HHS awards $67.8M for NIH software development and maintenance to Deloitte Consulting LLP

Contract Overview

Contract Amount: $67,786,486 ($67.8M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2019-02-08

End Date: 2024-08-15

Contract Duration: 2,015 days

Daily Burn Rate: $33.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: CONTRACTED SERVICES TO DEVELOP AND MAINTAIN AN OPTIMAL PORTFOLIO OF STATE-OF-THE-ART, HIGH VALUE SOFTWARE APPLICATIONS. SUPPORT TO INCLUDE PROMPT RESPONSE TO SUPPORT REQUESTS, TROUBLESHOOTING SYSTEM PROBLEMS, INVESTIGATING SOFTWARE REQUESTS, INTERVIEWING AND GATHERING REQUIREMENTS, ANALYZING REQUIREMENTS, MODELING, DESIGNING SOLUTIONS, DATA ARCHITECTURE, DATA ANALYSIS, DEVELOPING AND CODING SOFTWARE, CONFIGURATION/IMPLEMENTATION AND DOCUMENTING SYSTEM CHANGE, APPLICATION DEPLOYMENT, INFORMATION MANAGEMENT, AND DISPOSITION OF SYSTEM AS APPROPRIATE.

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20852

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $67.8 million to DELOITTE CONSULTING LLP for work described as: CONTRACTED SERVICES TO DEVELOP AND MAINTAIN AN OPTIMAL PORTFOLIO OF STATE-OF-THE-ART, HIGH VALUE SOFTWARE APPLICATIONS. SUPPORT TO INCLUDE PROMPT RESPONSE TO SUPPORT REQUESTS, TROUBLESHOOTING SYSTEM PROBLEMS, INVESTIGATING SOFTWARE REQUESTS, INTERVIEWING AND GATHERING REQUIREMENT… Key points: 1. Significant investment in critical software infrastructure for NIH. 2. Deloitte Consulting LLP is a major player in IT services, indicating strong competition potential. 3. Risk of vendor lock-in and potential cost overruns in long-term contracts. 4. IT sector spending is substantial, with software development being a key area.

Value Assessment

Rating: good

The contract value of $67.8M over 5 years for comprehensive software services appears reasonable given the scope. Benchmarking against similar large-scale software development contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process that likely drove a fair price. The use of a delivery order under a larger contract structure is common for ongoing IT needs.

Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure supporting critical health research at NIH, aiming for value through competition.

Public Impact

Ensures continued operation and advancement of vital health research software. Supports the National Institutes of Health's mission through robust IT solutions. Potential for innovation and improved research capabilities through state-of-the-art applications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may lead to scope creep or evolving requirements.
Reliance on a single vendor for critical software maintenance.
Time and Materials pricing can be less predictable than fixed-price.

Positive Signals

Awarded through full and open competition.
Supports a critical government agency (NIH).
Contract covers a wide range of essential software services.

Sector Analysis

This contract falls within the IT sector, specifically computer systems design services. Spending in this area is substantial across government, supporting everything from administrative functions to advanced research and development.

Small Business Impact

The data indicates this contract was not awarded to small businesses. While large prime contractors are often necessary for complex projects, opportunities for small business subcontracting should be explored.

Oversight & Accountability

The contract is managed by the Department of Health and Human Services (HHS) for the National Institutes of Health (NIH). Oversight would involve monitoring performance, adherence to scope, and financial expenditures.

Related Government Programs

Computer Systems Design Services
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Vendor lock-in risk with long-term reliance on a single provider.
Scope creep if requirements are not tightly managed.
Dependence on contractor's cybersecurity practices.
Ensuring continued relevance of technology over the contract's lifespan.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $67.8 million to DELOITTE CONSULTING LLP. CONTRACTED SERVICES TO DEVELOP AND MAINTAIN AN OPTIMAL PORTFOLIO OF STATE-OF-THE-ART, HIGH VALUE SOFTWARE APPLICATIONS. SUPPORT TO INCLUDE PROMPT RESPONSE TO SUPPORT REQUESTS, TROUBLESHOOTING SYSTEM PROBLEMS, INVESTIGATING SOFTWARE REQUESTS, INTERVIEWING AND GATHERING REQUIREMENTS, ANALYZING REQUIREMENTS, MODELING, DESIGNING SOLUTIONS, DATA ARCHITECTURE, DATA ANALYSIS, DEVELOPING AND CODING SOFTWARE, CONFIGURATION/IMPLEMENTATION AND DOCUMENTING SYSTEM CHANGE, APPLICATION DEPLOYMENT, INFORMATION

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 (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $67.8 million.

What is the period of performance?

Start: 2019-02-08. End: 2024-08-15.

What is the projected return on investment for the software applications developed and maintained under this contract?

Quantifying the ROI for software supporting health research is complex. It can be measured by factors such as accelerated research timelines, improved data analysis capabilities leading to new discoveries, enhanced collaboration among researchers, and the efficiency gains from optimized application performance. Specific metrics would need to be defined by NIH.

What are the key performance indicators (KPIs) used to measure the success of Deloitte Consulting LLP's services?

Key performance indicators likely include response times for support requests, system uptime and availability, successful deployment of new features or updates, adherence to project timelines and budgets for specific development tasks, and user satisfaction surveys from NIH staff. Regular performance reviews would assess these KPIs.

How does the cost of this contract compare to industry benchmarks for similar software development and maintenance services?

Without specific details on the complexity and novelty of the software, a direct benchmark is difficult. However, the 'full and open competition' award suggests the pricing was deemed competitive at the time of award. Ongoing monitoring of task order costs against market rates is crucial for long-term value.

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

Solicitation ID: NIHJT2010001

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Financial Advisory Services LLP

Address: 1725 DUKE ST, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $67,786,486

Exercised Options: $67,786,486

Current Obligation: $67,786,486

Actual Outlays: $44,124,455

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $4,833,756

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200018W

IDV Type: GWAC

Timeline