Deloitte Consulting LLP awarded $10.5M for computer systems design services to the Department of State

Contract Overview

Contract Amount: $10,467,810 ($10.5M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of State

Start Date: 2006-09-03

End Date: 2010-08-23

Contract Duration: 1,450 days

Daily Burn Rate: $7.2K/day

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: TASK ORDER ISSUED AGAINST DOS BPA SLMAQM04A0106

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20520

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $10.5 million to DELOITTE CONSULTING LLP for work described as: TASK ORDER ISSUED AGAINST DOS BPA SLMAQM04A0106 Key points: 1. Contract value of $10.5M over 4 years suggests a moderate investment in IT support. 2. The task order was issued against a broader BPA, indicating potential for follow-on work and established relationships. 3. A Time and Materials contract type can pose cost control risks if not closely managed. 4. The services provided fall under computer systems design, a common and essential IT function for government agencies. 5. The contract's duration of approximately 4 years aligns with typical IT project lifecycles. 6. The award to a large, established firm like Deloitte suggests a need for specialized expertise or capacity.

Value Assessment

Rating: fair

The contract value of $10.5 million over nearly four years averages to approximately $2.7 million annually. Benchmarking this against similar computer systems design contracts for federal agencies is challenging without more specific service details. However, the Time and Materials (T&M) pricing structure, while flexible, can sometimes lead to higher costs compared to fixed-price contracts if not meticulously managed and monitored for efficiency. The awarded amount appears reasonable for a task order of this nature, but a detailed cost-benefit analysis would be needed to fully assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The provided data indicates this was a task order issued against a Blanket Purchase Agreement (BPA). The specific competition method for the BPA itself is not detailed, nor is the competition for this particular task order. Task orders under BPAs can range from fully competed to limited or even sole-source, depending on the BPA's terms and the specific requirements of the task order. Without more information on the BPA's competition strategy and the solicitation process for this task order, it's impossible to assess the level of competition.

Taxpayer Impact: The level of competition directly impacts taxpayer value. Higher competition generally leads to better pricing and more innovative solutions. If this task order was competed broadly, taxpayers likely benefited from competitive pricing. If it was sole-sourced or limited, there's a higher risk of paying above-market rates.

Public Impact

The Department of State benefits from enhanced computer systems design capabilities, supporting its mission-critical operations. This contract likely supports IT infrastructure and systems necessary for diplomatic and foreign policy functions. The geographic impact is primarily within the District of Columbia, where the Department of State is headquartered. Workforce implications may include the employment of IT professionals and consultants, both within Deloitte and potentially subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to Time and Materials contract type if not closely monitored.
Lack of transparency regarding the competition level for this task order makes it difficult to assess optimal taxpayer value.
Dependence on a single large contractor (Deloitte) could limit flexibility and innovation in the long term.

Positive Signals

Award to a reputable firm like Deloitte suggests a focus on quality and reliability of IT services.
The task order was issued against an existing BPA, indicating a streamlined procurement process for established needs.
The contract duration suggests a stable, long-term requirement for these IT services.

Sector Analysis

Computer systems design services are a significant segment within the broader Information Technology (IT) sector. This contract falls under professional services, where government agencies procure expertise for designing, developing, and implementing complex IT solutions. The market for these services is highly competitive, with numerous large and small firms offering specialized capabilities. The Department of State's spending in this area is consistent with the IT needs of large federal agencies requiring robust and secure systems to support their global operations.

Small Business Impact

There is no indication from the provided data that this contract involved a small business set-aside. The award was made to Deloitte Consulting LLP, a large business. This suggests that small businesses were likely not the primary focus for this specific award, although they may participate as subcontractors. Further analysis would be needed to determine if subcontracting opportunities were made available to small businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers. As a task order under a BPA, the BPA's original terms and conditions would also dictate certain oversight requirements. Transparency is limited by the lack of detailed competition information. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of State IT Modernization Programs
Federal Civilian Agency IT Services Contracts
Blanket Purchase Agreements (BPAs) for IT Support
Computer Systems Design Services Contracts

Risk Flags

Potential for cost overruns due to T&M contract type.
Lack of specific competition details for the task order.
Limited transparency on specific services rendered.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $10.5 million to DELOITTE CONSULTING LLP. TASK ORDER ISSUED AGAINST DOS BPA SLMAQM04A0106

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 $10.5 million.

What is the period of performance?

Start: 2006-09-03. End: 2010-08-23.

What specific computer systems design services were provided under this task order?

The provided data categorizes the service under NAICS code 541512, which is 'Computer Systems Design Services'. This broad category typically encompasses a range of activities including analyzing user needs, designing and developing computer systems, integrating hardware and software, and providing IT consulting. Without access to the specific SOW (Statement of Work) for this task order, the precise nature of the services—whether it involved network design, software architecture, system integration, or IT strategy consulting—remains unspecified. However, given the Department of State's mission, these services likely supported critical IT infrastructure and applications essential for diplomatic operations and information management.

How does the $10.5 million award compare to typical spending on similar IT services by the Department of State?

The $10.5 million award over approximately four years represents an average annual expenditure of roughly $2.7 million for computer systems design services. To benchmark this effectively, one would need to compare it against the Department of State's historical spending on similar NAICS 541512 contracts and against spending by comparable federal agencies (e.g., other large cabinet-level departments like Defense or Treasury) for similar IT support functions. Without access to a comprehensive database of the Department's IT procurement history and broader federal IT spending trends, it's difficult to definitively state whether this amount is high, low, or average. However, for a task order supporting complex government IT needs, this value is within a plausible range.

What are the potential risks associated with the Time and Materials (T&M) contract type used for this award?

The primary risk associated with a Time and Materials (T&M) contract type is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This structure can incentivize longer project durations or less efficient work if not rigorously monitored by the government. For the Department of State, effective oversight, detailed tracking of labor hours, and strict management of material costs are crucial to ensure that the $10.5 million ceiling is not exceeded unnecessarily and that the agency receives good value for its investment. Without strong government oversight, T&M contracts can become more expensive than initially anticipated.

What is Deloitte Consulting LLP's track record with the Department of State and other federal agencies?

Deloitte Consulting LLP is a major federal contractor with a long history of providing a wide range of professional services, including IT consulting, to numerous government agencies. They have consistently been among the top awardees of federal contracts. For the Department of State specifically, Deloitte has likely held numerous contracts over the years, supporting various aspects of the agency's operations, including IT modernization, cybersecurity, and program management. Their extensive experience and established presence suggest a strong understanding of federal procurement processes and agency requirements. However, a detailed review of their performance ratings and past issues on specific contracts would be necessary for a complete assessment.

How does the duration of this contract (approx. 4 years) align with typical IT project lifecycles in the federal government?

A contract duration of approximately four years, as indicated by the start date of September 3, 2006, and end date of August 23, 2010, is quite typical for federal IT projects, especially those involving system design and implementation. Many complex IT initiatives require sustained effort over multiple fiscal years to achieve full development, testing, deployment, and integration. This duration allows for a phased approach, adaptation to evolving requirements, and the establishment of a stable support structure. Shorter durations might be suitable for specific, well-defined tasks, while longer periods could indicate broader, more strategic engagements or potential risks of obsolescence if not managed dynamically.

What does the fact that this was a task order against a BPA imply about the procurement strategy?

Issuing this award as a task order against a Blanket Purchase Agreement (BPA) signifies a strategic procurement approach by the Department of State. BPAs are established vehicles, often competed broadly, that allow agencies to streamline the procurement of recurring goods or services from pre-approved vendors. This method reduces administrative burden and lead time for individual procurements. It implies that the Department had a recognized, ongoing need for computer systems design services and had pre-selected vendors like Deloitte through the BPA process. The specific competition for this task order itself could vary, but the use of a BPA generally indicates an effort to achieve efficiency and potentially leverage pre-negotiated terms.

Industry Classification

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

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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: $10,492,872

Exercised Options: $10,467,810

Current Obligation: $10,467,810

Parent Contract

Parent Award PIID: SLMAQM04A0106

IDV Type: BPA

Timeline