Treasury's OCC awards $38.3M Deloitte contract for Enterprise Data Management Support Services

Contract Overview

Contract Amount: $38,280,888 ($38.3M)

Contractor: Deloitte & Touche LLP

Awarding Agency: Department of the Treasury

Start Date: 2021-10-01

End Date: 2026-07-31

Contract Duration: 1,764 days

Daily Burn Rate: $21.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: IT

Official Description: ENTERPRISE DATA MANAGEMENT (EDM) SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20219

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $38.3 million to DELOITTE & TOUCHE LLP for work described as: ENTERPRISE DATA MANAGEMENT (EDM) SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1764 days indicates a long-term need for these services. 3. The award to Deloitte & Touche LLP, a large established firm, suggests a focus on experience and capability. 4. The North American Industry Classification System (NAICS) code 541519 points to specialized IT services. 5. The contract's value of $38.3 million over its term warrants scrutiny for cost-effectiveness. 6. The delivery order type suggests this is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: fair

Benchmarking the value of this $38.3 million contract for Enterprise Data Management (EDM) Support Services is challenging without specific performance metrics or comparable contract data. The contract is structured on a labor hours basis, which can sometimes lead to cost overruns if not managed tightly. However, the duration of nearly five years suggests a stable, albeit potentially high, overall cost for sustained support. Further analysis would require understanding the specific deliverables and comparing the hourly rates to market benchmarks for similar specialized IT services.

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 presence of two bids suggests a moderate level of competition for this specific award. While full and open competition is generally preferred for maximizing price discovery and ensuring fair market value, the low number of bidders could imply a niche market or high barriers to entry for potential competitors.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in a full and open process, though the limited number of bidders may have constrained the extent of this benefit.

Public Impact

The Office of the Comptroller of the Currency (OCC) within the Department of the Treasury is the primary beneficiary, receiving essential data management support. The services delivered are critical for maintaining and improving the government's ability to manage and utilize its data assets effectively. The contract is geographically focused on the District of Columbia, where the OCC is headquartered. The contract likely supports a team of specialized IT professionals, impacting the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep due to labor hours contract structure if not rigorously managed.
Limited competition (2 bidders) may have reduced the downward pressure on pricing.
Long contract duration could lead to vendor lock-in if not carefully monitored.
Dependence on a single contractor for critical data management functions poses a risk.

Positive Signals

Awarded through full and open competition, adhering to best practices for government contracting.
Contractor (Deloitte & Touche LLP) is a well-established firm with significant experience in IT services.
Clear contract duration provides predictability for budgeting and resource planning.
Focus on Enterprise Data Management is crucial for modern government operations and data security.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on data management. The market for enterprise data management solutions is substantial and growing, driven by increasing data volumes and the need for advanced analytics and compliance. Comparable spending benchmarks in this area often vary widely based on the scope of services, complexity of data environments, and the specific technologies employed. Government agencies increasingly rely on specialized support services to manage vast datasets, ensure data integrity, and leverage data for decision-making.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false and 'sb': false. The award to a large, established firm like Deloitte & Touche LLP suggests that subcontracting opportunities for small businesses may exist, but this is not guaranteed or mandated by the contract structure itself. The primary focus is on securing specialized expertise, which often resides with larger prime contractors. Further investigation into Deloitte's subcontracting plan would be necessary to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would primarily reside with the Office of the Comptroller of the Currency (OCC) contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through federal procurement databases like FPDS-NG, which record contract awards. Inspector General jurisdiction would typically fall under the Treasury Inspector General, who investigates fraud, waste, and abuse in federal programs.

Related Government Programs

Federal Data Strategy
IT Modernization Initiatives
Cloud Computing Services
Cybersecurity Support Services
Financial Data Analytics

Risk Flags

Potential for cost overruns due to labor hours pricing model.
Limited competition may have reduced price optimization.
Long contract duration increases risk of vendor lock-in.
Dependence on a single vendor for critical data management.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $38.3 million to DELOITTE & TOUCHE LLP. ENTERPRISE DATA MANAGEMENT (EDM) 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 the Treasury (Office of the Comptroller of the Currency).

What is the total obligated amount?

The obligated amount is $38.3 million.

What is the period of performance?

Start: 2021-10-01. End: 2026-07-31.

What specific enterprise data management capabilities does this contract aim to enhance for the OCC?

This contract aims to provide comprehensive support services for the Office of the Comptroller of the Currency's (OCC) Enterprise Data Management (EDM) program. While the specific deliverables are not detailed in the provided data, typical EDM support services include data governance, data quality management, metadata management, data architecture, data integration, master data management, and data warehousing support. The goal is to ensure the OCC can effectively collect, store, manage, secure, and utilize its data assets to support its regulatory and operational functions. This includes improving data accuracy, accessibility, and consistency across various systems, which is crucial for financial oversight and risk management.

How does the $38.3 million contract value compare to similar EDM support contracts within the federal government?

Comparing the $38.3 million value for 1764 days (approximately 4.8 years) requires context on the scope and specific services. Federal EDM contracts can range significantly, from a few million dollars for specialized projects to hundreds of millions for large-scale enterprise-wide implementations. Given this contract is for 'support services' rather than a full system implementation, and awarded via delivery order, it likely represents ongoing operational and maintenance support, potentially for an existing EDM framework. The average annual value is roughly $8 million. This figure is within a reasonable range for specialized IT support for a significant bureau like the OCC, but a precise benchmark would necessitate comparing it against contracts with identical or highly similar service scopes, labor categories, and geographic requirements.

What are the primary risks associated with a long-term, labor-hours-based IT support contract like this one?

The primary risks associated with a long-term, labor-hours-based IT support contract include potential cost overruns if work effort is not accurately estimated or managed efficiently. The 'labor hours' model means the government pays for the time spent by contractor personnel, making it susceptible to scope creep and inefficient work practices if not closely monitored. Additionally, a long duration (1764 days) can lead to vendor lock-in, making it difficult and costly to switch providers if performance degrades or needs change significantly. There's also a risk of skill obsolescence if the contractor's team doesn't stay current with evolving technologies. Finally, dependence on a single vendor for critical data management functions can pose operational risks.

What does the limited number of bidders (2) in a full and open competition suggest about the market for these services?

The fact that only two bids were received under a 'full and open competition' for this Enterprise Data Management (EDM) Support Services contract suggests several possibilities about the market. It could indicate a highly specialized niche within the IT services sector where only a few firms possess the required expertise, security clearances, and past performance. Alternatively, the contract's specific requirements, location (District of Columbia), or security demands might have deterred a larger number of potential bidders. It might also suggest that the perceived value or profitability of this particular contract was not attractive enough to draw more competition, or that the bidding process itself was complex. This limited competition could potentially impact price discovery, although the 'full and open' nature ensures fairness in the process.

How does the contractor's track record (Deloitte & Touche LLP) influence the assessment of this contract's success potential?

Deloitte & Touche LLP is a globally recognized professional services firm with extensive experience in information technology, consulting, and data management. Their established track record suggests a high likelihood of possessing the necessary technical expertise, project management capabilities, and financial stability to successfully execute this contract. Government agencies often award contracts to large, reputable firms like Deloitte based on their demonstrated past performance and ability to handle complex requirements. While a strong track record reduces the risk of contractor failure, it does not eliminate the need for diligent government oversight to ensure performance aligns with contract expectations and delivers value for money.

What are the potential implications of this contract for data governance and compliance within the OCC?

This contract is likely to have significant positive implications for data governance and compliance within the OCC. Effective Enterprise Data Management (EDM) is foundational to robust data governance frameworks, which establish policies, standards, and processes for managing data assets. By providing support services for EDM, the contractor can help the OCC improve data quality, ensure data lineage tracking, implement data security controls, and maintain compliance with relevant regulations (e.g., financial regulations, privacy laws). Enhanced data management capabilities enable better data stewardship, reduce risks associated with data breaches or non-compliance, and support more reliable data for regulatory reporting and decision-making.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 2031JW21Q00083

Offers Received: 2

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: $43,844,410

Exercised Options: $43,844,410

Current Obligation: $38,280,888

Actual Outlays: $33,180,575

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F029DA

IDV Type: FSS

Timeline