DoD's $21.5M cyber contract to Deloitte & Touche LLP awarded under SAP, with 4 bidders

Contract Overview

Contract Amount: $21,492,278 ($21.5M)

Contractor: Deloitte & Touche LLP

Awarding Agency: Department of Defense

Start Date: 2018-12-12

End Date: 2021-11-25

Contract Duration: 1,079 days

Daily Burn Rate: $19.9K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: DCO CYBERSPACE ANALYTICS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $21.5 million to DELOITTE & TOUCHE LLP for work described as: DCO CYBERSPACE ANALYTICS Key points: 1. Contract value represents a significant investment in cybersecurity capabilities for the Department of Defense. 2. The award was made under the Simplified Acquisition Procedures (SAP), suggesting a focus on efficiency for procurements below certain thresholds. 3. With four bidders, the competition level indicates a moderate degree of market interest and potential for price discovery. 4. The contract duration of 1079 days (approximately 3 years) suggests a need for sustained support in cyberspace analytics. 5. The firm-fixed-price contract type aims to provide cost certainty for the government. 6. The contractor, Deloitte & Touche LLP, is a well-established entity in the professional services sector.

Value Assessment

Rating: good

The contract value of $21.5 million over nearly three years for cyberspace analytics services appears reasonable given the contractor's expertise and the nature of the services. Benchmarking against similar large-scale cybersecurity and analytics contracts within the Department of Defense suggests that this award falls within expected ranges for specialized support. The firm-fixed-price structure helps manage cost risks for the government, although the specific value-for-money assessment would benefit from detailed performance metrics and comparison to alternative solutions or in-house capabilities.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under Simplified Acquisition Procedures (SAP), which typically involves a broader range of competition than micro-purchases but may have different solicitation and evaluation processes than full and open competition above the SAP threshold. The presence of four bidders indicates a healthy level of interest from potential contractors in this specialized area. This level of competition generally allows for price discovery and encourages contractors to offer competitive terms.

Taxpayer Impact: The competition among four bidders suggests that taxpayers likely benefited from a more competitive price than would have been achieved through a sole-source award. This process helps ensure that government funds are used efficiently by leveraging market forces.

Public Impact

The Department of Defense benefits from enhanced cyberspace analytics capabilities, crucial for national security. This contract supports the Army's mission by providing advanced tools and expertise for understanding and defending digital environments. The services delivered are expected to improve threat detection, intelligence gathering, and strategic decision-making within the cyber domain. The geographic impact is primarily within the Department of the Army's operational areas, though the benefits of improved cyber defense are national. While not explicitly a workforce development contract, it supports highly skilled cybersecurity professionals within Deloitte & Touche LLP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single contractor for critical cyberspace analytics could pose a risk if performance falters.
The firm-fixed-price nature might incentivize cost-cutting that could impact quality if not closely monitored.

Positive Signals

Award to a reputable contractor with demonstrated experience in analytics and defense.
The competitive bidding process suggests a baseline level of market validation for the proposed solution.
The contract duration indicates a stable, long-term need that the chosen solution is expected to meet.
Firm-fixed-price contract type provides budget predictability for the government.

Sector Analysis

The cybersecurity and data analytics sector is a rapidly growing and critical area for government and commercial entities. This contract falls within the broader IT services and defense technology market, which is characterized by high demand for specialized expertise. The Department of Defense is a major consumer of these services, investing heavily in maintaining a technological advantage and defending against evolving cyber threats. Spending in this area is driven by the increasing complexity of the digital landscape and the persistent nature of cyber adversaries.

Small Business Impact

This contract does not appear to have a specific small business set-aside component, as indicated by 'sb': false. However, the prime contractor, Deloitte & Touche LLP, may engage small businesses as subcontractors to fulfill certain aspects of the contract. The extent of small business participation would depend on the subcontracting plan developed by the prime contractor and the specific requirements of the work. Without explicit set-aside goals, the direct impact on the small business ecosystem is likely limited unless significant subcontracting opportunities are created.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Department of the Army. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Department of Defense Cybersecurity Initiatives
Army Information Technology Services
Cyberspace Operations Support Contracts
Data Analytics Services for Federal Agencies
Defense Information Systems Agency (DISA) Contracts

Risk Flags

Potential for vendor lock-in if proprietary solutions are heavily utilized.
Dependency on contractor expertise for critical cyber insights.
Need for continuous monitoring of evolving cyber threats impacting analytical requirements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.5 million to DELOITTE & TOUCHE LLP. DCO CYBERSPACE ANALYTICS

Who is the contractor on this award?

The obligated recipient is DELOITTE & TOUCHE LLP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $21.5 million.

What is the period of performance?

Start: 2018-12-12. End: 2021-11-25.

What is Deloitte & Touche LLP's track record with similar Department of Defense contracts, particularly in cybersecurity and analytics?

Deloitte & Touche LLP, as part of Deloitte Touche Tohmatsu Limited, has a substantial history of performing complex IT, consulting, and professional services for the Department of Defense and other federal agencies. Their track record includes work on large-scale system integrations, data analytics, cybersecurity solutions, and strategic planning. Specific to cybersecurity and analytics, they have been involved in projects related to threat intelligence, network defense, data visualization, and advanced analytics for intelligence purposes. While this specific contract is for $21.5 million, Deloitte has managed significantly larger contracts across various government sectors, demonstrating their capacity to handle substantial federal procurements. Their experience often involves navigating stringent security requirements and complex operational environments inherent to defense contracting.

How does the $21.5 million contract value compare to other similar cyberspace analytics contracts awarded by the DoD?

The $21.5 million contract value for cyberspace analytics services awarded to Deloitte & Touche LLP is a significant but not unprecedented amount for the Department of Defense. The DoD invests billions annually in IT and cybersecurity services. Contracts for advanced analytics, threat intelligence, and cyber operations support can range from a few million to hundreds of millions of dollars, depending on scope, duration, and complexity. This particular contract, awarded under SAP and lasting nearly three years, suggests a focused scope of work. When compared to larger, multi-year enterprise-wide cybersecurity programs, this contract appears to be of moderate size, likely addressing specific analytical needs rather than broad, overarching cyber defense infrastructure.

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

Primary risks include potential performance issues if the contractor fails to deliver the expected analytical insights or if the technology deployed is not effective. There's also a risk of cost overruns if the firm-fixed-price model is not managed tightly, or if unforeseen technical challenges arise. Cybersecurity risks are inherent, as the contractor will have access to sensitive data and systems. Mitigation strategies typically involve robust contract oversight, clearly defined performance metrics (e.g., KPIs, SLAs), regular progress reviews, and adherence to strict security protocols and data handling procedures. The competitive nature of the award also serves as a risk mitigation factor, as the government selected a contractor based on perceived capability and price.

How effective is the firm-fixed-price contract type in ensuring value for money for this cyberspace analytics requirement?

The firm-fixed-price (FFP) contract type is generally considered effective for ensuring value for money when the scope of work is well-defined and risks are understood. For cyberspace analytics, where requirements can sometimes evolve, FFP provides the government with cost certainty, meaning the price is fixed regardless of the contractor's actual costs. This incentivizes the contractor to manage their own costs efficiently. However, to truly ensure value for money, the government must have strong performance monitoring to ensure the contractor is delivering the required quality and quantity of services. If the scope is not well-defined, FFP can lead to disputes or the contractor potentially cutting corners on quality to maintain profitability, thus diminishing value.

What historical spending patterns exist for cyberspace analytics within the Department of the Army or DoD?

Historical spending patterns within the Department of the Army and the broader DoD for cyberspace analytics show a consistent and increasing trend over the past decade. Driven by the escalating threat landscape, the DoD has significantly ramped up investments in cyber capabilities, including advanced analytics, threat detection, and intelligence gathering tools. Spending is distributed across various contract types, including R&D, services, and hardware/software procurement. Major defense contractors and specialized IT firms are frequent recipients of these funds. The Army, in particular, has focused on enhancing its cyber mission force and developing robust defensive and offensive cyber capabilities, necessitating substantial and ongoing investment in analytical tools and expertise.

Industry Classification

NAICS: Manufacturing › Computer and Peripheral Equipment Manufacturing › Electronic Computer Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: W52P1J19R0004

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Financial Advisory Services LLP

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

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

Financial Breakdown

Contract Ceiling: $21,492,278

Exercised Options: $21,492,278

Current Obligation: $21,492,278

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline