Deloitte Consulting Awarded $256M for Submarine Workforce and Manufacturing Tech Development

Contract Overview

Contract Amount: $256,191,263 ($256.2M)

Contractor: Deloitte Consulting LLP

Awarding Agency: General Services Administration

Start Date: 2024-07-15

End Date: 2026-07-14

Contract Duration: 729 days

Daily Burn Rate: $351.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: THIS CONTRACT IS TO PROVIDE LABOR, MATERIALS, AND EQUIPMENT NEEDED TO DEVELOP AND EXPAND THE SIZE AND CAPABILITY OF THE MARITIME SUBMARINE WORKFORCE AND INDUSTRIAL BASE AND SPEED THE DEVELOPMENT OF IMPROVED MANUFACTURING TECHNOLOGIES TO SUPPLY CHAIN.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $256.2 million to DELOITTE CONSULTING LLP for work described as: THIS CONTRACT IS TO PROVIDE LABOR, MATERIALS, AND EQUIPMENT NEEDED TO DEVELOP AND EXPAND THE SIZE AND CAPABILITY OF THE MARITIME SUBMARINE WORKFORCE AND INDUSTRIAL BASE AND SPEED THE DEVELOPMENT OF IMPROVED MANUFACTURING TECHNOLOGIES TO SUPPLY CHAIN. Key points: 1. Significant investment in critical defense industrial base expansion. 2. Focus on advanced manufacturing technologies for submarine supply chain. 3. Potential for long-term strategic advantage in maritime defense. 4. Contract duration of 729 days indicates a substantial project scope.

Value Assessment

Rating: good

The contract value of $256 million for R&D services is substantial. Benchmarking against similar large-scale defense R&D contracts would be necessary for a precise assessment, but the scope suggests a significant investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair pricing and identify the most capable offeror.

Taxpayer Impact: Taxpayer funds are being invested in enhancing national security capabilities and technological advancement within the defense sector.

Public Impact

Enhances U.S. naval power projection capabilities. Drives innovation in advanced manufacturing and industrial processes. Supports the development of a skilled workforce for critical defense needs. Aims to strengthen the resilience and capacity of the submarine supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Warning Flags

Cost overruns in large R&D contracts.
Technological obsolescence before project completion.
Dependency on a single contractor for critical development.

Positive Signals

Addresses a key national security priority.
Leverages competitive procurement for best value.
Focus on long-term industrial base strengthening.

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences. Spending in this sector is crucial for technological advancement and maintaining a competitive edge, particularly in defense applications.

Small Business Impact

The contract was awarded under full and open competition and does not indicate specific set-asides for small businesses. Further analysis would be needed to determine if small businesses are participating as subcontractors.

Oversight & Accountability

The General Services Administration (GSA) is overseeing this contract. Standard GSA oversight mechanisms and contract management practices are expected to be in place to ensure accountability and performance.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

High dollar value contract.
Research and Development focus carries inherent uncertainty.
Potential for scope creep in technology development.
Long-term reliance on contractor expertise.
National security implications require robust oversight.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $256.2 million to DELOITTE CONSULTING LLP. THIS CONTRACT IS TO PROVIDE LABOR, MATERIALS, AND EQUIPMENT NEEDED TO DEVELOP AND EXPAND THE SIZE AND CAPABILITY OF THE MARITIME SUBMARINE WORKFORCE AND INDUSTRIAL BASE AND SPEED THE DEVELOPMENT OF IMPROVED MANUFACTURING TECHNOLOGIES TO SUPPLY CHAIN.

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $256.2 million.

What is the period of performance?

Start: 2024-07-15. End: 2026-07-14.

What specific metrics will be used to measure the success of developing the submarine workforce and industrial base?

Success metrics should include quantifiable improvements in workforce size, skill proficiency, and retention rates. For the industrial base, key performance indicators could involve increased production capacity, reduced lead times for critical components, and successful integration of new manufacturing technologies. Regular progress reports and independent assessments will be vital for tracking these metrics.

What are the primary risks associated with the 'speed the development of improved manufacturing technologies' aspect of this contract?

Key risks include the rapid pace of technological change potentially rendering developed solutions obsolete before full implementation, the high cost and uncertainty inherent in R&D, and the potential for integration challenges with existing systems. Ensuring flexibility in the contract and maintaining close collaboration with industry experts can help mitigate these risks.

How will the effectiveness of the 'labor, materials, and equipment' provided be evaluated to ensure optimal use of taxpayer funds?

Effectiveness will be evaluated through performance metrics tied to project milestones, quality of deliverables, and adherence to budget. Regular reviews of resource allocation, cost-efficiency analyses, and independent technical assessments of the labor, materials, and equipment utilized will ensure that taxpayer funds are used optimally and that the contract objectives are met.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 47QFCA24R0024

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

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: $2,437,574,628

Exercised Options: $924,385,375

Current Obligation: $256,191,263

Actual Outlays: $36,532,521

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $6,274,076

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline