DOHSC contract with Deloitte balloons to $1.1 billion via amendment
What happened
The Department of Health and Social Care initially awarded Deloitte a $177 million contract in 2023 to centralize part of the Medicaid application process. The administration later amended this deal by $866 million in August, increasing the total contract value to $1.1 billion. Before the recent increase, the contract had already grown to $317 million.
From nypost.com
Why it matters
Watchdogs have criticized the contract expansion, noting that the amendment was more than four times the original price. Critics argue that a contract expansion of this size should have triggered a public bidding process, as governments are required to follow competitive bidding procedures.
From nypost.com
Who's involved
- Department of Health and Social CareAwarded the contract to Deloitte for the Medicaid system.
- DeloitteWas contracted by the Department of Health and Social Care to manage the Medicaid Eligibility and Client Management system.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- DeloitteSpeculative
Could see a massive increase in revenue due to the contract amendment for the MECM system.
- Ernst & YoungSpeculative
Might face increased pressure on public sector bids from Deloitte's contract win.
- KPMGSpeculative
Might face increased pressure on public sector bids from Deloitte's contract win.
Keep exploring
The entities involved
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Department of Health and Social Care
United Kingdom government ministerial department
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Deloitte
multinational professional services network founded in 1845