Treasury's $18.4M IT Enterprise Support Services contract awarded to Deloitte & Touche LLP

Contract Overview

Contract Amount: $18,372,773 ($18.4M)

Contractor: Deloitte & Touche LLP

Awarding Agency: Department of the Treasury

Start Date: 2021-07-09

End Date: 2024-07-08

Contract Duration: 1,095 days

Daily Burn Rate: $16.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT: CHIEF INFORMATION OFFICER ENTERPRISE SUPPORT SERVICES (CIO ESS) ORDER 1 // ITI/CYBER OPERATIONS & MAINTENANCE / DEVSECOPS.

Place of Performance

Location: VIENNA, FAIRFAX County, VIRGINIA, 22182

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $18.4 million to DELOITTE & TOUCHE LLP for work described as: IT: CHIEF INFORMATION OFFICER ENTERPRISE SUPPORT SERVICES (CIO ESS) ORDER 1 // ITI/CYBER OPERATIONS & MAINTENANCE / DEVSECOPS. Key points: 1. Contract awarded via BPA Call, indicating a pre-competed framework. 2. Fixed-price contract type suggests cost certainty for the government. 3. Performance period of three years with potential for extensions. 4. Contractor has a significant presence in federal IT services. 5. Services include IT/Cyber Operations & Maintenance and DevSecOps. 6. No small business set-aside, raising questions about broader economic impact.

Value Assessment

Rating: good

The contract value of $18.4 million over three years for IT enterprise support services appears reasonable given the scope. Benchmarking against similar large-scale IT support contracts within federal agencies suggests this pricing is competitive. The firm fixed-price structure provides cost predictability, which is a positive indicator of value for money. However, a detailed cost breakdown and comparison to specific market rates for DevSecOps and cyber operations would provide a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, likely through a Blanket Purchase Agreement (BPA) Call, which implies that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the full and open nature suggests a competitive process that should drive favorable pricing and service quality. This approach allows the government to leverage the best available solutions from the market.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that typically leads to better prices and innovative solutions.

Public Impact

Federal agencies, particularly the Bureau of the Fiscal Service, benefit from enhanced IT and cybersecurity operations. Services delivered include critical IT/Cyber Operations & Maintenance and DevSecOps capabilities. The geographic impact is primarily within Virginia, where the contractor is located. Workforce implications include skilled IT professionals employed by Deloitte & Touche LLP to fulfill the contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of transparency on the number of bidders in the full and open competition.
Potential for vendor lock-in if the BPA framework is heavily utilized.
Limited visibility into specific performance metrics and outcomes without further reporting.

Positive Signals

Awarded through a competitive process, indicating potential for good value.
Firm fixed-price contract type offers cost certainty.
Contractor's established presence suggests experience and capability in IT services.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on enterprise support, cybersecurity, and modern development practices (DevSecOps). The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. This contract represents a portion of the Treasury's overall IT spending, aiming to ensure the operational resilience and security of its critical systems. Comparable spending benchmarks would involve analyzing other large IT support contracts awarded to major IT consulting firms by various federal agencies.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting goals for small businesses. This suggests that the primary focus was on securing the most capable large vendor for these specialized IT services. While this may ensure robust service delivery, it limits opportunities for small businesses to participate directly in this particular contract, potentially impacting the broader small business IT ecosystem.

Oversight & Accountability

Oversight for this contract is likely managed by the Bureau of the Fiscal Service's contracting officers and program managers. The firm fixed-price nature provides some inherent oversight by limiting cost overruns. Transparency is dependent on the reporting requirements within the BPA and the specific call order. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse, but specific day-to-day oversight mechanisms are not detailed in the provided data.

Related Government Programs

Treasury IT Modernization Initiatives
Federal Cybersecurity Enhancement Programs
Enterprise IT Operations and Maintenance Contracts
DevSecOps Implementation Contracts

Risk Flags

Potential for scope creep in fixed-price contracts.
Reliance on a single large contractor for critical IT functions.
Limited visibility into specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $18.4 million to DELOITTE & TOUCHE LLP. IT: CHIEF INFORMATION OFFICER ENTERPRISE SUPPORT SERVICES (CIO ESS) ORDER 1 // ITI/CYBER OPERATIONS & MAINTENANCE / DEVSECOPS.

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 (Bureau of the Fiscal Service).

What is the total obligated amount?

The obligated amount is $18.4 million.

What is the period of performance?

Start: 2021-07-09. End: 2024-07-08.

What is Deloitte & Touche LLP's track record with similar federal IT support contracts?

Deloitte & Touche LLP is a major federal contractor with a significant history of providing IT services across various government agencies. They frequently win large-scale contracts for IT modernization, cybersecurity, cloud migration, and enterprise resource planning (ERP) systems. Their track record includes managing complex IT infrastructures and delivering specialized technical support. While specific performance metrics for past contracts are not publicly detailed, their continued success in winning competitive bids suggests a generally positive performance history. However, a deeper dive into past performance evaluations and any reported issues would provide a more comprehensive understanding of their reliability for this specific type of contract.

How does the $18.4 million value compare to similar IT enterprise support contracts?

The $18.4 million value for a three-year IT enterprise support contract is within the typical range for large federal IT service agreements. Contracts of this nature, especially those involving cybersecurity and DevSecOps, often run into tens or even hundreds of millions of dollars over their lifecycle, depending on the scope and duration. For instance, similar contracts for IT operations and maintenance at agencies like the Department of Defense or the General Services Administration can exceed this amount significantly. The firm fixed-price structure also suggests that the government has negotiated a defined cost for a specific set of services, making direct value comparison more straightforward than cost-plus contracts. However, without knowing the exact deliverables and service levels, a precise benchmark is challenging.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks include potential performance shortfalls by the contractor, cybersecurity vulnerabilities within the systems supported, and the risk of cost overruns if the fixed-price scope is not well-defined. Mitigation strategies likely involve robust performance monitoring by the Bureau of the Fiscal Service, adherence to strict cybersecurity protocols, and clear contract language defining deliverables and service level agreements (SLAs). The firm fixed-price nature itself acts as a mitigation against cost overruns, provided the scope is managed effectively. Additionally, the contractor's experience and the competitive award process are intended to reduce the risk of selecting an underqualified vendor. However, the dynamic nature of IT threats and evolving technological landscapes present ongoing risks.

How effective is the Bureau of the Fiscal Service in managing its IT contracts?

The effectiveness of the Bureau of the Fiscal Service (BFS) in managing its IT contracts can be inferred from its ability to secure and maintain critical IT infrastructure. Awarding contracts through full and open competition, as seen here, suggests a commitment to leveraging market capabilities. The use of firm fixed-price contracts indicates a focus on cost control. However, specific metrics on BFS's IT contract management effectiveness, such as on-time delivery rates, budget adherence across their portfolio, or successful adoption of new technologies, are not readily available in this data. Generally, federal agencies face challenges in IT modernization and cybersecurity, and BFS's performance would be assessed within that broader context, likely involving internal reviews and potentially oversight from the Treasury IG.

What are the historical spending patterns for IT enterprise support services at the Department of the Treasury?

Historical spending patterns for IT enterprise support services at the Department of the Treasury indicate a consistent and significant investment in maintaining and upgrading its technological infrastructure. Agencies like the Treasury rely heavily on IT for financial operations, data management, and cybersecurity. Spending in this area typically fluctuates based on modernization initiatives, cybersecurity threats, and the lifecycle of existing systems. Over the past several years, federal agencies, including Treasury, have seen increased spending on cloud services, cybersecurity solutions, and data analytics platforms. This $18.4 million contract is part of that ongoing investment, reflecting a sustained need for robust IT support to ensure the continuity and security of financial services.

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: 20341221R00006

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: $18,372,773

Exercised Options: $18,372,773

Current Obligation: $18,372,773

Actual Outlays: $18,372,773

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $7,437,315

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 20341221A00001

IDV Type: BPA

Timeline