timeline