GSA awards $7.55M IT contract for software development support to Deloitte & Touche LLP

Contract Overview

Contract Amount: $7,551,369 ($7.6M)

Contractor: Deloitte & Touche LLP

Awarding Agency: General Services Administration

Start Date: 2024-09-09

End Date: 2025-08-08

Contract Duration: 333 days

Daily Burn Rate: $22.7K/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: NDMS SOFTWARE DEVELOPMENT SUPPORT SERVICES IV

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $7.6 million to DELOITTE & TOUCHE LLP for work described as: NDMS SOFTWARE DEVELOPMENT SUPPORT SERVICES IV Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Focus on custom computer programming services indicates a need for specialized IT expertise. 3. The contract duration of approximately one year suggests a need for ongoing support rather than a long-term project. 4. Awarded under a Blanket Purchase Agreement (BPA) Call, implying a pre-negotiated framework. 5. The Time and Materials pricing structure can pose a risk of cost overruns if not closely managed. 6. The specific NAICS code (541511) points to a market segment with high demand for skilled developers.

Value Assessment

Rating: fair

The contract value of $7.55 million for approximately one year of custom computer programming services appears within a reasonable range for specialized IT support. However, without specific details on the scope of work and deliverables, a precise value-for-money assessment is challenging. Benchmarking against similar sole-source or limited-competition contracts for custom software development would provide better context. The Time and Materials (T&M) pricing model, while flexible, can lead to higher costs if not managed diligently, potentially impacting overall value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP) and was awarded as a sole-source BPA Call. This indicates that the agency likely identified Deloitte & Touche LLP as the only capable provider or that the specific requirements of the task order necessitated a direct award. The lack of open competition limits the agency's ability to explore a wider range of pricing and technical solutions, potentially leading to less favorable terms than a fully competed contract.

Taxpayer Impact: Sole-source awards can result in higher costs for taxpayers as they bypass the competitive bidding process that typically drives down prices. This limits the government's leverage in negotiating the best possible value.

Public Impact

Federal agencies requiring custom software development and IT support services will benefit from this contract. The contract will deliver specialized programming services, likely contributing to the modernization or maintenance of government IT systems. The primary geographic impact is expected to be in Maryland (MD), where the contractor is located. The contract supports a workforce of skilled software developers and IT professionals employed by Deloitte & Touche LLP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Time and Materials (T&M) pricing structure carries inherent risk of cost escalation without strict oversight.
Lack of competition may mean the government is not receiving the most innovative or cost-effective solutions available.
The specific nature of 'software development support' is broad and could encompass a wide range of activities, making performance monitoring crucial.

Positive Signals

Award to a large, established contractor like Deloitte & Touche LLP suggests a high level of confidence in their capabilities and past performance.
The use of a BPA Call indicates a pre-existing relationship and potentially streamlined procurement process for the agency.
The contract is for a defined period, allowing for reassessment of needs and competition at its conclusion.

Sector Analysis

The Information Technology (IT) sector, specifically custom computer programming services (NAICS 541511), is a critical area for government operations. This contract falls within a market segment characterized by high demand for specialized skills and continuous innovation. The total federal spending on IT services is substantial, and contracts like this, even at $7.55 million, represent a significant investment in maintaining and upgrading government technological infrastructure. Benchmarks for custom software development can vary widely based on complexity, required expertise, and project duration.

Small Business Impact

This contract was not awarded to a small business, and there is no indication of small business subcontracting requirements in the provided data. As a sole-source award to a large prime contractor, it does not directly contribute to the small business contracting goals. The absence of set-aside provisions or subcontracting plans means that opportunities for small businesses within this specific procurement are limited.

Oversight & Accountability

Oversight for this contract will primarily reside with the General Services Administration (GSA), specifically the Federal Acquisition Service. As a BPA Call, the underlying BPA likely has established oversight mechanisms. The Time and Materials pricing model necessitates rigorous monitoring of labor hours and material costs to ensure compliance and prevent overspending. The contract's duration and value suggest that standard contract management procedures and potentially Inspector General oversight would apply if any performance or financial irregularities arise.

Related Government Programs

GSA Federal Acquisition Service IT Contracts
Custom Computer Programming Services
IT Software Development Support
Blanket Purchase Agreements (BPAs)

Risk Flags

Sole-source award
Time and Materials pricing
Lack of defined scope in summary data

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $7.6 million to DELOITTE & TOUCHE LLP. NDMS SOFTWARE DEVELOPMENT SUPPORT SERVICES IV

Who is the contractor on this award?

The obligated recipient is DELOITTE & TOUCHE LLP.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $7.6 million.

What is the period of performance?

Start: 2024-09-09. End: 2025-08-08.

What is the specific scope of work for these software development support services?

The provided data indicates the contract is for 'NDMS SOFTWARE DEVELOPMENT SUPPORT SERVICES IV' under NAICS code 541511 (Custom Computer Programming Services). While the specific scope is not detailed, it generally involves the design, development, implementation, and maintenance of software. This could include activities such as coding, testing, debugging, system integration, and potentially project management for custom software solutions. The 'NDMS' acronym might refer to a specific system or program within the agency, suggesting the support is tailored to that particular environment. Further details would be found in the Statement of Work (SOW) attached to the contract award.

How does the $7.55 million value compare to similar custom software development contracts awarded by GSA?

The $7.55 million contract value for approximately one year of custom software development support is a moderate-sized award within the federal IT landscape. GSA awards a wide range of IT contracts, from small, specialized task orders to multi-year, multi-billion dollar indefinite-delivery/indefinite-quantity (IDIQ) vehicles. For custom programming services, contracts can range from tens of thousands to tens of millions of dollars annually, depending on complexity, duration, and the contractor's labor rates. Without knowing the specific deliverables and the level of expertise required, it's difficult to definitively benchmark this value. However, it suggests a significant, ongoing need for specialized development expertise rather than a small, short-term project.

What are the primary risks associated with a sole-source award for IT services?

The primary risks associated with a sole-source award for IT services include: 1. **Higher Costs:** Without competition, the contractor may not be incentivized to offer the lowest possible price, potentially leading to higher costs for the government. 2. **Limited Innovation:** The agency misses out on potentially innovative solutions or approaches that other qualified vendors might offer. 3. **Reduced Flexibility:** The agency is locked into a single provider, limiting its ability to switch to a different vendor if performance issues arise or if market conditions change. 4. **Potential for Complacency:** The awarded contractor may face less pressure to continuously improve service quality or efficiency compared to a competitive environment. This necessitates robust contract management and performance monitoring by the agency.

What does the Time and Materials (T&M) pricing structure imply for cost control?

A Time and Materials (T&M) pricing structure means the government pays the contractor based on the actual hours worked by labor and the actual costs of materials used. This structure offers flexibility, especially when the scope of work is not clearly defined at the outset or is expected to evolve. However, it carries a significant risk of cost overruns if not managed meticulously. Effective cost control requires the government to closely monitor labor hours, ensure that only necessary work is performed, validate material costs, and establish clear ceilings or limits within the contract. Without stringent oversight, T&M contracts can become significantly more expensive than fixed-price arrangements.

What is the significance of this contract being awarded under a BPA Call?

A Blanket Purchase Agreement (BPA) is a simplified way for federal agencies to fill anticipated repetitive needs for supplies or services. A BPA Call is a specific order placed against an existing BPA. Awarding this contract as a BPA Call suggests that GSA had already established a BPA with Deloitte & Touche LLP, likely covering a range of IT services. This implies that the basic terms, conditions, and potentially pricing structures were pre-negotiated. Using a BPA Call can streamline the procurement process, reduce administrative burden, and potentially offer better pricing than a standalone contract, provided the BPA itself was competitively established.

What is the track record of Deloitte & Touche LLP with GSA IT contracts?

Deloitte & Touche LLP is a major global professional services firm with extensive experience in providing IT consulting and support services to government agencies, including those served by the General Services Administration (GSA). While specific details of their past performance on GSA IT contracts are not provided in this data snippet, the firm is known for its large-scale IT implementations, cybersecurity, cloud services, and custom software development. Their track record generally includes handling complex projects for various federal departments. However, as with any large contractor, individual contract performance can vary, and a thorough review of past performance specific to similar services would be necessary for a complete assessment.

Industry Classification

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

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

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 47QFAA24Q0009

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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: $7,551,369

Exercised Options: $7,551,369

Current Obligation: $7,551,369

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $3,451,252

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QFAA21A0002

IDV Type: BPA

Timeline