HUD's $12.85M contract with Deloitte for real estate services awarded under full and open competition
Contract Overview
Contract Amount: $12,852,000 ($12.9M)
Contractor: Deloitte & Touche L.L.P.
Awarding Agency: Department of Housing and Urban Development
Start Date: 2000-09-15
End Date: 2003-11-30
Contract Duration: 1,171 days
Daily Burn Rate: $11.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Place of Performance
Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Housing and Urban Development obligated $12.9 million to DELOITTE & TOUCHE L.L.P. for work described as: Key points: 1. Contract awarded for a significant duration, suggesting a need for sustained support. 2. The contract was competed broadly, indicating potential for competitive pricing. 3. Fixed-price contract type may limit cost overruns but could impact scope flexibility. 4. The specific NAICS code points to specialized real estate support services. 5. Awarded by HUD, suggesting a focus on housing and urban development initiatives. 6. The contractor, Deloitte, is a large, established firm with extensive government contracting experience.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without more specific service details. However, a $12.85 million contract over nearly four years (1171 days) for specialized real estate activities suggests a moderate annual spend. Comparing it to similar large-scale real estate consulting contracts would be necessary for a precise value assessment. The firm fixed-price nature indicates a defined cost, but the value realized depends heavily on the quality and effectiveness of the services delivered.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of two bids suggests a degree of competition, though the exact number of interested parties and the rigor of the evaluation process are not detailed. Full and open competition generally promotes price discovery and allows the government to select the best value offer.
Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the most advantageous offer available in the marketplace.
Public Impact
The primary beneficiaries are likely the Department of Housing and Urban Development (HUD) and its programs, which receive support for real estate-related activities. Services delivered likely include consulting, analysis, and support related to real estate transactions, property management, or policy development within HUD. The geographic impact is primarily national, supporting HUD's federal mandate, though specific projects may have local implications. Workforce implications include the engagement of specialized consultants from Deloitte, potentially impacting the need for internal HUD staff for these specific tasks.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to vendor lock-in if not managed carefully.
- Fixed-price contracts can sometimes disincentivize contractors from identifying cost-saving efficiencies.
- Reliance on a single large contractor for specialized services might limit future flexibility or access to diverse expertise.
Positive Signals
- Awarded through full and open competition, suggesting a robust selection process.
- The contractor, Deloitte, is a reputable firm with a strong track record in government contracting.
- The fixed-price nature provides cost certainty for the government.
Sector Analysis
This contract falls within the professional services sector, specifically focusing on real estate consulting and related activities. The market for such services is competitive, with numerous firms offering expertise in property valuation, market analysis, and transaction support. Spending in this area by federal agencies like HUD is crucial for managing government-owned real estate assets and supporting housing initiatives. Comparable spending benchmarks would typically involve analyzing other large federal contracts for real estate advisory services.
Small Business Impact
There is no indication that this contract included a small business set-aside. Given the nature of the services and the contractor, it is unlikely that significant subcontracting opportunities for small businesses were mandated, though Deloitte may engage them at its discretion. The absence of a set-aside means the primary focus was on obtaining the best value from the broader market.
Oversight & Accountability
Oversight for this contract would primarily reside with the contracting officers and program managers within the Department of Housing and Urban Development. Accountability measures are typically embedded in the contract's performance work statement and reporting requirements. Transparency is facilitated by the contract award data being publicly available, though detailed performance metrics may not be. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Federal Real Estate Management
- HUD Housing Programs
- Government Consulting Services
- Professional Services Contracts
Risk Flags
- Long contract duration may require active management to prevent scope creep.
- Fixed-price contract type could limit flexibility if unforeseen issues arise.
- Reliance on a single large contractor warrants careful performance monitoring.
Tags
real-estate, consulting, hud, department-of-housing-and-urban-development, deloitte, firm-fixed-price, full-and-open-competition, professional-services, federal-spending, contract-award, virginia
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $12.9 million to DELOITTE & TOUCHE L.L.P.. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is DELOITTE & TOUCHE L.L.P..
Which agency awarded this contract?
Awarding agency: Department of Housing and Urban Development (Department of Housing and Urban Development).
What is the total obligated amount?
The obligated amount is $12.9 million.
What is the period of performance?
Start: 2000-09-15. End: 2003-11-30.
What specific real estate services did Deloitte provide under this contract?
The contract's NAICS code (531390 - Other Activities Related to Real Estate) suggests a broad range of services. These could include property appraisal and valuation, real estate market analysis, feasibility studies, transaction support (e.g., acquisition, disposition), asset management consulting, and potentially support for housing finance or urban development projects. Without the detailed Statement of Work (SOW), the precise nature of the services remains general. However, given the scale and duration, it likely involved significant analytical and advisory functions critical to HUD's mission.
How does the $12.85 million cost compare to similar federal real estate consulting contracts?
Direct comparison is difficult without knowing the specific deliverables and duration of comparable contracts. However, $12.85 million over approximately 3.8 years (1171 days) averages around $3.38 million per year. This figure is substantial but not extraordinary for large-scale federal consulting engagements, especially those involving complex real estate portfolios or policy initiatives. Benchmarking would require identifying contracts with similar scopes (e.g., portfolio analysis, transaction advisory) awarded to large consulting firms by agencies like GSA or DOD over comparable periods.
What were the key performance indicators (KPIs) or success metrics for this contract?
The provided data does not include specific Key Performance Indicators (KPIs) or success metrics. Typically, for a contract of this nature, KPIs would be defined in the Performance Work Statement (PWS) and could include metrics related to the timeliness of deliverables, accuracy of analyses, adherence to budget, client satisfaction, and the successful completion of specific real estate objectives outlined by HUD. The firm fixed-price nature implies that meeting the defined scope and quality standards within the agreed price would be a primary measure of success.
What is Deloitte's track record with HUD and similar federal agencies for real estate services?
Deloitte & Touche L.L.P. is a major professional services firm with extensive experience contracting with federal agencies, including HUD. Their track record generally includes providing a wide array of consulting, audit, and advisory services. For real estate specifically, they have likely engaged in projects involving financial advisory, transaction support, asset management, and regulatory compliance for various government entities. A deeper dive into federal procurement databases (like FPDS) would reveal the volume and types of contracts Deloitte has held with HUD and other agencies in the real estate domain.
Were there any identified risks or challenges associated with this contract during its performance period?
The provided data does not detail specific risks encountered during the contract's performance. However, potential risks inherent in such contracts could include scope creep (uncontrolled changes or growth in a project's scope), challenges in coordinating with multiple stakeholders, unforeseen market fluctuations impacting real estate advice, or difficulties in meeting stringent government reporting requirements. The long duration also presents risks related to changes in agency priorities or personnel turnover on both the government and contractor sides.
Industry Classification
NAICS: Real Estate and Rental and Leasing › Activities Related to Real Estate › Other Activities Related to Real Estate
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Contractor Details
Address: 555 12TH ST NW 450, WASHINGTON, DC, 98
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $17,164,000
Exercised Options: $17,164,000
Current Obligation: $12,852,000
Timeline
Start Date: 2000-09-15
Current End Date: 2003-11-30
Potential End Date: 2003-11-30 00:00:00
Last Modified: 2012-04-06
More Contracts from Deloitte & Touche L.L.P.
- National Loan Servicing Contract -Task Order - Result of Protest — $23.3M (Department of Housing and Urban Development)
Other Department of Housing and Urban Development Contracts
- Single Family Master Subservicer Services in Support of Ginnie Mae's Mortgage-Backed Securities (MBS) Programs — $982.0M (Carrington Mortgage Services LLC)
- TAS::86 4585::TAS Award of Portion of Hits Solicitation Under RFP R-Opc-21970 Pursuant to Settlement Agreement. the Contractor Shall Provide Data Center, Help Desk, and Disaster Recovery Services — $620.3M (Peraton Enterprise Solutions LLC)
- TAS::86 4585::TAS Award of Portion of Hits RFP to LMC. the Contractor IS Responsible for Lotus Notes, Desktops, Laptops, Field Office Servers, Lans, Printers, and Kiosks — $498.6M (Lockheed Martin Services, LLC)
- Single Family Master Subservicer Igf::ot::igf — $343.6M (Carrington Mortgage Services LLC)
- Single Family Master Subservicer Igf::ot::igf — $314.2M (Selene Finance LP)
View all Department of Housing and Urban Development contracts →