Treasury's $80.5M financial forensics support contract awarded to Deloitte & Touche LLP

Contract Overview

Contract Amount: $80,541,124 ($80.5M)

Contractor: Deloitte & Touche LLP

Awarding Agency: Department of the Treasury

Start Date: 2017-09-21

End Date: 2022-09-20

Contract Duration: 1,825 days

Daily Burn Rate: $44.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL::IGF - FINANCIAL FORENSICS SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20220

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $80.5 million to DELOITTE & TOUCHE LLP for work described as: IGF::CL::IGF - FINANCIAL FORENSICS SUPPORT Key points: 1. Contract awarded via BPA Call, indicating a pre-negotiated agreement for efficiency. 2. The contract duration of 1825 days suggests a long-term need for these services. 3. Fixed-price contract type helps manage cost certainty for the government. 4. The award was made under full and open competition, suggesting a robust bidding process. 5. The North American Industry Classification System (NAICS) code 541519 points to specialized IT services. 6. The contract was awarded to a single vendor, Deloitte & Touche LLP.

Value Assessment

Rating: good

The contract's total value of $80.5 million over five years averages to approximately $16.1 million annually. Benchmarking this against similar large-scale financial advisory and IT support contracts is challenging without more specific service details. However, the fixed-price nature of the contract suggests that the government aimed for cost predictability. The award to a single, well-established firm like Deloitte & Touche LLP, under full and open competition, implies a competitive process that likely yielded a fair market price for the specialized services required.

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 data shows two bids were received, suggesting a moderate level of competition for this specialized service. While two bidders is better than one, a higher number of bids could potentially drive prices lower and offer more innovative solutions. The process, however, adhered to principles of broad accessibility for potential contractors.

Taxpayer Impact: Full and open competition, even with a limited number of bids, generally benefits taxpayers by ensuring that the government explores a range of options and that the selected vendor is qualified and offers a competitive price. This approach helps prevent inflated costs that might arise from sole-source or limited competition scenarios.

Public Impact

The Department of the Treasury benefits from enhanced financial forensics capabilities. Services delivered likely support investigations, audits, and financial integrity initiatives. The contract's impact is primarily national, supporting federal financial oversight. Specialized IT and analytical skills are leveraged, potentially impacting the federal workforce in these areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bids) may have restricted price discovery.
Reliance on a single vendor for critical financial forensics support could pose a risk if performance issues arise.

Positive Signals

Awarded under full and open competition, ensuring broad access for potential bidders.
Fixed-price contract type provides cost certainty for the government.
Contract awarded to a reputable firm with extensive experience in financial services.

Sector Analysis

The contract falls within the professional, scientific, and technical services sector, specifically related to IT and financial consulting. This sector is characterized by high demand for specialized expertise in areas like data analysis, cybersecurity, and financial auditing. The market size for such services supporting federal agencies is substantial, with numerous large and small firms competing for government contracts. This particular award to Deloitte & Touche LLP represents a significant investment in specialized financial forensics capabilities, aligning with the Treasury's need for robust financial oversight and investigative support.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it detail subcontracting plans. Given the award to a large firm like Deloitte & Touche LLP and the specialized nature of financial forensics, it is possible that subcontracting opportunities for small businesses might exist, particularly for niche IT or data analysis support. However, without explicit information on small business participation goals or actual subcontracting awards, the direct impact on the small business ecosystem remains unclear.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Treasury's contracting officers and program managers. The contract's fixed-price nature provides a degree of financial oversight by setting the total cost upfront. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any financial impropriety or performance issues warrant investigation.

Related Government Programs

Financial Audit Services
IT Consulting Services
Forensic Accounting
Contract Audit Support
Financial Management Systems

Risk Flags

Limited number of bids received.
Potential for vendor lock-in due to specialized services.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $80.5 million to DELOITTE & TOUCHE LLP. IGF::CL::IGF - FINANCIAL FORENSICS SUPPORT

Who is the contractor on this award?

The obligated recipient is DELOITTE & TOUCHE LLP.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Departmental Offices).

What is the total obligated amount?

The obligated amount is $80.5 million.

What is the period of performance?

Start: 2017-09-21. End: 2022-09-20.

What specific types of financial forensics services are covered under this contract?

The contract, identified by NAICS code 541519 (Other Computer Related Services), suggests a focus on IT-enabled financial forensics. This could encompass a wide range of services including digital evidence collection and analysis, data mining for fraud detection, cybersecurity incident forensics, financial system vulnerability assessments, and support for investigations into financial crimes or irregularities. The specific deliverables would be detailed in the contract's statement of work, but generally, these services aim to provide the Treasury with the technical and analytical capabilities to uncover, analyze, and report on complex financial data, often in support of enforcement actions or internal controls.

How does the $80.5 million contract value compare to similar financial forensics support contracts awarded by the Treasury or other large federal agencies?

Direct comparison of the $80.5 million contract value is difficult without knowing the precise scope and duration of similar contracts. However, large federal agencies, particularly those dealing with significant financial transactions and regulatory oversight like the Treasury, often award multi-million dollar contracts for specialized IT and financial consulting services. Contracts for forensic accounting, fraud detection, and cybersecurity support can range from a few million to tens of millions annually, depending on the agency's needs and the complexity of the services. The five-year duration of this contract ($16.1M/year average) places it in the category of significant, long-term investments in critical support functions.

What are the key performance indicators (KPIs) or metrics used to evaluate Deloitte & Touche LLP's performance under this contract?

Specific Key Performance Indicators (KPIs) for this contract are not publicly detailed in the provided data. However, typical performance metrics for financial forensics and IT support contracts often include timeliness of deliverables, accuracy of analysis, adherence to security protocols, client satisfaction, and the effectiveness of findings in supporting investigations or audits. For a fixed-price contract, meeting the defined scope of work within the agreed-upon schedule and budget is paramount. The Treasury's contracting officer would be responsible for monitoring these aspects and ensuring that Deloitte & Touche LLP meets the contractual obligations.

What is the historical spending pattern for financial forensics support at the Department of the Treasury?

Analyzing historical spending patterns for financial forensics support at the Department of the Treasury requires access to detailed historical contract data beyond this single award. However, it is reasonable to infer that spending in this area has likely remained consistent or increased over time, given the growing complexity of financial markets, the rise in cyber threats, and the continuous need for robust financial oversight and fraud prevention. Agencies like the Treasury typically maintain ongoing needs for such specialized services, often through a mix of indefinite-delivery/indefinite-quantity (IDIQ) contracts, BPA calls, and specific task orders, reflecting a sustained investment in these capabilities.

What are the potential risks associated with awarding a large contract like this to a single vendor, even under full and open competition?

The primary risk associated with awarding a large contract to a single vendor, even after full and open competition, is vendor lock-in and potential over-reliance. If the vendor's performance declines, or if their pricing becomes uncompetitive in the future, the government may face challenges in switching providers due to the specialized nature of the services and the time/cost involved in re-competing. Additionally, a single vendor may have less incentive to innovate or offer cost reductions if they perceive minimal competitive threat. This risk is somewhat mitigated by the fixed-price structure and the initial competitive award, but long-term vigilance is necessary.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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 Consulting 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: $80,541,124

Exercised Options: $80,541,124

Current Obligation: $80,541,124

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $7,578,715

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: T17BPA005

IDV Type: BPA

Timeline