DOJ's FBI awarded $55.5M to Deloitte for IT services, raising value and competition questions

Contract Overview

Contract Amount: $55,451,256 ($55.5M)

Contractor: Deloitte & Touche LLP

Awarding Agency: Department of Justice

Start Date: 2016-12-01

End Date: 2021-11-30

Contract Duration: 1,825 days

Daily Burn Rate: $30.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: IT

Official Description: IGF::OT::IGF - ADMINISTRATIVE AND PROFESSIONAL SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $55.5 million to DELOITTE & TOUCHE LLP for work described as: IGF::OT::IGF - ADMINISTRATIVE AND PROFESSIONAL SUPPORT SERVICES Key points: 1. The contract's value appears reasonable given the duration and scope of IT support services. 2. Full and open competition suggests a competitive pricing environment, but the number of bidders is not specified. 3. Potential risks include contractor performance and the long-term reliance on a single vendor for critical IT functions. 4. The services provided are essential for the FBI's operational efficiency and data management. 5. This contract falls within the broader IT services sector, supporting federal agency digital infrastructure. 6. The absence of small business set-asides warrants further examination of subcontracting opportunities.

Value Assessment

Rating: fair

The total award of $55.5 million over five years for IT services averages to approximately $11.1 million annually. This figure seems within a reasonable range for large-scale federal IT support contracts, especially considering the complexity and critical nature of the FBI's operations. However, without specific details on the services rendered and comparable contract data for similar support levels, a precise value-for-money assessment is challenging. Benchmarking against other federal contracts for administrative and professional support services in the IT domain would provide a clearer picture of whether this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach is generally favored for maximizing competition and achieving the best possible prices for the government. However, the specific number of bids received is not detailed in the provided data. A higher number of bidders typically correlates with more robust price discovery and potentially lower costs. The fact that it was competed openly suggests that the FBI sought a competitive landscape for these essential IT services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it theoretically drives down costs through market forces. It ensures that the government is not unduly influenced by a lack of alternatives, leading to more efficient use of public funds.

Public Impact

The Federal Bureau of Investigation (FBI) is the primary beneficiary, receiving essential IT support. Services include administrative and professional support, crucial for maintaining the FBI's technological infrastructure and operations. The contract's geographic impact is national, supporting the FBI's nationwide operations. Workforce implications include the potential for employment opportunities within Deloitte and its subcontractors supporting this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to gauge the effectiveness of the services provided.
The long duration of the contract (5 years) could lead to vendor lock-in and reduced flexibility.
Limited transparency on the number of bidders in the full and open competition raises questions about the extent of price discovery.
The absence of small business set-asides might limit opportunities for smaller, specialized IT firms.
The 'Other Computer Related Services' NAICS code is broad, potentially masking the specific nature and cost drivers of the services.

Positive Signals

Awarded through full and open competition, suggesting a commitment to leveraging market forces.
The contractor, Deloitte & Touche LLP, is a well-established firm with significant experience in government contracting.
The contract duration of 1825 days (5 years) provides stability for the FBI's IT support needs.
The contract type (BPA Call) indicates it was likely part of a larger framework agreement, potentially streamlining procurement.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, a critical area for federal agencies. The market for IT support services is vast and highly competitive, encompassing a wide range of specialized capabilities. Federal spending in this sector is substantial, driven by the need for modernization, cybersecurity, data management, and operational efficiency. Comparable spending benchmarks for IT support services can vary significantly based on the scope, complexity, and duration of the contract, as well as the specific agency's requirements. This contract's value of $55.5 million over five years places it in the mid-to-large tier for federal IT service contracts.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that large businesses were eligible to compete and potentially win the award. While full and open competition allows for the broadest participation, the absence of specific small business set-asides means that opportunities for small businesses to directly participate in this contract may be limited. However, it is possible that the prime contractor, Deloitte & Touche LLP, may engage small businesses as subcontractors. Further analysis would be needed to determine the extent of subcontracting to small businesses and its impact on the small business IT ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Office of the Inspector General (OIG) and the Federal Bureau of Investigation's internal oversight mechanisms. The contract's performance would be monitored by the FBI's contracting officers and program managers. Transparency is facilitated through contract databases like FPDS, which provide basic award information. However, detailed reporting on performance metrics, expenditures, and potential issues is often internal or available through specific IG reports, making a comprehensive public assessment of oversight effectiveness challenging without deeper investigation.

Related Government Programs

IT Professional Services
Administrative and Support Services
IT Services for Law Enforcement
Contracting Vehicles (BPA)
Federal Bureau of Investigation Operations

Risk Flags

Potential for cost overruns due to the broad scope of services.
Risk of vendor lock-in given the long contract duration.
Dependence on a single contractor for critical IT functions.
Lack of specific performance metrics in public data hinders assessment.
Limited visibility into the extent of small business subcontracting.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $55.5 million to DELOITTE & TOUCHE LLP. IGF::OT::IGF - ADMINISTRATIVE AND PROFESSIONAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is DELOITTE & TOUCHE LLP.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $55.5 million.

What is the period of performance?

Start: 2016-12-01. End: 2021-11-30.

What specific IT services were provided under this contract, and how do they align with the FBI's mission-critical functions?

The contract, identified under NAICS code 541519 (Other Computer Related Services), suggests a broad scope of IT support. While specific service details are not provided, this category typically encompasses services such as IT consulting, systems integration, IT management, and potentially custom software development or support. For the FBI, these services are crucial for maintaining its vast data systems, investigative technology, communication networks, and cybersecurity infrastructure. They directly support the agency's ability to conduct investigations, manage intelligence, and ensure operational continuity. The broad nature of the NAICS code means the actual services could range from help desk support to complex network architecture design and implementation, all vital for the FBI's day-to-day operations and long-term technological advancement.

How does the $55.5 million award compare to other federal contracts for similar IT support services provided to law enforcement agencies?

Comparing the $55.5 million award to similar federal contracts requires access to a broader dataset of IT service contracts awarded to agencies like the FBI, DEA, or Secret Service. However, as a general benchmark, $55.5 million over five years (averaging $11.1 million annually) is a substantial but not extraordinary amount for IT support services to a large federal agency. Major IT service contracts for agencies of the FBI's size often run into tens or hundreds of millions of dollars. Factors influencing cost include the number of users supported, the complexity of the systems, the criticality of the services (e.g., 24/7 support for mission-critical systems), and the specific technological requirements. Without detailed service scope and performance metrics, a precise comparison is difficult, but the award appears to be within the expected range for a contract of this nature and duration for a federal law enforcement agency.

What are the key performance indicators (KPIs) used to measure the success of Deloitte & Touche LLP's performance under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to measure Deloitte & Touche LLP's performance under this contract. Typically, for IT support services, KPIs might include metrics such as system uptime, response times for service requests, resolution rates for technical issues, user satisfaction scores, and adherence to security protocols. The effectiveness of oversight and accountability relies heavily on the establishment and monitoring of these KPIs. The absence of this information in the public record makes it challenging to independently assess the contractor's performance and the overall value delivered to the FBI. Further investigation into contract performance reports or IG audits would be necessary to ascertain the specific KPIs and their outcomes.

What is Deloitte & Touche LLP's track record with federal IT service contracts, particularly with agencies like the FBI?

Deloitte & Touche LLP is a major global professional services firm with extensive experience in federal contracting, including significant work in the IT services domain. They have a well-established track record of securing and performing large-scale contracts across various federal agencies, including defense, civilian, and intelligence communities. Their portfolio often includes IT modernization, cybersecurity, cloud migration, data analytics, and administrative support services. While specific contract performance details for this particular FBI contract are not detailed here, Deloitte's general reputation and history suggest they possess the resources and expertise to handle complex federal IT requirements. However, like any large contractor, their performance history across all contracts would warrant a detailed review, including any past performance issues or successes.

How has federal spending on 'Other Computer Related Services' (NAICS 541519) evolved over the past five years, and where does this $55.5M contract fit in?

Federal spending on 'Other Computer Related Services' (NAICS 541519) has generally seen a steady increase over the past five years, reflecting the ongoing digital transformation across government agencies. This category encompasses a wide array of IT services beyond standard software development or IT infrastructure management, including consulting, integration, and specialized technical support. The $55.5 million awarded to Deloitte for the FBI represents a significant single award within this category. While it's a substantial sum, it is one of many contracts contributing to the overall federal expenditure in this sector. Analyzing trends would involve looking at total obligated amounts for this NAICS code across all agencies year-over-year. This contract, awarded between 2016 and 2021, falls within a period of heightened federal IT modernization efforts, making its value consistent with the broader spending patterns in this domain.

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

Pricing Type: LABOR HOURS (Z)

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: $95,216,347

Exercised Options: $55,451,256

Current Obligation: $55,451,256

Actual Outlays: $26,794,645

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $8,686,893

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: DJF171200S0000590

IDV Type: BPA

Timeline