Deloitte Consulting LLP awarded $3.19M for EXIM management consulting, with a 5-year duration

Contract Overview

Contract Amount: $3,194,149 ($3.2M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of the Interior

Start Date: 2022-01-13

End Date: 2027-01-23

Contract Duration: 1,836 days

Daily Burn Rate: $1.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BPA 140D0421A0031 FOR EXIM MANAGEMENT CONSULTING SERVICES - BPA ORDER 2 (SENIOR BUDGET TECHNICAL AND ANALYTICAL PROFESSIONAL SUPPORT)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20571

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $3.2 million to DELOITTE CONSULTING LLP for work described as: BPA 140D0421A0031 FOR EXIM MANAGEMENT CONSULTING SERVICES - BPA ORDER 2 (SENIOR BUDGET TECHNICAL AND ANALYTICAL PROFESSIONAL SUPPORT) Key points: 1. The contract was awarded under a full and open competition, suggesting a competitive pricing environment. 2. The firm fixed-price contract type shifts risk to the contractor, potentially leading to cost efficiencies. 3. The duration of the contract (over 5 years) indicates a need for sustained support in management consulting. 4. The services fall under Administrative Management and General Management Consulting, a common area for federal support. 5. The contract's value is moderate, requiring benchmarking against similar consulting engagements.

Value Assessment

Rating: good

The contract value of $3.19 million over approximately five years for management consulting services appears reasonable. Benchmarking against similar contracts for administrative and management consulting support at the Department of the Interior or other agencies would provide a clearer picture of value for money. The firm fixed-price nature of the contract is a positive indicator for cost control, as it incentivizes the contractor to manage expenses efficiently. Without specific performance metrics or detailed cost breakdowns, a definitive assessment of excellence is difficult, but the structure suggests a good faith effort to secure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit a bid. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition that should lead to a fair market price. This method is generally preferred for ensuring that the government receives optimal value.

Taxpayer Impact: A full and open competition means taxpayers benefit from a market-driven price, as multiple companies vied for the contract, pushing for competitive rates. This process helps prevent overspending and ensures that federal funds are used efficiently.

Public Impact

The primary beneficiaries are the Department of the Interior's management and operational staff who will receive expert advice. Services delivered include senior budget, technical, and analytical professional support, enhancing the agency's decision-making capabilities. The contract is geographically focused on the District of Columbia, where the Department of the Interior is headquartered. The contract supports specialized professional roles, potentially impacting the demand for experienced management consultants in the federal sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if project objectives are not clearly defined and managed.
Reliance on a single large contractor may limit flexibility in adapting to rapidly changing needs.
Ensuring continued alignment with evolving departmental priorities over the contract's multi-year term.

Positive Signals

Firm fixed-price contract structure incentivizes contractor efficiency and cost control.
Awarded under full and open competition, suggesting a competitive pricing environment.
Longer contract duration provides stability and allows for deeper integration of consulting expertise.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector (NAICS 541611). This is a significant sector for federal agencies seeking expertise in areas such as strategic planning, organizational efficiency, budget analysis, and operational improvements. The market for these services is competitive, with numerous firms offering specialized consulting capabilities. The value of this contract is moderate within the broader federal consulting landscape, which sees a wide range of contract sizes and durations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, as a large contract awarded to a major consulting firm, there may be opportunities for small businesses to participate as subcontractors if Deloitte Consulting LLP chooses to engage them for specialized support, though this is not mandated by the contract terms.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the designated contract specialist or program manager within the Department of the Interior. Accountability measures are inherent in the firm fixed-price structure, which requires the contractor to deliver specified services within the agreed budget. Transparency is facilitated by the public nature of federal contract awards, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Management and Financial Consulting, Acquisition and Commercialization
Professional, Scientific, and Technical Services
Management Consulting Services
Federal Consulting Contracts

Risk Flags

Contract duration exceeds typical short-term consulting needs.
Potential for vendor lock-in due to long-term engagement.
Lack of specific performance metrics in provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $3.2 million to DELOITTE CONSULTING LLP. BPA 140D0421A0031 FOR EXIM MANAGEMENT CONSULTING SERVICES - BPA ORDER 2 (SENIOR BUDGET TECHNICAL AND ANALYTICAL PROFESSIONAL SUPPORT)

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $3.2 million.

What is the period of performance?

Start: 2022-01-13. End: 2027-01-23.

What is Deloitte Consulting LLP's track record with the Department of the Interior and similar federal agencies?

Deloitte Consulting LLP is a major federal contractor with a substantial history of performing work across numerous government agencies, including the Department of the Interior. Their track record generally includes a wide range of services, from IT modernization and cybersecurity to financial management and strategic planning. For the Department of the Interior specifically, Deloitte has been involved in various projects, often related to improving operational efficiency and managing complex programs. Their performance history with federal clients is typically characterized by large-scale engagements, and while specific performance ratings for individual contracts are not always public, their continued success in winning significant federal contracts suggests a generally positive standing. However, a deeper dive into past performance evaluations and any past disputes or challenges would be necessary for a comprehensive assessment.

How does the $3.19 million contract value compare to similar management consulting contracts awarded by the Department of the Interior?

The $3.19 million contract value for Deloitte Consulting LLP over approximately five years for EXIM management consulting services represents a moderate investment for the Department of the Interior. To benchmark this value, one would compare it against other contracts for similar services, such as administrative management, budget analysis, and technical support, awarded within the Department of the Interior or to comparable agencies. Contracts for high-level strategic consulting or large-scale IT implementation can range from tens to hundreds of millions of dollars. Conversely, smaller, more focused advisory tasks might be in the hundreds of thousands. This $3.19 million contract appears to be for sustained, specialized support rather than a massive overhaul, suggesting the pricing is likely aligned with market rates for such ongoing professional services, especially given the full and open competition.

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

The primary risks associated with this contract include potential scope creep, where the project's objectives expand beyond the initial agreement, leading to cost overruns or delays. Another risk is the contractor's performance not meeting the Department of the Interior's expectations, impacting the quality of advice and support. Furthermore, over-reliance on a single contractor for critical management functions could pose a risk if the contractor faces internal issues or if agency needs evolve rapidly. Mitigation strategies are embedded in the contract structure: the firm fixed-price nature incentivizes the contractor to manage costs and deliver within budget. Clear statement of work, regular performance reviews, and defined deliverables help manage scope and ensure quality. The Department's oversight by a contracting officer and program manager is crucial for monitoring progress and addressing issues proactively.

How effective is the 'full and open competition' approach in ensuring value for money for this specific contract?

The 'full and open competition' approach is generally considered a highly effective method for ensuring value for money in federal contracting. By allowing all responsible sources to compete, it fosters a competitive environment where multiple firms, like Deloitte Consulting LLP in this case, are motivated to offer their best pricing and technical solutions to win the contract. This process helps establish a fair market price and encourages innovation. For this specific contract, the open competition suggests that the $3.19 million award represents a price arrived at through market forces, rather than a sole-source negotiation which might carry a higher risk of inflated costs. The effectiveness is further enhanced if the evaluation criteria used by the Department of the Interior appropriately balanced price with technical merit and past performance.

What are the historical spending patterns for management consulting services at the Department of the Interior?

Historical spending patterns for management consulting services at the Department of the Interior (DOI) typically show a consistent need for external expertise to support various departmental functions. Agencies like the DOI often engage consultants for strategic planning, organizational restructuring, financial management improvements, IT modernization, and program analysis. Spending in this area can fluctuate based on administration priorities, budget cycles, and specific agency initiatives. While the exact historical figures for DOI's management consulting spend are not provided here, it's common for large departments to allocate significant portions of their budget to professional services. Contracts can range from small, targeted engagements to large, multi-year BPA orders like the one awarded to Deloitte. Analyzing past spending trends would reveal the typical duration, value, and types of consulting services procured by the DOI.

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: $3,305,044

Exercised Options: $3,272,528

Current Obligation: $3,194,149

Actual Outlays: $1,925,728

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 140D0421A0031

IDV Type: BPA

Timeline