State Dept. Awards $30.3M Task Order to Deloitte for Business Process Improvement
Contract Overview
Contract Amount: $30,346,722 ($30.3M)
Contractor: Deloitte Consulting LLP
Awarding Agency: Department of State
Start Date: 2018-09-30
End Date: 2021-03-29
Contract Duration: 911 days
Daily Burn Rate: $33.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: IT
Official Description: TASK ORDER TO IMPROVE BUSINESS PROCESSES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006
Plain-Language Summary
Department of State obligated $30.3 million to DELOITTE CONSULTING LLP for work described as: TASK ORDER TO IMPROVE BUSINESS PROCESSES Key points: 1. Deloitte Consulting LLP secured a significant task order for business process improvement. 2. The contract falls under Computer Systems Design Services, a common area for IT consulting. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract duration of 911 days indicates a substantial, multi-year project.
Value Assessment
Rating: fair
The award amount of $30.3M for a 911-day duration suggests a daily rate of approximately $33,311. This rate appears high when compared to typical daily rates for senior consultants on large-scale IT projects, especially considering it's a task order under a larger contract.
Cost Per Unit: $33,311 per day
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific pricing structure (Time and Materials) can sometimes lead to cost overruns if not closely managed.
Taxpayer Impact: Taxpayer funds are being used for business process improvements, which can lead to long-term efficiencies. However, the potentially high daily rate warrants scrutiny to ensure value for money.
Public Impact
Enhances government operational efficiency through business process improvements. Supports the Department of State's mission by optimizing internal workflows. Leverages private sector expertise for complex government challenges. Potential for cost savings and improved service delivery in the long run.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High daily rate may indicate potential for overspending.
- Time and Materials contract type can be prone to cost escalation.
- Lack of specific performance metrics makes it hard to gauge success.
Positive Signals
- Awarded through full and open competition.
- Addresses critical business process needs.
- Utilizes a well-established contractor (Deloitte).
Sector Analysis
This contract falls within the IT and professional services sector, specifically Computer Systems Design Services. Spending in this area is substantial across government agencies, with typical task orders for complex projects ranging from millions to tens of millions of dollars.
Small Business Impact
The contract was awarded to Deloitte Consulting LLP, a large business. There is no indication that small businesses were involved as subcontractors on this specific task order.
Oversight & Accountability
Oversight would typically be managed by the Department of State's contracting officers and program managers. Regular reviews of performance, deliverables, and expenditures are crucial, especially given the Time and Materials contract type.
Related Government Programs
- Computer Systems Design Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- High daily rate.
- Time and Materials contract type.
- Lack of specific performance metrics.
- Potential for cost overruns.
- Limited visibility into subcontractor utilization.
Tags
computer-systems-design-services, department-of-state, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $30.3 million to DELOITTE CONSULTING LLP. TASK ORDER TO IMPROVE BUSINESS PROCESSES
Who is the contractor on this award?
The obligated recipient is DELOITTE CONSULTING LLP.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $30.3 million.
What is the period of performance?
Start: 2018-09-30. End: 2021-03-29.
What specific business processes were targeted for improvement, and what are the expected quantifiable benefits?
The task order aims to improve business processes within the Department of State. While the exact processes are not detailed, the goal is generally to increase efficiency, reduce costs, and enhance service delivery. Quantifiable benefits would ideally include metrics like reduced processing times, lower error rates, or cost savings achieved through streamlined operations.
How does the daily rate of $33,311 compare to industry benchmarks for similar services and contractor experience?
A daily rate of $33,311 is exceptionally high for consulting services, even for senior-level expertise on complex projects. Industry benchmarks for top-tier consulting firms typically range from $1,500 to $5,000 per day, depending on the role and seniority. This rate warrants a thorough justification and comparison against established government-wide contract vehicles and private sector data.
What mechanisms are in place to ensure the Time and Materials contract delivers value and stays within budget?
Effective oversight is critical for Time and Materials contracts. This includes establishing clear labor categories with pre-negotiated rates, setting firm fixed-price milestones for deliverables, implementing rigorous progress tracking, and conducting regular performance reviews. The government must actively manage scope and prevent scope creep to ensure the contractor's effort is focused and efficient.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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
Offers Received: 1
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: $46,354,587
Exercised Options: $46,354,587
Current Obligation: $30,346,722
Actual Outlays: $419,949
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q09BGD0018
IDV Type: GWAC
Timeline
Start Date: 2018-09-30
Current End Date: 2021-03-29
Potential End Date: 2021-03-29 00:00:00
Last Modified: 2023-10-16
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