VA awards $9.9M contract for medical supply support, with Deloitte Consulting selected

Contract Overview

Contract Amount: $9,947,572 ($9.9M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-12-25

End Date: 2026-06-24

Contract Duration: 181 days

Daily Burn Rate: $55.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MEDICAL SUPPLY PROGRAM OFFICE MEDICAL SURGICAL SUPPLY SUPPORT FOR CLINICAL PRODUCT TOOL

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20420

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $9.9 million to DELOITTE CONSULTING LLP for work described as: MEDICAL SUPPLY PROGRAM OFFICE MEDICAL SURGICAL SUPPLY SUPPORT FOR CLINICAL PRODUCT TOOL Key points: 1. Contract focuses on administrative management and consulting for medical supplies. 2. The award is a delivery order under a larger contract vehicle. 3. The contract duration is 181 days, indicating a short-term need. 4. The fixed-price nature of the contract shifts performance risk to the contractor. 5. The agency is the Department of Veterans Affairs, serving a critical mission. 6. The contract is for administrative management and general management consulting services.

Value Assessment

Rating: good

The contract value of $9.9 million for an 181-day period appears reasonable for specialized consulting services. Benchmarking against similar administrative management consulting contracts within the VA or other federal agencies would provide further context. The firm fixed-price structure suggests a defined scope and budget, which is generally favorable for value. However, without specific deliverables or performance metrics, a precise value-for-money assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The fact that it is a delivery order suggests it was likely competed as part of a broader indefinite-delivery/indefinite-quantity (IDIQ) contract. The specific number of bidders for this particular delivery order is not provided, but the initial competition for the IDIQ likely established a competitive baseline.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers by encouraging a wider range of offers.

Public Impact

Veterans will benefit from improved medical supply chain management and availability. Clinical product tools and support services will be enhanced. The District of Columbia is the primary geographic location for this contract. The contract supports administrative functions within the VA's medical supply program.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not clearly defined.
Reliance on a single contractor for critical administrative support could pose a risk if performance falters.

Positive Signals

Award to a well-established contractor like Deloitte Consulting LLP suggests a level of confidence in their capabilities.
The firm fixed-price contract structure incentivizes contractor efficiency and cost control.
The contract is a delivery order, implying it's part of a larger, potentially pre-vetted framework.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is crucial for government operations, providing expertise in areas like supply chain, logistics, and operational efficiency. The market for such services is competitive, with numerous firms offering specialized consulting. The VA's significant spending in this area reflects its complex operational needs.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, direct subcontracting opportunities for small businesses are not explicitly detailed in this award notice. The primary contractor, Deloitte Consulting LLP, may have its own small business subcontracting goals as part of its broader contractual obligations, but this specific delivery order does not appear to be a direct set-aside.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Veterans Affairs contracting officer and program officials. As a delivery order under a larger contract, existing oversight mechanisms for that parent contract would likely apply. Transparency is facilitated by public contract databases, though detailed performance reports are typically internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

VA Medical Supply Chain Management
Federal Management Consulting Services
Healthcare Supply Chain Support
Administrative Support Services

Risk Flags

Short contract duration may limit long-term impact.
Lack of specific performance metrics in award details.
Potential for contractor performance issues.
Reliance on a single delivery order for critical support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $9.9 million to DELOITTE CONSULTING LLP. MEDICAL SUPPLY PROGRAM OFFICE MEDICAL SURGICAL SUPPLY SUPPORT FOR CLINICAL PRODUCT TOOL

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 $9.9 million.

What is the period of performance?

Start: 2025-12-25. End: 2026-06-24.

What is Deloitte Consulting LLP's track record with the Department of Veterans Affairs, particularly in medical supply chain or administrative consulting?

Deloitte Consulting LLP has a significant history of contracting with the Department of Veterans Affairs across various service areas. While specific details on their performance for the 'MEDICAL SUPPLY PROGRAM OFFICE MEDICAL SURGICAL SUPPLY SUPPORT FOR CLINICAL PRODUCT TOOL' are not publicly detailed in this award, their extensive experience with the VA suggests a familiarity with the agency's operational environment and requirements. Publicly available data often shows Deloitte as a prime contractor on numerous VA contracts, including those related to IT modernization, healthcare operations, and administrative support. Their track record generally indicates a capacity to handle large-scale federal contracts, though performance can vary by specific engagement. Further analysis would require reviewing past performance evaluations and contract histories for similar projects undertaken by Deloitte for the VA.

How does the $9.9 million value for this 181-day contract compare to similar administrative consulting engagements for medical supply support within the federal government?

The contract value of approximately $9.9 million for a 181-day period translates to a daily rate of roughly $54,959. This daily rate is substantial and suggests a need for high-level expertise or a broad scope of services. When compared to similar administrative management and consulting services for federal agencies, particularly within the healthcare and logistics domains, this rate falls within a plausible range for specialized consulting firms. However, without knowing the exact deliverables, the number of personnel assigned, and their labor categories, a direct comparison is difficult. Contracts for strategic planning, system implementation support, or complex process re-engineering can command such rates. It is advisable to benchmark against contracts with similar objectives and contractor qualifications to ascertain if this represents optimal value for the services rendered.

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

Key risks for this contract include potential performance deficiencies by the contractor, scope creep beyond the initial requirements, and the possibility of the contract not fully achieving its intended objectives within the short 181-day timeframe. Given it's a firm fixed-price contract, the primary financial risk lies with the contractor; however, if performance is inadequate, the VA faces risks related to delayed improvements in medical supply support. Mitigation strategies likely involve robust contract management by the VA, including clear performance standards, regular progress reviews, and defined deliverables. The initial full and open competition should have screened for capable contractors. The short duration might also be a mitigation strategy, allowing the VA to reassess needs and contractor performance before committing to longer-term engagements.

What is the expected impact of this contract on the VA's ability to manage its medical supplies and clinical product tools?

This contract is intended to enhance the VA's capabilities in managing its medical supplies and supporting clinical product tools. The 'MEDICAL SUPPLY PROGRAM OFFICE MEDICAL SURGICAL SUPPLY SUPPORT FOR CLINICAL PRODUCT TOOL' designation suggests a focus on optimizing the processes, systems, or strategies related to the procurement, storage, distribution, and utilization of medical and surgical supplies. Improved support for clinical product tools could mean better integration of supply data with clinical workflows, ensuring healthcare providers have timely access to necessary items. Ultimately, the goal is to ensure the efficient and effective availability of medical supplies, which directly impacts patient care quality and operational efficiency within VA healthcare facilities.

How does this contract fit into the broader landscape of federal spending on administrative and management consulting services, particularly for healthcare agencies?

Federal spending on administrative and management consulting services is substantial, with healthcare agencies like the VA being significant consumers. These services are often procured to address complex challenges in areas such as operational efficiency, IT modernization, financial management, and supply chain optimization. The VA, in particular, faces unique demands due to its scale and the critical nature of healthcare delivery to veterans. Contracts like this one represent a portion of that broader spending, enabling the agency to leverage external expertise for specific program enhancements. Benchmarking this contract's value and duration against other similar consulting engagements within the federal healthcare sector can provide context on its relative size and importance.

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

Solicitation ID: 36C10X26Q0008

Offers Received: 1

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: $13,727,624

Exercised Options: $9,947,572

Current Obligation: $9,947,572

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $2,275,361

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QRAA18D001P

IDV Type: FSS

Timeline