DOJ's DEA awards $11.3M contract to Deloitte for specialized data analytics support

Contract Overview

Contract Amount: $11,296,041 ($11.3M)

Contractor: Deloitte & Touche LLP

Awarding Agency: Department of Justice

Start Date: 2023-06-09

End Date: 2028-06-08

Contract Duration: 1,826 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 2023-0083 THIS DIVERSION CONTROL DIVISION REQUEST IS TO PLACE A NEW CALL ORDER ON SPECIALIZED DATA ANALYTICS SUPPORT SERVICES BPA 5DDHQ22A00000012.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $11.3 million to DELOITTE & TOUCHE LLP for work described as: 2023-0083 THIS DIVERSION CONTROL DIVISION REQUEST IS TO PLACE A NEW CALL ORDER ON SPECIALIZED DATA ANALYTICS SUPPORT SERVICES BPA 5DDHQ22A00000012. Key points: 1. Contract aims to enhance data analytics capabilities for the DEA. 2. Deloitte & Touche LLP, a major consulting firm, is the awardee. 3. The contract is a call order under an existing BPA, suggesting established relationships and pre-vetted capabilities. 4. The duration of the contract is five years, indicating a long-term need for these services. 5. The award is a Firm Fixed Price type, which shifts cost risk to the contractor. 6. The contract was awarded under full and open competition, implying a broad search for qualified vendors.

Value Assessment

Rating: good

The contract value of $11.3 million over five years for specialized data analytics support appears reasonable, especially given the contractor's established reputation. Benchmarking against similar large-scale data analytics contracts awarded by federal agencies suggests this pricing is within expected ranges. The firm fixed-price structure provides cost certainty for the government, although it relies on the contractor's accurate estimation of effort and risk.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the government sought proposals from all responsible sources. The presence of six bidders suggests a competitive environment for this type of specialized service. The competitive process likely contributed to achieving a fair market price and ensuring the selection of a capable contractor.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and a wider selection of qualified vendors, ultimately maximizing the value of federal spending.

Public Impact

The Drug Enforcement Administration (DEA) will benefit from enhanced data analytics capabilities. Services delivered will support the DEA's mission in combating drug trafficking and related criminal activities. The primary geographic impact is likely within the United States, supporting national law enforcement efforts. The contract may have implications for specialized data analytics professionals within the workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the specialized nature of the services and the long contract duration.
Reliance on a single contractor for critical data analytics functions could pose a risk if performance degrades.
The effectiveness of the data analytics will depend heavily on the quality of data provided and the DEA's ability to integrate the insights.

Positive Signals

Award to a reputable firm like Deloitte suggests a high likelihood of competent service delivery.
The use of an existing BPA streamlines the procurement process and potentially reduces administrative burden.
Firm Fixed Price contract type aligns incentives for efficient performance and cost control.

Sector Analysis

The federal IT services sector is a significant area of government spending, with a substantial portion dedicated to data analytics and related support. Agencies increasingly rely on advanced analytics to process vast amounts of information for decision-making, threat detection, and operational efficiency. This contract fits within the broader trend of federal agencies investing in data-driven capabilities to improve mission outcomes. Comparable spending benchmarks for specialized data analytics support services can vary widely based on scope, complexity, and contractor expertise, but contracts in the multi-million dollar range over several years are common for critical functions.

Small Business Impact

This contract was not set aside for small businesses and the awardee, Deloitte & Touche LLP, is a large business. There is no explicit mention of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal, though large prime contractors are often encouraged or required to have small business subcontracting plans on other contracts.

Oversight & Accountability

Oversight for this contract will likely be managed by the Drug Enforcement Administration's contracting officers and program managers. As a call order under an existing BPA, the initial vetting and oversight framework of the BPA would apply. 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 to the contract.

Related Government Programs

DEA Data Analytics Support Services
Department of Justice IT Services
Federal Data Analytics Contracts
BPA Call Orders
Deloitte Federal Contracts

Risk Flags

Long-term reliance on a single vendor for critical services.
Effectiveness dependent on DEA's ability to integrate and act on analytics.
Potential for scope creep if requirements are not clearly defined.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $11.3 million to DELOITTE & TOUCHE LLP. 2023-0083 THIS DIVERSION CONTROL DIVISION REQUEST IS TO PLACE A NEW CALL ORDER ON SPECIALIZED DATA ANALYTICS SUPPORT SERVICES BPA 5DDHQ22A00000012.

Who is the contractor on this award?

The obligated recipient is DELOITTE & TOUCHE LLP.

Which agency awarded this contract?

Awarding agency: Department of Justice (Drug Enforcement Administration).

What is the total obligated amount?

The obligated amount is $11.3 million.

What is the period of performance?

Start: 2023-06-09. End: 2028-06-08.

What is Deloitte & Touche LLP's track record with federal data analytics contracts?

Deloitte & Touche LLP has a significant and extensive track record of performing data analytics and IT support services for various federal agencies. They are a major player in the federal contracting space, consistently awarded large contracts across numerous departments, including defense, health, and justice. Their experience spans a wide range of analytical capabilities, from business intelligence and data warehousing to advanced analytics, AI, and machine learning applications. Federal agencies often select Deloitte for complex projects due to their established reputation, broad service offerings, and ability to deploy large teams of skilled personnel. While specific performance metrics for individual contracts are not publicly detailed, their continued success in winning competitive bids suggests a generally positive performance history and client satisfaction across the federal government.

How does the value of this contract compare to similar federal data analytics procurements?

The $11.3 million value over five years for specialized data analytics support services awarded to Deloitte & Touche LLP is within the expected range for federal contracts of this nature. Large federal agencies, such as the Department of Justice, frequently award contracts in the low to mid-millions annually for specialized IT and data analytics support. For instance, contracts for similar services supporting agencies like the FBI, IRS, or Department of Homeland Security often fall within this financial bracket. The five-year duration is also typical for strategic IT support, allowing for continuity and deeper integration of services. Factors influencing the value include the complexity of the data, the sophistication of the required analytics, the number of end-users, and the specific deliverables. Given Deloitte's standing and the scope implied by 'specialized data analytics support,' this award appears to be a standard, albeit significant, investment for the DEA.

What are the primary risks associated with this contract for the DEA?

The primary risks associated with this contract for the DEA include potential vendor lock-in, performance degradation, and the effective integration of analytical insights. Vendor lock-in is a risk because specialized data analytics often involves proprietary tools, methodologies, or deep institutional knowledge that can make transitioning to another vendor difficult and costly. Performance degradation is a concern with any long-term service contract; if Deloitte's performance falters, it could significantly impede the DEA's operations. Furthermore, the value of the contract is contingent on the DEA's ability to effectively utilize the insights generated by Deloitte's analytics. If the DEA lacks the internal capacity or strategic alignment to act on the findings, the investment may not yield its intended benefits. Ensuring clear performance metrics, regular reviews, and strong program management are crucial to mitigating these risks.

How does this contract align with the DEA's broader mission and technology strategy?

This contract directly aligns with the DEA's mission to combat drug trafficking and enforce U.S. drug laws. In the modern era, effective law enforcement relies heavily on sophisticated data analysis to identify patterns, predict trends, track illicit activities, and allocate resources efficiently. By procuring specialized data analytics support, the DEA is investing in capabilities that are crucial for staying ahead of evolving criminal networks. This likely supports their broader technology strategy, which increasingly emphasizes leveraging data as a strategic asset. Enhancing analytical capabilities can lead to more targeted investigations, better intelligence gathering, and improved operational planning, all of which are critical to the DEA's success in its complex and vital mission.

What are the historical spending patterns for data analytics support at the DEA or DOJ?

Historical spending patterns for data analytics support at the DEA and the broader Department of Justice (DOJ) indicate a consistent and growing investment in these capabilities. Agencies within the DOJ, including the DEA, have increasingly recognized the importance of data-driven decision-making and intelligence analysis. Over the past decade, there has been a discernible trend towards procuring more advanced analytics tools and services to process and interpret large volumes of data related to criminal activity, financial transactions, and operational intelligence. While specific historical figures for the DEA's data analytics support are not detailed here, the overall federal IT spending, and specifically analytics-related procurements, have seen substantial growth. Contracts of this nature, often awarded through Broad Agency Announcements (BAAs), Indefinite Delivery/Indefinite Quantity (IDIQ) vehicles, or existing BPA calls, are common and represent a significant portion of agency technology budgets.

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: 6

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: $27,999,170

Exercised Options: $27,999,170

Current Obligation: $11,296,041

Actual Outlays: $13,194,356

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15DDHQ22A00000009

IDV Type: BPA

Timeline