F-35 Program Office Faces $38B in Requirements; Deloitte Consulting Awarded Contract

Contract Overview

Contract Amount: $38,135,034 ($38.1M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2027-06-16

Contract Duration: 989 days

Daily Burn Rate: $38.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE F-35 JOINT PROGRAM OFFICE MUST CONTINUE TO EXECUTE ITS FINANCIAL MANAGEMENT, AUDITING, PROJECT MANAGEMENT, AND COSTING REQUIREMENTS ACROSS A BROAD SPECTRUM OF CONGRESSIONAL, DOD), U.S. SERVICES, AND INTERNATIONAL PARTNERS REGULATORY REQUIREMENTS.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $38.1 million to DELOITTE CONSULTING LLP for work described as: THE F-35 JOINT PROGRAM OFFICE MUST CONTINUE TO EXECUTE ITS FINANCIAL MANAGEMENT, AUDITING, PROJECT MANAGEMENT, AND COSTING REQUIREMENTS ACROSS A BROAD SPECTRUM OF CONGRESSIONAL, DOD), U.S. SERVICES, AND INTERNATIONAL PARTNERS REGULATORY REQUIREMENTS. Key points: 1. Significant financial and regulatory oversight required for the F-35 program. 2. Deloitte Consulting LLP holds a substantial contract for administrative and management services. 3. The contract spans multiple years, indicating a long-term need for these services. 4. Full and open competition was used, suggesting a robust procurement process.

Value Assessment

Rating: good

The contract value of $38.1 billion is substantial, reflecting the complexity of the F-35 program. Benchmarking against similar large-scale government consulting contracts is difficult due to the unique nature of defense program management.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The use of a delivery order mechanism suggests flexibility within a broader contract vehicle.

Taxpayer Impact: Taxpayer funds are being utilized for essential program management and consulting services critical to the success of a major defense acquisition program.

Public Impact

Ensures continued financial management and auditing for the F-35 program. Supports project management and costing requirements across various stakeholders. Addresses regulatory needs of Congress, DOD, U.S. Services, and international partners. The contract's duration and value highlight the ongoing investment in the F-35's lifecycle.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Complexity of managing diverse stakeholder requirements.
Potential for cost overruns in large defense programs.
Need for continuous auditing and financial oversight.

Positive Signals

Awarded through full and open competition.
Contract supports critical national defense asset.
Long-term engagement ensures program stability.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector. Spending in this area is often tied to the scale and complexity of government programs, with defense acquisition programs representing a significant portion of the market.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as Deloitte Consulting LLP is a large firm. Analysis of subcontracting opportunities for small businesses is not provided in this data.

Oversight & Accountability

The F-35 Joint Program Office is subject to extensive oversight from Congress and the DOD. The contract's requirements emphasize adherence to financial management, auditing, and project management standards, indicating a focus on accountability.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Contract complexity and scale.
Long contract duration.
Multiple stakeholder regulatory requirements.
Potential for cost overruns in defense programs.
Need for continuous auditing and financial oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.1 million to DELOITTE CONSULTING LLP. THE F-35 JOINT PROGRAM OFFICE MUST CONTINUE TO EXECUTE ITS FINANCIAL MANAGEMENT, AUDITING, PROJECT MANAGEMENT, AND COSTING REQUIREMENTS ACROSS A BROAD SPECTRUM OF CONGRESSIONAL, DOD), U.S. SERVICES, AND INTERNATIONAL PARTNERS REGULATORY REQUIREMENTS.

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 $38.1 million.

What is the period of performance?

Start: 2024-09-30. End: 2027-06-16.

What specific metrics are used to evaluate Deloitte's performance in financial management and auditing for the F-35 program?

Performance metrics likely include adherence to audit schedules, accuracy of financial reporting, compliance with DOD financial regulations, and successful identification of cost-saving opportunities. The contract may also specify key performance indicators related to project management efficiency and timely delivery of consulting services.

How does the full and open competition process ensure cost-effectiveness for a program as complex as the F-35?

Full and open competition allows multiple qualified vendors to bid, driving down prices through market forces. For complex programs like the F-35, this process helps ensure that the chosen contractor offers the most competitive pricing for the required expertise and services, while also promoting innovation and best practices.

What are the primary risks associated with the long-term execution of this contract for the F-35 program?

Key risks include potential scope creep, evolving program requirements leading to cost increases, contractor performance issues impacting program timelines, and cybersecurity threats to sensitive program data. Ensuring continuous alignment between contractor deliverables and the dynamic needs of the F-35 program is crucial.

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: 5

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: $53,030,225

Exercised Options: $53,030,225

Current Obligation: $38,135,034

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $5,056,362

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA701420D0007

IDV Type: IDC

Timeline