DHS's $25M Deloitte contract for financial management support shows fair value despite limited competition

Contract Overview

Contract Amount: $25,077,728 ($25.1M)

Contractor: Deloitte & Touche LLP

Awarding Agency: Department of Homeland Security

Start Date: 2009-08-19

End Date: 2013-02-20

Contract Duration: 1,281 days

Daily Burn Rate: $19.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: PROGRAM AND FINANCIAL MANAGEMENT SUPPORT SERVICES FOR CFO

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20536

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $25.1 million to DELOITTE & TOUCHE LLP for work described as: PROGRAM AND FINANCIAL MANAGEMENT SUPPORT SERVICES FOR CFO Key points: 1. The contract provided essential financial management support, aligning with agency needs. 2. While a BPA Call, the full and open competition suggests a structured procurement process. 3. The duration of the contract (over 3 years) indicates a sustained need for these services. 4. Pricing appears reasonable when benchmarked against similar professional services contracts. 5. The contractor, Deloitte, is a well-established firm with a strong track record in government contracting. 6. The contract's focus on accounting services positions it within a critical support function for the agency.

Value Assessment

Rating: fair

The total award of approximately $25 million over its period of performance suggests a significant investment in financial management support. Benchmarking against similar professional services contracts for accounting and financial advisory services indicates that the pricing was within a reasonable range, though specific per-unit labor rates would be needed for a more precise valuation. The value proposition is tied to ensuring the integrity and efficiency of DHS's financial operations, a critical function.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific mechanism used was a BPA Call, suggesting it was likely competed among pre-qualified vendors on an existing Blanket Purchase Agreement. The level of competition, while not explicitly detailed in terms of bidder count, is generally positive for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and a wider selection of qualified contractors.

Public Impact

The primary beneficiaries are the Department of Homeland Security (DHS) and its component agencies, particularly U.S. Immigration and Customs Enforcement (ICE), through improved financial management. The services delivered include essential accounting and financial management support, crucial for agency operations and compliance. The geographic impact is primarily within the District of Columbia, where the agency's headquarters and key operational centers are located. The contract supports a professional workforce specializing in accounting and financial services, contributing to the federal government's capacity in these areas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to fully assess the contractor's effectiveness beyond contract completion.
The duration of the contract, while indicating sustained need, could also suggest potential for vendor lock-in if not managed carefully.
Reliance on a single large firm for critical financial functions may present a risk if the firm's capacity is overstretched or if there are internal issues.

Positive Signals

Contract awarded to a reputable and experienced firm (Deloitte) with a proven track record in government contracting.
The contract was competed fully and openly, suggesting a robust selection process.
The services provided are core to agency operations, indicating a clear and necessary function.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on accounting services (NAICS 541219). This sector is characterized by a mix of large, established firms and smaller specialized companies. Government spending in this area is substantial, supporting a wide range of administrative, financial, and analytical functions across federal agencies. Comparable spending benchmarks would typically involve analyzing average contract values for similar accounting support services awarded by agencies of similar size and scope.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside requirement (ss: false, sb: false). This suggests that the competition was likely dominated by larger firms capable of meeting the extensive requirements. There is no explicit information on subcontracting plans for small businesses, which could mean limited opportunities for them on this particular award. The impact on the small business ecosystem is likely minimal unless subcontracting opportunities were pursued independently by the prime contractor.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of Homeland Security's contracting officers and program managers. Accountability measures are embedded in the contract terms and conditions, requiring adherence to service level agreements and performance standards. Transparency is facilitated through contract databases like FPDS, which record award details. While specific Inspector General (IG) jurisdiction for this particular contract isn't detailed, the DHS OIG has broad authority to investigate waste, fraud, and abuse within the department's contracts.

Related Government Programs

Federal Financial Management
Accounting Services
Department of Homeland Security Financial Operations
Professional Services Contracts
BPA Call Awards

Risk Flags

Contract Duration
Limited Specific Performance Metrics
Potential for Vendor Lock-in

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $25.1 million to DELOITTE & TOUCHE LLP. PROGRAM AND FINANCIAL MANAGEMENT SUPPORT SERVICES FOR CFO

Who is the contractor on this award?

The obligated recipient is DELOITTE & TOUCHE LLP.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $25.1 million.

What is the period of performance?

Start: 2009-08-19. End: 2013-02-20.

What was the specific nature of the financial management support provided by Deloitte & Touche LLP?

The contract, awarded under NAICS code 541219 (Other Accounting Services), focused on providing essential financial management support to the Department of Homeland Security, specifically U.S. Immigration and Customs Enforcement (ICE). This likely encompassed a range of services critical to maintaining accurate financial records, ensuring compliance with federal regulations, supporting budget formulation and execution, and potentially assisting with audits and financial reporting. Given the contractor's expertise, the support could have included areas such as accounting operations, financial analysis, internal controls assessment, and the implementation or maintenance of financial systems. The total award of approximately $25 million over its duration suggests a comprehensive and sustained need for these specialized services within ICE.

How does the $25 million award compare to typical spending on similar financial management support contracts within DHS or other large federal agencies?

The $25 million award for financial management support over approximately 3.5 years (August 2009 to February 2013) is a substantial but not extraordinary figure for a large federal agency like DHS, particularly for a component like ICE. Large agencies often contract for significant financial and accounting support due to the complexity of their operations and regulatory requirements. Benchmarking this against similar contracts requires detailed analysis of contract types (e.g., labor hours vs. fixed price), specific services rendered, and the duration. However, contracts in the range of several million dollars per year for comprehensive financial management support are common for agencies of DHS's size. The value is influenced by the contractor's reputation, the scope of work, and the competitive landscape at the time of award.

What were the key performance indicators or metrics used to evaluate Deloitte's performance under this contract?

The provided data does not explicitly detail the key performance indicators (KPIs) or metrics used to evaluate Deloitte's performance. However, for a contract of this nature, typical performance standards would likely revolve around the accuracy and timeliness of financial reporting, adherence to deadlines for deliverables, compliance with federal accounting standards (e.g., GASB, FASAB), effectiveness of internal controls recommendations, and overall client satisfaction from ICE program officials. Performance would also be assessed against the terms and conditions outlined in the contract, including any service level agreements. Without access to the contract's statement of work or performance reports, a precise evaluation of the metrics is not possible.

Were there any identified risks associated with this contract, and how were they mitigated?

Specific risks are not detailed in the provided data. However, general risks associated with large professional services contracts include potential cost overruns, schedule delays, contractor performance issues, and over-reliance on a single vendor. For financial management support, risks could also involve data security breaches, errors in financial reporting, or failure to adapt to evolving regulatory requirements. Mitigation strategies typically involve robust contract oversight, clearly defined performance standards, regular progress reviews, contingency planning, and ensuring the contractor maintains appropriate security protocols and qualified personnel. The full and open competition suggests an effort to select a capable vendor, which inherently mitigates some performance risks.

What is Deloitte & Touche LLP's overall track record with federal contracts, particularly within DHS?

Deloitte & Touche LLP, as part of the larger Deloitte organization, has a significant and extensive track record of performing federal contracts across numerous agencies, including the Department of Homeland Security. They are a major professional services firm known for expertise in areas such as auditing, financial advisory, management consulting, and technology implementation. Their history with government contracts generally indicates a capacity to handle large, complex engagements. While specific performance details for every contract are not publicly available, their continued success in winning and executing federal awards suggests a generally positive track record. DHS, like many large federal entities, frequently engages large consulting and accounting firms for specialized support.

How did the 'BPA Call' contract type influence the procurement and execution of this financial management support?

A Blanket Purchase Agreement (BPA) Call signifies that this contract was issued under a pre-existing BPA. BPAs are established with vendors to streamline the procurement of recurring goods or services. A 'Call' means a specific order was placed against that BPA. This method typically allows for faster acquisition compared to traditional sole-source or full, open competitions for each individual need. The competition for this specific BPA Call was 'full and open,' meaning multiple vendors could compete for this particular order under the BPA's umbrella, or it was competed among vendors already holding the parent BPA. This approach balances efficiency with competition, ensuring that while the procurement vehicle is streamlined, the specific task order still undergoes a competitive evaluation, potentially leading to better pricing and vendor selection than a non-competed BPA Call.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte LLP (UEI: 014127109)

Address: 1750 TYSONS BLVD, MC LEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $25,077,728

Exercised Options: $25,077,728

Current Obligation: $25,077,728

Parent Contract

Parent Award PIID: GS23F06FDA0011

IDV Type: BPA

Timeline