Treasury's IRS awards Deloitte $23.7M for IT services under EDCMO BPA

Contract Overview

Contract Amount: $23,727,223 ($23.7M)

Contractor: Deloitte & Touche LLP

Awarding Agency: Department of the Treasury

Start Date: 2023-08-02

End Date: 2024-08-01

Contract Duration: 365 days

Daily Burn Rate: $65.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TASK ORDER AGAINST ENTERPRISE DIGITALIZATION & CASE MANAGEMENT OFFICE (EDCMO) BPA 2032H8-21-A-00015

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $23.7 million to DELOITTE & TOUCHE LLP for work described as: TASK ORDER AGAINST ENTERPRISE DIGITALIZATION & CASE MANAGEMENT OFFICE (EDCMO) BPA 2032H8-21-A-00015 Key points: 1. Contract value represents a significant investment in IT modernization. 2. Full and open competition suggests a robust bidding process. 3. Potential for cost efficiencies through a task order against an existing BPA. 4. Fixed-price contract shifts performance risk to the contractor. 5. Contract duration of one year allows for agile adjustments. 6. Focus on 'Other Computer Related Services' indicates a broad IT support scope.

Value Assessment

Rating: good

The contract value of $23.7 million for a one-year duration appears reasonable for comprehensive IT services. Benchmarking against similar task orders under enterprise-wide agreements would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government when scope is well-defined, as it caps potential cost overruns.

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 specific number of bidders is not provided, but the designation suggests a competitive environment that should drive price discovery and potentially lead to better value for the government.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by encouraging lower prices and better service offerings from contractors.

Public Impact

Benefits the Internal Revenue Service by enhancing its digital infrastructure and case management capabilities. Delivers essential IT support services crucial for the agency's operations. Geographic impact is primarily within the IRS's operational footprint, likely supporting federal employees. Workforce implications may include the need for specialized IT skills within the IRS or reliance on Deloitte's expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Scope creep risk if 'Other Computer Related Services' is not tightly defined.
Potential for vendor lock-in if this task order leads to further reliance on Deloitte's specific solutions.

Positive Signals

Awarded under a broad enterprise BPA, suggesting pre-qualification and streamlined acquisition.
Firm-fixed-price contract provides cost certainty for the government.
One-year base period allows for performance evaluation before potential extensions.

Sector Analysis

This contract falls within the Information Technology sector, specifically 'Other Computer Related Services'. The IT services market is highly competitive, with significant government spending allocated to modernization and digital transformation efforts across various agencies. Comparable spending benchmarks for similar IT support task orders under large enterprise agreements can range widely depending on scope and duration.

Small Business Impact

The contract was not set aside for small businesses, and the prime contractor, Deloitte & Touche LLP, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Further analysis would be needed to determine if small business participation is mandated or encouraged through subcontracting opportunities.

Oversight & Accountability

Oversight will likely be managed by the IRS contracting officer and program officials responsible for the EDCMO BPA. Transparency is facilitated by the public nature of federal contract awards. Accountability is tied to the firm-fixed-price terms and performance expectations outlined in the task order.

Related Government Programs

Enterprise Digitalization & Case Management Office (EDCMO) BPA
IRS IT Modernization Initiatives
Department of the Treasury IT Services Contracts

Risk Flags

Scope definition risk due to broad NAICS code
Potential for cost escalation if performance issues arise under fixed-price contract

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $23.7 million to DELOITTE & TOUCHE LLP. TASK ORDER AGAINST ENTERPRISE DIGITALIZATION & CASE MANAGEMENT OFFICE (EDCMO) BPA 2032H8-21-A-00015

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 (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $23.7 million.

What is the period of performance?

Start: 2023-08-02. End: 2024-08-01.

What is the historical spending pattern for the EDCMO BPA?

The provided data only details a single task order against the EDCMO BPA. To understand the historical spending pattern, one would need to examine all task orders issued under this BPA since its inception. This would involve analyzing the total value, number of awards, and types of services procured. Without this broader context, it's difficult to assess if this $23.7 million award is typical, an outlier, or indicative of increasing investment in the BPA's scope. Accessing the contract award database or agency procurement reports would be necessary to compile this historical data and identify trends in spending under the EDCMO BPA.

How does the per-unit cost of services compare to market rates for 'Other Computer Related Services'?

The provided data does not include specific details on the units of service or labor categories associated with this $23.7 million task order. Therefore, a direct per-unit cost comparison to market rates for 'Other Computer Related Services' is not feasible with the given information. To perform this analysis, one would need the detailed breakdown of hours, labor rates, and specific services rendered as per the task order's CLINs (Contract Line Item Numbers). Benchmarking would then involve comparing these detailed rates against industry surveys, GSA schedules, or other government contract data for similar IT support services. Without this granular data, any assessment of value for money based on per-unit cost remains speculative.

What is Deloitte & Touche LLP's track record with the IRS and Treasury?

Deloitte & Touche LLP is a major federal contractor with a significant history of providing a wide range of professional services, including IT, consulting, and financial management, to various government agencies, including the Department of the Treasury and its bureaus like the IRS. Their track record typically involves large-scale system implementations, cybersecurity services, and advisory support. While specific performance metrics for this particular task order are not yet available due to its recent award, Deloitte's extensive experience suggests a capacity to handle complex IT requirements. A deeper dive into past performance evaluations and contract awards for Deloitte with the IRS would provide more specific insights into their reliability and effectiveness in similar engagements.

What are the key performance indicators (KPIs) for this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this specific task order. Typically, KPIs for IT services contracts focus on aspects such as system uptime, response times for issue resolution, project milestone completion, adherence to security protocols, and user satisfaction. These metrics are usually detailed within the Performance Work Statement (PWS) or Statement of Work (SOW) of the contract. The effectiveness of this contract will be measured against these defined KPIs, ensuring that Deloitte & Touche LLP delivers the agreed-upon IT services to the IRS according to the established standards and timelines.

Are there any specific risks associated with the 'Other Computer Related Services' NAICS code?

The NAICS code 541519, 'Other Computer Related Services,' is broad and encompasses a wide array of IT services beyond standard software development or hardware maintenance. Risks associated with this code can include scope ambiguity if the specific services are not clearly defined in the task order, leading to potential cost overruns or disputes. There's also a risk of selecting a contractor whose expertise might be too general, potentially impacting the quality of highly specialized services. Ensuring a detailed Statement of Work (SOW) with clear deliverables, acceptance criteria, and performance standards is crucial to mitigate these risks. The government's oversight and project management will be key to managing the inherent breadth of this NAICS code.

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

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: $24,800,548

Exercised Options: $23,727,223

Current Obligation: $23,727,223

Actual Outlays: $23,727,223

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 2032H821A00015

IDV Type: BPA

Timeline