CDC's $48.8M Transformation Contract Awarded to Deloitte Consulting LLP for HR Consulting Services

Contract Overview

Contract Amount: $48,851,244 ($48.9M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Office of Personnel Management

Start Date: 2022-09-21

End Date: 2027-09-21

Contract Duration: 1,826 days

Daily Burn Rate: $26.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CDC-NCCDPHP, ORGANIZATIONAL AND CUSTOMER-CENTRIC TRANSFORMATION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20015

State: District of Columbia Government Spending

Plain-Language Summary

Office of Personnel Management obligated $48.9 million to DELOITTE CONSULTING LLP for work described as: CDC-NCCDPHP, ORGANIZATIONAL AND CUSTOMER-CENTRIC TRANSFORMATION Key points: 1. Significant investment in organizational and customer-centric transformation by the CDC. 2. Deloitte Consulting LLP, a major player, secured the contract. 3. The contract spans five years, indicating a long-term strategic initiative. 4. Full and open competition was utilized, suggesting a robust procurement process.

Value Assessment

Rating: fair

The contract value of $48.8M over five years for HR consulting services appears substantial. Benchmarking against similar large-scale transformation projects is necessary to fully assess its value proposition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery. However, the specific pricing structure and the number of bids received would provide a clearer picture of competitive pressure.

Taxpayer Impact: Taxpayer funds are being utilized for a significant organizational transformation initiative. The ultimate impact on efficiency and service delivery will determine the long-term value for taxpayers.

Public Impact

Enhances CDC's internal operations and customer service capabilities. Potential for improved public health program delivery through better organizational efficiency. Long-term investment in modernizing federal human resources functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration and value warrant close monitoring for scope creep and cost overruns.
Ensuring clear deliverables and performance metrics are crucial for success.

Positive Signals

Full and open competition promotes fairness and potentially better pricing.
Focus on transformation suggests a strategic commitment to modernization.

Sector Analysis

The contract falls under Human Resources Consulting Services, a common area for federal agencies seeking to improve efficiency and modernize operations. Spending in this sector can vary widely based on agency size and transformation scope.

Small Business Impact

The data does not indicate any specific subcontracting goals or participation from small businesses in this contract. Further investigation would be needed to determine the extent of small business involvement.

Oversight & Accountability

The Office of Personnel Management (OPM) awarded this contract, suggesting a level of oversight. However, ongoing monitoring by the CDC and OPM is essential to ensure the contract meets its objectives and remains within budget.

Related Government Programs

Human Resources Consulting Services
Office of Personnel Management Contracting
Office of Personnel Management Programs

Risk Flags

Long contract duration increases risk of scope creep and cost escalation.
Complexity of organizational transformation projects can lead to unforeseen challenges.
Dependence on a single contractor for a critical function.
Need for robust change management to ensure successful adoption.

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $48.9 million to DELOITTE CONSULTING LLP. CDC-NCCDPHP, ORGANIZATIONAL AND CUSTOMER-CENTRIC TRANSFORMATION

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Office of Personnel Management (Office of Personnel Management).

What is the total obligated amount?

The obligated amount is $48.9 million.

What is the period of performance?

Start: 2022-09-21. End: 2027-09-21.

What specific metrics will be used to measure the success of the organizational and customer-centric transformation?

Success will likely be measured through a combination of quantitative and qualitative metrics. Quantitative measures could include improvements in employee onboarding times, HR service request resolution rates, and operational cost reductions. Qualitative measures might involve employee satisfaction surveys regarding HR services and feedback from internal customers on the effectiveness of new processes and systems.

What are the primary risks associated with a large-scale HR transformation project of this magnitude?

Key risks include resistance to change from employees and leadership, potential scope creep leading to budget overruns, integration challenges with existing systems, and the possibility that the implemented solutions do not fully meet the evolving needs of the organization. Inadequate change management and communication strategies can also significantly hinder adoption and success.

How will the effectiveness of Deloitte's consulting services be evaluated throughout the contract period?

Effectiveness will be evaluated through regular performance reviews, milestone achievement tracking against the project plan, and adherence to the agreed-upon deliverables and quality standards. Feedback mechanisms from CDC stakeholders and end-users will also be incorporated. The contract likely includes specific performance standards and potential remedies for non-performance.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Human Resources Consulting 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

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $82,539,468

Exercised Options: $48,851,244

Current Obligation: $48,851,244

Actual Outlays: $48,818,229

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $537,120

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS02Q16DCR0046

IDV Type: IDC

Timeline