HHS awards $71.1M O&M task order to Deloitte for HSPD-12 SIS BPA

Contract Overview

Contract Amount: $71,139,890 ($71.1M)

Contractor: Deloitte & Touche LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2024-01-01

End Date: 2026-06-30

Contract Duration: 911 days

Daily Burn Rate: $78.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: HHS HSPD-12 SIS BPA TASK ORDER 1 OPERATIONS & MAINTENANCE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $71.1 million to DELOITTE & TOUCHE LLP for work described as: HHS HSPD-12 SIS BPA TASK ORDER 1 OPERATIONS & MAINTENANCE Key points: 1. Significant contract value for IT operations and maintenance. 2. Deloitte & Touche LLP is the incumbent contractor. 3. Potential risk associated with long-term IT service contracts. 4. Spending falls under 'Other Computer Related Services' NAICS code.

Value Assessment

Rating: good

The contract value of $71.1M over approximately 2.5 years suggests a substantial investment in IT services. Benchmarking against similar large-scale IT O&M contracts would be necessary for a precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a competitive bidding process. This method is generally expected to yield fair market prices.

Taxpayer Impact: Taxpayer funds are being used for essential IT infrastructure maintenance and support, aiming for efficient service delivery.

Public Impact

Ensures continued operation of critical IT systems supporting HHS functions. Supports the HSPD-12 initiative for secure identification. Maintains the integrity and availability of sensitive government data. Impacts federal employees and contractors requiring secure access. Contributes to the overall cybersecurity posture of HHS.

Waste & Efficiency Indicators

Waste Risk Score: 78 / 10

Warning Flags

Long-term IT service dependency
Potential for scope creep
Vendor lock-in risk

Positive Signals

Full and open competition
Firm fixed price contract
Experienced incumbent contractor

Sector Analysis

This contract falls within the IT services sector, specifically focusing on operations and maintenance for a critical government identification system. Spending benchmarks for similar IT O&M contracts can vary widely based on system complexity and scope.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, small businesses were likely not the primary focus for this specific award, though they may participate as subcontractors.

Oversight & Accountability

The award was made by the Department of Health and Human Services, Office of the Assistant Secretary for Financial Resources. Oversight would typically involve contract management, performance monitoring, and financial accountability measures to ensure effective use of funds.

Related Government Programs

Other Computer Related Services
Department of Health and Human Services Contracting
Office of the Assistant Secretary for Financial Resources Programs

Risk Flags

Long-term contract duration
Reliance on a single vendor for critical IT services
Potential for cost overruns if scope is not tightly managed
Cybersecurity risks associated with sensitive data handling

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $71.1 million to DELOITTE & TOUCHE LLP. HHS HSPD-12 SIS BPA TASK ORDER 1 OPERATIONS & MAINTENANCE

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 (Office of the Assistant Secretary for Financial Resources).

What is the total obligated amount?

The obligated amount is $71.1 million.

What is the period of performance?

Start: 2024-01-01. End: 2026-06-30.

What is the specific scope of 'Operations & Maintenance' for the HSPD-12 SIS BPA?

The 'Operations & Maintenance' scope likely encompasses the day-to-day functioning, upkeep, and technical support of the HSPD-12 Smartcard Information System (SIS) infrastructure. This includes system monitoring, patching, troubleshooting, user support, and ensuring the continuous availability and security of the system in line with federal mandates like HSPD-12.

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

Key performance indicators would likely include system uptime percentages, response times for issue resolution, security incident rates, successful completion of system updates and patches, and user satisfaction surveys. Adherence to service level agreements (SLAs) defined in the BPA task order would be critical for evaluating contractor performance.

How does this contract contribute to HHS's overall IT modernization efforts?

This contract ensures the stable and secure operation of a foundational identity management system, which is crucial for any IT modernization. By maintaining the current system effectively, it allows HHS to focus resources on developing and implementing newer technologies, while ensuring that legacy systems supporting essential functions remain robust and secure during the transition.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $141,748,577

Exercised Options: $71,139,890

Current Obligation: $71,139,890

Actual Outlays: $56,666,223

Subaward Activity

Number of Subawards: 25

Total Subaward Amount: $10,624,590

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 75P00124A00003

IDV Type: BPA

Timeline