Ginnie Mae's $74M financial accounting services contract awarded to Deloitte & Touche LLP

Contract Overview

Contract Amount: $74,248,191 ($74.2M)

Contractor: Deloitte & Touche LLP

Awarding Agency: General Services Administration

Start Date: 2015-12-26

End Date: 2021-06-25

Contract Duration: 2,008 days

Daily Burn Rate: $37.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF GINNIE MAE FINANCIAL ACCOUNTING SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $74.2 million to DELOITTE & TOUCHE LLP for work described as: IGF::OT::IGF GINNIE MAE FINANCIAL ACCOUNTING SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration spans over 5 years, indicating a significant need for ongoing services. 3. The award was a delivery order under a larger contract, potentially indicating a pre-negotiated rate structure. 4. The primary contractor, Deloitte & Touche LLP, is a large, established firm with extensive government contracting experience. 5. The North American Industry Classification System (NAICS) code 541519 suggests a focus on IT-related services beyond traditional accounting. 6. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 7. The contract was awarded by the General Services Administration (GSA), a common procurement channel for federal agencies.

Value Assessment

Rating: fair

The total award amount of $74,248,191 over approximately 5.75 years (December 2015 to June 2021) averages to about $12.9 million per year. Benchmarking this against similar large-scale financial accounting and IT support contracts for federal agencies is challenging without more specific service details. However, given the scale and the reputable contractor, the pricing appears within a plausible range for comprehensive services. The firm fixed-price nature of the contract provides cost certainty for the government, but the value-for-money assessment depends heavily on the quality and efficiency of the services delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. The data does not specify the number of bidders, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings. As a delivery order under a larger contract, the initial competition for the parent contract is key to understanding the overall competitive landscape.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple vendors to offer competitive pricing, potentially driving down costs and improving service quality.

Public Impact

The primary beneficiary is Ginnie Mae, which receives essential financial accounting and IT support services. The services delivered likely ensure the accuracy and integrity of Ginnie Mae's financial reporting and operations. The contract's geographic impact is primarily within Virginia, where the contractor's "VA" status is noted, though the services may support national operations. The contract supports a workforce within Deloitte & Touche LLP, contributing to employment in the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the 'Other Computer Related Services' are not clearly defined.
Reliance on a single large contractor for critical financial functions could pose a risk if performance issues arise.
The long duration of the contract (over 5 years) might reduce flexibility to adapt to changing technological or regulatory environments.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Firm Fixed Price contract type provides cost predictability for the government.
Contractor is a well-established firm with significant experience in government contracting.
Services are procured through the General Services Administration, a recognized procurement authority.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to IT and financial accounting. The NAICS code 541519, 'Other Computer Related Services,' suggests a blend of IT support and potentially specialized financial systems management. The market for such services is large and competitive, with numerous firms capable of providing these solutions. Ginnie Mae's need for these services is critical for its role in the secondary mortgage market, requiring robust financial infrastructure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major firm like Deloitte & Touche LLP, it is unlikely to involve significant subcontracting opportunities for small businesses unless explicitly mandated or pursued by the prime contractor. The focus appears to be on large-scale service delivery rather than fostering small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA) as the contracting agency, and Ginnie Mae as the program executive. The Inspector General offices of both GSA and Ginnie Mae would have jurisdiction to investigate potential fraud, waste, or abuse. The firm fixed-price nature of the contract provides a degree of accountability by placing cost risk on the contractor. Transparency would be enhanced through regular performance reviews and reporting requirements stipulated in the contract.

Related Government Programs

Ginnie Mae Mortgage-Backed Securities Programs
Federal Financial Management Systems
Government IT Services Procurement
GSA Federal Supply Schedule Contracts

Risk Flags

Potential for vendor lock-in due to long-term contract and specialized services.
Reliance on a single contractor for critical financial functions.
Scope definition for 'Other Computer Related Services' could lead to disputes or unfulfilled needs.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $74.2 million to DELOITTE & TOUCHE LLP. IGF::OT::IGF GINNIE MAE FINANCIAL ACCOUNTING SERVICES

Who is the contractor on this award?

The obligated recipient is DELOITTE & TOUCHE LLP.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $74.2 million.

What is the period of performance?

Start: 2015-12-26. End: 2021-06-25.

What specific 'Other Computer Related Services' were included under NAICS code 541519 for Ginnie Mae's financial accounting?

The provided data does not detail the specific 'Other Computer Related Services' encompassed by NAICS code 541519 for this contract. Typically, this code covers a broad range of IT services beyond standard software development or hardware maintenance, potentially including IT consulting, systems integration, data management, IT security services, and IT support for financial applications. Given the context of financial accounting services for Ginnie Mae, these services likely involved support for financial management systems, data analytics, IT infrastructure related to financial operations, and potentially cybersecurity measures to protect sensitive financial data. A deeper dive into the contract's Statement of Work (SOW) would be necessary to ascertain the precise services rendered.

How does the annual cost of this contract compare to similar financial accounting and IT support contracts for federal agencies of Ginnie Mae's size?

Direct comparison of the annual cost ($12.9 million average) is difficult without specific details on the scope and nature of services provided. Ginnie Mae, while an independent agency within HUD, operates with significant financial volume. Large federal agencies often spend tens to hundreds of millions annually on combined financial management and IT support. Contracts for large-scale ERP (Enterprise Resource Planning) systems, financial system modernization, or comprehensive IT outsourcing can range widely. For instance, contracts supporting agencies like the IRS or DoD for similar functions can exceed this amount significantly due to scale and complexity. However, for an agency focused on the secondary mortgage market, this figure appears substantial and suggests a comprehensive service package, warranting scrutiny against industry benchmarks for specialized financial IT support.

What is Deloitte & Touche LLP's track record with Ginnie Mae and other federal agencies for similar services?

Deloitte & Touche LLP, as part of Deloitte, has a long-standing and extensive track record of providing professional services, including financial advisory, IT consulting, and audit services, to numerous federal agencies. Their experience with Ginnie Mae specifically would be detailed within Ginnie Mae's procurement records and potentially Inspector General reports if any issues arose. Generally, large consulting firms like Deloitte are awarded significant contracts due to their established capabilities, broad expertise, and past performance. A review of federal procurement databases (like FPDS or SAM.gov) would reveal the full extent of their contract history with Ginnie Mae and other agencies, highlighting their performance ratings and any notable successes or challenges in delivering similar financial and IT-related services.

What were the key performance indicators (KPIs) for this contract, and how did Deloitte & Touche LLP perform against them?

The specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided summary data. However, for financial accounting and IT support services, typical KPIs would likely include metrics related to accuracy of financial reporting, timeliness of deliverables (e.g., reports, system updates), system uptime and availability, response times for IT support tickets, adherence to security protocols, and overall client satisfaction. Performance against these KPIs would be assessed through contract performance reports, user feedback, and potentially audits. Without access to Ginnie Mae's internal performance evaluations or contract administration records, a definitive assessment of Deloitte's performance is not possible from this data alone. Contract award and continuation suggest satisfactory performance, but specific details would require further investigation.

How has Ginnie Mae's spending on financial accounting and IT services evolved over time, and does this contract represent a significant shift?

The provided data only covers a single contract award from December 2015 to June 2021, totaling $74.2 million. To understand Ginnie Mae's spending evolution, historical data on prior contracts for similar services, as well as subsequent contracts, would be needed. This contract, valued at over $12 million annually, represents a substantial investment in financial accounting and IT support. Whether it signifies a 'shift' depends on whether previous spending levels were significantly lower or higher, or if the scope of services changed dramatically. Ginnie Mae's operational needs, regulatory environment, and technological advancements would influence spending patterns. Analyzing spending trends over a longer period (e.g., 5-10 years) would provide context on whether this contract represents a typical, increased, or decreased level of investment.

What are the potential risks associated with relying on a single large contractor for critical financial functions like those provided by Deloitte?

Relying on a single large contractor like Deloitte & Touche LLP for critical financial functions presents several potential risks. Firstly, there's a risk of vendor lock-in, where transitioning to a new provider becomes difficult and costly due to specialized knowledge, systems, or processes developed by the incumbent. Secondly, performance degradation or service disruptions by the contractor could have severe consequences for Ginnie Mae's operations and financial integrity. Thirdly, a lack of robust competition over time could lead to complacency or reduced innovation from the contractor. Finally, the concentration of critical functions within one entity could be a single point of failure in the event of unforeseen circumstances affecting the contractor, such as financial instability, major data breaches, or significant personnel turnover. Mitigating these risks often involves strong contract management, clear performance expectations, contingency planning, and regular market analysis.

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: ID11150030

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $180,047,826

Exercised Options: $151,546,211

Current Obligation: $74,248,191

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $10,112,046

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS00F029DA

IDV Type: FSS

Timeline