Treasury's $51.6M CADE 2 Program Support Contract Awarded to Deloitte Consulting LLP

Contract Overview

Contract Amount: $51,564,783 ($51.6M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of the Treasury

Start Date: 2010-06-25

End Date: 2013-05-31

Contract Duration: 1,071 days

Daily Burn Rate: $48.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: CADE 2 PROGRAM SUPPORT

Place of Performance

Location: LANHAM, PRINCE GEORGE'S County, MARYLAND, 20706

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $51.6 million to DELOITTE CONSULTING LLP for work described as: CADE 2 PROGRAM SUPPORT Key points: 1. Contract awarded for Computer Systems Design Services. 2. Significant spending on IT services by the IRS. 3. No small business participation noted. 4. Potential for cost savings through competitive bidding.

Value Assessment

Rating: fair

The contract value of $51.6M over approximately 3 years for IT support services appears within a reasonable range for similar government contracts. However, without specific details on deliverables and performance metrics, a precise comparison is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing and allows for a wide range of vendors to bid. This method is expected to yield fair market prices.

Taxpayer Impact: Full and open competition aims to ensure taxpayer dollars are spent efficiently by fostering a competitive environment among vendors.

Public Impact

Supports critical IRS IT infrastructure and operations. Ensures continued availability of essential tax processing systems. Impacts taxpayers through the reliability of IRS services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation.
Contract duration and value warrant close monitoring.

Positive Signals

Awarded through full and open competition.
Fixed-price contract type can control costs.

Sector Analysis

This contract falls under the Information Technology sector, specifically computer systems design services. Government spending in this area is substantial, with benchmarks varying widely based on service complexity and duration.

Small Business Impact

The contract was not awarded to a small business, and there is no indication of small business subcontracting. This represents a missed opportunity to support small business growth within the federal contracting landscape.

Oversight & Accountability

The award was made by the Department of the Treasury's Internal Revenue Service. Oversight would typically involve contract performance monitoring and financial reviews to ensure compliance and value for money.

Related Government Programs

Computer Systems Design Services
Department of the Treasury Contracting
Internal Revenue Service Programs

Risk Flags

No small business participation.
Contract value and duration.
Potential for vendor lock-in.
Reliance on a single large contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $51.6 million to DELOITTE CONSULTING LLP. CADE 2 PROGRAM SUPPORT

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $51.6 million.

What is the period of performance?

Start: 2010-06-25. End: 2013-05-31.

What specific IT systems and services were covered under the CADE 2 Program Support contract, and how did their scope align with the awarded price?

The contract focused on computer systems design services for the CADE 2 Program. A detailed breakdown of specific systems, software development, integration, and maintenance tasks would be necessary to fully assess if the $51.6M price was justified. Without this granular detail, it's challenging to confirm optimal value.

Given the full and open competition, were there any indications of unusually high profit margins or pricing strategies by Deloitte Consulting LLP?

While full and open competition generally drives competitive pricing, the absence of detailed cost breakdowns makes it difficult to definitively assess profit margins. Benchmarking against similar contracts for comparable services would be the next step to identify any potential outliers or unusually high pricing.

How effectively did the IRS manage this contract to ensure the delivery of critical IT support services and achieve the intended program objectives?

Effectiveness hinges on the IRS's contract management capabilities, including performance monitoring, quality assurance, and timely issue resolution. Successful delivery of IT support services, as evidenced by system uptime and user satisfaction, would indicate effective management. A review of performance reports and any contract modifications would provide further insight.

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: TIRNO10Q00131

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: Deloitte LLP (UEI: 014127109)

Address: 12010 SUNSET HILLS RD, RESTON, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $60,710,715

Exercised Options: $51,564,783

Current Obligation: $51,564,783

Parent Contract

Parent Award PIID: GS35F0060L

IDV Type: FSS

Timeline