Deloitte Consulting LLP awarded $31M for IT services, with a significant portion allocated to computer systems design

Contract Overview

Contract Amount: $31,038,018 ($31.0M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2011-08-05

End Date: 2013-02-28

Contract Duration: 573 days

Daily Burn Rate: $54.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT SERVICES

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $31.0 million to DELOITTE CONSULTING LLP for work described as: IT SERVICES Key points: 1. Contract value indicates substantial IT support requirements for the Department of the Army. 2. The fixed-price contract type suggests a defined scope and potential for cost control. 3. A single award for this delivery order implies a focused execution strategy. 4. The duration of the contract points to a long-term need for these services. 5. The specific NAICS code highlights a focus on complex computer systems integration. 6. The contract was awarded under full and open competition, suggesting a robust bidding process.

Value Assessment

Rating: good

The contract value of $31 million for IT services, specifically computer systems design, appears reasonable given the duration and the nature of the services. Benchmarking against similar large-scale IT support contracts for defense agencies suggests this falls within expected spending ranges. The firm fixed-price structure is generally favorable for the government when the scope is well-defined, as it shifts cost overrun risk to the contractor. Without specific details on the deliverables, a precise value-for-money assessment is challenging, but the competitive award process provides some assurance of fair pricing.

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 resulted in a single award delivery order suggests that while competition was broad, Deloitte Consulting LLP ultimately presented the most advantageous offer. The level of competition is a positive sign for price discovery and ensures the government receives competitive pricing.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

The Department of the Army benefits from enhanced IT capabilities and computer systems design services. Military operations and administrative functions are likely supported by these IT services. Personnel within the Department of the Army will utilize the systems and services provided. The contract supports the modernization and efficiency of the Army's IT infrastructure. Geographic impact is likely concentrated where the Department of the Army operates, primarily within Virginia. The contract supports a workforce of IT professionals and systems designers, potentially including subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements were not fully defined.
Dependence on a single contractor for critical IT systems design.
Risk of vendor lock-in if integration is highly specialized.

Positive Signals

Firm fixed-price contract helps manage cost certainty.
Awarded through full and open competition, indicating a competitive process.
Contract duration suggests a stable and predictable IT support environment.
Specific NAICS code points to specialized expertise in computer systems design.

Sector Analysis

The IT services sector, particularly computer systems design, is a critical component of government operations. This contract falls within the broader IT services market, which is characterized by rapid technological advancements and a high demand for specialized skills. The Department of Defense is a major consumer of these services, often requiring complex solutions for national security and operational needs. Spending in this category is substantial across federal agencies, with significant portions dedicated to system integration, software development, and IT consulting.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions, nor does it explicitly mention subcontracting goals for small businesses. As a large contract awarded to a major firm, the primary focus appears to be on the prime contractor's capabilities. Further analysis would be needed to determine if any subcontracting opportunities were mandated or voluntarily pursued by Deloitte Consulting LLP.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Performance monitoring, quality assurance, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense IT Services
Computer Systems Design Services
Army IT Modernization Programs
Federal IT Consulting Contracts

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Dependence on contractor expertise for critical system design.
Cybersecurity risks associated with new system development.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.0 million to DELOITTE CONSULTING LLP. IT SERVICES

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $31.0 million.

What is the period of performance?

Start: 2011-08-05. End: 2013-02-28.

What was the specific nature of the computer systems design services provided under this contract?

The provided data indicates the NAICS code 541512 for Computer Systems Design Services. This typically encompasses a wide range of activities, including analyzing client's business or scientific problems, designing and developing custom software and systems, and integrating hardware and software. For the Department of the Army, this could involve designing new command and control systems, modernizing existing battlefield management software, developing secure communication networks, or integrating various IT platforms to improve operational efficiency and data sharing. The $31 million value suggests a significant undertaking, likely involving complex system architecture, development, testing, and deployment phases.

How does the $31 million contract value compare to similar IT services contracts awarded by the Department of the Army?

The $31 million contract value for IT services, specifically computer systems design, awarded to Deloitte Consulting LLP is a substantial amount, reflecting a significant project. The Department of the Army frequently awards large IT contracts, often in the tens or hundreds of millions of dollars, for system modernization, cybersecurity, and operational support. This particular contract's value appears to be within the typical range for major IT system design and integration projects within a large federal agency. However, a precise comparison would require analyzing contracts with similar scopes, durations, and specific service categories (e.g., cloud migration, network infrastructure design, software development) awarded over a comparable timeframe.

What are the key performance indicators (KPIs) or metrics used to assess the success of this contract?

While the provided data does not specify the KPIs for this contract, typical performance metrics for computer systems design services awarded by the Department of the Army often include: timely delivery of milestones and final products, adherence to technical specifications and quality standards, successful system integration and testing, user satisfaction and adoption rates, and achievement of defined operational improvements (e.g., increased efficiency, reduced downtime, enhanced security). The firm fixed-price nature of the contract also implies that meeting the defined scope within budget is a primary performance indicator. Regular progress reports and formal acceptance reviews would be part of the oversight process.

What is Deloitte Consulting LLP's track record with the Department of the Army for IT services?

Deloitte Consulting LLP is a major federal contractor with a significant history of providing IT and consulting services across various government agencies, including the Department of Defense and its components like the Department of the Army. They have been awarded numerous contracts for complex IT solutions, system modernization, and strategic consulting. Their track record generally indicates extensive experience and capability in handling large-scale IT projects. Specific performance on past Army contracts would be detailed in contract performance reports (e.g., Contractor Performance Assessment Reporting System - CPARS), which are not publicly available in this dataset but are used in future source selections.

Were there any significant risks identified during the solicitation or award process for this contract?

The provided data does not detail specific risks identified during the solicitation or award process. However, common risks associated with large IT system design contracts include technical challenges in integrating complex systems, potential for schedule delays due to unforeseen issues, cybersecurity vulnerabilities, and contractor performance issues. The fact that it was awarded under full and open competition suggests that the government assessed various proposals and selected the one deemed most advantageous, likely considering risk mitigation strategies proposed by the bidders. The firm fixed-price nature also implies that cost-related risks were managed through the pricing structure.

How has spending on computer systems design services by the Department of the Army evolved over the past five years?

Historical spending data for computer systems design services by the Department of the Army would reveal trends in IT modernization efforts, cybersecurity investments, and operational support needs. Over the past five years, federal agencies, including the Army, have increasingly focused on digital transformation, cloud computing adoption, data analytics, and enhancing cybersecurity capabilities. This has likely led to sustained or increased spending in areas like computer systems design, particularly for integrating new technologies and modernizing legacy systems. Analyzing specific spending patterns would require access to historical contract databases and budget allocations for the Army's IT portfolio.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte LLP (UEI: 014127109)

Address: 4301 N FAIRFAX DR STE 210, ARLINGTON, VA, 22203

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

Financial Breakdown

Contract Ceiling: $31,038,018

Exercised Options: $31,038,018

Current Obligation: $31,038,018

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $678,229

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS00Q09BGD0018

IDV Type: GWAC

Timeline