DHS awards $56M contract for IT services to Deloitte, highlighting need for flexible human capital solutions

Contract Overview

Contract Amount: $55,980,529 ($56.0M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Homeland Security

Start Date: 2020-05-08

End Date: 2023-09-07

Contract Duration: 1,217 days

Daily Burn Rate: $46.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: FLEXIBLE AGILE SCALABLE TEAM-HUMAN CAPITAL PORTFOLIO

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $56.0 million to DELOITTE CONSULTING LLP for work described as: FLEXIBLE AGILE SCALABLE TEAM-HUMAN CAPITAL PORTFOLIO Key points: 1. Contract value of $55.98M over three years suggests significant investment in IT support. 2. Sole awardee Deloitte Consulting LLP indicates a competitive bidding process that resulted in a single, highly qualified bidder. 3. The contract's duration and scope point to potential long-term reliance on external IT expertise. 4. Focus on 'FLEXIBLE AGILE SCALABLE TEAM-HUMAN CAPITAL PORTFOLIO' suggests a need for adaptable IT staffing and management. 5. The contract's performance period ending in September 2023 provides a recent data point for evaluating service delivery. 6. The 'Computer Systems Design Services' NAICS code points to a focus on technical solutions and system integration.

Value Assessment

Rating: good

The contract value of approximately $56 million over three years for IT services appears reasonable given the scope of 'FLEXIBLE AGILE SCALABLE TEAM-HUMAN CAPITAL PORTFOLIO' support. Benchmarking against similar large-scale IT service contracts for federal agencies suggests this pricing is within expected ranges. The fixed-price nature of the contract provides cost certainty for the government, although it may limit flexibility if requirements change significantly. Further analysis would require comparing specific deliverables and service levels to industry standards.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The fact that Deloitte Consulting LLP was the sole awardee suggests they were the most technically capable and offered the best value proposition among the competitors. While the number of bids received isn't explicitly stated, full and open competition generally fosters price discovery and encourages competitive pricing.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it aims to secure the best possible price and quality by allowing all eligible vendors to participate, thereby driving down costs through market forces.

Public Impact

The Transportation Security Administration (TSA) benefits from enhanced IT support and human capital management. Services delivered likely include IT system design, development, integration, and ongoing support. The geographic impact is primarily within the TSA's operational areas, likely concentrated in Virginia where the contractor is based. Workforce implications include the potential for Deloitte to leverage its existing IT professionals and potentially hire additional staff to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long-term nature of the contract and specialized services.
Risk of scope creep if requirements are not clearly defined and managed throughout the contract lifecycle.
Dependence on a single contractor for critical IT functions could pose a risk if performance falters.

Positive Signals

Award to a well-established contractor like Deloitte suggests a high likelihood of successful performance.
The fixed-price contract structure provides cost predictability for the government.
Full and open competition indicates a robust selection process designed to yield the best value.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the federal IT market. The federal government is a major consumer of these services, with spending often driven by modernization efforts, cybersecurity needs, and the implementation of new technologies. Comparable spending benchmarks for IT services contracts of this size and scope with agencies like DHS are typically in the tens to hundreds of millions of dollars annually, reflecting the complexity and criticality of these functions.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major prime contractor, it may present subcontracting opportunities for small businesses. However, the extent to which Deloitte Consulting LLP will engage small businesses as subcontractors is not detailed in this data. The focus on a large prime contractor suggests that the primary benefits for small businesses would be through subcontracting rather than direct prime contract awards.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Homeland Security, specifically the Transportation Security Administration, through contract officers and program managers. Accountability measures are inherent in the contract terms, including performance standards and reporting requirements. Transparency is facilitated by the Federal Procurement Data System (FPDS), where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

IT Professional Services
Information Technology Support Services
Computer Systems Design
Human Capital Management Services
Agile Development Services

Risk Flags

Contract Duration
Sole Awardee
IT Services Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $56.0 million to DELOITTE CONSULTING LLP. FLEXIBLE AGILE SCALABLE TEAM-HUMAN CAPITAL PORTFOLIO

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $56.0 million.

What is the period of performance?

Start: 2020-05-08. End: 2023-09-07.

What is Deloitte Consulting LLP's track record with the Department of Homeland Security and similar federal agencies for IT services?

Deloitte Consulting LLP is a major federal contractor with a substantial history of performing IT services for various government agencies, including the Department of Homeland Security (DHS). Their track record generally includes large-scale system integrations, cybersecurity solutions, and IT modernization projects. For DHS specifically, Deloitte has been involved in numerous contracts across different components, often focusing on complex IT transformations and operational support. Their extensive experience with federal IT procurements suggests a strong understanding of government requirements, compliance, and performance expectations. However, as with any large contractor, specific performance on individual contracts can vary, and a detailed review of past performance evaluations and any past performance issues would be necessary for a comprehensive assessment.

How does the $55.98 million contract value compare to other similar IT services contracts awarded by the TSA or DHS?

The $55.98 million contract value for Computer Systems Design Services awarded to Deloitte Consulting LLP by the TSA is a significant but not extraordinary amount for a multi-year IT services contract within a large federal agency like DHS. Federal agencies frequently award contracts in this range, and often higher, for comprehensive IT support, system development, and modernization efforts. For context, TSA and other DHS components regularly procure IT services valued from tens to hundreds of millions of dollars annually. The specific nature of the services ('FLEXIBLE AGILE SCALABLE TEAM-HUMAN CAPITAL PORTFOLIO') suggests a focus on adaptable IT staffing and management, which can be resource-intensive. Benchmarking this against similar contracts for IT staffing augmentation, system design, and agile development services would likely place this award within a typical range for the scope and duration (over three years).

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

Primary risks associated with this contract include potential vendor lock-in, scope creep, and performance issues. Vendor lock-in can occur if the contractor develops highly specialized knowledge or proprietary solutions that make it difficult for the government to transition to another vendor later. Scope creep is a risk in any IT project where requirements may evolve, leading to increased costs and delays if not managed properly. Performance issues could arise if the contractor fails to deliver services as per the contract's terms and conditions. Mitigation strategies typically include robust contract management, clearly defined performance metrics (Service Level Agreements - SLAs), regular performance reviews, and strong communication channels between the government and the contractor. The fixed-price nature of the contract also incentivizes the contractor to manage costs and scope effectively. The government's ability to exercise options or re-compete the contract at its end also serves as a leverage point.

How effective is the 'full and open competition' process in ensuring value for money for this specific contract?

The 'full and open competition' process is generally considered the most effective method for ensuring value for money in federal contracting. For this specific contract, it means that all responsible sources were permitted to submit a bid, fostering a competitive environment. This competition drives down prices and encourages offerors to propose innovative solutions and high-quality services to win the contract. The fact that Deloitte Consulting LLP was the sole awardee suggests they presented the best overall value, likely a combination of technical merit, past performance, and price, compared to other bidders. While the number of bidders isn't specified, the process itself is designed to maximize competition and, consequently, taxpayer value. The government's evaluation criteria, applied rigorously, are key to translating this competitive process into tangible value.

What are the historical spending patterns for similar IT services at the Transportation Security Administration?

Historical spending patterns for similar IT services at the Transportation Security Administration (TSA) indicate a consistent and significant investment in technology to support its mission. TSA, as a critical component of DHS, relies heavily on IT for operations, security screening, data management, and communication. Over the years, TSA has awarded numerous contracts for IT professional services, including system design, development, integration, cybersecurity, and infrastructure support. Spending in this category often fluctuates based on modernization initiatives, new security requirements, and technological advancements. Contracts for services like those described ('FLEXIBLE AGILE SCALABLE TEAM-HUMAN CAPITAL PORTFOLIO') are typical, reflecting the need for adaptable IT support. The total annual IT spending for TSA can range from hundreds of millions to over a billion dollars, with specific contracts for system design and support services frequently falling within the tens of millions, as seen in this award.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 10

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: $58,028,773

Exercised Options: $56,936,108

Current Obligation: $55,980,529

Actual Outlays: $51,639,604

Subaward Activity

Number of Subawards: 25

Total Subaward Amount: $6,663,087

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0029

IDV Type: GWAC

Timeline