VA awards $96.5M contract for management consulting to Deloitte, with 4 delivery orders issued

Contract Overview

Contract Amount: $96,456,290 ($96.5M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Veterans Affairs

Start Date: 2020-06-25

End Date: 2025-12-24

Contract Duration: 2,008 days

Daily Burn Rate: $48.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MSPO ASSISTANCE AND SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ACCOMACK County, VIRGINIA, 20598

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $96.5 million to DELOITTE CONSULTING LLP for work described as: MSPO ASSISTANCE AND SUPPORT SERVICES Key points: 1. Contract provides administrative and general management consulting services. 2. Deloitte Consulting LLP is the primary awardee. 3. The contract has a duration of over 2000 days, spanning multiple years. 4. This award represents a significant investment in management support for the VA. 5. The contract is structured with firm fixed-price terms. 6. Four delivery orders have already been issued under this contract.

Value Assessment

Rating: good

The contract value of $96.5 million over its period of performance appears reasonable for comprehensive management consulting services. Benchmarking against similar large-scale consulting contracts within federal agencies suggests this is within expected parameters. The firm fixed-price structure provides cost certainty for the government, though it may limit flexibility if requirements evolve significantly. The issuance of four delivery orders indicates active utilization of the contract's services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach generally fosters a competitive environment, encouraging multiple bidders to present their best proposals and pricing. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it is expected to drive down costs and improve the quality of services received by ensuring the government selects the most advantageous offer.

Public Impact

The Department of Veterans Affairs (VA) is the primary beneficiary, receiving management and administrative support. Services delivered likely include strategic planning, operational efficiency improvements, and administrative process optimization. The contract's impact is primarily national, supporting VA operations across its network. Workforce implications may involve the engagement of Deloitte's consulting staff to support VA initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined in delivery orders.
Reliance on a single large contractor could limit future flexibility or innovation if not managed proactively.
Ensuring effective knowledge transfer from contractor to government personnel is crucial for long-term sustainability.

Positive Signals

Awarded through full and open competition, suggesting a competitive selection process.
Firm fixed-price contract provides budget certainty for the VA.
Long contract duration allows for sustained support and project continuity.
Multiple delivery orders indicate active and ongoing need for the services.

Sector Analysis

This contract falls within the professional services sector, specifically administrative management and general management consulting. This is a common area for federal spending as agencies seek external expertise to improve operations, implement new strategies, and manage complex programs. The market for these services is large and competitive, with major consulting firms frequently securing government contracts.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. However, the prime contractor, Deloitte Consulting LLP, may engage small businesses as subcontractors depending on their own subcontracting plans and the specific needs of the delivery orders.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Veterans Affairs. Accountability measures are embedded in the firm fixed-price contract terms and the performance requirements outlined in the delivery orders. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics are not detailed here.

Related Government Programs

Management and Administrative Support Services
Professional Services Contracts
Federal Consulting Engagements
Department of Veterans Affairs IT and Management Support

Risk Flags

Potential for cost overruns if scope is not well-defined.
Contractor performance risk over a long duration.
Dependency on a single large contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $96.5 million to DELOITTE CONSULTING LLP. MSPO ASSISTANCE AND SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $96.5 million.

What is the period of performance?

Start: 2020-06-25. End: 2025-12-24.

What specific types of administrative and general management consulting services are being provided under this contract?

While the contract specifies 'Administrative Management and General Management Consulting Services' (NAICS code 541611), the exact nature of the services delivered is determined by the individual delivery orders issued against the contract. These could range broadly from strategic planning, organizational assessment, process improvement initiatives, policy development, program management support, to operational efficiency enhancements within the Department of Veterans Affairs. Without access to the specific delivery orders, the precise scope of work remains generalized under the broad categories of management consulting.

How does the awarded amount of $96.5 million compare to similar management consulting contracts awarded by the VA or other large federal agencies?

The $96.5 million contract value, spread over its performance period, is substantial but not unusual for large-scale, multi-year management consulting engagements within major federal agencies like the VA. Large agencies often award multi-million dollar contracts for strategic support, operational improvements, and program management. Benchmarking against similar contracts for administrative and general management consulting reveals that values can range from tens to hundreds of millions of dollars, depending on the scope, duration, and complexity of the services required. The VA, being one of the largest federal departments, frequently engages in contracts of this magnitude to support its vast operations.

What are the potential risks associated with a firm fixed-price contract of this size and duration?

A primary risk with a large, firm fixed-price contract is the potential for the contractor to underperform if the fixed price does not adequately account for the full scope of work or unforeseen challenges. Conversely, if the contractor significantly overestimates costs, the government may end up paying a premium. For the government, the risk lies in the potential for scope creep if requirements are not tightly managed within the delivery orders, leading to increased costs beyond the initial expectation, or conversely, the contractor may cut corners to maintain profitability. The long duration also increases the risk of requirements becoming outdated or the chosen solution becoming less effective over time without careful management and potential modifications.

What is Deloitte Consulting LLP's track record with the Department of Veterans Affairs and similar federal contracts?

Deloitte Consulting LLP is a major federal contractor with a significant history of performing work for various government agencies, including the Department of Veterans Affairs. They have been awarded numerous contracts across different domains, often involving large-scale IT, management consulting, and program support. Their track record generally includes experience in complex environments and large-scale transformations. Specific performance details for this particular contract, or a comprehensive review of their entire VA portfolio, would require deeper analysis of past performance evaluations and contract histories available through federal procurement databases.

How does the 'full and open competition' award method impact the value received by taxpayers for this contract?

Awarding this contract through 'full and open competition' is intended to maximize value for taxpayers. This method allows any responsible source to submit an offer, fostering a competitive environment where multiple companies vie for the contract. This competition typically drives down prices as bidders strive to offer the most cost-effective solutions to win the award. Furthermore, it increases the likelihood that the government selects the offer that provides the best overall value, considering both price and technical merit. For taxpayers, this means their money is more likely to be spent efficiently, securing high-quality services at a competitive market rate.

What are the implications of having four delivery orders already issued under this contract?

The issuance of four delivery orders indicates that the contract is actively being utilized and that the Department of Veterans Affairs has specific, defined needs for management consulting services. This suggests that the initial contract award was a necessary step to procure ongoing or immediate support. The existence of multiple delivery orders implies that the services are being deployed incrementally or across different functional areas within the VA. It also means that the contracting officer and program managers are actively managing the tasking and oversight of these specific service requirements as they arise.

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

Offers Received: 4

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: $96,456,290

Exercised Options: $96,456,290

Current Obligation: $96,456,290

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $7,477,430

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA18D001P

IDV Type: FSS

Timeline