Deloitte Consulting LLP awarded $26.3M for cross-broadband program support, with a significant portion allocated to administrative management

Contract Overview

Contract Amount: $26,348,225 ($26.3M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Commerce

Start Date: 2024-06-16

End Date: 2025-03-31

Contract Duration: 288 days

Daily Burn Rate: $91.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CROSS-BROADBAND PROGRAM SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230

State: District of Columbia Government Spending

Plain-Language Summary

Department of Commerce obligated $26.3 million to DELOITTE CONSULTING LLP for work described as: CROSS-BROADBAND PROGRAM SUPPORT Key points: 1. Contract value represents a substantial investment in program support services. 2. Competition dynamics suggest a potentially competitive bidding process for this type of service. 3. Risk indicators are moderate, given the nature of consulting services and fixed-price contract type. 4. Performance context will be crucial to assess the effectiveness of administrative management consulting. 5. Sector positioning places this contract within the broader IT and administrative services landscape.

Value Assessment

Rating: fair

The contract value of $26.3 million for administrative management and general management consulting services appears to be within a reasonable range for large-scale federal program support. Benchmarking against similar contracts for consulting services of this scope and duration would provide a clearer picture of value for money. The fixed-price nature of the contract suggests that the government has a defined budget, but it's essential to monitor for scope creep or potential cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This approach generally fosters a competitive environment, which can lead to better pricing and service quality. The specific number of bidders is not provided, but the designation suggests a robust selection process. The open competition is a positive sign for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through a wider pool of potential contractors and encouraging innovation to win bids.

Public Impact

The primary beneficiaries are federal agencies requiring support for cross-broadband programs, enhancing their operational efficiency. Services delivered include administrative management and general management consulting, crucial for program execution. The geographic impact is centered in Washington D.C., the location of the contracting agency. Workforce implications may involve the utilization of specialized consulting expertise, potentially impacting internal agency staffing needs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on external consultants for core administrative functions.
Risk of misaligned objectives between contractor and agency goals if not managed proactively.
Challenges in knowledge transfer and long-term sustainability of improvements post-contract.

Positive Signals

Access to specialized expertise and best practices in administrative management.
Potential for increased efficiency and effectiveness in cross-broadband program execution.
Flexibility to scale support up or down based on program needs.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is a significant component of federal spending, supporting a wide array of government functions. The market for these services is competitive, with large consulting firms often vying for substantial government contracts. The value of this contract is notable within the context of program support services.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a small business set-aside. Therefore, the direct impact on small businesses through this specific award is likely minimal. However, the prime contractor, Deloitte Consulting LLP, may engage small businesses as subcontractors, depending on the project's needs and subcontracting plans. Further analysis of subcontracting reports would be necessary to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the Department of Commerce. Accountability measures will be tied to the performance work statement and deliverables outlined in the contract. Transparency is facilitated through contract award databases, though detailed performance metrics are typically internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Broadband Equity, Access, and Deployment Program
National Broadband Plan
Federal Communications Commission (FCC) Initiatives
Department of Commerce Technology Programs

Risk Flags

Potential for scope creep in consulting engagements.
Reliance on contractor performance for critical program support.
Ensuring knowledge transfer and long-term sustainability of improvements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $26.3 million to DELOITTE CONSULTING LLP. CROSS-BROADBAND 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 Commerce (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $26.3 million.

What is the period of performance?

Start: 2024-06-16. End: 2025-03-31.

What is Deloitte Consulting LLP's track record with similar federal consulting contracts?

Deloitte Consulting LLP has a extensive history of securing and performing large federal consulting contracts across various agencies and service areas, including management and IT consulting. Their track record typically involves supporting complex program management, strategic planning, and operational improvements. While specific performance data for individual contracts is often not publicly detailed, their consistent award of significant contracts suggests a generally positive performance history and strong past performance ratings. However, like any large contractor, they may have faced past performance challenges or disputes on specific projects, which would be detailed in contract performance reports if publicly accessible.

How does the $26.3 million contract value compare to other federal administrative management consulting contracts?

The $26.3 million contract value for administrative management and general management consulting services is substantial, placing it among larger federal engagements in this category. Federal spending on consulting services can range from tens of thousands to hundreds of millions of dollars, depending on the scope, duration, and complexity of the services required. Contracts of this magnitude typically support major agency initiatives, program overhauls, or long-term strategic objectives. Benchmarking against similar contracts awarded by the Department of Commerce or other agencies for comparable services would provide a more precise comparison, but this figure indicates a significant investment in external expertise.

What are the primary risks associated with a fixed-price contract for consulting services?

The primary risks associated with a fixed-price contract for consulting services, such as this $26.3 million award, revolve around scope definition and management. If the scope of work is not clearly defined or if unforeseen complexities arise, the contractor may incur losses, potentially leading to reduced quality or a desire to renegotiate. Conversely, if the scope is too broad or poorly defined, the government may end up paying more than necessary for services that are not fully utilized. Effective project management, clear communication, and robust change control processes are critical to mitigating these risks and ensuring the government receives the intended value.

How effective are full and open competitions in ensuring competitive pricing for consulting services?

Full and open competition is generally considered the most effective method for ensuring competitive pricing for consulting services. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving multiple competitive proposals. This competition drives down prices as contractors strive to offer the best value to win the contract. While it doesn't guarantee the lowest possible price in all circumstances, it creates a strong market dynamic that incentivizes cost-consciousness and efficiency among bidders, ultimately benefiting the taxpayer.

What is the typical duration and value range for 'Administrative Management and General Management Consulting Services' contracts?

Contracts for 'Administrative Management and General Management Consulting Services' can vary widely in duration and value. Typical durations can range from a few months for specific project-based work to several years for ongoing program support or strategic initiatives. Values can range from small, task-order contracts under larger indefinite-delivery/indefinite-quantity (IDIQ) vehicles to multi-million dollar awards like this $26.3 million contract. Larger contracts often involve comprehensive support for complex federal programs, requiring extensive expertise and resources over extended periods.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $26,348,225

Exercised Options: $26,348,225

Current Obligation: $26,348,225

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 1331L522A13350017

IDV Type: BPA

Timeline