DOJ's FBI Awards $8.4M Contract for IT Services to Deloitte & Touche LLP
Contract Overview
Contract Amount: $8,457,142 ($8.5M)
Contractor: Deloitte & Touche LLP
Awarding Agency: Department of Justice
Start Date: 2022-05-03
End Date: 2025-10-31
Contract Duration: 1,277 days
Daily Burn Rate: $6.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: LABOR HOURS
Sector: IT
Official Description: ADMINISTRATIVE AND PROFESSIONAL SUPPORT SERVICES
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209
State: Virginia Government Spending
Plain-Language Summary
Department of Justice obligated $8.5 million to DELOITTE & TOUCHE LLP for work described as: ADMINISTRATIVE AND PROFESSIONAL SUPPORT SERVICES Key points: 1. Contract awarded to a large, well-established firm, indicating potential for high-quality service delivery. 2. The contract falls under 'Other Computer Related Services,' a broad category with significant government spending. 3. Potential risk associated with the long duration and labor-hour pricing, which can lead to cost overruns. 4. The IT services sector is highly competitive, but specific niche services may have fewer qualified bidders.
Value Assessment
Rating: good
The contract's value of $8.4M over approximately 3.5 years suggests a moderate annual spend. Benchmarking against similar IT services contracts is difficult without more specific service details, but the pricing appears within a reasonable range for specialized support.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. The use of a BPA Call indicates a pre-competed framework was leveraged, potentially streamlining the process and ensuring fair market prices were considered.
Taxpayer Impact: Full and open competition is intended to secure the best value for taxpayers by encouraging multiple bids and driving down costs.
Public Impact
Ensures continued IT support for critical FBI operations. Supports a major consulting firm, potentially impacting employment within the professional services sector. Taxpayer funds are allocated for essential administrative and professional support services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Labor hour pricing can lead to unpredictable costs.
- Long contract duration may not adapt to evolving IT needs.
- Lack of small business participation noted.
Positive Signals
- Awarded via full and open competition.
- Utilizes a pre-competed BPA Call.
- Supports a reputable contractor.
Sector Analysis
The IT services sector is a significant area of government spending, with agencies relying heavily on contractors for specialized expertise. Benchmarks vary widely based on service type, but administrative and professional support services are common across many agencies.
Small Business Impact
The data indicates this contract did not involve small businesses, either as prime contractors or subcontractors. Agencies are encouraged to maximize small business participation, and this contract's structure may represent a missed opportunity for smaller, specialized IT firms.
Oversight & Accountability
The contract falls under the Department of Justice's oversight, with the FBI as the specific agency. Standard procurement regulations and oversight mechanisms should apply, but the long duration warrants monitoring for performance and cost adherence.
Related Government Programs
- Other Computer Related Services
- Department of Justice Contracting
- Federal Bureau of Investigation Programs
Risk Flags
- Labor hour pricing
- Long contract duration
- No small business participation
- Broad service category (potential for scope creep)
Tags
other-computer-related-services, department-of-justice, va, bpa-call, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $8.5 million to DELOITTE & TOUCHE LLP. ADMINISTRATIVE AND PROFESSIONAL SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is DELOITTE & TOUCHE 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 $8.5 million.
What is the period of performance?
Start: 2022-05-03. End: 2025-10-31.
What specific IT services are being provided under this contract, and how do they align with the FBI's strategic objectives?
The contract is categorized under 'Other Computer Related Services' (NAICS 541519). While the specific services are not detailed, this category typically includes IT consulting, system integration, and IT support. Understanding the precise deliverables is crucial to assess their alignment with the FBI's mission and to ensure the value proposition is maximized.
What are the potential risks associated with the labor hour pricing model for this contract, and how are they being mitigated?
Labor hour pricing can lead to cost uncertainty and potential overruns if not carefully managed. Mitigation strategies likely include detailed task orders, regular performance reviews, and potentially established ceilings or not-to-exceed limits within the BPA Call. Robust oversight is essential to control costs and ensure efficiency.
How does the FBI ensure effective oversight and accountability for a contract of this duration and value, particularly concerning performance and cost control?
Effective oversight typically involves dedicated contract officers, regular performance metrics tracking, and periodic reviews of contractor deliverables and expenditures. For a contract spanning over three years, establishing clear milestones, regular reporting requirements, and a strong communication channel with Deloitte & Touche LLP are critical for maintaining accountability and ensuring the FBI receives optimal value.
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
Solicitation ID: 15F06722Q0000164
Pricing Type: LABOR HOURS (Z)
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: $9,002,142
Exercised Options: $9,002,142
Current Obligation: $8,457,142
Actual Outlays: $6,173,596
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: DJF171200S0000590
IDV Type: BPA
Timeline
Start Date: 2022-05-03
Current End Date: 2025-10-31
Potential End Date: 2025-10-31 00:00:00
Last Modified: 2025-12-04
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