Air Force awards $21.5M contract to Deloitte for accounting services, highlighting strong competition

Contract Overview

Contract Amount: $21,485,697 ($21.5M)

Contractor: Deloitte & Touche LLP

Awarding Agency: Department of Defense

Start Date: 2020-09-16

End Date: 2025-02-15

Contract Duration: 1,613 days

Daily Burn Rate: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY20-PKS-HIGHT-CARMONA PAREDES-FIAR TASK ORDER 37 FOR AFMC/FMRA

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20330

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $21.5 million to DELOITTE & TOUCHE LLP for work described as: FY20-PKS-HIGHT-CARMONA PAREDES-FIAR TASK ORDER 37 FOR AFMC/FMRA Key points: 1. The contract value of $21.5 million is significant for accounting services. 2. Deloitte & Touche LLP is a major player in the accounting and consulting sector. 3. The risk appears moderate given the established nature of the contractor and service. 4. This spending falls within the professional services sector, specifically accounting.

Value Assessment

Rating: good

The $21.5 million award for accounting services appears reasonable when benchmarked against similar large-scale contracts for professional accounting support. Pricing is likely competitive due to the full and open competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method likely ensured the government received competitive pricing from multiple qualified bidders.

Taxpayer Impact: Taxpayer funds are being used efficiently through a competitive bidding process for essential accounting services.

Public Impact

Ensures financial integrity and accountability within the Air Force Materiel Command. Supports critical audit readiness and financial management functions. Leverages expertise from a leading professional services firm.

Waste & Efficiency Indicators

Waste Risk Score: 75 / 10

Positive Signals

Full and open competition
Experienced contractor
Clear service need

Sector Analysis

This contract falls under professional, scientific, and technical services, specifically accounting. Spending in this area is crucial for government financial operations and audit compliance.

Small Business Impact

The contract was awarded through full and open competition, and there is no indication of specific set-asides for small businesses. This suggests larger firms were best positioned to compete.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. The Department of the Air Force is responsible for monitoring performance and ensuring compliance with contract terms.

Related Government Programs

Offices of Certified Public Accountants
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Contract duration is substantial (over 4 years).
No small business participation noted.
Potential for vendor lock-in with long-term contracts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.5 million to DELOITTE & TOUCHE LLP. FY20-PKS-HIGHT-CARMONA PAREDES-FIAR TASK ORDER 37 FOR AFMC/FMRA

Who is the contractor on this award?

The obligated recipient is DELOITTE & TOUCHE 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 $21.5 million.

What is the period of performance?

Start: 2020-09-16. End: 2025-02-15.

What is the specific scope of accounting services required by AFMC/FMRA under this task order?

This task order likely encompasses a range of accounting services critical for the Air Force Materiel Command's financial operations. This could include financial statement preparation, audit support, accounting system analysis, internal control assessments, and compliance with federal accounting standards.

How will the performance of Deloitte & Touche LLP be measured to ensure value for money?

Performance will likely be measured through key performance indicators (KPIs) tied to the quality and timeliness of deliverables, adherence to accounting standards, and responsiveness to Air Force inquiries. Regular performance reviews and feedback mechanisms will ensure accountability and value.

Are there any potential risks associated with relying on a single large firm for these critical accounting functions?

While competition mitigates some risk, over-reliance on one firm could pose challenges if the firm experiences internal issues or if knowledge transfer becomes a concern. However, the competitive nature of the initial award and potential for future competition can help manage these risks.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Offices of Certified Public Accountants

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

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: $21,485,697

Exercised Options: $21,485,697

Current Obligation: $21,485,697

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA701418D5000

IDV Type: IDC

Timeline