DoD's Air Force awards $27.3M contract to Deloitte for CIO and Mission Support services

Contract Overview

Contract Amount: $27,255,708 ($27.3M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2025-04-25

End Date: 2026-04-24

Contract Duration: 364 days

Daily Burn Rate: $74.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: A4 CIO AND MISSION SUPPORT

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 $27.3 million to DELOITTE CONSULTING LLP for work described as: A4 CIO AND MISSION SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for Administrative Management and General Management Consulting Services. 3. Deloitte Consulting LLP is the prime contractor for this delivery order. 4. The contract duration is one year, ending April 24, 2026. 5. The contract type is Firm Fixed Price, which sets a ceiling on costs. 6. This award represents a portion of broader IT and mission support spending within the Air Force.

Value Assessment

Rating: good

The contract's value of $27.3 million for a one-year period for CIO and Mission Support services appears reasonable within the context of large federal IT and consulting contracts. Benchmarking against similar contracts for management and general consulting services awarded by the Department of Defense or other large agencies would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs, but the specific deliverables and their efficiency will ultimately determine the true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of two bids suggests a moderate level of competition for this specific delivery order. While two bidders is better than one, a higher number of bids typically leads to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to vie for the contract, potentially driving down costs through competitive pricing.

Public Impact

The primary beneficiary is the Department of the Air Force, receiving critical CIO and mission support services. Services delivered are expected to enhance the efficiency and effectiveness of Air Force IT operations and administrative functions. The contract's impact is primarily within the District of Columbia, where the contractor is based. The contract supports professional and management consulting roles, potentially impacting the federal IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single large contractor for critical support functions could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent process.
Firm Fixed Price contract type provides cost certainty for the government.
Deloitte Consulting LLP is a well-established contractor with significant experience in federal IT and consulting.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is a significant component of federal IT and operational support spending. The market for these services is large and competitive, with numerous large and small businesses offering specialized expertise. The Air Force's spending in this area is consistent with the need for advanced management and IT support to maintain complex operations.

Small Business Impact

This contract was not set aside for small businesses, and the prime contractor, Deloitte Consulting LLP, is a large business. There is no explicit indication of small business subcontracting requirements in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award, though large prime contractors often engage small businesses for specialized support.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. As a delivery order under a larger contract vehicle, oversight may be managed by the contracting officer at the Department of the Air Force. Transparency is facilitated by public contract databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Air Force IT Modernization Programs
Department of Defense CIO Support Contracts
Federal Management Consulting Services
Administrative and Support Services

Risk Flags

Potential for cost overruns if not managed tightly
Reliance on contractor performance for critical functions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.3 million to DELOITTE CONSULTING LLP. A4 CIO AND MISSION SUPPORT

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 $27.3 million.

What is the period of performance?

Start: 2025-04-25. End: 2026-04-24.

What is Deloitte Consulting LLP's track record with the Department of the Air Force and other federal agencies for similar services?

Deloitte Consulting LLP is a major federal contractor with extensive experience across numerous government agencies, including the Department of Defense and the Department of the Air Force. They have a long history of providing IT consulting, management support, and strategic planning services. Their track record includes large-scale system implementations, cybersecurity consulting, and business process re-engineering. While specific performance metrics for this exact contract are not yet available, their general performance with the federal government is typically characterized by the ability to handle complex, large-scale projects. However, like any large contractor, they have faced scrutiny on specific contracts regarding cost overruns or performance issues, which are publicly documented in various federal contract databases and watchdog reports. A detailed review would involve examining past performance evaluations and any contract disputes or corrective actions.

How does the $27.3 million value compare to similar CIO and Mission Support contracts awarded by the Air Force or DoD?

The $27.3 million value for a one-year contract for CIO and Mission Support services is within the typical range for large federal agencies like the Air Force. However, without knowing the specific scope of work, deliverables, and the level of complexity, a direct comparison is challenging. Contracts for similar services can range from a few million dollars for smaller, specialized tasks to hundreds of millions for comprehensive, multi-year IT modernization efforts. The Air Force and DoD award numerous contracts in this broad category annually. To provide a precise benchmark, one would need to compare this contract's value against others with comparable service descriptions, contract durations, and agency components. Factors like the number of users supported, the criticality of the systems, and the required expertise significantly influence pricing.

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

Primary risks for this contract include potential performance issues if Deloitte fails to deliver the expected quality or timeliness of services, cost overruns if the firm fixed-price model is not managed effectively or if scope creep occurs, and security risks related to handling sensitive Air Force data. Mitigation strategies typically involve robust contract management by the Air Force, including clear performance metrics, regular progress reviews, and defined change control processes. The firm fixed-price nature itself is a risk mitigation tool for cost certainty. Security risks are addressed through standard government security protocols, background checks for personnel, and adherence to data protection regulations. The competitive award process also helps mitigate risks by selecting a contractor with a demonstrated capability.

What is the expected impact of this contract on the Air Force's IT modernization and mission effectiveness?

This contract is expected to contribute to the Air Force's IT modernization efforts by providing essential administrative management and general management consulting services. These services likely support the strategic planning, implementation, and oversight of IT initiatives, helping to streamline operations, improve system integration, and enhance cybersecurity posture. By ensuring effective CIO and mission support, the contract aims to improve the overall efficiency and effectiveness of Air Force missions. This could translate to better data management, improved communication systems, and more agile IT infrastructure, ultimately enabling the Air Force to better execute its operational objectives in a rapidly evolving technological landscape.

How has spending on Administrative Management and General Management Consulting Services by the Air Force evolved over the past five years?

Spending on Administrative Management and General Management Consulting Services by the Air Force has likely seen fluctuations over the past five years, influenced by evolving strategic priorities, budget allocations, and the increasing demand for specialized IT and management expertise. While specific aggregate data for this NAICS code (541611) for the Air Force alone is not provided here, the broader trend across the federal government indicates a sustained and often increasing reliance on external consulting services for complex challenges. Agencies frequently leverage these services for digital transformation, process optimization, and strategic planning. The Air Force, in particular, has been engaged in significant modernization efforts, which often necessitate external consulting support to augment internal capabilities and bring in specialized knowledge. Therefore, it's probable that spending in this category has remained substantial, potentially increasing as the Air Force addresses new technological and operational demands.

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: 2

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: $145,142,767

Exercised Options: $27,257,554

Current Obligation: $27,255,708

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAA18D001P

IDV Type: FSS

Timeline