DHS awards $29M for accounting services to Deloitte, raising questions on competition and value
Contract Overview
Contract Amount: $29,051,877 ($29.1M)
Contractor: Deloitte & Touche LLP
Awarding Agency: Department of Homeland Security
Start Date: 2008-09-30
End Date: 2014-03-29
Contract Duration: 2,006 days
Daily Burn Rate: $14.5K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: OIP MISSION SUPPORT - BUDGET, FINANCIAL, AND PROGRAM MANAGEMENT SUPPORT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Homeland Security obligated $29.1 million to DELOITTE & TOUCHE LLP for work described as: OIP MISSION SUPPORT - BUDGET, FINANCIAL, AND PROGRAM MANAGEMENT SUPPORT Key points: 1. Significant contract value of $29M for accounting services. 2. Deloitte & Touche LLP is the sole awardee. 3. Contract duration spans from 2008 to 2014. 4. Services fall under 'Other Accounting Services' (NAICS 541219).
Value Assessment
Rating: questionable
The contract value of $29M for accounting services needs further scrutiny. Without a clear benchmark or comparison to similar contracts, assessing the value for money is difficult. The fixed-price nature suggests cost control, but the lack of competitive bidding impacts price discovery.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This was a competitive delivery order, but the limited information suggests it may not have been a full and open competition. The impact on price discovery is unclear without knowing the number of bidders and the evaluation process.
Taxpayer Impact: Taxpayer funds totaling $29M were allocated for these services. The efficiency and effectiveness of this spending are key concerns given the limited competitive landscape.
Public Impact
Citizens expect transparency and accountability in how their tax dollars are spent. Government contracts for essential services like accounting should demonstrate clear value. The duration and value of this contract warrant public interest regarding its necessity and cost-effectiveness.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition raises concerns about potential overpricing.
- Lack of detailed performance metrics makes value assessment difficult.
- Long contract duration could indicate a lack of flexibility.
Positive Signals
- Firm fixed-price contract can provide cost certainty.
- Services provided by a reputable firm, Deloitte & Touche LLP.
Sector Analysis
The 'Other Accounting Services' sector is crucial for government financial management. Benchmarks for similar contracts are essential to evaluate if $29M over six years is reasonable for the scope of work.
Small Business Impact
The data does not indicate any specific provisions or set-asides for small businesses in this contract, suggesting it was likely awarded to a large firm without specific small business participation goals.
Oversight & Accountability
Oversight is critical to ensure that the Department of Homeland Security received adequate value for the $29M spent. Regular performance reviews and audits would be necessary to confirm the effectiveness of the services provided.
Related Government Programs
- Other Accounting Services
- Department of Homeland Security Contracting
- Office of Procurement Operations Programs
Risk Flags
- Lack of transparency in competition details.
- Potential for inflated costs due to limited bidding.
- Difficulty in assessing true value for money.
- Long contract duration without clear performance benchmarks.
Tags
other-accounting-services, department-of-homeland-security, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $29.1 million to DELOITTE & TOUCHE LLP. OIP MISSION SUPPORT - BUDGET, FINANCIAL, AND PROGRAM MANAGEMENT SUPPORT
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 (Office of Procurement Operations).
What is the total obligated amount?
The obligated amount is $29.1 million.
What is the period of performance?
Start: 2008-09-30. End: 2014-03-29.
What specific accounting and financial management services were provided under this contract, and how did they align with DHS's mission objectives?
The contract was for 'Other Accounting Services' (NAICS 541219), encompassing budget, financial, and program management support. While specific deliverables are not detailed, such services typically include financial reporting, auditing support, budget analysis, and compliance monitoring, all critical for the operational and strategic functioning of a large agency like DHS.
Given the $29M value and limited competition, what was the process for ensuring fair and reasonable pricing for these accounting services?
As a competitive delivery order, a bidding process occurred, but the extent of competition is unclear. The government likely relied on cost proposals and potentially historical pricing data. However, without full and open competition, the price discovery mechanism might be less robust, necessitating careful negotiation and justification of the final price.
How effectively did Deloitte & Touche LLP support the Department of Homeland Security's financial operations and program management over the contract's six-year duration?
Effectiveness is difficult to gauge without performance metrics. However, the renewal and duration suggest a level of satisfaction. Key indicators would include audit readiness, budget accuracy, compliance with regulations, and timely financial reporting, all of which contribute to the agency's overall operational integrity and accountability.
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: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HSHQDC-08-Q-00179
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Deloitte LLP
Address: 1919 N LYNN ST, ARLINGTON, VA, 22209
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $29,051,877
Exercised Options: $29,051,877
Current Obligation: $29,051,877
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS23F8132H
IDV Type: FSS
Timeline
Start Date: 2008-09-30
Current End Date: 2014-03-29
Potential End Date: 2014-03-29 00:00:00
Last Modified: 2023-04-05
More Contracts from Deloitte & Touche LLP
- Task 3: Corrective Actions — $162.0M (Department of Defense)
- Pks-Hight-Carmona Paredes-Fiar to 36 A4 Support — $157.3M (Department of Defense)
- NEW Contract for MBS Administration — $136.0M (Department of Housing and Urban Development)
- Fleet-Resfor ERP Migration Svcs — $128.5M (Department of Defense)
- PKS - Ross - Carmona Paredes - Fiar to 0060 — $102.4M (Department of Defense)
Other Department of Homeland Security Contracts
- THE United States Coast Guard HAS a Requirement to Procure UP to Twenty-Six (26) Fast Response Cutters (frcs) on a Firm Fixed Price (FFP) Basis With an Economic Price Adjustment (EPA). Phase II of the FRC Program Will Complete the Fleet for a Total of 58 Cutters — $2.1B (Bollinger Shipyards Lockport, L.L.C.)
- Design and Construct NEW Vertical Barrier and Power Distribution, Lighting, Cameras, Equipment Shelters and Linear Ground Detection System (lgds) in Hildago County, NM — $1.8B (Fisher Sand & Gravel CO)
- Production&delivery of National Security Cutter (NSC) 6 — $1.7B (Huntington Ingalls Incorporated)
- YUM-2 Vertical Border and Waterborne Barrier Construction — $1.7B (Fisher Sand & Gravel CO)
- Construct Vertical Border Barrier — $1.6B (Fisher Sand & Gravel CO)