We last looked at Deloitte in January 2020 to gain insight into the Government & Public Services (GPS) practice, including its major wins and customer portfolio. Deloitte’s GPS business has experienced changes in its U.S. Government customer portfolio balance over the last two years. In 2020, Deloitte’s customer portfolio was led by the IRS, U.S. Navy, and the Defense Health Agency (DHA). As we re-examine Deloitte in 2022, their U.S. Government customers have shifted, showing a focus on the U.S. Navy, National Institutes of Health (NIH) and Food and Drug Administration (FDA). Note the comparison in Figure 1 below.
Figure 1 – Comparing the U.S. Government top customers for Deloitte
AI/ML, Analytics and Cyber Offerings
Over the last two years, Deloitte has ramped up investments in data, analytics, cyber, and artificial intelligence and machine learning (AI/ML) to fulfill emerging customer needs.
Deloitte’s AI and Analytics practices is spearheaded by its “Age of With™” philosophy – mixing humans with machines by pairing analytics with data science and automation with intelligence. Deloitte’s capabilities with emerging technologies will likely serve as differentiators from the rest of the competition, allowing the company to improve decision-making and push the boundaries of what is possible for its customers to achieve. Some of the companies’ recent corporate investments include the following:
- Data Analytics Practice– This practice uses analytics to provide clients with practical insights and consists of 2,000 data scientists located globally, more than 80 delivery centers and spaces to support client needs, and more than 300 relationships spanning science, technology, services, academia, and service providers.
- DAPPER– This capability combines the Deloitte Analytics Platform with IBM Cloud Pak for Data on Red Hat OpenShift to offer businesses a fully-managed AI solution designed to avoid needing to commit to resources and lengthy time associated with developing, implementing, and managing a bespoke solution.
- Deloitte Artificial Intelligence Institute for Government (DAIIG) – Launched in March 2021, the DAIIG is the public sector arm to the Deloitte AI Institute launched globally in June 2020. The DAIIG is designed to advance applied AI in the public sector by building a cross-sector community for research and shared expertise, providing a hub for innovative perspectives and collaboration on all-things AI and related technologies for the government.
- Deloitte Center for AI Computing– Launched in March 2021, this center is designed to accelerate the development of AI offerings for its clients. The center is built on NVIDIA’s DGX A100 systems to create a supercomputing architecture that will help Deloitte’s clients in their efforts to become AI-fueled organizations.
- Deloitte Cyber Practice– Deloitte GPS’s unit advises, implements, and manages solutions in cyber strategy; data privacy; application security; infrastructure; identity; cloud; emerging technology; and detect & respond.
AI/ML and Analytics Contracts
Deloitte has successfully secured wins with a focus on AI/ML and data analytics. Recent contracts of interest include:
- U.S. Department of the Air Force (USAF), Air Force Materiel Command (AFMC), CentralSight™ Contract – In August 2021, Deloitte was awarded a two-year, $19 million ceiling value ($9 million obligated to date) contract to provide support to AFMC utilizing its CentralSight™ platform. CentralSight™ is a proprietary supply chain analytics tool, meant to increase government customers’ supply chain visibility and enable more effective supply chain risk management.
- U.S. Department of Defense, Defense Information Systems Agency (DISA), Joint Artificial Intelligence Center (JAIC), Joint Common Foundation (JCF) – In August 2020, Deloitte was awarded a four-year, $106 million ceiling value contract to support the Pentagon’s artificial intelligence (AI) hub’s AI development platform. Deloitte will design and build the Joint Common Foundation, a capability that is a secure cloud platform that promotes the development, testing, prototyping, assessment and integration of AI models and software
- U.S. Department of the Army, Program Executive Office Enterprise Information Systems (PEO EIS), Defensive Cyber Operations (DCO) Cyberspace Analytics– In December 2018, Deloitte was awarded a three-year, $22 million ceiling value contract to provide a cyberspace analytics capability consisting of a secure, common, community-wide analytical framework. Support analytics and strategies focused on network infrastructure and architecture; data protection; cloud and application security; cyber governance and operations; regulatory, standards, policies/procedures, and assessments.
- U.S. Department of the Treasury, Internal Revenue Service (IRS), Data Analytics and Innovation Support (DAIS) BPA – In November 2018, Deloitte was awarded a seven-year, $137 million ceiling value BPA to provide data analytics and innovation support to the IRS. Deloitte provides a range of consulting services to strategically improve tax compliance and internal operations using research, data-driven analysis, models and project/business management to inform decision making.
Relevant M&A Activity
Deloitte’s recent M&A moves have also been fueled by its desire to lead the industry in emerging technologies:
- Root9B, LLC (R9B) – In January 2021, Deloitte announced its acquisition of substantially all the assets of Root9B, LLC (R9B), a leading provider of advanced cyber threat hunting services and solutions. The deal will bolster Deloitte’s existing Detect and Respond cyber client offering with R9B’s deeply experienced cyber operations professionals and its award-winning threat-hunting and risk assessment solutions.
- Terbium Labs – In June 2021, Deloitte announced its acquisition of Terbium Labs, which will join Deloitte’s cyber practice in its Detect & Respond offering suite. Terbium Labs is a Baltimore-based digital risk protection company that helps organizations detect and remediate data exposure, theft, or misuse across the digital landscape.
- BIAS – In December 2021, Deloitte announced its acquisition of BIAS, a cloud consulting firm that specializes in the deployment and integration of Oracle’s cloud computing infrastructure and related application offerings. Deloitte will apply incoming tools and personnel to expand and build presences in the cloud infrastructure, database, middleware, applications, analytics, and security product arenas.
FedSavvy Strategies’ Takeaway
- Deloitte will likely leverage its heavy focus on technology transformation through analytics, AI/ML, cloud services, and cybersecurity to push into these technical domains and become a stronger competitor going forward.
- The company’s suite of offerings in emerging technologies allow it to demonstrate or advise its government customers on new approaches and “the next big thing”. This will be especially appealing to agencies seeking to drive innovation within their organization.
- Deloitte can already justify its technology investments and recent acquisitions through its awards from the DoD’s JAIC, IRS, USAF, and the U.S. Army, where it is building and implementing a range of AI and analytics capabilities. Down the road, Deloitte will be able to point to these as proven examples of its analytics, AI/ML, and cyber solutions.
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