FDA's $6.5M Internal Controls BPA with Deloitte & Touche LLP for FY21 A-123 Assessments
Contract Overview
Contract Amount: $6,494,716 ($6.5M)
Contractor: Deloitte & Touche LLP
Awarding Agency: Department of Health and Human Services
Start Date: 2021-09-17
End Date: 2026-07-07
Contract Duration: 1,754 days
Daily Burn Rate: $3.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: MATURING THE INTERNAL CONTROLS SYSTEM AT FDA BLANKET PURCHASE AGREEMENT (BPA) TASK SUPPORT FOR FY 2021 A-123 INTERNAL CONTROLS ASSESSMENTS
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $6.5 million to DELOITTE & TOUCHE LLP for work described as: MATURING THE INTERNAL CONTROLS SYSTEM AT FDA BLANKET PURCHASE AGREEMENT (BPA) TASK SUPPORT FOR FY 2021 A-123 INTERNAL CONTROLS ASSESSMENTS Key points: 1. Spending is moderate for this type of IT support service. 2. Deloitte & Touche LLP is a large, established firm, indicating significant competition in the broader market. 3. The contract's duration (nearly 5 years) and firm-fixed-price structure suggest potential for cost savings if scope is well-managed. 4. Risk appears low due to the established nature of the vendor and service, but scope creep could be a concern.
Value Assessment
Rating: good
The $6.5M award over nearly 5 years for IT support services appears reasonable. Benchmarking against similar IT consulting contracts for internal controls assessment suggests this pricing is within market norms.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, allowing multiple vendors to bid. This competitive process likely drove a fair price discovery for the services required.
Taxpayer Impact: The competitive award process is expected to ensure taxpayer funds are used efficiently for essential internal control assessments.
Public Impact
Ensures FDA's internal controls meet federal standards (A-123), promoting financial accountability. Supports regulatory compliance and reduces the risk of financial mismanagement. Provides critical IT support for essential government functions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep over the 5-year period.
- Reliance on a single vendor for a critical function.
Positive Signals
- Firm-fixed-price contract can provide cost certainty.
- Full and open competition ensures market-driven pricing.
- Long-term contract allows for consistent support.
Sector Analysis
This contract falls under IT services, specifically IT consulting for internal controls. Spending benchmarks for similar IT support services for federal agencies vary widely but this BPA appears moderate for its duration and scope.
Small Business Impact
The contract was awarded to Deloitte & Touche LLP, a large business. There is no indication that small businesses were involved in this specific award, which is common for large-scale IT consulting services.
Oversight & Accountability
The contract is subject to standard federal procurement oversight. The BPA call structure allows for task-specific oversight, and the firm-fixed-price nature encourages vendor accountability for deliverables.
Related Government Programs
- Other Computer Related Services
- Department of Health and Human Services Contracting
- Food and Drug Administration Programs
Risk Flags
- Potential for scope creep
- Vendor lock-in over long duration
- Reliance on contractor expertise
- Need for continuous performance monitoring
Tags
other-computer-related-services, department-of-health-and-human-services, va, bpa-call, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $6.5 million to DELOITTE & TOUCHE LLP. MATURING THE INTERNAL CONTROLS SYSTEM AT FDA BLANKET PURCHASE AGREEMENT (BPA) TASK SUPPORT FOR FY 2021 A-123 INTERNAL CONTROLS ASSESSMENTS
Who is the contractor on this award?
The obligated recipient is DELOITTE & TOUCHE LLP.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Food and Drug Administration).
What is the total obligated amount?
The obligated amount is $6.5 million.
What is the period of performance?
Start: 2021-09-17. End: 2026-07-07.
What is the specific scope of work for the A-123 internal controls assessments?
The scope of work involves providing support for the Food and Drug Administration's (FDA) internal controls assessments as mandated by Office of Management and Budget (OMB) Circular A-123. This typically includes evaluating the effectiveness of internal controls over financial reporting, compliance, and performance information, identifying deficiencies, and recommending remediation plans.
What are the primary risks associated with this contract for the FDA?
The primary risks include potential scope creep, where the requirements expand beyond the initial agreement, leading to cost overruns. Another risk is over-reliance on a single vendor, which could reduce flexibility and bargaining power over time. Ensuring the vendor's personnel maintain necessary expertise throughout the contract's duration is also a consideration.
How does this contract contribute to the FDA's overall mission effectiveness?
This contract is crucial for maintaining the integrity of the FDA's financial management and operational processes. By ensuring robust internal controls, it enhances accountability, reduces the risk of fraud or mismanagement, and supports the agency's ability to effectively allocate resources towards its public health mission.
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: 1238945
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Deloitte Financial Advisory Services 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: $10,721,691
Exercised Options: $7,051,014
Current Obligation: $6,494,716
Actual Outlays: $6,494,716
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 75F40120A00023
IDV Type: BPA
Timeline
Start Date: 2021-09-17
Current End Date: 2026-07-07
Potential End Date: 2026-07-07 00:00:00
Last Modified: 2026-01-06
More Contracts from Deloitte & Touche LLP
- Task 3: Corrective Actions — $162.0M (Department of Defense)
- Pks-Hight-Carmona Paredes-Fiar to 36 A4 Support — $157.3M (Department of Defense)
- NEW Contract for MBS Administration — $136.0M (Department of Housing and Urban Development)
- Fleet-Resfor ERP Migration Svcs — $128.5M (Department of Defense)
- PKS - Ross - Carmona Paredes - Fiar to 0060 — $102.4M (Department of Defense)
Other Department of Health and Human Services Contracts
- Contact Center Operations (CCO) — $5.5B (Maximus Federal Services, Inc.)
- TAS::75 0849::TAS Oper of Govt R&D Goco Facilities — $4.8B (Leidos Biomedical Research Inc)
- THE Purpose of This Contract IS to Provide the Full Complement of Services Necessary to Care for UC in ORR Custody Including Facilities Set-Up, Maintenance, and Support Internal and Perimeter (IF Applicable) Security, Direct Care and Supervision Inc — $3.5B (Rapid Deployment Inc)
- Contact Center Operations — $2.6B (Maximus Federal Services, Inc.)
- Federal Contract — $2.4B (Leidos Biomedical Research Inc)
View all Department of Health and Human Services contracts →