DOJ awards $9.8M contract to Deloitte for administrative management consulting, with a 3-year period of performance

Contract Overview

Contract Amount: $9,852,380 ($9.9M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Justice

Start Date: 2024-04-01

End Date: 2027-03-31

Contract Duration: 1,094 days

Daily Burn Rate: $9.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: DAS COE

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $9.9 million to DELOITTE CONSULTING LLP for work described as: DAS COE Key points: 1. The contract value of $9.8M over approximately 3 years suggests a moderate annual spend for consulting services. 2. Competition dynamics for this contract were full and open, indicating a potentially competitive bidding process. 3. The contract type is Time and Materials, which can present cost control risks if not closely managed. 4. The primary service category is Administrative Management and General Management Consulting Services, a common area for federal support. 5. The awardee, Deloitte Consulting LLP, is a large, established federal contractor with a significant presence across government agencies. 6. The contract is a Delivery Order under a larger IDIQ or similar vehicle, suggesting it's part of a broader procurement strategy.

Value Assessment

Rating: good

The contract value of $9.8M over 1094 days (approx. 3 years) results in an average annual spend of roughly $3.2M. Benchmarking this against similar administrative management consulting contracts requires access to a broader dataset of federal procurements. However, the award to a large, established firm like Deloitte suggests a competitive pricing structure was likely negotiated. The Time and Materials (T&M) pricing model, while common, necessitates careful monitoring to ensure value for money and prevent cost overruns compared to fixed-price arrangements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The data indicates there were 4 bids received. A full and open competition generally fosters a more robust price discovery process, as multiple bidders vie for the contract, potentially leading to more competitive pricing for the government.

Taxpayer Impact: A full and open competition is favorable for taxpayers as it increases the likelihood of obtaining the best value through competitive pricing and a wider pool of qualified contractors.

Public Impact

The primary beneficiary of this contract is the Department of Justice, specifically the Federal Bureau of Investigation (FBI), which will receive administrative management and general management consulting services. These services are expected to support the operational efficiency and management functions within the FBI. The geographic impact is primarily within Virginia, where the contract is being performed. The contract is unlikely to have significant direct workforce implications beyond the personnel provided by the contractor, Deloitte.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not diligently managed and monitored.
The broad nature of 'Administrative Management and General Management Consulting Services' could lead to scope creep if not clearly defined and controlled.
Reliance on a single large contractor for critical consulting services may limit future flexibility or innovation.

Positive Signals

Awarded under full and open competition, suggesting a competitive process and potential for good value.
The contractor, Deloitte Consulting LLP, is a well-established firm with extensive experience in federal contracting.
The contract is a Delivery Order, implying it is part of a pre-competed Indefinite Delivery/Indefinite Quantity (IDIQ) contract, which can streamline procurement.

Sector Analysis

Administrative Management and General Management Consulting Services (NAICS 541611) represent a significant segment of the federal services market. Agencies frequently procure these services to enhance operational efficiency, implement new management strategies, and support various program initiatives. The total federal spending in this sector can reach billions annually, with contracts ranging from small, specialized engagements to large, multi-year support vehicles. This particular contract fits within the typical range for specialized consulting support for a major federal law enforcement agency like the FBI.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, Deloitte Consulting LLP, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is likely minimal, though large prime contractors often utilize small businesses for subcontracting opportunities on such vehicles.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting officer and program managers within the Federal Bureau of Investigation. As a Delivery Order under a larger contract vehicle, oversight may also be governed by the terms of the parent IDIQ contract. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise during the contract performance.

Related Government Programs

Department of Justice - Administrative Support Contracts
Federal Bureau of Investigation - Management Consulting Services
General Services Administration (GSA) Schedules - Professional Services
Management and Consulting Services - Federal Government

Risk Flags

Potential for cost overruns due to Time and Materials pricing model.
Risk of scope creep if objectives are not clearly defined and managed.
Dependence on a single large contractor may limit future agility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $9.9 million to DELOITTE CONSULTING LLP. DAS COE

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $9.9 million.

What is the period of performance?

Start: 2024-04-01. End: 2027-03-31.

What is Deloitte Consulting LLP's track record with the Department of Justice and the FBI specifically?

Deloitte Consulting LLP has a substantial track record of contracting with the Department of Justice (DOJ) and its various components, including the Federal Bureau of Investigation (FBI). They are a frequent recipient of contracts across a wide range of services, including IT, management consulting, and financial services. Their history with these agencies suggests familiarity with federal procurement processes, regulatory environments, and the specific needs of law enforcement and justice administration. Analyzing past performance reviews and contract modifications for previous DOJ/FBI awards would provide deeper insight into their reliability, quality of service, and adherence to contract terms. This specific award, valued at $9.8M over three years, is a significant but not unprecedented engagement for Deloitte with these agencies.

How does the $9.8M contract value compare to similar administrative management consulting contracts awarded by the FBI or DOJ?

The $9.8M contract value over approximately three years, averaging around $3.2M annually, is a moderate-sized award for administrative management and general management consulting services within a large federal agency like the FBI. Larger agencies often award multi-million dollar contracts annually for such services, sometimes reaching tens of millions for comprehensive support. Smaller, more specialized consulting engagements might range from a few hundred thousand to a couple of million dollars. This contract's value suggests it is intended to provide substantial, ongoing support rather than a short-term, narrowly focused project. Benchmarking against specific, comparable contracts would require detailed analysis of contract descriptions, scope of work, and duration from federal procurement databases.

What are the primary risks associated with a Time and Materials (T&M) contract for consulting services?

The primary risk associated with a Time and Materials (T&M) contract for consulting services is the potential for cost overruns and a lack of definitive cost control. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. If the scope of work is not clearly defined, or if project duration extends beyond initial estimates, costs can escalate significantly. This necessitates robust government oversight to monitor labor hours, ensure efficiency, and prevent scope creep. Without diligent management, T&M contracts can become more expensive than initially anticipated, potentially diminishing the overall value for money achieved by the government.

What is the expected effectiveness of these consulting services in improving FBI operations?

The expected effectiveness of these consulting services hinges on the clarity of the defined objectives within the contract's Statement of Work (SOW) and the contractor's ability to deliver actionable recommendations. Administrative management and general management consulting services are typically aimed at improving organizational efficiency, streamlining processes, enhancing strategic planning, or implementing new management techniques. If the FBI has clearly identified specific operational challenges or areas for improvement, and Deloitte is tasked with providing expert analysis and solutions, the potential for effectiveness is high. Success will be measured by the implementation of recommendations and the resulting improvements in FBI's administrative functions and overall operational performance. Regular performance reviews and clear metrics will be crucial for assessing effectiveness.

How has federal spending on administrative management consulting services evolved over the past five years?

Federal spending on administrative management and general management consulting services (NAICS 541611) has generally remained robust over the past five years, reflecting agencies' continuous need for external expertise to address complex challenges, improve efficiency, and implement new policies or technologies. While specific year-over-year fluctuations can occur due to budget cycles, agency priorities, and economic conditions, the overall trend indicates a sustained demand. Agencies often leverage these services for strategic planning, organizational restructuring, process re-engineering, and IT modernization support. The COVID-19 pandemic may have also influenced spending patterns, potentially increasing demand for services related to remote work enablement, supply chain resilience, and digital transformation. Overall, this sector remains a significant area of federal expenditure.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

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: $13,110,285

Exercised Options: $10,035,624

Current Obligation: $9,852,380

Actual Outlays: $5,051,412

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $8,336,712

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAA18D001P

IDV Type: FSS

Timeline