State Department's $82M IT Support Contract for Non-Citizen Services Awarded to Deloitte Consulting LLP

Contract Overview

Contract Amount: $82,144,840 ($82.1M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of State

Start Date: 2014-02-10

End Date: 2020-01-09

Contract Duration: 2,159 days

Daily Burn Rate: $38.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IT SUPPORT FOR NON-CITIZEN SERVICES FOR CA/CST IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20522

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $82.1 million to DELOITTE CONSULTING LLP for work described as: IT SUPPORT FOR NON-CITIZEN SERVICES FOR CA/CST IGF::OT::IGF Key points: 1. The contract represents a significant investment in IT support for critical non-citizen services. 2. Deloitte Consulting LLP, a major player in the federal IT contracting space, secured this award. 3. The contract duration of over 5 years suggests a need for sustained IT support. 4. The firm fixed-price contract type indicates a defined scope and predictable costs for the government. 5. The award was made under a GSA Federal Supply Schedule, suggesting a streamlined procurement process. 6. The contract's focus on Computer Systems Design Services highlights the technical nature of the support required.

Value Assessment

Rating: good

The total award amount of $82.1 million over approximately 5 years for IT support services appears reasonable given the scope and duration. Benchmarking against similar large-scale IT support contracts for federal agencies suggests that the overall value is within expected ranges. The firm fixed-price nature of the contract helps manage cost uncertainty for the government, although the specific profit margins for Deloitte are not publicly detailed. Without more granular data on the specific services provided and labor categories, a precise value-for-money assessment is challenging, but the scale of the contract implies a substantial and complex operational requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The fact that it was a BPA Call suggests it was likely competed among pre-qualified vendors on a GSA schedule. While the exact number of bidders is not specified, full and open competition generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. This approach aims to ensure the government receives the best value by considering a wide range of potential contractors.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings and ensures that the government is not limited to a single provider, thereby encouraging competitive pricing and innovation.

Public Impact

The primary beneficiaries are the Department of State and its personnel who rely on efficient IT systems for managing non-citizen services. The contract delivers essential IT support, including computer systems design and related services, crucial for the operational continuity of these services. The geographic impact is primarily within the District of Columbia, where the Department of State is headquartered, but the services supported may have broader implications. The contract supports a workforce involved in IT operations and potentially impacts the efficiency of personnel managing non-citizen related functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the specific IT systems become highly customized to Deloitte's solutions.
Reliance on a single contractor for critical IT infrastructure could pose risks if performance issues arise.
The long duration of the contract might reduce flexibility to adopt newer technologies if not managed proactively.

Positive Signals

Award to a large, established contractor like Deloitte suggests a high likelihood of meeting performance requirements.
Firm fixed-price contract provides cost certainty for the government over the contract period.
Full and open competition indicates a robust selection process, likely resulting in a qualified vendor.
The contract's focus on IT support for essential services ensures continuity of operations.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on computer systems design and related services. The federal IT services market is substantial, with agencies consistently investing in maintaining and upgrading their technological infrastructure. Contracts like this are common as agencies outsource complex IT functions to specialized firms. Benchmarks for IT support services vary widely based on complexity, scope, and duration, but an $82 million contract over five years for a department like State is indicative of a significant, mission-critical IT function.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to Deloitte Consulting LLP, a major federal contractor, it is unlikely that small businesses would be direct prime contractors. However, there may be opportunities for small businesses to participate as subcontractors to Deloitte, depending on the company's subcontracting plan and the specific needs of the IT support services required. The absence of a small business set-aside suggests the primary focus was on securing specialized expertise from larger firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of State. Performance monitoring, adherence to contract terms, and quality assurance are standard oversight mechanisms. Given the nature of IT services, regular reviews of system performance, security compliance, and service delivery metrics would be expected. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

GSA Federal Supply Schedule IT Contracts
Department of State IT Modernization Programs
Federal Civilian Agency IT Support Services
Computer Systems Design Services Contracts

Risk Flags

Potential for vendor lock-in
Reliance on a single large contractor
Cybersecurity risks inherent in IT support contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $82.1 million to DELOITTE CONSULTING LLP. IT SUPPORT FOR NON-CITIZEN SERVICES FOR CA/CST 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 State (Department of State).

What is the total obligated amount?

The obligated amount is $82.1 million.

What is the period of performance?

Start: 2014-02-10. End: 2020-01-09.

What is Deloitte Consulting LLP's track record with the Department of State and similar federal agencies for IT support contracts?

Deloitte Consulting LLP is a major federal contractor with a significant history of performing IT support and consulting services for various government agencies, including the Department of State. Their track record generally includes large-scale system integrations, cybersecurity solutions, and IT infrastructure management. For the Department of State specifically, Deloitte has been awarded numerous contracts across different IT domains. While specific performance metrics for past contracts are not detailed here, their consistent presence as a prime contractor on substantial awards suggests a generally positive or at least acceptable performance history. However, a deeper dive into past performance reviews and any documented issues would be necessary for a comprehensive assessment.

How does the $82.1 million award compare to other IT support contracts for non-citizen services or similar functions within the federal government?

The $82.1 million award over approximately five years for IT support services for non-citizen services at the Department of State is a substantial contract, but it is not an outlier within the federal IT spending landscape. Large federal agencies, particularly those with complex international operations or significant data management needs, frequently award contracts in the tens to hundreds of millions of dollars for IT support. For instance, the Department of Homeland Security, Department of Defense, and Health and Human Services often have IT support contracts of similar or larger magnitudes. The specific nature of 'non-citizen services' might involve visa processing, immigration support, or international visitor management systems, which are often IT-intensive. Therefore, while significant, this contract's value is commensurate with the scale and complexity typical of major federal IT procurements.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential performance failures by the contractor, leading to disruptions in critical non-citizen services; cybersecurity vulnerabilities introduced or exploited within the supported systems; and cost overruns if the firm fixed-price structure is not adequately managed or if scope creep occurs. Mitigation strategies typically involve robust performance monitoring by the government, adherence to strict cybersecurity protocols and regular audits, clear contract terms and conditions, and proactive contract management to address any potential issues early. The government's ability to enforce contract clauses, including termination for default, also serves as a risk mitigation tool.

How effective is the firm fixed-price contract type in ensuring value for money for this specific IT support service?

The firm fixed-price (FFP) contract type is generally considered effective for IT support services when the scope of work is well-defined and unlikely to change significantly. For this contract, it provides cost certainty to the Department of State, as Deloitte is obligated to perform the specified services for the agreed-upon price. This shifts the risk of cost overruns to the contractor. Value for money is realized if the defined scope is comprehensive and Deloitte delivers high-quality services within that budget. However, if unforeseen technical challenges arise or requirements evolve substantially, the FFP structure might limit flexibility or lead to disputes if modifications are needed, potentially impacting the overall value if not managed carefully through contract modifications.

What are the historical spending patterns for IT support services at the Department of State, and how does this contract fit in?

The Department of State has consistently allocated significant portions of its budget to IT services to support its global operations, diplomatic missions, and administrative functions. Historical spending patterns reveal a continuous need for IT infrastructure maintenance, system upgrades, cybersecurity, and specialized application support. This $82.1 million contract for IT support for non-citizen services fits within this pattern as a dedicated investment in a specific, critical functional area. It likely represents a continuation or consolidation of IT support needs previously met through various contracts or internal resources. Analyzing past spending on similar services would provide context on whether this award represents an increase, decrease, or stable level of investment in this particular IT domain.

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

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Deloitte Financial Advisory Services LLP (UEI: 216754602)

Address: 12010 SUNSET HILLS RD, RESTON, VA, 20190

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $85,643,442

Exercised Options: $84,249,687

Current Obligation: $82,144,840

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $12,266,010

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA12A0065

IDV Type: BPA

Timeline