DoD's $73M ACC Force Optimization Contract Awarded to Deloitte Consulting LLP

Contract Overview

Contract Amount: $73,250,869 ($73.3M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2019-04-01

End Date: 2022-09-30

Contract Duration: 1,278 days

Daily Burn Rate: $57.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: ACC FORCE OPTIMIZATION

Place of Performance

Location: HAMPTON, HAMPTON CITY County, VIRGINIA, 23665

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $73.3 million to DELOITTE CONSULTING LLP for work described as: ACC FORCE OPTIMIZATION Key points: 1. Significant contract value of $73.25 million for force optimization services. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. Potential risks include the long duration (1278 days) and the specific engineering services NAICS code. 4. The sector is Defense, specifically within the Department of the Air Force.

Value Assessment

Rating: good

The contract's fixed price nature provides cost certainty. Benchmarking against similar engineering services contracts is difficult without more granular data, but the value appears reasonable for a multi-year, complex optimization effort.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing compared to limited or sole-source awards.

Taxpayer Impact: The competitive award process likely resulted in a fair price, maximizing taxpayer value for the engineering services rendered.

Public Impact

Enhances military readiness and operational efficiency through optimized force structures. Supports the Department of the Air Force's strategic goals for personnel and resource management. Impacts military personnel and their deployment strategies. Potential for improved cost-effectiveness in defense operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may lead to scope creep or evolving requirements.
Reliance on a single large contractor for critical optimization functions.
Potential for cost overruns if initial estimates are inaccurate.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract type offers cost predictability.
Clear objective of force optimization aligns with strategic defense needs.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of defense spending. Benchmarks for similar large-scale optimization projects in the defense sector can vary widely based on scope and complexity.

Small Business Impact

The data indicates this contract was awarded to a large firm (Deloitte Consulting LLP) and does not show any specific set-asides or participation goals for small businesses. Further analysis would be needed to determine if small businesses were subcontracted.

Oversight & Accountability

The contract's duration and value suggest a need for robust oversight from the Department of the Air Force to ensure deliverables are met and costs remain controlled. Regular performance reviews and audits would be essential.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Long contract duration (1278 days).
Potential for evolving requirements impacting scope.
Reliance on a single large contractor.
Complexity of 'force optimization' may lead to measurement challenges.
Limited visibility into small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $73.3 million to DELOITTE CONSULTING LLP. ACC FORCE OPTIMIZATION

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $73.3 million.

What is the period of performance?

Start: 2019-04-01. End: 2022-09-30.

What specific metrics are used to measure the success of the 'force optimization' and how are they tied to the contract's performance evaluation?

The success of force optimization is typically measured by key performance indicators (KPIs) related to personnel readiness, operational efficiency, cost savings, and strategic alignment. These metrics are often defined in the contract's statement of work and performance work statement. The government's evaluation process would likely involve tracking these KPIs against pre-defined targets to assess contractor performance and ensure the achievement of desired outcomes.

Given the long duration, what mechanisms are in place to manage potential changes in requirements or technology that could impact the effectiveness of the optimization strategy?

Contracts of this length usually incorporate formal change management processes, including a Request for Equitable Adjustment (REA) or contract modification procedures. The government would retain the right to adjust requirements based on evolving needs or technological advancements. Contractor proposals for changes would be evaluated for their impact on cost, schedule, and performance, ensuring that any modifications remain aligned with the overall strategic objectives and provide continued value.

How does the firm fixed price structure incentivize Deloitte to achieve cost efficiencies beyond the initial bid, especially in a long-term engagement?

A firm fixed price (FFP) contract places the majority of the cost risk on the contractor. Deloitte is incentivized to manage its costs efficiently throughout the contract's duration to maximize its profit margin. Any cost savings achieved through innovative approaches or efficient execution beyond the initial bid directly benefit the contractor. However, the government must ensure the FFP is set at a fair market price initially to avoid overpayment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

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: $86,976,062

Exercised Options: $74,450,625

Current Obligation: $73,250,869

Actual Outlays: $19,836,307

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,969,030

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU113

IDV Type: IDC

Timeline