Deloitte Consulting LLP contract for computer systems design services awarded by the Department of the Interior for over $12.4 million

Contract Overview

Contract Amount: $12,469,283 ($12.5M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of the Interior

Start Date: 2004-09-30

End Date: 2008-03-31

Contract Duration: 1,278 days

Daily Burn Rate: $9.8K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: IT

Official Description: SAF/IAPC

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $12.5 million to DELOITTE CONSULTING LLP for work described as: SAF/IAPC Key points: 1. The contract value of over $12.4 million for computer systems design services represents a significant investment in departmental IT infrastructure. 2. Competition dynamics for this contract are assessed to understand pricing efficiency and potential for cost savings. 3. Risk indicators are evaluated based on contract type, duration, and contractor performance history. 4. Performance context is established by comparing this contract to similar IT service procurements. 5. The contract's positioning within the broader IT services sector highlights the government's reliance on specialized expertise. 6. The fixed-price contract structure aims to provide cost certainty for the government.

Value Assessment

Rating: fair

Benchmarking this contract's value against similar computer systems design services procured by federal agencies is challenging without more granular data on the specific services rendered. However, the total award of over $12.4 million over a period of approximately 3.5 years suggests a substantial engagement. The fixed-price contract type offers some cost control, but the ultimate value for money depends heavily on the successful delivery of the defined scope and the efficiency of the contractor's operations. Further analysis would require comparing the per-unit costs or labor rates to market benchmarks.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was awarded as a competitive delivery order, indicating that it was likely competed among pre-qualified vendors or through a broader solicitation process. The specific details of the competition, such as the number of bidders and the evaluation criteria, are not provided in the summary data. A competitive award generally suggests that multiple vendors had an opportunity to bid, which can lead to more favorable pricing and better service offerings for the government.

Taxpayer Impact: The competitive nature of the award, even if through a delivery order mechanism, implies that taxpayers likely benefited from a more efficient price discovery process compared to a sole-source procurement.

Public Impact

The Department of the Interior benefits from enhanced computer systems design services, potentially improving operational efficiency and data management. Federal employees within the Department of the Interior are likely the primary users of the improved systems. The geographic impact is primarily within the operational areas of the Department of the Interior, likely concentrated in Washington D.C. given the 'VA' state designation. The contract supports the IT workforce by engaging specialized computer systems design expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed competition data makes it difficult to fully assess price reasonableness.
Contract duration of over three years could introduce risks related to technological obsolescence or changing requirements.
Fixed-price contracts can sometimes lead to scope creep if not managed meticulously.

Positive Signals

Awarded as a competitive delivery order, suggesting some level of market vetting.
Fixed-price contract type provides budget certainty for the government.
Contractor, Deloitte Consulting LLP, is a large, established firm with significant experience in government contracting.

Sector Analysis

The IT services sector is a vast and critical component of government operations, encompassing a wide range of activities from software development to cybersecurity and systems integration. Computer Systems Design Services, classified under NAICS code 541512, represent a significant portion of this market. Federal spending in this area is consistently high as agencies modernize their infrastructure and digital capabilities. This contract fits within the broader trend of federal agencies outsourcing complex IT functions to specialized private sector firms to leverage expertise and manage workload.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Deloitte Consulting LLP, is a large business. There is no direct information on subcontracting plans or their impact on the small business ecosystem. Large prime contracts often involve subcontracting opportunities, but without specific data, it's impossible to quantify the extent to which small businesses may have benefited indirectly.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Interior. As a competitive delivery order, it falls under the standard federal procurement regulations and oversight mechanisms. Transparency is generally maintained through contract databases like FPDS, where basic award information is published. Specific performance monitoring and accountability measures would be detailed in the contract's statement of work and performance standards.

Related Government Programs

IT Services
Computer Systems Design
Departmental IT Modernization
Federal IT Consulting

Risk Flags

Contract Duration
Fixed-Price Risk
Lack of Specific Service Details

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $12.5 million to DELOITTE CONSULTING LLP. SAF/IAPC

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $12.5 million.

What is the period of performance?

Start: 2004-09-30. End: 2008-03-31.

What specific computer systems design services were rendered under this contract?

The provided data identifies the contract under NAICS code 541512, 'Computer Systems Design Services.' This broad category typically includes designing, developing, and implementing software and hardware solutions, integrating different computer systems, and providing IT consulting. Specific services could range from custom software development, network design and implementation, database management system design, to IT infrastructure planning and technical consulting. Without access to the contract's statement of work (SOW) or task orders, the precise nature of the services delivered remains unspecified. Understanding the exact deliverables is crucial for a comprehensive value assessment and for comparing this contract to others within the IT services domain.

How does the $12.4 million award compare to typical spending on similar IT services by the Department of the Interior?

Comparing the $12.4 million award to the Department of the Interior's typical spending on similar IT services requires historical data on their IT procurements. The Department of the Interior, like many large federal agencies, invests heavily in IT to support its diverse missions, which include managing natural resources, land, and water. Annual IT spending can range from hundreds of millions to billions of dollars, depending on modernization initiatives and operational needs. A $12.4 million contract for computer systems design is a substantial but not necessarily extraordinary amount for a multi-year engagement within this context. To provide a precise comparison, one would need to analyze the agency's IT budget allocation and the proportion spent on computer systems design services over several fiscal years.

What are the key performance indicators (KPIs) used to evaluate the success of this contract?

Key Performance Indicators (KPIs) for a contract like this, focused on Computer Systems Design Services, are typically defined within the contract's Statement of Work (SOW) and Quality Assurance Surveillance Plan (QASP). Common KPIs in IT service contracts include system uptime and availability, response times for issue resolution, successful completion of project milestones within defined timelines, adherence to budget, user satisfaction ratings, and the successful implementation of new system features or functionalities. For a fixed-price contract, meeting the defined scope and deliverables within the agreed-upon price and schedule is paramount. The government's quality assurance personnel would monitor these KPIs throughout the contract's performance period.

What is the track record of Deloitte Consulting LLP in delivering similar IT services to the federal government?

Deloitte Consulting LLP is a major federal contractor with a long history of providing a wide array of professional services, including extensive IT consulting and systems design, to various government agencies. They have consistently secured large and complex contracts across different departments. Their track record generally includes experience in areas such as IT strategy, systems modernization, cloud migration, cybersecurity, and data analytics. While specific performance details for individual contracts are often proprietary or require deep dives into contract performance reports, Deloitte's sustained presence and significant contract awards suggest a generally positive track record in delivering complex IT solutions to the federal government. However, like any large contractor, past performance reviews and any documented issues on specific contracts would be necessary for a complete assessment.

What are the potential risks associated with a fixed-price contract of this duration?

Fixed-price contracts, while offering cost certainty, carry inherent risks, especially for longer durations like this contract (approximately 3.5 years). One primary risk is that the initial price may not accurately reflect the actual costs incurred if requirements change significantly or if unforeseen technical challenges arise. This can lead to the contractor absorbing unexpected costs or, conversely, the government potentially overpaying if the initial estimates were too high. For IT services, a significant risk is technological obsolescence; systems designed or implemented early in the contract might be outdated by the time the contract concludes. Scope creep is another risk, where the government may request additional work not originally envisioned, potentially leading to disputes if not managed through formal contract modifications. The contractor also bears the risk of performance inefficiencies impacting their profit margin.

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: COMPETITIVE DELIVERY ORDER

Offers Received: 1

Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)

Contractor Details

Parent Company: Deloitte LLP (UEI: 014127109)

Address: 4301 N FAIRFAX DR STE 210, ARLINGTON, VA, 08

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership

Financial Breakdown

Contract Ceiling: $12,469,283

Exercised Options: $12,469,283

Current Obligation: $12,469,283

Parent Contract

Parent Award PIID: GS35F4338D

IDV Type: FSS

Timeline