DHS awards $43M+ for IT service management, with Deloitte as prime contractor over 6+ years

Contract Overview

Contract Amount: $43,086,168 ($43.1M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Homeland Security

Start Date: 2017-08-21

End Date: 2024-02-20

Contract Duration: 2,374 days

Daily Burn Rate: $18.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SERVICE MANAGEMENT TOOL AND SUPPORT IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20407

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $43.1 million to DELOITTE CONSULTING LLP for work described as: SERVICE MANAGEMENT TOOL AND SUPPORT IGF::OT::IGF Key points: 1. Contract value exceeds $43 million over its lifecycle, indicating significant investment in IT service management. 2. The contract was awarded through full and open competition, suggesting a robust market for these services. 3. A firm-fixed-price contract type generally offers predictable costs for the government. 4. The duration of over 2300 days highlights a long-term need for sustained IT support. 5. The primary service category is Computer Systems Design Services, a critical component of modern IT infrastructure. 6. The contract is managed by the Office of Procurement Operations within DHS, indicating centralized IT procurement.

Value Assessment

Rating: good

The contract's total value of over $43 million for IT service management over more than six years appears reasonable given the scope of services typically involved in such systems. Benchmarking against similar large-scale IT service management contracts within federal agencies suggests this falls within expected spending ranges for comprehensive solutions. The firm-fixed-price structure helps control costs, but ongoing performance monitoring is crucial to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of 3 bids suggests a competitive environment, which is generally favorable for price discovery and innovation. The agency's decision to use full and open competition implies confidence in the market's ability to provide suitable solutions and pricing.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive bidding process. This approach ensures that the government is not limited to a single provider, potentially driving down costs and improving service quality.

Public Impact

The Department of Homeland Security (DHS) benefits from enhanced IT service management capabilities, improving operational efficiency. Services delivered likely include IT support, system maintenance, and potentially the implementation or upgrade of IT service management tools. The contract's impact is primarily within the District of Columbia, where DHS operations are concentrated. Workforce implications may include the need for specialized IT personnel within DHS and potential employment opportunities for the contractor's staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the service management tool becomes deeply integrated without clear exit strategies.
Risk of scope creep if requirements are not meticulously managed throughout the contract's long duration.
Dependence on a single contractor for critical IT service management functions could pose operational risks if performance falters.

Positive Signals

The firm-fixed-price contract type provides cost certainty for the government.
Awarded through full and open competition, suggesting a competitive market and potentially better value.
The long contract duration allows for stability and deep integration of services, potentially leading to efficiencies.

Sector Analysis

The IT service management sector is a critical component of government operations, encompassing the tools and processes used to manage IT services effectively. This contract falls within the broader Computer Systems Design Services industry, which is characterized by significant government spending. Comparable spending benchmarks for large federal IT service management contracts often run into tens or hundreds of millions of dollars over several years, reflecting the complexity and importance of these systems.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. While the prime contractor is a large entity, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting would depend on the prime contractor's policies and the specific needs of the service management tool and support.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Homeland Security's Office of Procurement Operations. Performance metrics and regular reviews are standard mechanisms for ensuring accountability and transparency. The Inspector General's office within DHS may also conduct audits or investigations into the contract's performance and financial management.

Related Government Programs

IT Service Management Tools
Computer Systems Design Services
Department of Homeland Security IT Contracts
Federal IT Support Services
Large IT Service Contracts

Risk Flags

Long contract duration may increase risk of technological obsolescence.
Dependence on a single contractor for critical IT functions.
Potential for scope creep if not managed tightly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $43.1 million to DELOITTE CONSULTING LLP. SERVICE MANAGEMENT TOOL AND SUPPORT IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING 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 $43.1 million.

What is the period of performance?

Start: 2017-08-21. End: 2024-02-20.

What is the track record of Deloitte Consulting LLP in delivering IT service management solutions to federal agencies?

Deloitte Consulting LLP has a substantial track record in providing IT consulting and systems integration services to various federal agencies, including the Department of Homeland Security. They are known for their expertise in areas like enterprise resource planning, cloud migration, cybersecurity, and IT modernization. Their experience with large-scale IT projects suggests a capacity to manage complex service management tools and support contracts. However, specific performance data for this particular contract, such as past performance ratings or any documented issues, would provide a more precise assessment of their track record on this specific engagement.

How does the awarded amount compare to similar IT service management contracts within DHS or other large federal agencies?

The awarded amount of over $43 million for IT service management and support over approximately 6.7 years is substantial but falls within the expected range for large, comprehensive federal IT contracts. Similar contracts for enterprise-level IT service management solutions, including software licensing, implementation, and ongoing support, can easily reach tens to hundreds of millions of dollars depending on the scope, number of users, and complexity of the systems involved. For instance, other agencies like the Department of Defense or the General Services Administration often award contracts of similar or larger magnitudes for comparable IT services, indicating that this DHS contract is in line with market rates for such critical infrastructure.

What are the primary risks associated with a long-term, firm-fixed-price contract for IT service management?

A primary risk with long-term, firm-fixed-price IT service management contracts is the potential for the contractor to become complacent or reduce service quality over time if not rigorously managed, especially if the initial pricing was highly competitive. Another risk is vendor lock-in, where the specific tools and processes become so integrated into agency operations that switching providers becomes prohibitively expensive or disruptive. Scope creep, where additional requirements are added without commensurate adjustments to price or schedule, can also be a risk, although the firm-fixed-price nature aims to mitigate this. Finally, technological obsolescence is a concern; the contracted services and tools must remain relevant and effective throughout the contract's duration, requiring proactive management and potential adaptation.

How effective is the chosen IT service management tool and support in meeting DHS's operational needs?

Assessing the effectiveness of the specific IT service management tool and support requires detailed performance data, user feedback, and alignment with DHS's strategic IT objectives. Without direct access to these metrics, it's challenging to provide a definitive answer. However, the contract's renewal and long duration suggest a degree of satisfaction and utility. Effective IT service management typically leads to improved incident resolution times, better change management, enhanced user satisfaction, and more efficient IT operations. The 'IGF' designation in the data might refer to a specific platform or framework, the efficacy of which would be measured against established ITIL or other industry best practices and DHS's internal performance indicators.

What has been the historical spending pattern for IT service management at DHS, and how does this contract fit in?

Historical spending patterns for IT service management at DHS would reveal trends in investment in this area. This $43 million contract, spanning over six years, represents a significant and sustained investment. If DHS has previously awarded similar large contracts for IT service management, it indicates a consistent strategic focus. Conversely, if this represents a substantial increase, it might signal a new initiative or a shift in IT strategy. Analyzing past contract awards for IT service management tools, support, and related consulting services would provide context on whether this award is an outlier, a continuation of established spending, or an expansion of capabilities.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HSHQDC-17-Q-00232

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Financial Advisory Services LLP

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: $58,248,380

Exercised Options: $43,254,572

Current Obligation: $43,086,168

Actual Outlays: $14,495,415

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $1,692,127

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS35F0617Y

IDV Type: FSS

Timeline