Deloitte Consulting LLP awarded $28.8M contract by USAID for private sector competitiveness initiatives

Contract Overview

Contract Amount: $28,775,397 ($28.8M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Agency for International Development

Start Date: 2020-12-20

End Date: 2025-02-11

Contract Duration: 1,514 days

Daily Burn Rate: $19.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: NEW ACTIVITY "USAID IMPROVING PRIVATE SECTOR COMPETITIVENESS".

Plain-Language Summary

Agency for International Development obligated $28.8 million to DELOITTE CONSULTING LLP for work described as: NEW ACTIVITY "USAID IMPROVING PRIVATE SECTOR COMPETITIVENESS". Key points: 1. Contract aims to enhance private sector competitiveness through technical services. 2. Full and open competition suggests a robust bidding process. 3. Contract duration of over 4 years indicates a significant, long-term engagement. 4. Cost-plus-fixed-fee structure allows for flexibility but requires careful cost management. 5. The contract falls under 'All Other Professional, Scientific, and Technical Services', a broad category. 6. Performance period extends into early 2025, aligning with strategic development goals.

Value Assessment

Rating: good

The contract value of $28.8 million over approximately 4 years represents a substantial investment in private sector development. Benchmarking this against similar USAID technical assistance contracts for economic growth initiatives would provide a clearer picture of value for money. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex services where costs are hard to predict, necessitates close monitoring of expenditures to ensure efficiency and prevent cost overruns. Without specific performance metrics or comparable contract data, a definitive value assessment is challenging, but the scale suggests a significant program.

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 a bid. The presence of 3 bidders suggests a competitive environment, which typically leads to better pricing and service offerings for the government. The level of competition is a positive sign for price discovery and ensures that the agency explored a range of qualified contractors.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the allocated funds, potentially leading to more efficient use of resources for improving private sector competitiveness.

Public Impact

The primary beneficiaries are likely businesses and entrepreneurs in developing economies where USAID operates, through improved market access and business support. Services delivered will focus on technical assistance, capacity building, and policy reform to foster a more competitive private sector. Geographic impact will be determined by USAID's specific program locations, potentially spanning multiple countries or regions. Workforce implications could include local employment opportunities for consultants and support staff, as well as capacity building for local private sector actors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize higher spending if not rigorously managed.
The broad nature of 'All Other Professional, Scientific, and Technical Services' may lead to scope creep if not clearly defined.
Long contract duration requires sustained oversight to ensure objectives remain relevant and are met effectively.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
The contract aims to address a critical development area: private sector competitiveness.
The fixed fee component provides some cost certainty for the agency.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on economic development and private sector growth. This sector is crucial for international development agencies like USAID, supporting efforts to build sustainable economies. Comparable spending in this area often involves technical assistance, policy advisory, and program management for economic growth initiatives. The market for such services is competitive, with large consulting firms often vying for these types of government contracts.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary focus is on large business prime contractors. While there is no explicit mention of subcontracting requirements, large contracts often include provisions for small business participation. The absence of a small business set-aside means that opportunities for small businesses would likely be through subcontracting roles, rather than as prime contractors.

Oversight & Accountability

Oversight for this contract will primarily reside with the Agency for International Development (USAID). As a cost-plus-fixed-fee contract, USAID will need to closely monitor expenditures, performance reports, and adherence to the contract's scope of work. Transparency will be facilitated through contract award databases and potentially public reporting on program outcomes. The Inspector General of USAID would have jurisdiction for audits and investigations into potential fraud, waste, or abuse.

Related Government Programs

USAID Economic Growth Programs
USAID Private Sector Development Initiatives
International Development Technical Assistance
Global Competitiveness Programs

Risk Flags

Potential for cost overruns due to CPFF structure.
Risk of scope creep given the broad service category.
Need for robust performance monitoring over the 4-year duration.
Ensuring alignment with evolving development priorities.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $28.8 million to DELOITTE CONSULTING LLP. NEW ACTIVITY "USAID IMPROVING PRIVATE SECTOR COMPETITIVENESS".

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 $28.8 million.

What is the period of performance?

Start: 2020-12-20. End: 2025-02-11.

What is Deloitte Consulting LLP's track record with USAID on similar contracts?

Deloitte Consulting LLP has a significant history of working with USAID and other federal agencies on a wide range of projects, including those focused on economic development, public administration, and technical assistance. Their experience often involves large-scale, complex engagements requiring expertise in various sectors. To assess their track record specifically for 'private sector competitiveness' contracts with USAID, a deeper dive into past performance evaluations, contract modifications, and any reported issues on similar awards would be necessary. Reviewing their past performance on cost-plus-fixed-fee contracts would also be relevant to understand their ability to manage costs effectively within this structure for USAID.

How does the $28.8 million contract value compare to other USAID private sector development initiatives?

The $28.8 million contract value is a substantial award, indicating a significant program initiative by USAID. To benchmark this value, one would compare it against the average and range of contract values for similar 'private sector competitiveness' or 'economic growth' programs managed by USAID over the past 5-10 years. Factors such as the geographic scope, duration, and specific objectives of the program heavily influence contract size. Without access to a comprehensive database of USAID's contract spending specifically categorized for private sector competitiveness, a precise comparison is difficult. However, this amount suggests a high-priority, multi-year effort.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this nature?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, like this one awarded to Deloitte Consulting LLP, revolve around cost control and potential for scope creep. In a CPFF structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This can incentivize the contractor to incur higher costs, as their profit margin remains constant regardless of the actual expenses. USAID must implement rigorous oversight to ensure that all costs are reasonable, allocable, and allowable. Additionally, the 'All Other Professional, Scientific, and Technical Services' category is broad, increasing the risk of scope creep if the contract's objectives and deliverables are not precisely defined and managed throughout the performance period.

How effective are 'All Other Professional, Scientific, and Technical Services' contracts in achieving development goals?

Contracts under the 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) category are highly versatile and can be effective in achieving development goals when well-defined and managed. This broad category encompasses a wide array of services, from research and analysis to program management and technical consulting. Their effectiveness hinges on the clarity of the statement of work, the contractor's expertise, and the agency's oversight. For USAID's goal of improving private sector competitiveness, such a contract can be instrumental if it precisely targets key areas like policy reform, market access, or capacity building. However, the broadness also necessitates careful contract administration to ensure the services delivered directly contribute to the intended development outcomes.

What is the historical spending trend for 'All Other Professional, Scientific, and Technical Services' by USAID?

USAID utilizes the 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) category for a variety of needs, often related to specialized consulting, research, and program support that doesn't fit neatly into more specific service categories. Historical spending trends in this area can fluctuate based on agency priorities and the nature of ongoing development challenges. Analyzing USAID's historical obligations under this NAICS code would reveal patterns of investment in diverse technical services. It's common for development agencies to use such broad categories to maintain flexibility in procuring specialized expertise for evolving program requirements. A review of USAID's budget and contract awards over several fiscal years would provide insight into the scale and focus of spending within this service category.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 72044020R00001

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

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: $36,310,210

Exercised Options: $36,310,210

Current Obligation: $28,775,397

Actual Outlays: $26,185,028

Subaward Activity

Number of Subawards: 63

Total Subaward Amount: $24,089,043

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline