Deloitte Consulting awarded $39.2M for Defense Health Agency IT support, with EO14042 inclusion

Contract Overview

Contract Amount: $39,237,695 ($39.2M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2021-11-16

End Date: 2026-02-15

Contract Duration: 1,552 days

Daily Burn Rate: $25.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: EO14042 INCLUDED IN THIS AWARD THAT SUPPORTS THE DEFENSE HEALTH AGENCY'S DEPUTY ASSISTANT DIRECTOR FOR INFORMATION OPERATIONS/J6 WITH BUSINESS AND PROGRAM ANALYSIS SUPPORT

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $39.2 million to DELOITTE CONSULTING LLP for work described as: EO14042 INCLUDED IN THIS AWARD THAT SUPPORTS THE DEFENSE HEALTH AGENCY'S DEPUTY ASSISTANT DIRECTOR FOR INFORMATION OPERATIONS/J6 WITH BUSINESS AND PROGRAM ANALYSIS SUPPORT Key points: 1. Contract provides essential business and program analysis support to the Defense Health Agency's information operations. 2. The award is a delivery order under a larger contract, indicating a phased approach to service delivery. 3. The contract duration of 1552 days suggests a long-term need for these specialized services. 4. The fixed-price contract type aims to control costs and provide predictability for the agency. 5. The inclusion of EO14042 highlights a focus on workforce safety and compliance within the contract. 6. The primary contractor, Deloitte Consulting LLP, is a major player in government contracting.

Value Assessment

Rating: good

The contract value of $39.2 million over approximately 4 years appears reasonable for specialized IT and program analysis support within a large federal agency like the Defense Health Agency. Benchmarking against similar contracts for business and program analysis services for defense agencies would provide a more precise value-for-money assessment. However, the fixed-price nature of the contract suggests an effort to manage costs effectively. The specific services delivered and their impact on operational efficiency will be key indicators of true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is generally expected to yield fair market pricing and encourage innovation. The number of bidders and the specific evaluation criteria would further inform the degree of competition and its impact on the final award price and terms.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it promotes a level playing field, drives down costs through competitive bidding, and ensures the government receives the best possible value for its investment.

Public Impact

The Defense Health Agency benefits from enhanced business and program analysis capabilities, improving operational efficiency and decision-making. Information operations within the agency are supported, potentially leading to better data management and system performance. The contract supports the agency's mission to provide healthcare services to military personnel and their families. Workforce implications include the potential for employment opportunities within Deloitte Consulting and its subcontractors, particularly in areas of IT, program management, and analysis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single large contractor may limit flexibility in adapting to rapidly changing IT needs.
Ensuring effective knowledge transfer and continuity of services throughout the contract period.

Positive Signals

Award to a well-established contractor with a proven track record in government IT services.
Fixed-price contract type provides cost certainty for the government.
Inclusion of EO14042 demonstrates commitment to workforce safety and compliance.
Long contract duration allows for sustained support and development of expertise.

Sector Analysis

This contract falls within the Information Technology (IT) and professional services sector, specifically focusing on computer systems design and related services. The federal IT services market is substantial, with agencies continually investing in modernization, cybersecurity, and data analytics. This contract for business and program analysis support is crucial for the Defense Health Agency's operational effectiveness, aligning with broader government efforts to improve IT infrastructure and service delivery within the healthcare domain.

Small Business Impact

The provided 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 arising from a specific set-aside. However, as a large prime contractor, Deloitte Consulting may engage small businesses as subcontractors for specialized services, contributing to the broader small business ecosystem. The extent of small business participation would depend on Deloitte's subcontracting plan.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Defense Health Agency. Performance monitoring, regular reporting, and adherence to contract terms are standard oversight mechanisms. The inclusion of EO14042 also implies oversight related to workforce safety and compliance. Transparency is generally maintained through contract databases and reporting requirements, though specific internal oversight details are not publicly available.

Related Government Programs

Defense Health Agency IT Modernization Programs
Department of Defense Business and Program Analysis Services
Federal IT Consulting Contracts
Information Operations Support Contracts

Risk Flags

Potential for vendor lock-in due to long-term contract.
Dependency on contractor expertise for critical functions.
Ensuring compliance with evolving federal mandates (e.g., EO14042).

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.2 million to DELOITTE CONSULTING LLP. EO14042 INCLUDED IN THIS AWARD THAT SUPPORTS THE DEFENSE HEALTH AGENCY'S DEPUTY ASSISTANT DIRECTOR FOR INFORMATION OPERATIONS/J6 WITH BUSINESS AND PROGRAM ANALYSIS SUPPORT

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 $39.2 million.

What is the period of performance?

Start: 2021-11-16. End: 2026-02-15.

What is Deloitte Consulting LLP's track record with the Department of Defense and specifically the Defense Health Agency?

Deloitte Consulting LLP has a significant and long-standing track record of providing a wide range of services to the Department of Defense (DoD) and its various components, including the Defense Health Agency (DHA). Their engagements often span IT modernization, cybersecurity, financial management, program management, and strategic consulting. For the DHA, Deloitte has historically supported efforts related to electronic health records, data analytics, and operational efficiency. Their extensive experience with federal agencies, particularly within the defense and health sectors, suggests a deep understanding of the complex regulatory, technical, and operational environments. This background positions them as a capable provider for the business and program analysis support required under this contract.

How does the $39.2 million contract value compare to similar IT support contracts for federal health agencies?

The $39.2 million contract value for business and program analysis support to the Defense Health Agency over approximately four years is within a typical range for specialized IT services provided to large federal health organizations. Comparable contracts for IT modernization, system integration, and strategic consulting for agencies like the Veterans Affairs or other branches of the DoD can range from tens to hundreds of millions of dollars, depending on the scope and duration. Factors such as the specific services (e.g., advanced analytics vs. basic IT support), the complexity of the systems involved, and the level of expertise required influence the overall cost. Given the critical nature of information operations within a health agency, this investment appears aligned with industry benchmarks for similar support.

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, where requirements may expand beyond the initial agreement, leading to cost overruns or delays. Another risk is the reliance on a single contractor, which could impact flexibility and innovation. Technical risks related to integrating new solutions or maintaining existing systems are also present. Mitigation strategies likely involve robust contract management, clearly defined performance metrics, regular progress reviews, and strong communication channels between the DHA and Deloitte. The fixed-price nature of the contract incentivizes the contractor to manage costs effectively. Furthermore, the inclusion of EO14042 addresses workforce-related compliance risks.

How effective is the Defense Health Agency in leveraging IT support contracts to improve healthcare delivery and operational efficiency?

The Defense Health Agency (DHA) has increasingly relied on IT support contracts to drive improvements in healthcare delivery and operational efficiency. Contracts like this one, focusing on business and program analysis, are crucial for optimizing workflows, managing complex data, and supporting strategic decision-making. The DHA's ongoing efforts in areas such as the Military Health System Electronic Health Record (MHS GENESIS) and data analytics platforms demonstrate a commitment to leveraging technology. The effectiveness of these contracts is measured by their ability to enhance patient care coordination, improve data security, streamline administrative processes, and provide actionable insights for leadership. Success hinges on clear requirements, strong contractor performance, and effective government oversight.

What are the historical spending patterns for business and program analysis support at the Defense Health Agency?

Historical spending patterns for business and program analysis support at the Defense Health Agency (DHA) reflect a consistent and significant investment in these areas due to the complexity of military healthcare operations. While specific historical dollar amounts for this exact service category are not detailed in the provided data, the DHA's overall IT and professional services budget is substantial. Agencies like the DHA typically allocate considerable resources to ensure efficient operations, strategic planning, and effective program management. Spending in this area has likely grown over time, driven by increasing data volumes, evolving technological capabilities, and the need for sophisticated analysis to support healthcare policy and delivery within the DoD.

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

Solicitation ID: W81XWH21R0056

Offers Received: 1

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: $48,744,870

Exercised Options: $41,596,155

Current Obligation: $39,237,695

Actual Outlays: $58,487

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $338,714

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCK18D0029

IDV Type: GWAC

Timeline