Department of the Interior awards $5M Deloitte contract for administrative management consulting

Contract Overview

Contract Amount: $5,042,108 ($5.0M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of the Interior

Start Date: 2024-01-16

End Date: 2027-01-15

Contract Duration: 1,095 days

Daily Burn Rate: $4.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: BPA ORDER 5 FOR ASSESSMENT AND PROGRAM IMPLEMENTATION 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 $5.0 million to DELOITTE CONSULTING LLP for work described as: BPA ORDER 5 FOR ASSESSMENT AND PROGRAM IMPLEMENTATION SUPPORT Key points: 1. Contract focuses on administrative management and general management consulting services. 2. Awarded via a Blanket Purchase Agreement (BPA) Call, indicating a pre-competed framework. 3. The contract duration is three years, aligning with typical project lifecycles. 4. Services are labor-hour based, allowing flexibility but requiring careful monitoring of effort. 5. The contractor, Deloitte Consulting LLP, is a large, established firm with significant federal experience. 6. The contract is not set aside for small businesses, suggesting a focus on specialized expertise.

Value Assessment

Rating: good

The contract value of approximately $5 million over three years for administrative and management consulting appears reasonable given the scope and the contractor's established reputation. Benchmarking against similar large-scale consulting engagements for federal agencies suggests this is within expected parameters. The labor-hour pricing model, while common, necessitates diligent oversight to ensure efficient resource utilization and prevent cost overruns. Without specific performance metrics or detailed task orders, a precise value-for-money assessment is challenging, but the initial award seems aligned with market rates for such services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, likely through a pre-existing Blanket Purchase Agreement (BPA) that itself was competed. This method typically ensures a broad range of qualified vendors can bid, fostering price discovery and potentially leading to more competitive pricing. The specific number of bidders for this BPA Call is not provided, but the 'full and open' designation suggests a robust competitive process was initiated at the BPA level.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces and ensuring the government receives the best value from a wide pool of potential providers.

Public Impact

Federal agencies, particularly within the Department of the Interior, will benefit from improved administrative and management processes. The services delivered are expected to enhance operational efficiency and strategic planning. The primary geographic impact is within the District of Columbia, where the Department of the Interior's headquarters are located. The contract supports professional services roles, potentially impacting management consultants and administrative support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Labor-hour contracts can lead to scope creep if not managed tightly, potentially increasing costs beyond initial estimates.
The reliance on a single large contractor for critical administrative support could pose a risk if performance falters.
The broad nature of 'assessment and program implementation support' requires clear definition of deliverables to ensure alignment with agency needs.

Positive Signals

Award to a reputable firm like Deloitte suggests a high likelihood of competent service delivery.
The use of a BPA indicates that the initial competition for the underlying agreement was thorough.
The three-year duration provides stability for program implementation and allows for sustained support.

Sector Analysis

This contract falls within the professional services sector, specifically management and administrative consulting. This is a significant market within federal contracting, supporting a wide array of agency functions from strategic planning to operational improvements. The total federal spending on management and consulting services is in the billions annually. This contract represents a small portion of that overall market, serving a specific need within the Department of the Interior's administrative operations.

Small Business Impact

This contract was not set aside for small businesses, as indicated by the 'sb' field being false. This suggests that the competition was open to all responsible sources, and the selection was based on factors other than small business status. While there are no direct subcontracting requirements specified here, large prime contractors like Deloitte often engage small businesses for specialized support, though the extent of this contract's impact on the small business ecosystem is not detailed.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the program office within the Department of the Interior. Performance monitoring, invoice review, and adherence to contract terms are standard accountability measures. Transparency is generally maintained through contract databases like FPDS, where award details are published. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Management and Consulting Services
Administrative Support Services
IT Management Support
Program Management Support

Risk Flags

Potential for scope creep in labor-hour contracts.
Contract performance monitoring is crucial for value realization.
Reliance on a single large contractor requires diligent oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $5.0 million to DELOITTE CONSULTING LLP. BPA ORDER 5 FOR ASSESSMENT AND PROGRAM IMPLEMENTATION 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 $5.0 million.

What is the period of performance?

Start: 2024-01-16. End: 2027-01-15.

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

Deloitte Consulting LLP has a substantial track record of serving federal agencies, including the Department of the Interior, across a wide range of consulting services. Their federal practice is extensive, encompassing areas such as IT modernization, financial management, cybersecurity, and strategic planning. Historical data from federal procurement databases often shows Deloitte as a prime contractor on numerous large-value awards. For the Department of the Interior specifically, Deloitte has likely been involved in various projects supporting departmental offices and bureaus. Their performance history across these engagements is generally characterized by their capacity to handle complex projects and provide expert resources. However, like any large contractor, specific project performance can vary, and a detailed review of past performance evaluations for similar contracts would be necessary for a comprehensive assessment.

How does the awarded amount of $5,042,108.02 compare to similar administrative and management consulting contracts awarded by the Department of the Interior or other agencies?

The awarded amount of approximately $5 million over three years for administrative and management consulting services is within a common range for federal contracts of this nature, particularly those awarded to large, established firms like Deloitte Consulting LLP. Similar contracts for management consulting, program support, and administrative process improvement often fall within the multi-million dollar range, depending on the scope, duration, and complexity of the services required. For instance, contracts supporting agency-wide strategic initiatives, organizational restructuring, or the implementation of new management frameworks can easily reach or exceed this value. The Department of the Interior, like other large federal agencies, frequently procures such services to enhance efficiency and effectiveness. Benchmarking against publicly available data for comparable NAICS codes (like 541611) and contract types (labor-hour) would confirm this amount is competitive and reflective of market rates for specialized consulting expertise.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks associated with this labor-hour contract include potential scope creep, where the project's objectives expand beyond the initial agreement, leading to increased costs and extended timelines. Another risk is the potential for inefficient resource utilization if contractor personnel are not effectively managed or if tasks are not clearly defined. Furthermore, over-reliance on a single large contractor could pose a risk if performance issues arise or if the contractor's strategic direction shifts. Mitigation strategies likely involve robust contract management by the Department of the Interior's contracting officer and program managers. This includes detailed task order definitions, regular performance reviews, clear deliverable tracking, and potentially establishing key performance indicators (KPIs). The labor-hour nature necessitates close monitoring of hours expended against progress and value delivered to ensure cost control and accountability.

How effective is the 'full and open competition' approach for securing administrative consulting services, and what does it imply for price discovery?

The 'full and open competition' approach is generally considered the most effective method for federal agencies to secure a wide range of services, including administrative and management consulting. It maximizes the pool of potential offerors, encouraging a diverse set of capabilities and innovative solutions. This broad competition directly enhances price discovery by allowing market forces to drive pricing. When multiple qualified vendors compete, they are incentivized to offer competitive rates and demonstrate superior value to win the contract. This process helps the government ascertain fair and reasonable pricing. While this specific award was a BPA Call, the underlying BPA was likely competed under full and open terms, meaning the initial selection of BPA holders was competitive, setting the stage for competitive calls against that BPA.

What is the historical spending pattern for administrative and management consulting services within the Department of the Interior?

The Department of the Interior, like most large federal agencies, has a consistent history of spending on administrative and management consulting services. This spending is driven by the need for expertise in areas such as organizational efficiency, strategic planning, policy development, IT modernization, and program management. Historical data indicates that such services are procured regularly to address evolving operational challenges and to support new government initiatives. Spending patterns can fluctuate based on agency priorities, budget allocations, and specific project requirements. While the exact historical spending figures for this specific category within DOI would require detailed analysis of federal procurement data over several fiscal years, it is safe to assume a multi-million dollar annual expenditure on consulting services to support its vast mission across various bureaus and programs.

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: LABOR HOURS (Z)

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: $15,838,404

Exercised Options: $10,028,663

Current Obligation: $5,042,108

Actual Outlays: $4,268,184

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 140D0421A0031

IDV Type: BPA

Timeline