DOJ's FBI awards $56.2M for Computer Systems Design, highlighting potential cost concerns
Contract Overview
Contract Amount: $56,209,593 ($56.2M)
Contractor: Deloitte Consulting LLP
Awarding Agency: Department of Justice
Start Date: 2019-05-15
End Date: 2022-06-14
Contract Duration: 1,126 days
Daily Burn Rate: $49.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: RPO STOR 193
Place of Performance
Location: HYATTSVILLE, PRINCE GEORGES County, MARYLAND, 20781
State: Maryland Government Spending
Plain-Language Summary
Department of Justice obligated $56.2 million to DELOITTE CONSULTING LLP for work described as: RPO STOR 193 Key points: 1. Significant contract value of $56.2M for IT services. 2. Competition was full and open, suggesting a competitive bidding process. 3. Potential risk identified in Time and Materials pricing structure. 4. IT sector spending benchmark needs further analysis for this specific service.
Value Assessment
Rating: questionable
The contract's Time and Materials (T&M) pricing structure, while common, can lead to cost overruns if not closely managed. Benchmarking against similar Computer Systems Design Services contracts is crucial to assess if the $56.2M award represents fair value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the T&M pricing model may limit price certainty for the government, potentially impacting the effectiveness of price discovery.
Taxpayer Impact: While competition is positive, the T&M pricing structure warrants vigilance to ensure taxpayer funds are used efficiently and effectively.
Public Impact
Law enforcement agencies rely on robust IT systems for operations. Contract supports critical functions of the Federal Bureau of Investigation. Potential for cost increases due to T&M pricing could impact budget allocations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Lack of specific performance metrics in provided data
- Potential for scope creep
Positive Signals
- Full and open competition
- Awarded to a well-known vendor
Sector Analysis
Computer Systems Design Services are a significant part of the IT sector, supporting government operations. Spending in this area is generally high, but specific benchmarks depend on the complexity and duration of the services provided.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
Oversight of Time and Materials contracts is critical to ensure costs remain within reasonable bounds and that services delivered align with the contract's objectives. The FBI's internal controls will be key.
Related Government Programs
- Computer Systems Design Services
- Department of Justice Contracting
- Federal Bureau of Investigation Programs
Risk Flags
- Potential for cost overruns due to T&M pricing.
- Lack of detailed performance metrics in the provided data.
- Dependence on vendor for critical IT systems.
- Potential for scope creep without strict management.
Tags
computer-systems-design-services, department-of-justice, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $56.2 million to DELOITTE CONSULTING LLP. RPO STOR 193
Who is the contractor on this award?
The obligated recipient is DELOITTE CONSULTING LLP.
Which agency awarded this contract?
Awarding agency: Department of Justice (Federal Bureau of Investigation).
What is the total obligated amount?
The obligated amount is $56.2 million.
What is the period of performance?
Start: 2019-05-15. End: 2022-06-14.
What specific computer systems design services were rendered, and how do they align with the FBI's mission objectives?
The contract specifies 'Computer Systems Design Services' (NAICS 541512). These services likely encompass the design, development, integration, and maintenance of complex IT systems essential for the FBI's investigative and operational functions. This could include software development, network architecture, cybersecurity solutions, and data management systems, all critical for modern law enforcement.
How effectively was the Time and Materials pricing structure managed to control costs and prevent potential overruns?
The effectiveness of T&M pricing hinges on robust government oversight, clear task definitions, and diligent monitoring of labor hours and material costs. Without detailed reporting on how these elements were managed, it's difficult to assess cost control. Regular audits and performance reviews are essential to mitigate risks associated with T&M.
What was the overall value proposition of this contract in terms of enhancing the FBI's technological capabilities?
The $56.2M award suggests a substantial investment aimed at significantly upgrading or maintaining critical IT infrastructure. The value proposition lies in enabling the FBI to leverage advanced technology for data analysis, communication, and operational efficiency. The success of this investment depends on the quality of services delivered and their alignment with evolving security and investigative needs.
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) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Deloitte Touche Tohmatsu Limited
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: $56,209,593
Exercised Options: $56,209,593
Current Obligation: $56,209,593
Actual Outlays: $56,706,748
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $14,353,469
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS35F0617Y
IDV Type: FSS
Timeline
Start Date: 2019-05-15
Current End Date: 2022-06-14
Potential End Date: 2024-06-14 00:00:00
Last Modified: 2022-08-24
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