DHS Coast Guard's $18.5M financial transformation contract awarded to Deloitte & Touche LLP

Contract Overview

Contract Amount: $18,514,023 ($18.5M)

Contractor: Deloitte & Touche LLP

Awarding Agency: Department of Homeland Security

Start Date: 2010-05-14

End Date: 2014-09-14

Contract Duration: 1,584 days

Daily Burn Rate: $11.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: REF: HSCG23-09-A VFG003 - CONTRACTOR SUPPORT SERVICES FOR FINANCIAL TRANSFORMATION EFFORTS TREASURY SYMBOL: 7090610 - COAST GUARD OPERATING EXPENSES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $18.5 million to DELOITTE & TOUCHE LLP for work described as: REF: HSCG23-09-A VFG003 - CONTRACTOR SUPPORT SERVICES FOR FINANCIAL TRANSFORMATION EFFORTS TREASURY SYMBOL: 7090610 - COAST GUARD OPERATING EXPENSES Key points: 1. Contract awarded via a BPA Call, indicating a pre-negotiated agreement for services. 2. The contract duration of 1584 days suggests a significant, long-term project. 3. Services provided fall under 'Other Accounting Services', a broad category. 4. The contract was awarded through full and open competition. 5. No small business set-aside was utilized for this procurement. 6. The contract type is Time and Materials, which can pose cost control challenges.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables and market rates for 'financial transformation efforts'. The Time and Materials pricing structure, while common, can lead to costs exceeding initial estimates if not closely managed. Comparing it to similar large-scale financial system modernization projects would be necessary for a more robust value assessment. The total award amount of $18.5 million over approximately four years indicates a substantial investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through 'full and open competition', suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this method generally promotes competitive pricing and allows the government to select the best value offer. The use of a BPA Call implies that the underlying contract vehicle itself was competed, and this call order then competed among eligible awardees or was a pre-negotiated option.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a wider range of offers and potentially lower prices due to market forces.

Public Impact

The U.S. Coast Guard benefits from improved financial management and transformation efforts. Services delivered are aimed at modernizing financial systems and processes. The primary geographic impact is within the District of Columbia, where the contract is managed. The contract likely supports a team of financial and IT professionals, impacting the federal workforce in accounting and finance roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not managed diligently.
Lack of specific details on deliverables makes it difficult to assess performance against objectives.
The broad 'Other Accounting Services' NAICS code may obscure the specific nature of the transformation efforts.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
The contract supports critical financial transformation efforts for a major federal agency.
The BPA Call mechanism can streamline the procurement of necessary services.

Sector Analysis

This contract falls within the professional services sector, specifically accounting and financial consulting. The market for financial transformation and modernization services is robust, with numerous large and small firms competing for government contracts. Spending in this area is driven by the need for agencies to modernize legacy systems, improve efficiency, and comply with evolving financial regulations. Comparable spending benchmarks would involve looking at other large federal IT and financial system modernization projects.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this specific contract are limited unless they are part of a larger prime contractor's team. The absence of a set-aside suggests the scope or nature of the services may have been deemed more suitable for larger, established firms.

Oversight & Accountability

Oversight would typically be managed by the U.S. Coast Guard contracting office and program managers. Accountability measures would be tied to the contract's performance work statement and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse related to the contract.

Related Government Programs

Financial System Modernization
Accounting Services
IT Consulting Services
Department of Homeland Security Contracts
U.S. Coast Guard Procurement

Risk Flags

Time and Materials Contract Type
Potential for Cost Overruns
Lack of Specific Deliverables in Summary Data
Broad NAICS Code Classification

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $18.5 million to DELOITTE & TOUCHE LLP. REF: HSCG23-09-A VFG003 - CONTRACTOR SUPPORT SERVICES FOR FINANCIAL TRANSFORMATION EFFORTS TREASURY SYMBOL: 7090610 - COAST GUARD OPERATING EXPENSES

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. Coast Guard).

What is the total obligated amount?

The obligated amount is $18.5 million.

What is the period of performance?

Start: 2010-05-14. End: 2014-09-14.

What specific financial transformation efforts were undertaken under this contract?

The provided data indicates the contract was for 'CONTRACTOR SUPPORT SERVICES FOR FINANCIAL TRANSFORMATION EFFORTS' for the U.S. Coast Guard. While the specific nature of these efforts is not detailed in the summary data, such projects typically involve modernizing financial management systems, improving accounting processes, implementing new financial reporting capabilities, and ensuring compliance with federal financial regulations. This could include system upgrades, data migration, process re-engineering, and training. The NAICS code 541219 (Other Accounting Services) suggests a broad scope beyond standard auditing or bookkeeping.

How does the $18.5 million award compare to similar financial transformation contracts within DHS or other agencies?

Direct comparison of the $18.5 million award is difficult without knowing the precise scope, duration, and deliverables. However, large-scale financial system modernization projects for federal agencies can range from tens of millions to hundreds of millions of dollars. For instance, the Department of Defense's Enterprise Resource Planning (ERP) initiatives have involved billions. Within DHS, other agencies might have similar or larger contracts for financial system upgrades. The $18.5 million for the Coast Guard over approximately four years appears to be a significant but not exceptionally large investment in this domain, suggesting a focused effort rather than a complete agency-wide overhaul.

What are the primary risks associated with a Time and Materials (T&M) contract for financial transformation?

The primary risk with Time and Materials contracts, like this one, is the potential for cost overruns. Since the contractor is reimbursed for direct labor hours and materials used, there is less incentive for efficiency compared to a fixed-price contract. If project scope creeps or is poorly defined, or if the contractor's hours are not meticulously tracked and managed by the government, costs can escalate beyond initial projections. For complex financial transformation efforts, accurately estimating labor hours and material needs upfront is challenging, making T&M contracts inherently riskier from a cost perspective for the government.

What was the track record of Deloitte & Touche LLP with similar government contracts prior to this award?

Deloitte & Touche LLP is a major global professional services firm with extensive experience in government contracting, including financial management, IT consulting, and transformation services. Prior to this specific award, Deloitte has likely held numerous contracts with various federal agencies, including DHS and its components, for similar types of work. Their track record would generally be considered strong, given their market position and the complexity of services they offer. However, a detailed analysis would require reviewing their past performance evaluations and contract history within federal procurement databases.

How effective was this contract in achieving the Coast Guard's financial transformation goals?

The provided data does not include information on the effectiveness or outcomes of this contract. Assessing effectiveness would require examining performance reports, user satisfaction surveys, achievement of key performance indicators (KPIs) related to financial system modernization, and any independent evaluations of the program's success. Without access to these post-award performance metrics, it is impossible to determine how well the contract met the Coast Guard's financial transformation goals.

What were the historical spending patterns for financial transformation services by the U.S. Coast Guard before this contract?

The provided data does not offer historical spending patterns for the U.S. Coast Guard's financial transformation services. To analyze this, one would need to query federal procurement databases (like FPDS or USASpending.gov) for contracts awarded to the Coast Guard under relevant categories (e.g., financial systems, accounting services, IT modernization) over several preceding fiscal years. This would reveal trends in spending, the types of services procured, and the contractors frequently engaged.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

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: $18,514,023

Exercised Options: $18,514,023

Current Obligation: $18,514,023

Parent Contract

Parent Award PIID: HSCG2309AVFG003

IDV Type: BPA

Timeline