Deloitte Consulting LLP awarded $24.3M contract for administrative management and general management consulting services to the Department of the Air Force

Contract Overview

Contract Amount: $24,306,933 ($24.3M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2022-08-31

End Date: 2026-03-01

Contract Duration: 1,278 days

Daily Burn Rate: $19.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PKS-HILL-BOOKER-TO AWARD FOR NAVY

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20350

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $24.3 million to DELOITTE CONSULTING LLP for work described as: PKS-HILL-BOOKER-TO AWARD FOR NAVY Key points: 1. The contract value of $24.3 million represents a significant investment in consulting services. 2. Competition dynamics for this contract are favorable, with a full and open competition. 3. Risk indicators appear manageable given the firm fixed-price contract type. 4. Performance context suggests a need for specialized administrative and management expertise within the Air Force. 5. This contract falls within the professional services sector, specifically management consulting. 6. The duration of the contract, over 3 years, indicates a substantial and ongoing need for these services.

Value Assessment

Rating: good

The contract value of $24.3 million for administrative management and general management consulting services appears reasonable given the scope and duration. Benchmarking against similar large-scale consulting contracts within the Department of Defense suggests this award is within expected ranges. The firm fixed-price structure also provides cost certainty for the government, implying a focus on delivering defined outcomes within budget.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 4 bids suggests a healthy level of interest and competition for this requirement. This competitive process is expected to drive price discovery and ensure the government receives competitive pricing for the services rendered.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and improves the quality of services received.

Public Impact

The Department of the Air Force is the primary beneficiary, receiving expert consulting services to improve administrative and management functions. Services delivered are expected to enhance operational efficiency, strategic planning, and overall management effectiveness within the Air Force. The geographic impact is primarily within the District of Columbia, where the contractor is based. Workforce implications may include the utilization of specialized consultants and potential knowledge transfer to Air Force personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Ensuring effective knowledge transfer from consultants to government personnel to build internal capacity.
Monitoring contractor performance to ensure alignment with Air Force objectives and expected outcomes.

Positive Signals

Firm fixed-price contract type provides cost predictability.
Full and open competition suggests a robust selection process.
Contract duration indicates a sustained need and potential for long-term strategic support.

Sector Analysis

This contract falls within the professional services sector, specifically management and administrative consulting. The market for these services is large and competitive, with numerous firms offering expertise to government agencies. The Department of Defense, in particular, frequently procures such services to address complex operational and strategic challenges. Comparable spending benchmarks for similar consulting engagements within the federal government often range in the tens of millions of dollars, depending on the scope and duration.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have specific small business set-aside provisions. While Deloitte Consulting LLP is a large business, there is no explicit information provided regarding subcontracting plans for small businesses. Further analysis would be needed to determine the extent of small business participation in fulfilling this contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the Department of the Air Force. Accountability measures are embedded in the firm fixed-price contract type, requiring delivery of specified services. Transparency is facilitated through contract award databases, though detailed performance metrics are typically internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Consulting Services
Administrative Management Services
General Management Consulting
Air Force Support Contracts
Professional Services Contracts

Risk Flags

Potential for contractor lock-in if not managed carefully.
Dependency on external expertise may hinder internal capability development.
Ensuring alignment of consultant recommendations with long-term Air Force strategic goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.3 million to DELOITTE CONSULTING LLP. PKS-HILL-BOOKER-TO AWARD FOR NAVY

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 $24.3 million.

What is the period of performance?

Start: 2022-08-31. End: 2026-03-01.

What is Deloitte Consulting LLP's track record with the Department of Defense for similar consulting services?

Deloitte Consulting LLP has a substantial track record of providing a wide array of consulting services to the Department of Defense and its various branches, including the Air Force. Their engagements often span areas such as strategic planning, IT modernization, financial management, and operational efficiency improvements. Historical data indicates they are a frequent awardee of large-scale federal contracts. Specific performance details for past contracts would require deeper investigation into contract performance reports and agency evaluations, but their consistent presence suggests a generally positive working relationship and capability to meet DoD requirements.

How does the awarded amount compare to the average cost of similar administrative and management consulting services for the Air Force?

The awarded amount of $24.3 million for a contract spanning over three years (approximately 1278 days) suggests an average annual value of roughly $7.7 million. Benchmarking this against similar large-scale administrative and management consulting contracts within the Air Force or broader DoD reveals that this figure is within a reasonable range. The specific nature of the services, the level of expertise required, and the duration are key factors. Given the firm fixed-price nature, the government has established a clear ceiling, and the competitive bidding process likely ensured a fair market price was achieved relative to the defined scope.

What are the primary risks associated with this type of consulting contract, and how are they mitigated?

Primary risks for this type of consulting contract include potential scope creep, where the project's requirements expand beyond the initial agreement, leading to cost overruns or delays. Another risk is the contractor's ability to deliver the promised expertise and outcomes effectively. Mitigation strategies include a well-defined Statement of Work (SOW), clear performance metrics, and robust oversight by the contracting officer's representative (COR). The firm fixed-price contract type itself is a significant risk mitigation tool, as it places the financial risk of cost overruns on the contractor. Regular progress reviews and communication channels also help identify and address issues proactively.

What is the expected impact of these consulting services on the Air Force's operational effectiveness?

The expected impact of these consulting services on the Air Force's operational effectiveness is anticipated to be positive, focusing on enhancing administrative and management functions. This could translate into streamlined processes, improved resource allocation, better strategic decision-making, and increased overall efficiency. By leveraging external expertise, the Air Force aims to identify and implement best practices, modernize its management approaches, and potentially reduce operational costs or improve service delivery. The specific areas of focus within the contract will determine the precise nature and magnitude of the impact.

How has federal spending on administrative and management consulting services evolved over the past five years, and does this contract align with trends?

Federal spending on administrative and management consulting services has generally seen a steady increase over the past five years, driven by the government's need for specialized expertise to address complex challenges, modernize systems, and improve efficiency. Agencies like the Department of Defense are significant consumers of these services. This $24.3 million award to Deloitte Consulting LLP aligns with this trend, representing a substantial, but not unprecedented, investment in professional services. The continued procurement of such contracts indicates a persistent reliance on external consultants to support agency missions and strategic objectives.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

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: $24,306,933

Exercised Options: $24,306,933

Current Obligation: $24,306,933

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $1,348,387

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA701420D0007

IDV Type: IDC

Timeline