HHS Awards $63M to Deloitte for NIH IT Transition Services Under Full and Open Competition

Contract Overview

Contract Amount: $63,272,365 ($63.3M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2012-11-15

End Date: 2017-09-30

Contract Duration: 1,780 days

Daily Burn Rate: $35.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CIT: DELOITTE - TRANSITIONING EXISTING COMPONENTS AND SERVICES FROM INCUMBENT CONTRACTOR TO SUCCESSOR CONTRACTOR

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 $63.3 million to DELOITTE CONSULTING LLP for work described as: CIT: DELOITTE - TRANSITIONING EXISTING COMPONENTS AND SERVICES FROM INCUMBENT CONTRACTOR TO SUCCESSOR CONTRACTOR Key points: 1. Deloitte Consulting LLP secured a significant contract for IT transition services at NIH. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The firm fixed price contract type aims to control costs for the government. 4. This award highlights the ongoing need for specialized IT support within federal health agencies.

Value Assessment

Rating: good

The contract value of $63.3 million over nearly five years appears reasonable for complex IT transition services. Benchmarking against similar large-scale IT service contracts would provide a more precise assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award is expected to have resulted in a fair price, maximizing taxpayer value for essential IT transition services.

Public Impact

Ensures continuity of critical IT systems at the National Institutes of Health. Supports the transition of services from an incumbent contractor, minimizing disruption. Leverages private sector expertise for complex technology management within a major federal agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is substantial, requiring ongoing monitoring.
Lack of specific performance metrics in provided data.
Potential for scope creep in IT transition projects.

Positive Signals

Awarded under full and open competition.
Firm fixed price contract type.
Experienced contractor in Deloitte.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical area for government operations. Spending in this sector is consistently high as agencies modernize and maintain complex IT infrastructures.

Small Business Impact

The data indicates this contract was awarded to Deloitte Consulting LLP, a large business. There is no explicit indication of small business participation in this specific award, which is common for large prime contracts.

Oversight & Accountability

The contract's full and open competition and firm fixed price structure suggest a degree of oversight. However, detailed oversight mechanisms and performance reviews would be managed by the contracting agency (HHS/NIH).

Related Government Programs

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

Risk Flags

Contract duration
Potential for scope creep
Lack of detailed performance metrics
Reliance on a single large contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $63.3 million to DELOITTE CONSULTING LLP. CIT: DELOITTE - TRANSITIONING EXISTING COMPONENTS AND SERVICES FROM INCUMBENT CONTRACTOR TO SUCCESSOR CONTRACTOR

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 $63.3 million.

What is the period of performance?

Start: 2012-11-15. End: 2017-09-30.

What specific IT components and services were transitioned, and what was the complexity involved?

The provided data does not detail the specific IT components and services transitioned. However, 'Computer Systems Design Services' suggests a broad scope including system integration, software development, and infrastructure management. The complexity likely involved migrating data, applications, and user access from the incumbent to Deloitte's management, ensuring minimal disruption to NIH's research and operational functions.

How did the competitive bidding process ensure cost-effectiveness for this IT transition?

The 'full and open competition' method allowed multiple qualified vendors to submit proposals, fostering a competitive environment. This typically drives down prices as contractors vie for the award. The 'firm fixed price' contract type further ensures cost-effectiveness by placing the risk of cost overruns on the contractor, incentivizing efficient project management and resource allocation.

What are the potential risks associated with a long-term IT transition contract, and how are they mitigated?

Risks include potential cost overruns if not managed tightly, vendor lock-in, and the possibility of the contractor not meeting performance expectations. Mitigation strategies often involve robust contract management, clear performance metrics (SLAs), regular progress reviews, and contingency planning for unforeseen technical challenges or changes in requirements.

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: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte LLP (UEI: 014127109)

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: $127,980,795

Exercised Options: $63,272,365

Current Obligation: $63,272,365

Actual Outlays: $91

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $584,100

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HHSN316201200018W

IDV Type: GWAC

Timeline