DoD's $57.8M Program Management Support Contract Awarded to Deloitte Consulting LLP

Contract Overview

Contract Amount: $57,802,597 ($57.8M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2008-09-29

End Date: 2014-03-30

Contract Duration: 2,008 days

Daily Burn Rate: $28.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: PROGRAM MANAGEMENT SUPPORT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $57.8 million to DELOITTE CONSULTING LLP for work described as: PROGRAM MANAGEMENT SUPPORT Key points: 1. Significant contract value of $57.8 million over its period of performance. 2. Awarded to a single, large incumbent contractor, Deloitte Consulting LLP. 3. Potential for cost overruns given the Cost Plus Fixed Fee contract type. 4. Services fall under Administrative Management and General Management Consulting.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs if not managed carefully, as the contractor is reimbursed for all allowable costs plus a fixed fee. Without specific benchmarks, it's difficult to definitively assess pricing, but CPFF contracts generally carry higher risk for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific details of the price discovery mechanism and how the fixed fee was determined are not provided, which limits a full assessment of its effectiveness.

Taxpayer Impact: While competition is generally beneficial for taxpayers, the CPFF structure necessitates robust oversight to ensure cost efficiency and prevent unnecessary spending.

Public Impact

Supports critical program management functions within the Department of Defense. Ensures continuity of essential administrative and management consulting services. Impacts the efficiency and effectiveness of DoD program execution.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type increases cost risk.
No specific performance metrics or benchmarks provided.
Contract duration is lengthy (approx. 5.5 years).

Positive Signals

Awarded under full and open competition.
Experienced contractor (Deloitte Consulting LLP).

Sector Analysis

This contract falls within the professional services sector, specifically management consulting. Spending in this area is common across government agencies for specialized expertise. Benchmarks for similar contracts would be needed for a precise comparison, but $57.8M over 5.5 years suggests a substantial, long-term engagement.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to a large business (Deloitte Consulting LLP). There is no indication of small business participation or subcontracting requirements in the provided details.

Oversight & Accountability

The Cost Plus Fixed Fee contract type requires diligent oversight from the Defense Contract Management Agency to monitor costs, ensure compliance, and verify the reasonableness of the fixed fee. The length of the contract also necessitates ongoing performance monitoring.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Lack of specific performance metrics.
Potential for cost creep without strong oversight.
Long contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $57.8 million to DELOITTE CONSULTING LLP. PROGRAM MANAGEMENT SUPPORT

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $57.8 million.

What is the period of performance?

Start: 2008-09-29. End: 2014-03-30.

What was the basis for the fixed fee negotiated with Deloitte Consulting LLP, and how does it compare to industry standards for similar program management support services?

The basis for the fixed fee is not detailed in the provided data. Typically, fixed fees are determined through negotiation based on the estimated effort, complexity, and risk involved. Without access to the contract's pricing details or comparable contract data, it's impossible to assess if the fee was competitive or aligned with industry standards for program management support.

What mechanisms were in place to mitigate the inherent cost risks associated with a Cost Plus Fixed Fee contract for this program management support service?

Mitigation of cost risks in CPFF contracts relies heavily on robust government oversight. This includes detailed cost monitoring, audits of contractor expenditures, clear definition of allowable costs, and performance reviews. The effectiveness of these mechanisms would depend on the diligence of the Defense Contract Management Agency in enforcing contract terms and scrutinizing contractor performance and spending.

How did the full and open competition process ensure that the selected contractor, Deloitte Consulting LLP, offered the best value and technical approach for the program management support required by

A full and open competition theoretically allows multiple qualified vendors to bid, fostering a competitive environment that should lead to the best value. The evaluation criteria used by the DoD to assess proposals, including technical approach, past performance, and price, would determine if Deloitte's offering truly represented the best value. The provided data does not detail these evaluation factors or the competitive landscape.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W81XWH05R0004

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte LLP (UEI: 014127109)

Address: 1725 DUKE ST, ALEXANDRIA, VA, 22314

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

Financial Breakdown

Contract Ceiling: $58,290,323

Exercised Options: $58,290,323

Current Obligation: $57,802,597

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W81XWH08D0036

IDV Type: IDC

Timeline