VA's $66.7M Cybersecurity Program Awarded to Deloitte & Touche LLP Under Full and Open Competition

Contract Overview

Contract Amount: $66,756,175 ($66.8M)

Contractor: Deloitte & Touche LLP

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-08-26

End Date: 2026-09-24

Contract Duration: 759 days

Daily Burn Rate: $88.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CYBERSECURITY TRANSFORMATION PROGRAM

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $66.8 million to DELOITTE & TOUCHE LLP for work described as: CYBERSECURITY TRANSFORMATION PROGRAM Key points: 1. The contract is for a Cybersecurity Transformation Program valued at $66.7 million. 2. Deloitte & Touche LLP is the awardee, indicating a significant player in the cybersecurity services market. 3. The contract was awarded under full and open competition, suggesting a competitive bidding process. 4. The program aims to enhance the Department of Veterans Affairs' cybersecurity posture.

Value Assessment

Rating: good

The contract value of $66.7 million for a cybersecurity transformation program appears reasonable given the scope and the expertise of a large firm like Deloitte & Touche LLP. Benchmarking against similar large-scale federal cybersecurity initiatives would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, which typically leads to more competitive pricing as multiple vendors are encouraged to bid. This method allows for a broad range of potential contractors to present their solutions and pricing, fostering price discovery.

Taxpayer Impact: The competitive nature of the award process is expected to ensure taxpayer funds are used efficiently, securing a fair price for the cybersecurity services.

Public Impact

Improved cybersecurity for the Department of Veterans Affairs, protecting sensitive veteran data. Potential for enhanced digital services and infrastructure for veterans. Ensures compliance with federal cybersecurity mandates and regulations. Supports the modernization of VA's IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cybersecurity is a critical and evolving threat landscape.
Dependence on a single contractor for a transformation program.
Potential for scope creep in complex IT projects.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type.
Experienced contractor selected.

Sector Analysis

The IT services sector, particularly cybersecurity, is experiencing significant growth and investment due to increasing digital threats. Federal spending in this area is substantial, with agencies like the VA prioritizing robust security measures to protect sensitive data and critical infrastructure.

Small Business Impact

While the awardee is a large firm, the 'full and open competition' process may have allowed for subcontracting opportunities for small businesses. However, the primary awardee is not a small business, and specific small business participation goals are not detailed in the provided data.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. The fixed-price nature of the contract provides some cost control, but ongoing monitoring of performance and deliverables will be crucial for accountability.

Related Government Programs

Other Computer Related Services
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Cybersecurity is a high-stakes domain with significant potential for impact.
Large contract value requires diligent oversight.
Dependence on a single vendor for a critical transformation.
Potential for integration challenges with existing systems.
Evolving threat landscape necessitates continuous adaptation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $66.8 million to DELOITTE & TOUCHE LLP. CYBERSECURITY TRANSFORMATION PROGRAM

Who is the contractor on this award?

The obligated recipient is DELOITTE & TOUCHE LLP.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $66.8 million.

What is the period of performance?

Start: 2024-08-26. End: 2026-09-24.

What specific cybersecurity capabilities will this transformation program deliver?

The program is expected to deliver a comprehensive upgrade to the VA's cybersecurity infrastructure and protocols. This likely includes enhanced threat detection and response, improved data encryption, advanced network security, and potentially the implementation of zero-trust architecture principles. The goal is to create a more resilient and secure environment against sophisticated cyber threats.

What are the primary risks associated with this cybersecurity transformation?

Key risks include the complexity of integrating new cybersecurity solutions with existing legacy systems, potential resistance to change from internal staff, and the ever-evolving nature of cyber threats that could render current solutions obsolete. There's also a risk of vendor lock-in if not managed carefully, and the possibility of project delays or cost overruns if not meticulously overseen.

How will the effectiveness of this cybersecurity program be measured?

Effectiveness will likely be measured through a combination of metrics, including reduced number of security incidents and breaches, faster detection and response times to threats, successful completion of security audits and compliance checks, and improved scores on cybersecurity maturity models. Key Performance Indicators (KPIs) tied to specific security objectives will be established and tracked throughout the program's lifecycle.

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

Offers Received: 3

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: $184,811,894

Exercised Options: $66,756,175

Current Obligation: $66,756,175

Actual Outlays: $39,612,476

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $24,760,575

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F029DA

IDV Type: FSS

Timeline