Deloitte Consulting awarded $42M contract for Economic Prosperity Initiative, spanning 4 years

Contract Overview

Contract Amount: $40,199,183 ($40.2M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Agency for International Development

Start Date: 2010-09-30

End Date: 2022-09-29

Contract Duration: 4,382 days

Daily Burn Rate: $9.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: EPI - ECONOMIC PROSPERITY INITIATIVE THE PURPOSE OF THIS ACTION IS TO AWARD A 4 YEARS $42,000,000 CONTRACT TO DELOITTE CONSULTING TO IMPLEMENT THE ECONOMIC PROSPERITY INITIATIVE PROJECT.

Plain-Language Summary

Agency for International Development obligated $40.2 million to DELOITTE CONSULTING LLP for work described as: EPI - ECONOMIC PROSPERITY INITIATIVE THE PURPOSE OF THIS ACTION IS TO AWARD A 4 YEARS $42,000,000 CONTRACT TO DELOITTE CONSULTING TO IMPLEMENT THE ECONOMIC PROSPERITY INITIATIVE PROJECT. Key points: 1. Contract aims to implement the Economic Prosperity Initiative project. 2. Awarded to Deloitte Consulting LLP, a major consulting firm. 3. Duration of the contract is approximately 4 years. 4. The contract type is a Definitive Contract. 5. Funding mechanism is Cost Plus Fixed Fee. 6. Competition was full and open, indicating broad market engagement.

Value Assessment

Rating: fair

The contract value of $42 million over four years for an initiative like the Economic Prosperity Project suggests a moderate annual spend. Benchmarking against similar large-scale consulting engagements for economic development initiatives is necessary to fully assess value. The Cost Plus Fixed Fee structure can sometimes lead to cost overruns if not tightly managed, but it also allows for flexibility in project scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple qualified bidders had the opportunity to submit proposals. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers. The presence of 6 bidders indicates a healthy interest in this type of work.

Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.

Public Impact

The primary beneficiaries are likely the target populations and regions intended to benefit from the Economic Prosperity Initiative. The services delivered focus on the implementation of this specific initiative, likely involving strategic planning, program management, and potentially technical assistance. The geographic impact will depend on the specific scope and focus areas of the Economic Prosperity Initiative. Workforce implications could include the engagement of consultants and potentially local staff in the implementation regions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage costs effectively.
The long duration of the contract necessitates ongoing performance monitoring to ensure objectives are met.
The broad nature of 'Administrative Management and General Management Consulting Services' can sometimes lead to scope creep if not clearly defined.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Deloitte Consulting LLP is a well-established firm with experience in large-scale projects.
The contract duration allows for sustained effort and potential long-term impact of the initiative.

Sector Analysis

This contract falls within the professional services sector, specifically management and administrative consulting. The market for such services is large and competitive, with numerous firms capable of undertaking complex government initiatives. This contract represents a significant investment in program implementation, aiming to foster economic growth or stability.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor is a large firm, there may be opportunities for small businesses to participate as subcontractors, depending on the specific implementation needs and subcontracting plans developed by Deloitte Consulting LLP.

Oversight & Accountability

Oversight for this contract would typically be managed by the Agency for International Development (USAID). Mechanisms would include regular performance reviews, financial audits, and adherence to the terms and conditions of the Definitive Contract. Transparency would be facilitated through contract reporting requirements and public contract databases.

Related Government Programs

Economic Development Programs
International Aid and Assistance
Management and Consulting Services
Government Program Implementation

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring for cost control.
Long contract duration necessitates sustained performance oversight.
Scope definition for 'Administrative Management and General Management Consulting Services' can be challenging.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $40.2 million to DELOITTE CONSULTING LLP. EPI - ECONOMIC PROSPERITY INITIATIVE THE PURPOSE OF THIS ACTION IS TO AWARD A 4 YEARS $42,000,000 CONTRACT TO DELOITTE CONSULTING TO IMPLEMENT THE ECONOMIC PROSPERITY INITIATIVE PROJECT.

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 $40.2 million.

What is the period of performance?

Start: 2010-09-30. End: 2022-09-29.

What is the historical spending pattern for the Economic Prosperity Initiative?

The provided data details a single contract award of $42,000,000 for the Economic Prosperity Initiative to Deloitte Consulting LLP, spanning from September 30, 2010, to September 29, 2022 (a duration of approximately 12 years, not 4 as initially stated in the description, suggesting the 'dur' field might represent total days rather than years, or there's a discrepancy in the provided data). This single award suggests that either this contract represents the entirety of the initiative's funding through external contracting, or it is a significant component of a larger program. Without further data on other contracts or direct funding allocations for the EPI, it's difficult to establish a comprehensive historical spending pattern beyond this specific engagement. The annual average spend based on this contract would be approximately $3.5 million ($42M / 12 years), which is a moderate figure for a large-scale initiative.

How does the cost of this contract compare to similar economic development consulting projects?

Benchmarking the $42 million cost for the Economic Prosperity Initiative against similar projects is challenging without specific details on the initiative's scope, objectives, and deliverables. However, for large-scale, multi-year international development or economic policy consulting engagements, this figure appears within a reasonable range, especially considering the involvement of a major consulting firm like Deloitte. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, necessitates careful monitoring to ensure cost-effectiveness. A more precise comparison would require analyzing contracts with similar objectives (e.g., fostering private sector growth, improving governance, implementing economic reforms) and similar geographic focuses, as well as the specific services rendered by the contractor.

What are the key performance indicators (KPIs) for the Economic Prosperity Initiative under this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for the Economic Prosperity Initiative. Typically, for a contract of this nature, KPIs would be defined within the contract's Statement of Work (SOW) and would align with the initiative's overarching goals. These could include metrics related to economic growth (e.g., GDP increase in target regions), job creation, investment attraction, improvements in business climate, or the successful implementation of specific policy reforms. The performance of Deloitte Consulting LLP would be evaluated against these defined KPIs throughout the contract's duration.

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

Deloitte Consulting LLP has a significant track record of working with government agencies, including USAID, on a wide array of projects. Their experience often spans areas such as public financial management, economic growth, governance, and program management, particularly in developing countries. While specific details of past performance on similar 'Economic Prosperity Initiative' type contracts are not provided here, Deloitte's general profile suggests they possess the capacity and experience to manage complex international development projects. A thorough assessment would involve reviewing USAID's past performance evaluations and contract databases for specific projects undertaken by Deloitte that align closely with the objectives and scope of this EPI contract.

What are the potential risks associated with implementing the Economic Prosperity Initiative?

Potential risks associated with implementing the Economic Prosperity Initiative include political instability in target regions, macroeconomic shocks, challenges in local capacity building, corruption, and resistance to reforms. Furthermore, risks related to contract management, such as scope creep, cost overruns under the CPFF structure, and contractor performance issues, are also present. The success of the initiative hinges on effective risk mitigation strategies, robust monitoring and evaluation, and strong collaboration between the contractor, USAID, and local stakeholders. The 'full and open competition' aspect helps mitigate some contractor-related risks by selecting a capable firm, but ongoing oversight remains crucial.

How has the funding for the Economic Prosperity Initiative evolved over time?

Based on the provided data, the Economic Prosperity Initiative (EPI) has been funded through a single, substantial contract awarded to Deloitte Consulting LLP for $42,000,000. The contract duration is listed as 4382 days, which equates to approximately 12 years (2010-2022). This suggests a long-term commitment to the initiative through this specific contract vehicle. Without additional contract awards or budget information related to the EPI, it is not possible to determine if funding levels have fluctuated or if this represents a consistent annual investment. The data points to a sustained, significant investment over a considerable period rather than a series of evolving funding cycles.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SOL-114-10-000001

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 1725 DUKE ST, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $40,299,183

Exercised Options: $40,299,183

Current Obligation: $40,199,183

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $576,005

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline