HHS Awards Deloitte $48.4M for UFMS Enterprise Operations and Maintenance Support

Contract Overview

Contract Amount: $48,405,014 ($48.4M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Health and Human Services

Start Date: 2009-04-09

End Date: 2013-03-04

Contract Duration: 1,425 days

Daily Burn Rate: $34.0K/day

Competition Type: FULL AND OPEN COMPETITION

Sector: IT

Official Description: TO PROVIDE CORE SUPPORT SERVICES FOR THE UFMS ENTERPRISE OPERATIONS AND MAINTENACE (O M)THIS IS TASK ORDER 3 UNDER THE PREVIOUSLY AWARDED BPA HHSP233200630003B

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857, UNITED STATES OF AMERICA

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $48.4 million to DELOITTE CONSULTING LLP for work described as: TO PROVIDE CORE SUPPORT SERVICES FOR THE UFMS ENTERPRISE OPERATIONS AND MAINTENACE (O M)THIS IS TASK ORDER 3 UNDER THE PREVIOUSLY AWARDED BPA HHSP233200630003B Key points: 1. Significant contract value of $48.4 million for essential IT operations. 2. Deloitte Consulting LLP is the incumbent contractor. 3. Task Order 3 under a prior BPA indicates ongoing relationship. 4. NAICS code 541519 suggests a broad range of computer-related services.

Value Assessment

Rating: fair

The contract value of $48.4 million over approximately 4 years (1425 days) suggests a moderate annual spend. Benchmarking against similar IT operations and maintenance contracts would be necessary to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing. However, as a task order under an existing BPA, the initial price discovery may have occurred earlier.

Taxpayer Impact: The use of full and open competition is positive for taxpayer value. The specific pricing effectiveness depends on the competitive landscape at the time of the original BPA award and subsequent task order negotiations.

Public Impact

Supports critical Health and Human Services (HHS) financial management systems. Ensures continuity of essential government IT operations. Impacts internal HHS operations and potentially downstream beneficiaries of its services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics provided.
Limited insight into the competitive pricing at the task order level.
Potential for scope creep in long-term IT support contracts.

Positive Signals

Awarded under full and open competition.
Incumbent contractor likely possesses institutional knowledge.
Task order structure allows for focused service delivery.

Sector Analysis

This contract falls within the IT services sector, specifically focusing on operations and maintenance for enterprise resource planning (ERP) or financial management systems. Spending in this area is crucial for government efficiency but requires careful oversight to ensure cost-effectiveness.

Small Business Impact

The data indicates that small business participation was not a factor in this specific award (ss: false, sb: false). Further analysis would be needed to understand the overall small business utilization within the parent BPA.

Oversight & Accountability

As a task order under a BPA, oversight is likely managed through the parent contract's framework. Monitoring performance and adherence to scope are key accountability measures for ensuring taxpayer value.

Related Government Programs

Other Computer Related Services
Department of Health and Human Services Contracting
Office of the Assistant Secretary for Administration Programs

Risk Flags

Lack of detailed performance metrics.
Limited transparency on task-order level pricing.
Potential for vendor lock-in over contract duration.
No indication of small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $48.4 million to DELOITTE CONSULTING LLP. TO PROVIDE CORE SUPPORT SERVICES FOR THE UFMS ENTERPRISE OPERATIONS AND MAINTENACE (O M)THIS IS TASK ORDER 3 UNDER THE PREVIOUSLY AWARDED BPA HHSP233200630003B

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 $48.4 million.

What is the period of performance?

Start: 2009-04-09. End: 2013-03-04.

What specific performance metrics were established for this task order to ensure effective service delivery and value for money?

The provided data does not specify performance metrics for this task order. Effective oversight would require clearly defined Service Level Agreements (SLAs) and Key Performance Indicators (KPIs) tied to system uptime, response times, and issue resolution. Without these, assessing the contractor's performance and the true value delivered to HHS becomes challenging.

How does the pricing of this task order compare to similar IT operations and maintenance contracts awarded by other federal agencies?

Benchmarking this $48.4 million task order against similar contracts is difficult without more granular cost data. Factors like the specific systems supported, complexity of the environment, and service level requirements significantly influence pricing. A comprehensive comparison would require access to detailed pricing structures and scope of work from comparable contracts.

What is the potential risk associated with relying on a single contractor for extended IT operations and maintenance support under this BPA structure?

The primary risk lies in potential vendor lock-in and reduced leverage for future negotiations if competition is not actively fostered. Over time, institutional knowledge concentrated with the incumbent could make transitioning to a new vendor more complex and costly. Continuous market research and planning for future competition are essential mitigation strategies.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte LLP (UEI: 014127109)

Address: 12010 SUNSET HILLS RD, RESTON, VA, 20190

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $895,228,574

Exercised Options: $57,837,458

Current Obligation: $48,405,014

Parent Contract

Parent Award PIID: HHSP233200630003B

IDV Type: BPA

Timeline