Deloitte's $27.5M contract for GNMA financial systems support awarded by GSA, highlighting IT services

Contract Overview

Contract Amount: $27,506,241 ($27.5M)

Contractor: Deloitte & Touche LLP

Awarding Agency: General Services Administration

Start Date: 2021-06-28

End Date: 2022-09-25

Contract Duration: 454 days

Daily Burn Rate: $60.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: GNMA FINANCIAL ACCOUNTING SYSTEMS (GFAS) 6-MONTH TRANSITION BRIDGE SUPPORT 47QFDA21F0050

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $27.5 million to DELOITTE & TOUCHE LLP for work described as: GNMA FINANCIAL ACCOUNTING SYSTEMS (GFAS) 6-MONTH TRANSITION BRIDGE SUPPORT 47QFDA21F0050 Key points: 1. Contract focuses on critical financial accounting systems for GNMA, ensuring operational continuity. 2. Awarded through full and open competition, suggesting a robust market for these services. 3. The contract duration of 454 days indicates a significant, albeit temporary, support requirement. 4. Firm Fixed Price contract type helps manage cost certainty for the government. 5. The North American Industry Classification System (NAICS) code 541519 points to specialized IT services. 6. This award represents a portion of GSA's broader IT service procurement strategy.

Value Assessment

Rating: good

Benchmarking the value of this specific contract is challenging without more granular data on the scope of 'transition bridge support.' However, the award amount of approximately $27.5 million over 454 days suggests a substantial investment in IT support services. Comparing this to similar IT transition or bridge contracts would provide a clearer picture of its value proposition. The firm fixed-price nature of the contract offers cost predictability, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This suggests a competitive marketplace for the services required. The number of bidders is not specified, but the competitive process is designed to drive price discovery and ensure the government receives fair market value.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services compared to sole-source or limited competition awards.

Public Impact

The primary beneficiary is the Government National Mortgage Association (GNMA), which receives essential support for its financial accounting systems. The services delivered ensure the continuity and integrity of GNMA's financial operations during a transition period. The geographic impact is primarily within the federal government's IT infrastructure, with potential implications for remote workforces. Workforce implications include the need for specialized IT professionals with expertise in financial systems and government contracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if transition support extends beyond the bridge period.
Reliance on a single contractor for critical financial system support carries inherent operational risk.
The 'bridge' nature of the contract might indicate underlying issues with the long-term financial system strategy.

Positive Signals

Awarded through full and open competition, suggesting a healthy market and competitive pricing.
Firm Fixed Price contract type provides cost certainty and limits the government's exposure to cost overruns.
The contract supports a critical government function (GNMA financial accounting), indicating alignment with agency mission.

Sector Analysis

This contract falls within the broader IT services sector, specifically focusing on specialized computer-related services. The market for such services is large and competitive, with numerous firms offering expertise in financial systems, cloud migration, and IT support. The General Services Administration (GSA) is a major procurer of IT services for the federal government, consistently awarding billions annually across various IT categories. This contract represents a specific instance of GSA fulfilling its mission to provide efficient and effective IT solutions.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary award went to a large business (Deloitte & Touche LLP). There is no explicit information on subcontracting plans for small businesses within this award notice. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem from this particular contract is likely limited, though large prime contractors often utilize small businesses in their supply chains.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. As a delivery order under a larger contract vehicle, oversight mechanisms would include contract performance monitoring, financial reviews, and adherence to the firm fixed-price terms. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

GNMA Financial Systems Modernization
GSA IT Schedule Contracts
Federal Financial Management Systems
IT Services for Government Agencies
Cloud Transition Support Services

Risk Flags

Potential for extended reliance beyond intended bridge period.
Risk of insufficient knowledge transfer to follow-on solution.
Possible lack of innovation focus in a temporary support role.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $27.5 million to DELOITTE & TOUCHE LLP. GNMA FINANCIAL ACCOUNTING SYSTEMS (GFAS) 6-MONTH TRANSITION BRIDGE SUPPORT 47QFDA21F0050

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 $27.5 million.

What is the period of performance?

Start: 2021-06-28. End: 2022-09-25.

What is the specific nature of the 'transition bridge support' and why was it necessary?

The 'transition bridge support' likely refers to temporary services required to maintain the functionality of the GNMA Financial Accounting Systems (GFAS) during a period of change. This could involve supporting existing systems while a new system is being developed, implemented, or migrated, or bridging a gap between expiring contracts and new awards. The necessity often arises from unforeseen delays in modernization efforts, changes in agency strategy, or the need to ensure uninterrupted operations for critical financial functions. Without more detailed documentation, the precise reasons remain speculative, but it points to a need for continuity in financial operations.

How does the cost of this contract compare to similar IT bridge support contracts awarded by GSA?

Direct comparison of this $27.5 million contract for 454 days (approx. $60,586 per day) to similar IT bridge support contracts is difficult without access to detailed scope and service level agreements for comparable awards. However, GSA procures a vast array of IT services, and pricing can vary significantly based on the complexity of the systems, the level of expertise required, and the specific services rendered (e.g., maintenance, development, integration, cybersecurity). The firm fixed-price nature suggests a defined scope, and the daily rate should be evaluated against benchmarks for specialized IT support within the federal government. Further analysis would require identifying contracts with similar NAICS codes and service descriptions.

What are the key performance indicators (KPIs) used to measure the success of this bridge support contract?

Key Performance Indicators (KPIs) for a contract like this would typically focus on ensuring the continuity and integrity of the GNMA financial accounting systems. Specific KPIs might include system uptime percentages, response times for critical issue resolution, successful completion of routine financial processing tasks, adherence to security protocols, and timely delivery of any required reports or system updates. For a 'bridge' contract, a crucial KPI would also be the successful handover of responsibilities or system knowledge to the subsequent long-term solution or contractor, ensuring a smooth transition without operational disruption.

What is Deloitte's track record with GSA and GNMA-related IT contracts?

Deloitte & Touche LLP is a major federal contractor with a significant history of providing a wide range of services, including IT, financial consulting, and cybersecurity, to various government agencies. Their track record with GSA is extensive, often holding positions on large IT Schedule contracts and winning numerous task orders. While specific details on their past performance directly supporting GNMA's financial systems are not provided in this data snippet, Deloitte's overall presence and capabilities suggest they are well-positioned for such complex IT engagements. A deeper dive into their contract history within FPDS or agency-specific performance evaluations would offer more granular insights.

What are the potential risks associated with relying on a 'bridge' contract for critical financial systems?

Relying on a 'bridge' contract for critical financial systems carries several potential risks. Firstly, there's the risk of extended reliance; bridge contracts are intended to be short-term, but they can sometimes become prolonged, leading to higher costs than a well-planned long-term solution. Secondly, the focus might be on maintaining the status quo rather than innovation or necessary modernization, potentially leaving systems vulnerable or inefficient. Thirdly, there's a risk of knowledge transfer gaps if the bridge team is not adequately preparing the successor system or team. Finally, if the bridge is poorly managed, it could lead to operational disruptions, data integrity issues, or security vulnerabilities in critical financial operations.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFDA21Q0114

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Touche Tohmatsu Limited

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: $41,454,068

Exercised Options: $27,631,722

Current Obligation: $27,506,241

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $3,450,629

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F029DA

IDV Type: FSS

Timeline