Deloitte Consulting LLP awarded $10.1M for advisory services, with 2 bids received

Contract Overview

Contract Amount: $10,117,017 ($10.1M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2007-12-12

End Date: 2011-12-02

Contract Duration: 1,451 days

Daily Burn Rate: $7.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: Other

Official Description: ADVISORY AND ASSISTANCE SERVICE

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $10.1 million to DELOITTE CONSULTING LLP for work described as: ADVISORY AND ASSISTANCE SERVICE Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1451 days indicates a long-term need for these services. 3. Awarded to a single contractor, Deloitte Consulting LLP, for a specific set of services. 4. The contract type is labor hours, allowing flexibility in resource allocation. 5. The North American Industry Classification System (NAICS) code 523999 points to miscellaneous financial investment activities. 6. The contract was administered by the Department of the Air Force. 7. The base contract was awarded in 2007, with subsequent modifications extending its life.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables and performance metrics. However, the total award value of approximately $10.1 million over nearly four years suggests a moderate annual spend. Comparing this to similar large-scale advisory contracts would require detailed analysis of scope and complexity. The pricing structure, based on labor hours, can lead to cost overruns if not managed tightly. Without more granular data on the specific services rendered and their impact, a definitive value-for-money assessment is difficult.

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. With two bids received, the competition level was moderate. While two bidders suggest some level of market interest, it is on the lower end for a contract of this potential value. This limited competition might have influenced price discovery, potentially leading to a less competitive price than if more bidders had participated.

Taxpayer Impact: A moderate level of competition means taxpayers likely received a reasonably competitive price, but there may have been opportunities for even greater savings with broader participation.

Public Impact

The Department of the Air Force benefits from specialized advisory and assistance services to support its operations. These services likely contribute to improved decision-making, strategic planning, and operational efficiency within the Air Force. The geographic impact is primarily within the Department of Defense's operational areas, potentially worldwide. The workforce implications are indirect, supporting government personnel through expert advice rather than direct employment by the contractor for this specific contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in labor-hour contracts if not rigorously managed.
Dependence on a single contractor for critical advisory functions could pose a risk if performance falters.
The moderate competition level might have limited the range of innovative solutions considered.

Positive Signals

Awarded through full and open competition, ensuring a fair process.
The contractor, Deloitte Consulting LLP, is a well-established firm with significant experience in government contracting.
The long contract duration suggests a stable and ongoing requirement, indicating the services are valued.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on advisory and assistance. The market for such services is vast, with numerous large and small firms competing for government contracts. The NAICS code 523999, 'Miscellaneous Financial Investment Activities,' is somewhat broad and might encompass a range of consulting services beyond traditional financial investment. Comparable spending benchmarks would depend heavily on the specific nature of the advisory services provided, but the annual spend is within a typical range for large-scale consulting engagements within the federal government.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the 'ss' (small business subcontracting) field is also false. This suggests that small businesses were not specifically targeted for this prime contract or for subcontracting opportunities under this award. Consequently, the direct impact on the small business ecosystem for this particular contract is likely minimal, with opportunities for small businesses primarily arising if Deloitte engages them as subcontractors without a formal set-aside requirement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Air Force. Accountability measures would be tied to the contract's performance work statement and delivery schedules. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected or reported.

Related Government Programs

Defense Advisory Services
Management and Financial Consulting, Scientific and Technical Consulting Services
Department of Defense IT and Professional Services
Air Force Support Services

Risk Flags

Moderate competition level
Labor-hour contract type can lead to cost uncertainty if not managed
Broad NAICS code may obscure specific service details

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.1 million to DELOITTE CONSULTING LLP. ADVISORY AND ASSISTANCE SERVICE

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 $10.1 million.

What is the period of performance?

Start: 2007-12-12. End: 2011-12-02.

What specific advisory services were provided under this contract?

The provided data indicates the contract was for 'ADVISORY AND ASSISTANCE SERVICE' under NAICS code 523999 (Miscellaneous Financial Investment Activities). However, the specific nature of these advisory services is not detailed. Typically, such contracts could encompass strategic planning, organizational assessment, process improvement, financial analysis, or policy development. Without access to the contract's statement of work or performance reports, it's impossible to ascertain the precise services rendered. The broad NAICS code suggests a wide range of potential activities, making further clarification essential for a complete understanding of the contract's purpose and impact.

How does the $10.1 million award compare to similar advisory contracts within the Department of Defense?

The total award of $10.1 million over approximately 3.8 years (1451 days) represents an average annual spend of roughly $2.66 million. This figure is moderate for large-scale advisory contracts within the Department of Defense (DoD). The DoD frequently awards multi-million dollar contracts for a variety of consulting services, including strategic planning, IT modernization, cybersecurity, and operational support. Contracts of this size are common, but their value is highly dependent on the scope, complexity, and duration. To provide a precise comparison, one would need to analyze contracts with similar objectives, deliverables, and contractor capabilities within the DoD's vast portfolio.

What are the key performance indicators (KPIs) used to evaluate Deloitte Consulting LLP's performance on this contract?

The provided summary data does not include specific Key Performance Indicators (KPIs) or metrics used to evaluate Deloitte Consulting LLP's performance. For advisory and assistance contracts, KPIs often relate to the timeliness of deliverables, the quality and accuracy of advice provided, adherence to project milestones, and client satisfaction. Performance evaluations are typically documented in contract performance reports, which are not accessible here. The contracting officer and the government's technical point of contact are responsible for monitoring performance against the contract's requirements and ensuring that the services meet the government's needs.

What is the historical spending trend for advisory and assistance services by the Department of the Air Force?

The provided data focuses on a single contract awarded in 2007. To understand historical spending trends for advisory and assistance services by the Department of the Air Force (DAF), a broader analysis of multiple contracts over several fiscal years would be necessary. The DAF, like other branches of the DoD, utilizes external expertise for various functions. Spending in this category can fluctuate based on strategic priorities, budget allocations, and the perceived need for specialized external support. Analyzing trends would involve aggregating spending data across numerous contracts categorized under advisory and assistance services over time.

What is the risk associated with having only two bidders for a contract of this magnitude?

Having only two bidders for a contract of this magnitude ($10.1 million) presents a moderate risk. While full and open competition was utilized, limiting the bidder pool to two may reduce the potential for aggressive pricing and a wider array of innovative solutions. It increases the reliance on the two participating firms to offer competitive proposals. If one of the bidders is significantly more qualified or experienced, the competition might be less robust. This scenario could potentially lead to a higher price than if more bidders had vied for the contract, and it might limit the government's options if performance issues arise with the selected contractor.

Industry Classification

NAICS: Finance and Insurance › Other Financial Investment Activities › Miscellaneous Financial Investment Activities

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: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte LLP (UEI: 014127109)

Address: 4301 N FAIRFAX DR STE 210, ARLINGTON, VA, 08

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership

Financial Breakdown

Contract Ceiling: $11,621,247

Exercised Options: $11,621,247

Current Obligation: $10,117,017

Parent Contract

Parent Award PIID: GS23F0016J

IDV Type: FSS

Timeline