USAID Awards $25.2M COTS Solution Contract to Deloitte for Supply Chain and Analytics Expertise

Contract Overview

Contract Amount: $25,194,247 ($25.2M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Agency for International Development

Start Date: 2023-05-17

End Date: 2025-02-26

Contract Duration: 651 days

Daily Burn Rate: $38.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TO PROVIDE A HOLISTIC COMMERCIAL OFF THE SHELF (COTS) SOLUTION WHICH COMBINES TECHNICAL, DATA ANALYTICS, CHANGE MANAGEMENT, AND SUPPLY CHAIN EXPERTISE.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $25.2 million to DELOITTE CONSULTING LLP for work described as: TO PROVIDE A HOLISTIC COMMERCIAL OFF THE SHELF (COTS) SOLUTION WHICH COMBINES TECHNICAL, DATA ANALYTICS, CHANGE MANAGEMENT, AND SUPPLY CHAIN EXPERTISE. Key points: 1. Deloitte Consulting LLP secured a $25.2M contract for COTS solutions. 2. The contract focuses on technical, data analytics, change management, and supply chain expertise. 3. Competition was full and open, suggesting a competitive pricing environment. 4. The contract is for Other Management Consulting Services within the IT sector.

Value Assessment

Rating: good

The contract value of $25.2M for a 651-day duration appears reasonable for comprehensive consulting services. Benchmarking against similar large-scale, multi-disciplinary consulting engagements would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method typically fosters competitive pricing and ensures the government receives the best value.

Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being used efficiently, with pricing driven by market forces rather than limited options.

Public Impact

Enhances USAID's operational efficiency through integrated COTS solutions. Leverages advanced data analytics for improved decision-making in international development. Strengthens supply chain management for more effective program delivery. Supports change management initiatives for smoother adoption of new technologies and processes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if COTS solution is highly proprietary.
Scope creep could increase costs beyond the initial $25.2M.
Integration challenges with existing USAID systems.

Positive Signals

Utilizes COTS, potentially reducing development time and cost.
Focus on data analytics and supply chain aligns with critical agency needs.
Full and open competition promotes value for taxpayer dollars.

Sector Analysis

This contract falls under Other Management Consulting Services, a broad category often encompassing IT strategy, data analytics, and operational improvements. Benchmarks for similar large-scale consulting projects for federal agencies can vary widely based on scope and duration.

Small Business Impact

The contract was awarded to Deloitte Consulting LLP, a large business. There is no explicit mention of small business participation in the provided data, suggesting limited direct involvement of small businesses in this specific award.

Oversight & Accountability

The contract's definitive nature and fixed-price structure provide a degree of oversight. However, ongoing monitoring of performance, deliverables, and adherence to scope will be crucial for accountability.

Related Government Programs

Other Management Consulting Services
Agency for International Development Contracting
Agency for International Development Programs

Risk Flags

Potential for vendor lock-in
Integration complexity with existing systems
Reliance on third-party COTS software
Scope creep management
Data security and privacy concerns

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $25.2 million to DELOITTE CONSULTING LLP. TO PROVIDE A HOLISTIC COMMERCIAL OFF THE SHELF (COTS) SOLUTION WHICH COMBINES TECHNICAL, DATA ANALYTICS, CHANGE MANAGEMENT, AND SUPPLY CHAIN EXPERTISE.

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Agency for International Development (Agency for International Development).

What is the total obligated amount?

The obligated amount is $25.2 million.

What is the period of performance?

Start: 2023-05-17. End: 2025-02-26.

How will the COTS solution specifically improve USAID's supply chain efficiency and what are the key performance indicators (KPIs) to measure this improvement?

The COTS solution is expected to streamline procurement, inventory management, and logistics through integrated software and data analytics. Key performance indicators will likely include reduced lead times for critical supplies, improved inventory accuracy, decreased stockouts, and enhanced visibility across the supply chain. The vendor's proposed methodology and USAID's implementation plan will detail the specific metrics and targets.

What are the potential risks associated with relying on a COTS solution for critical functions like data analytics and supply chain management, and how are these risks being mitigated?

Risks include vendor lock-in, limited customization capabilities, and potential security vulnerabilities inherent in third-party software. Mitigation strategies typically involve thorough vendor vetting, robust security assessments, clearly defined service level agreements (SLAs), and contingency plans for data migration or alternative solutions if the COTS provider fails. The contract's fixed-price nature also incentivizes the vendor to manage these risks effectively.

To what extent will this COTS solution be adaptable to future changes in USAID's operational needs or technological advancements in the consulting services sector?

The adaptability hinges on the chosen COTS platform's architecture and the vendor's implementation strategy. A well-designed COTS solution should offer modularity and integration capabilities to accommodate evolving requirements. USAID will need to ensure the contract includes provisions for future upgrades, potential integrations with emerging technologies, and flexibility to adapt to policy or programmatic shifts.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 7200AA21R00088

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Financial Advisory Services LLP

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: $105,862,782

Exercised Options: $56,573,570

Current Obligation: $25,194,247

Actual Outlays: $16,937,909

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $13,397,510

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Timeline