Air Force awards $27.4M for logistics analytics support to Deloitte, highlighting need for data environment

Contract Overview

Contract Amount: $27,424,017 ($27.4M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2026-09-29

Contract Duration: 729 days

Daily Burn Rate: $37.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HEADQUARTERS AIR FORCE (HAF) A4 BASING AND LOGISTICS ANALYTICS DATA ENVIRONMENT (BLADE) PROFESSIONAL SERVICES AND SUBJECT MATTER EXPERT (SME) SUPPORT FROM A VISIBLE ACCESSIBLE UNDERSTANDABLE LINKED TRUSTED (VAULT) IDIQ CONTRACTOR

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $27.4 million to DELOITTE CONSULTING LLP for work described as: HEADQUARTERS AIR FORCE (HAF) A4 BASING AND LOGISTICS ANALYTICS DATA ENVIRONMENT (BLADE) PROFESSIONAL SERVICES AND SUBJECT MATTER EXPERT (SME) SUPPORT FROM A VISIBLE ACCESSIBLE UNDERSTANDABLE LINKED TRUSTED (VAULT) IDIQ CONTRACTOR Key points: 1. Contract focuses on enhancing the Air Force's data environment for logistics and basing. 2. Deloitte Consulting LLP, a major contractor, will provide professional services and subject matter expertise. 3. The award is a delivery order against an existing IDIQ contract, suggesting a streamlined process. 4. The contract duration is two years, indicating a medium-term need for these services. 5. The firm-fixed-price structure aims to control costs and provide predictable spending. 6. This award falls under 'All Other Professional, Scientific, and Technical Services', a broad category.

Value Assessment

Rating: good

The contract value of $27.4 million over two years for professional services and SME support appears reasonable given the scope of enhancing a critical data environment. Benchmarking against similar large-scale IT and professional services contracts within the Department of Defense suggests this pricing is within expected ranges. The firm-fixed-price contract type provides cost certainty for the government, which is a positive indicator of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under a full and open competition, indicating that multiple qualified vendors had the opportunity to bid. While the specific number of bidders for this particular delivery order is not detailed, the IDIQ contract vehicle itself was likely competed broadly. This level of competition generally leads to better price discovery and a wider selection of qualified contractors.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovation from a broad base of potential providers.

Public Impact

The primary beneficiaries are the Headquarters Air Force (HAF) A4 Basing and Logistics directorate, which will gain improved data analytics capabilities. Services delivered include professional support and subject matter expertise to enhance the VAULT data environment. The geographic impact is primarily within the District of Columbia, where HAF A4 is located. Workforce implications include the potential for enhanced decision-making for logistics and basing personnel through better data access and analysis.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the VAULT environment becomes highly specialized to Deloitte's approach.
Reliance on a single contractor for critical data environment support could pose risks if performance falters.
The broad 'All Other Professional, Scientific, and Technical Services' NAICS code makes direct cost comparisons challenging.

Positive Signals

Awarded under a full and open competition, suggesting a competitive bidding process.
Firm-fixed-price contract type provides cost certainty and encourages efficient performance.
Leverages an existing IDIQ contract, indicating a potentially efficient procurement process.
Deloitte is a well-established contractor with significant experience in government IT and professional services.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically focusing on IT and data analytics for defense logistics. The market for such services is substantial, with government agencies increasingly investing in data modernization and advanced analytics to improve operational efficiency and decision-making. Comparable spending benchmarks exist for large-scale IT support and data environment development within the Department of Defense, often running into tens or hundreds of millions of dollars annually.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it appear to have specific small business subcontracting requirements explicitly stated in the provided details. As a large contract awarded to a major prime contractor, the primary focus is likely on the prime's capabilities. However, Deloitte may engage small businesses as subcontractors, contributing to the broader small business ecosystem, though this is not guaranteed by the award terms provided.

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, which incentivizes the contractor to meet performance standards within the agreed budget. Transparency is generally facilitated through contract award databases, though specific performance metrics and ongoing oversight details may not be publicly disclosed.

Related Government Programs

Air Force Logistics Command and Control Systems
Department of Defense Data Strategy Initiatives
Defense Logistics Agency (DLA) IT Support Contracts
Professional Services Acquisition Programs (e.g., CIO-SP3, GSA Schedules)

Risk Flags

Contract awarded against an existing IDIQ, potentially limiting direct comparison of competition for this specific order.
Broad NAICS code (541990) makes precise benchmarking difficult.
Limited public detail on specific performance metrics and oversight mechanisms.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.4 million to DELOITTE CONSULTING LLP. HEADQUARTERS AIR FORCE (HAF) A4 BASING AND LOGISTICS ANALYTICS DATA ENVIRONMENT (BLADE) PROFESSIONAL SERVICES AND SUBJECT MATTER EXPERT (SME) SUPPORT FROM A VISIBLE ACCESSIBLE UNDERSTANDABLE LINKED TRUSTED (VAULT) IDIQ CONTRACTOR

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 $27.4 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-09-29.

What is the track record of Deloitte Consulting LLP in supporting similar data environment projects for the Department of Defense?

Deloitte Consulting LLP has a substantial track record of supporting the Department of Defense (DoD) and other federal agencies with IT modernization, data analytics, and professional services. They have been involved in numerous large-scale contracts related to enterprise resource planning (ERP) systems, cloud migration, cybersecurity, and data management. For instance, Deloitte has held significant contracts with the Army, Navy, and Air Force for various digital transformation initiatives. Their experience often includes developing and implementing complex data architectures, providing subject matter expertise, and managing large teams to deliver mission-critical solutions. This extensive background suggests they possess the necessary expertise and capacity to handle the requirements of the Air Force's BLADE project.

How does the $27.4 million contract value compare to other Air Force investments in logistics data analytics?

The $27.4 million contract value for the Air Force's BLADE professional services and SME support represents a significant, but not unprecedented, investment in enhancing logistics data capabilities. The Air Force, like other branches of the DoD, has been increasingly prioritizing data-driven decision-making. Larger investments in logistics IT infrastructure, data warehousing, and advanced analytics platforms can range from tens to hundreds of millions of dollars over several years. This specific award appears to be for specialized support services rather than a full system development or procurement, making its value proportionate to the scope of providing expertise and enhancing an existing environment. It aligns with a trend of targeted investments to improve specific functional areas within the broader defense logistics enterprise.

What are the primary risks associated with relying on a single contractor for critical data environment support?

Relying on a single contractor, even a large and reputable one like Deloitte, for critical data environment support introduces several risks. Firstly, there's the risk of vendor lock-in, where the government becomes overly dependent on the contractor's proprietary tools, processes, or personnel, making future transitions difficult and potentially costly. Secondly, performance risk is a concern; if the contractor underperforms or faces internal challenges, the continuity and effectiveness of the data environment could be jeopardized. Thirdly, a lack of ongoing competition for follow-on work or modifications could lead to reduced price pressure and potentially higher costs over time. Finally, knowledge transfer risk exists, where critical institutional knowledge resides primarily with the contractor's staff, posing a challenge if their personnel turnover or the contract ends.

How effective is the firm-fixed-price contract type in ensuring value for money in this context?

The firm-fixed-price (FFP) contract type is generally considered effective in ensuring value for money for services where the scope of work is well-defined and unlikely to change significantly. In this case, the contract is for professional services and subject matter expert support to an existing data environment. The FFP structure shifts the risk of cost overruns to the contractor, incentivizing them to manage their resources efficiently to maintain profitability. This provides the government with cost certainty, as the total price is fixed. For the Air Force, this means predictable spending and a clear benchmark against which to measure the contractor's performance and cost-effectiveness. It encourages the contractor to deliver the specified services within budget to maximize their profit margin.

What are the historical spending patterns for 'All Other Professional, Scientific, and Technical Services' within the Department of the Air Force?

Historical spending patterns for the 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) category within the Department of the Air Force (DAF) show a consistent and substantial allocation of funds. This broad category encompasses a wide array of services, including management and financial consulting, research and development support, and various specialized technical services. Annual spending in this sector by the DAF typically runs into the billions of dollars, reflecting the diverse support needs across its numerous commands and functions. While specific figures fluctuate year-to-year based on evolving requirements and budget allocations, the trend indicates a sustained reliance on external expertise for specialized tasks that cannot be efficiently performed in-house. This particular $27.4 million award represents a small fraction of the overall DAF spending in this broad service category.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical 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: $86,713,948

Exercised Options: $35,470,210

Current Obligation: $27,424,017

Actual Outlays: $5,047,039

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $21,438,940

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: FA701422D0007

IDV Type: IDC

Timeline