DoD's $64.7M Deloitte contract for management consulting services awarded under full and open competition

Contract Overview

Contract Amount: $64,762,632 ($64.8M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2022-09-30

End Date: 2026-03-29

Contract Duration: 1,276 days

Daily Burn Rate: $50.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PKS-HILL-BOOKER-AWARD TO FA701422STS33

Place of Performance

Location: HAMPTON, HAMPTON CITY County, VIRGINIA, 23665

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $64.8 million to DELOITTE CONSULTING LLP for work described as: PKS-HILL-BOOKER-AWARD TO FA701422STS33 Key points: 1. Contract awarded to a large, established firm with significant federal contracting experience. 2. Pricing appears competitive given the scope and duration of services. 3. Risk indicators are moderate, primarily related to performance monitoring. 4. Services align with broader DoD objectives for administrative efficiency. 5. Positioned within the professional services sector, a common area for federal spending. 6. Contract duration of over three years suggests a need for sustained support.

Value Assessment

Rating: good

The contract value of $64.7 million over approximately 3.5 years suggests a significant investment in management consulting. Benchmarking against similar large-scale consulting contracts within the Department of Defense indicates that the overall award value is within a reasonable range for comprehensive services. However, a detailed analysis of the specific task orders and labor rates would be necessary to fully assess value for money and ensure pricing aligns with market standards for comparable expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders were likely solicited. The presence of 4 bids suggests a healthy level of competition for this requirement. This competitive process is expected to drive more favorable pricing and service offerings for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value and potentially lower costs for essential management consulting services.

Public Impact

The Department of Defense benefits from enhanced administrative and management strategies. Services delivered are expected to improve operational efficiency and decision-making processes. The primary geographic impact is within the Department of Defense's operational theaters. Workforce implications include potential support for military and civilian personnel through improved management practices.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly.
Reliance on a single large contractor could limit future flexibility.
Ensuring consistent quality across all task orders will be critical.

Positive Signals

Award to a reputable firm with a strong track record.
Full and open competition suggests a robust selection process.
Clear performance standards are likely defined in the contract.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management and general management consulting. This sector is a significant component of federal spending, supporting a wide array of government functions. The market for these services is competitive, with numerous large and small firms offering specialized expertise. The Department of Defense frequently procures such services to address complex organizational challenges and improve operational effectiveness.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific small business subcontracting requirements in the provided data. The award to a large prime contractor like Deloitte Consulting LLP suggests that the primary focus was on securing broad capabilities. This may limit direct opportunities for small businesses as prime contractors on this specific award, though they could potentially participate as subcontractors if Deloitte opts to engage them.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and program managers within the Department of the Air Force. Performance monitoring, adherence to delivery schedules, and quality of services rendered will be key aspects of oversight. Transparency is generally maintained through contract databases and reporting requirements, though specific internal oversight mechanisms are not detailed here. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD Management and Administrative Support Services
Federal Consulting Services
Defense-Wide Management Consulting
Air Force Operational Support Contracts

Risk Flags

Potential for cost overruns if scope is not managed.
Dependency on contractor expertise could create knowledge gaps.
Ensuring alignment with evolving strategic priorities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $64.8 million to DELOITTE CONSULTING LLP. PKS-HILL-BOOKER-AWARD TO FA701422STS33

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 $64.8 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-03-29.

What is Deloitte Consulting LLP's track record with the Department of Defense and similar federal agencies?

Deloitte Consulting LLP has a substantial and long-standing track record of serving the Department of Defense and other federal agencies. They are a major federal contractor, consistently awarded significant contracts across various domains, including management consulting, IT services, and cybersecurity. Their experience spans numerous agencies, demonstrating a capacity to navigate complex government requirements and deliver a wide range of professional services. Past performance reviews and contract databases would provide more granular detail on their specific successes and any challenges encountered in prior engagements with the DoD, but their overall presence indicates a high level of established capability and familiarity with government operations.

How does the awarded value compare to similar management consulting contracts within the DoD?

The awarded value of approximately $64.7 million for management and general management consulting services over roughly 3.5 years is substantial, reflecting the scale and complexity often associated with DoD requirements. When compared to similar large-scale consulting engagements within the DoD, this contract appears to be within the expected range. However, a precise comparison requires detailed analysis of the specific services rendered, the labor categories and rates involved, and the duration and scope of work. Contracts for strategic planning, organizational transformation, or large-scale process improvement within defense agencies can easily reach tens of millions of dollars, making this award consistent with industry benchmarks for major consulting projects.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this contract include potential scope creep, ensuring consistent service quality across all task orders, and contractor performance alignment with evolving DoD needs. Scope creep is a common risk in consulting engagements where requirements may expand beyond initial definitions. Mitigation typically involves robust contract management, clear statement of work definitions, and change control processes. Ensuring consistent quality requires strong performance metrics, regular reviews, and potentially independent quality assurance. Aligning with evolving needs necessitates proactive communication between the contractor and the government program office, allowing for adjustments within the contract's framework. The 'good' rating for value assessment suggests that these risks are considered manageable.

How effective are the administrative management and general management consulting services likely to be for the Department of the Air Force?

The effectiveness of these services hinges on the specific objectives outlined in the contract and the contractor's ability to deliver tailored solutions. Generally, management consulting services aim to improve efficiency, streamline processes, enhance strategic planning, and optimize resource allocation within an organization. For the Department of the Air Force, this could translate to better budget management, improved personnel administration, more effective operational planning, or enhanced acquisition processes. The success will depend on the clarity of the Air Force's requirements, the expertise of Deloitte's consultants, and the collaborative relationship between the agency and the contractor. The 'good' value assessment implies an expectation of positive outcomes.

What are the historical spending patterns for administrative management and general management consulting services by the Department of the Air Force?

The Department of the Air Force, like other branches of the DoD, consistently spends significant amounts on administrative management and general management consulting services. These services are crucial for supporting complex military operations, managing large civilian workforces, and navigating evolving technological and strategic landscapes. Historical data would likely show a pattern of recurring awards to large consulting firms for a variety of needs, ranging from strategic reviews and organizational restructuring to process optimization and IT strategy. Spending in this category can fluctuate based on specific modernization initiatives, budget priorities, and the perceived need for external expertise to address unique challenges. This $64.7M award fits within this broader pattern of substantial investment in consulting support.

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: $118,334,061

Exercised Options: $85,323,265

Current Obligation: $64,762,632

Actual Outlays: $19,200,833

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $10,062,108

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA701420D0007

IDV Type: IDC

Timeline