DoD's $17.8M RMF Support Services Contract with Deloitte Faces Scrutiny Over Value and Competition

Contract Overview

Contract Amount: $17,771,033 ($17.8M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2015-09-30

End Date: 2021-03-29

Contract Duration: 2,007 days

Daily Burn Rate: $8.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF SPAWAR 5.0 RISK MANAGEMENT FRAMEWORK (RMF) SUPPORT SERVICES

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92106

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $17.8 million to DELOITTE CONSULTING LLP for work described as: IGF::OT::IGF SPAWAR 5.0 RISK MANAGEMENT FRAMEWORK (RMF) SUPPORT SERVICES Key points: 1. The contract awarded to Deloitte Consulting LLP for Risk Management Framework (RMF) support services represents a significant investment. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. However, the contract's duration and cost-plus-fixed-fee structure warrant a closer look at value for money. 4. The sector is Engineering Services, which can be complex and require specialized expertise.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed tightly. Benchmarking against similar RMF support services contracts is needed to assess if the $17.8M award represents fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is generally positive for price discovery. However, the specific details of the bidding process and the number of bidders are not provided, making it difficult to fully assess the competitive pressure on pricing.

Taxpayer Impact: Taxpayer funds are being used for essential cybersecurity support services. Ensuring competitive pricing and efficient service delivery is crucial for maximizing the value of this expenditure.

Public Impact

Ensures compliance with cybersecurity standards, protecting sensitive Department of Defense data. Supports the Navy's mission readiness by maintaining secure IT systems. Potential for cost efficiencies if services are delivered effectively and within budget. Highlights the growing importance and cost of cybersecurity services in government.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize cost increases.
Long contract duration (2015-2021) may not reflect current market rates.
Lack of specific performance metrics makes value assessment difficult.

Positive Signals

Awarded under full and open competition.
Addresses critical cybersecurity needs (RMF support).
Contract awarded to a well-established firm (Deloitte).

Sector Analysis

This contract falls under Engineering Services, specifically related to IT security and compliance. Spending in this area has increased significantly across government as cyber threats evolve. Benchmarks for similar RMF support services are essential for evaluating cost-effectiveness.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The contract was awarded as a Delivery Order, suggesting it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would focus on performance monitoring, adherence to the fixed fee, and ensuring the services meet RMF requirements.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to CPFF structure.
Long contract duration may lead to outdated services or pricing.
Lack of transparency on specific performance metrics.
No small business participation indicated.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.8 million to DELOITTE CONSULTING LLP. IGF::OT::IGF SPAWAR 5.0 RISK MANAGEMENT FRAMEWORK (RMF) SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $17.8 million.

What is the period of performance?

Start: 2015-09-30. End: 2021-03-29.

What specific RMF tasks were performed, and how did they contribute to the Navy's overall cybersecurity posture?

The contract provided support services for the Risk Management Framework (RMF), a critical process for authorizing and monitoring DoD information systems. This likely involved activities such as security control assessments, documentation, and continuous monitoring to ensure systems met stringent security requirements and were authorized to operate. The effectiveness would be measured by the successful authorization of systems and the reduction of cyber risks.

How does the cost-plus-fixed-fee structure compare to fixed-price contracts for similar RMF support services, and what are the associated risks?

Cost-plus-fixed-fee contracts allow the contractor to recover all allowable costs plus a predetermined fixed fee. While offering flexibility, this structure can incentivize cost growth if not rigorously managed, potentially leading to higher overall spending compared to fixed-price contracts. The primary risk is that the government may pay more than necessary if cost efficiencies are not pursued by the contractor.

Given the contract's duration (2015-2021), are the services and pricing still relevant and competitive in today's cybersecurity landscape?

Cybersecurity threats and technologies evolve rapidly. A contract spanning six years may not reflect current market rates or the most efficient service delivery methods. It's crucial to assess whether the services provided remain state-of-the-art and if the pricing is still competitive compared to contemporary contracts for similar RMF support, potentially requiring a re-evaluation or new procurement.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: N0002415R3139

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Financial Advisory Services LLP

Address: 1919 N LYNN ST, ARLINGTON, VA, 22209

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $19,787,540

Exercised Options: $19,787,540

Current Obligation: $17,771,033

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D7917

IDV Type: IDC

Timeline