HHS awards $51.7M to Deloitte Consulting for CDC Management Support Services

Contract Overview

Contract Amount: $51,694,559 ($51.7M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2017-09-21

End Date: 2020-09-27

Contract Duration: 1,102 days

Daily Burn Rate: $46.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF CDC MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $51.7 million to DELOITTE CONSULTING LLP for work described as: IGF::OT::IGF CDC MANAGEMENT SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $51.7M over approximately three years indicates significant investment in management support. 3. Fixed-price contract type suggests cost certainty for the government, shifting risk to the contractor. 4. The award to a large, established firm like Deloitte Consulting implies a focus on experience and capability. 5. The contract's duration of over 1000 days points to a long-term need for these services. 6. The North American Industry Classification System (NAICS) code 541330 (Engineering Services) is noted, though the description is 'CDC Management Support Services'.

Value Assessment

Rating: good

Benchmarking the value of this $51.7 million contract for management support services is challenging without specific performance metrics or comparable contracts. However, the fixed-price nature of the award suggests the government aimed for cost predictability. The duration of the contract (over 1000 days) implies a substantial need, and the award to a well-known contractor like Deloitte Consulting indicates a perceived value in their established expertise and track record in similar engagements.

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 bids. The number of bidders is not specified, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the agency sought the best value proposition from the market.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple vendors to offer competitive pricing, potentially leading to cost savings and a wider array of innovative solutions.

Public Impact

The Centers for Disease Control and Prevention (CDC) benefits from enhanced management support services. Services likely include strategic planning, operational efficiency improvements, and program management assistance. The geographic impact is primarily within the CDC's operational areas, likely concentrated in Atlanta, Georgia, and potentially other CDC facilities. Workforce implications may involve support staff augmentation and specialized consulting expertise for CDC programs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long-term nature of the contract.
The broad 'management support services' description could lead to scope creep if not tightly managed.
Reliance on a single large contractor might limit opportunities for smaller, specialized firms.
The NAICS code 'Engineering Services' seems misaligned with 'Management Support Services', requiring clarification on the specific nature of services rendered.

Positive Signals

Awarded through full and open competition, promoting market-driven value.
Fixed-price contract type provides cost certainty for the government.
Contract awarded to a reputable firm with a known track record in government contracting.
The contract duration suggests a stable, ongoing need that the contractor is expected to fulfill reliably.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The federal government is a significant purchaser of these services to support its vast operations. Comparable spending benchmarks would involve analyzing other large management support contracts awarded by federal agencies, particularly within health and human services, to assess if the $51.7 million value is within the typical range for such comprehensive support over a multi-year period.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Deloitte Consulting LLP, is a large business. There is no explicit information on subcontracting plans for small businesses within this award. The absence of a small business set-aside means that opportunities for small businesses to participate in this contract are likely limited to subcontracting roles, if any are utilized by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program officials within the Department of Health and Human Services (HHS) and the specific CDC division receiving the support. Accountability measures are inherent in the fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated by federal contract databases where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected.

Related Government Programs

CDC Management and Program Support
HHS Management Consulting Services
Federal IT and Management Support Contracts
Public Health Program Management

Risk Flags

NAICS code mismatch
Potential for scope creep
Limited small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $51.7 million to DELOITTE CONSULTING LLP. IGF::OT::IGF CDC MANAGEMENT SUPPORT SERVICES

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 (Office of the Assistant Secretary for Administration).

What is the total obligated amount?

The obligated amount is $51.7 million.

What is the period of performance?

Start: 2017-09-21. End: 2020-09-27.

What specific management support services were provided under this contract?

The contract description is 'CDC MANAGEMENT SUPPORT SERVICES' with a NAICS code of '541330' (Engineering Services). This suggests a broad scope. Typically, management support services for an agency like the CDC could encompass strategic planning, organizational analysis, process improvement, program evaluation, administrative support, and potentially project management for various public health initiatives. The discrepancy between the service description and the NAICS code warrants further investigation into the precise deliverables and the rationale for the chosen classification. Without detailed task orders or statements of work, the exact nature of the services remains generalized.

How does the $51.7 million contract value compare to similar management support contracts for federal health agencies?

Comparing the $51.7 million value requires context regarding the contract's duration (approximately 3 years) and the specific services rendered. Large federal health agencies like HHS and its sub-agencies (e.g., CDC, NIH) frequently award multi-million dollar contracts for management consulting and support. Contracts of this magnitude are common for comprehensive, long-term support needs. To provide a precise benchmark, one would need to analyze contracts with similar scopes (e.g., strategic planning, operational efficiency, program management) awarded to large consulting firms by comparable agencies over similar timeframes. However, $51.7 million over three years for a major agency like the CDC is within the expected range for significant management support.

What is Deloitte Consulting LLP's track record with federal health agencies, particularly HHS and CDC?

Deloitte Consulting LLP is a major federal contractor with a substantial history of serving various government agencies, including the Department of Health and Human Services (HHS) and its components like the Centers for Disease Control and Prevention (CDC). They have been awarded numerous contracts across different domains, including IT modernization, financial management, program support, and public health initiatives. Their extensive experience suggests a deep understanding of federal procurement processes and the operational complexities of health agencies. Past performance reviews and contract databases would provide more granular detail on their specific successes and any challenges encountered in previous engagements with HHS/CDC.

What are the potential risks associated with a fixed-price contract of this size and duration?

A primary risk with fixed-price contracts, especially large ones like this $51.7 million award, is that the contractor may face unforeseen cost increases that erode their profit margin, potentially leading to corner-cutting or requests for modification. Conversely, if the contractor significantly underestimates costs or scope, the government might receive subpar performance. For the government, the risk lies in ensuring the contractor adequately resourced the contract to deliver the full scope of services. The long duration (over 1000 days) amplifies these risks, as market conditions, agency needs, and contractor capabilities can change significantly over time. Robust oversight is crucial to mitigate these potential issues.

How does the use of a large, established contractor like Deloitte impact competition and innovation?

Awarding a significant contract like this to a large, established firm like Deloitte Consulting LLP can have mixed impacts on competition and innovation. On one hand, their extensive resources, expertise, and proven track record may ensure reliable service delivery and the ability to handle complex tasks. On the other hand, the dominance of large contractors can sometimes stifle competition by creating high barriers to entry for smaller, more innovative firms. While Deloitte may bring established best practices, the inherent structure of large-scale contracts might sometimes favor incremental improvements over disruptive innovation, depending on the specific requirements and performance incentives outlined in the contract.

What is the significance of the NAICS code 541330 (Engineering Services) being assigned to 'CDC Management Support Services'?

The assignment of NAICS code 541330 (Engineering Services) to a contract described as 'CDC Management Support Services' is unusual and warrants clarification. Typically, management consulting services fall under NAICS codes like 541611 (Administrative Management and General Management Consulting Services) or 541613 (Marketing Consulting Services). Engineering services are focused on the application of scientific and mathematical principles to design, build, and maintain structures, machines, processes, etc. It's possible the contract involved technical consulting or engineering-adjacent management support critical to CDC's operations, or it could be an administrative error in classification. Understanding the actual services performed is key to assessing the appropriateness of this code.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: 17233SOL00822

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte LLP (UEI: 014127109)

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: $64,716,051

Exercised Options: $51,856,827

Current Obligation: $51,694,559

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $2,582,129

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU113

IDV Type: IDC

Timeline