HHS CDC awards $17.5M to Deloitte for financial system transition support over 5 years

Contract Overview

Contract Amount: $17,482,346 ($17.5M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2005-06-24

End Date: 2010-09-30

Contract Duration: 1,924 days

Daily Burn Rate: $9.1K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FINANCIAL SYSTEM TRANSITION SUPPORT

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $17.5 million to DELOITTE CONSULTING LLP for work described as: FINANCIAL SYSTEM TRANSITION SUPPORT Key points: 1. Contract awarded via a competitive process, suggesting potential for price discovery. 2. The contract duration of approximately 5 years indicates a significant, long-term need. 3. Deloitte's extensive experience in consulting services positions them as a capable provider. 4. The fixed-price contract type can offer cost certainty for the government. 5. Administrative Management and General Management Consulting Services are critical for operational efficiency. 6. The award value falls within a moderate range for large-scale consulting engagements.

Value Assessment

Rating: good

The contract value of $17.5 million over five years for financial system transition support appears reasonable given the scope of such projects. Benchmarking against similar large-scale IT and management consulting contracts for federal agencies suggests this is within expected parameters. The fixed-price nature of the award provides cost predictability, though the ultimate value depends on the efficiency of the transition process and the specific deliverables achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a competitive process, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but a full and open competition generally fosters a more robust price discovery mechanism and allows the government to select the offer that best balances cost and technical merit. This approach is favorable for ensuring taxpayer value.

Taxpayer Impact: A competitive award process helps ensure that taxpayer funds are used efficiently by driving down costs through market forces and encouraging high-quality service delivery.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from improved financial system operations. Services delivered include administrative management and general management consulting. The geographic impact is primarily within the CDC's operational centers, likely in Georgia. Workforce implications may involve internal staff training and adaptation to new financial systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term consulting engagements if not managed tightly.
Dependence on a single contractor for critical financial system transitions carries inherent risk.
Ensuring knowledge transfer to government personnel is crucial for long-term sustainability.

Positive Signals

Award to a well-established firm like Deloitte suggests a high likelihood of successful execution.
Competitive award process indicates a focus on achieving best value for the government.
Fixed-price contract can provide budget certainty for the agency.

Sector Analysis

This contract falls within the professional services sector, specifically management and financial consulting. The market for these services within the federal government is substantial, with agencies frequently seeking external expertise for complex system implementations and transitions. Comparable spending benchmarks for large federal IT and financial system modernization projects often range in the tens to hundreds of millions of dollars over several years, making this award a moderate-sized engagement within that context.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not explicitly detailed in the provided data. However, given the nature and scale of the contract, it is likely that a large prime contractor like Deloitte would be expected to engage small businesses for specialized support or as part of a broader subcontracting strategy, though this is not guaranteed without specific contractual clauses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the CDC. Performance reviews, regular reporting requirements, and adherence to the fixed-price contract terms would serve as accountability measures. Transparency is generally maintained through contract award databases and public reporting, though detailed performance metrics are often internal.

Related Government Programs

Financial System Modernization Programs
Administrative Management Consulting Services
IT Consulting Services
Public Health Agency IT Support

Risk Flags

Long contract duration increases risk of scope creep and evolving requirements.
Dependence on a single contractor for critical system transition.
Potential for cost overruns if initial estimates are inaccurate under fixed-price terms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $17.5 million to DELOITTE CONSULTING LLP. FINANCIAL SYSTEM TRANSITION SUPPORT

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 Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $17.5 million.

What is the period of performance?

Start: 2005-06-24. End: 2010-09-30.

What is Deloitte Consulting LLP's track record with the federal government, particularly in financial system transitions?

Deloitte Consulting LLP is a major federal contractor with a long history of providing a wide array of professional services, including IT consulting, financial management, and system implementation. They have been involved in numerous large-scale federal projects, including financial system transitions for various agencies. Their extensive experience suggests a strong capability to handle complex projects like the one awarded by the CDC. Publicly available contract databases often show a significant number of awards to Deloitte across different agencies, indicating a consistent demand for their services and a generally positive performance history, though specific project outcomes can vary.

How does the $17.5 million award compare to similar financial system transition contracts at the CDC or other HHS agencies?

The $17.5 million award over approximately five years for financial system transition support is a substantial but not extraordinary figure for a federal agency of the CDC's size and complexity. Similar projects at other large federal agencies, particularly those involving comprehensive financial system overhauls or transitions (e.g., ERP implementations, accounting system upgrades), can range from tens to hundreds of millions of dollars. The value appears to be in the mid-range for such specialized, long-term consulting engagements, suggesting a potentially well-scoped project or a competitive pricing strategy by the contractor.

What are the primary risks associated with a five-year fixed-price contract for financial system transition support?

A primary risk with a five-year fixed-price contract for financial system transition support is the potential for scope creep, where the project's requirements expand beyond the initial agreement without corresponding adjustments to price or schedule. If the contractor underestimates the complexity or effort required, they may incur losses. Conversely, if the government's needs evolve significantly, the fixed-price nature could make it difficult or costly to incorporate necessary changes. Another risk is the contractor's potential to cut corners on quality to maintain profitability if costs escalate unexpectedly. Effective contract management, clear change control processes, and robust performance monitoring are crucial to mitigate these risks.

How effective are administrative management and general management consulting services in achieving successful financial system transitions?

Administrative and general management consulting services are often critical for the success of financial system transitions. These services typically encompass strategic planning, process re-engineering, change management, organizational design, and project management oversight. By providing expertise in these areas, consultants can help agencies define clear objectives, streamline workflows, manage the human element of change, and ensure the project stays on track. Their role is to bridge the gap between technical system implementation and the agency's operational realities, ensuring the new system aligns with business needs and is adopted effectively by users, thereby maximizing the return on investment for the transition.

What is the historical spending pattern for administrative management and general management consulting services at the CDC?

Historical spending data for administrative management and general management consulting services at the CDC would reveal trends in their reliance on external expertise for operational and strategic initiatives. While specific figures for this contract are provided, understanding the broader pattern requires analyzing past awards in the NAICS code 541611 category. Agencies like the CDC often utilize such services for system upgrades, process improvements, and organizational restructuring. Consistent or increasing spending in this area might indicate a growing need for specialized support or a strategic decision to outsource certain functions, while fluctuating spending could reflect project-based needs or shifts in internal capacity.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte LLP (UEI: 014127109)

Address: 4301 N FAIRFAX DR STE 210, ARLINGTON, VA, 22203

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership

Financial Breakdown

Contract Ceiling: $268,299,692

Exercised Options: $158,156,132

Current Obligation: $17,482,346

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS23F9796H

IDV Type: FSS

Timeline