HSPD-12 Identity Credentialing Support contract awarded to Deloitte Consulting LLP for over $57.7 million

Contract Overview

Contract Amount: $57,754,929 ($57.8M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2020-08-17

End Date: 2025-08-16

Contract Duration: 1,825 days

Daily Burn Rate: $31.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO SUPPORT CMS COMPLIANCE WITH THE HSPD-12 DIRECTIVE ISSUED BY PRESIDENT BUSH IN AUGUST 2004. THIS DIRECTIVE REQUIRES FEDERAL AGENCIES TO CREATE STANDARDIZED, SECURE AND RELIABLE IDENTITY CREDENTIALS FOR ACCESS TO FE

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $57.8 million to DELOITTE CONSULTING LLP for work described as: THE PURPOSE OF THIS TASK ORDER IS TO SUPPORT CMS COMPLIANCE WITH THE HSPD-12 DIRECTIVE ISSUED BY PRESIDENT BUSH IN AUGUST 2004. THIS DIRECTIVE REQUIRES FEDERAL AGENCIES TO CREATE STANDARDIZED, SECURE AND RELIABLE IDENTITY CREDENTIALS FOR ACCESS TO FE Key points: 1. The contract focuses on supporting a critical federal directive for secure identity credentials. 2. Deloitte Consulting LLP is the sole awardee under a full and open competition. 3. The contract duration is five years, indicating a long-term need for these services. 4. The task order is for Computer Systems Design Services, aligning with IT infrastructure needs. 5. The contract's value suggests a significant investment in identity and access management. 6. The use of Time and Materials pricing may introduce cost variability.

Value Assessment

Rating: fair

The contract value of over $57.7 million for five years of support for HSPD-12 compliance appears substantial. Benchmarking against similar identity management and credentialing contracts is difficult without more specific service details. However, the duration and scope suggest a significant investment. The Time and Materials pricing model, while flexible, can lead to cost overruns if not managed carefully, warranting close monitoring of expenditures against the stated ceiling.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The data does not specify the number of bidders, but the designation implies a competitive process was initiated. A competitive award generally aims to secure the best value for the government by fostering price and performance advantages among offerors.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it encourages a wider range of potential providers to offer their services, potentially leading to more competitive pricing and innovative solutions, ultimately maximizing the value of federal spending.

Public Impact

Federal employees and contractors will benefit from standardized and secure identity credentials. The services delivered will enhance the security posture of federal agencies by ensuring compliance with HSPD-12. The geographic impact is national, as HSPD-12 is a government-wide directive. Workforce implications include the need for specialized IT security and systems design expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials pricing structure.
Reliance on a single contractor for a critical security directive over a long period.
Scope creep could increase the overall cost beyond the initial estimate.

Positive Signals

Supports a critical federal directive (HSPD-12) for enhanced security.
Awarded through full and open competition, indicating a potentially competitive process.
Long contract duration suggests a stable and ongoing need for these essential services.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the IT industry focused on providing expertise in system integration, IT security, and the implementation of federal mandates like HSPD-12. The market for identity and access management solutions is robust, driven by increasing cybersecurity threats and regulatory requirements. Comparable spending benchmarks would typically involve other large-scale IT service contracts for federal agencies focused on security infrastructure and compliance.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside consideration for this specific award (ss: false, sb: false). While awarded under full and open competition, there is no explicit mention of subcontracting goals for small businesses. This means that opportunities for small businesses to participate in fulfilling this contract may be limited unless Deloitte Consulting LLP voluntarily includes them in their subcontracting plans.

Oversight & Accountability

Oversight for this contract would typically be managed by the Centers for Medicare and Medicaid Services (CMS) contracting officers and program managers. Accountability measures would be tied to performance metrics outlined in the task order and adherence to the Time and Materials pricing structure. Transparency is generally maintained through contract award databases and reporting requirements, though specific internal oversight mechanisms are not detailed in the provided data.

Related Government Programs

HSPD-12 Implementation Support
Federal Identity, Credential, and Access Management (ICAM)
IT Security Services
Computer Systems Design Services
Federal Civilian Agency IT Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Long contract duration may limit future flexibility.
Reliance on a single vendor for critical security infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $57.8 million to DELOITTE CONSULTING LLP. THE PURPOSE OF THIS TASK ORDER IS TO SUPPORT CMS COMPLIANCE WITH THE HSPD-12 DIRECTIVE ISSUED BY PRESIDENT BUSH IN AUGUST 2004. THIS DIRECTIVE REQUIRES FEDERAL AGENCIES TO CREATE STANDARDIZED, SECURE AND RELIABLE IDENTITY CREDENTIALS FOR ACCESS TO FE

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $57.8 million.

What is the period of performance?

Start: 2020-08-17. End: 2025-08-16.

What is the specific breakdown of services provided under this task order for HSPD-12 compliance?

The provided data indicates the task order is for 'Computer Systems Design Services' to support CMS's compliance with HSPD-12. This directive mandates standardized, secure, and reliable identification credentials for federal employees and contractors. While the specific services are not itemized, they likely encompass the design, development, implementation, and maintenance of systems related to identity credentialing, including physical and logical access controls, biometrics, and secure credential issuance and management. This could involve software development, system integration, cybersecurity measures, and project management to ensure the agency meets the directive's requirements for robust identity verification and access.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar IT services?

Time and Materials (T&M) pricing is common for IT services, especially when the scope of work is not clearly defined at the outset or is expected to evolve. Unlike fixed-price contracts, T&M offers flexibility, allowing the government to pay for the actual labor hours and material costs incurred. However, this flexibility comes with a higher risk of cost overruns if not managed diligently. For IT projects with well-defined requirements, fixed-price or cost-plus-fixed-fee contracts might offer better cost certainty for the government. The government's ability to control costs under a T&M contract heavily relies on robust oversight, detailed tracking of hours and materials, and effective negotiation of labor rates.

What is Deloitte Consulting LLP's track record with federal IT security and identity management contracts?

Deloitte Consulting LLP is a major federal contractor with extensive experience across various IT domains, including cybersecurity, identity management, and systems integration. They have a significant history of supporting federal agencies in implementing complex directives and modernizing IT infrastructure. While specific details of their past performance on HSPD-12 related contracts are not provided here, their general profile suggests they possess the capabilities and experience necessary for such a task. Federal procurement databases often contain past performance information, which would offer a more granular view of their success rates, client satisfaction, and any performance issues on similar projects.

What are the potential risks associated with a 5-year Time and Materials contract for identity credentialing?

A significant risk with a 5-year Time and Materials (T&M) contract for identity credentialing is cost control. The extended duration, combined with T&M pricing, creates potential for cost escalation if the scope expands or if labor hours are not meticulously tracked and justified. Another risk is vendor lock-in, where the agency becomes heavily reliant on Deloitte for a critical function over a long period, potentially hindering future flexibility or the adoption of newer technologies. Furthermore, ensuring consistent quality and performance over five years requires sustained oversight and effective contract management to prevent degradation or scope creep that isn't aligned with the original objectives.

How does this contract's value compare to overall federal spending on IT security and identity management?

The $57.7 million allocated to this task order over five years represents a substantial investment in a specific aspect of federal IT security: identity credentialing under HSPD-12. While this figure is significant for a single task order, it should be viewed within the context of the broader federal IT security and identity management landscape. The U.S. government spends billions annually on IT services, including cybersecurity, infrastructure, and identity solutions. This contract is a component of that larger spending, addressing a critical compliance requirement. Its value is considerable for its focused purpose but is a fraction of the total federal IT budget.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

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: $58,083,707

Exercised Options: $57,754,929

Current Obligation: $57,754,929

Actual Outlays: $48,472,160

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $10,379,380

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0617Y

IDV Type: FSS

Timeline