DoD Awards $9.2M Data Science Contract to Deloitte, Highlighting Potential for Cost Overruns

Contract Overview

Contract Amount: $9,221,284 ($9.2M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2024-12-20

End Date: 2026-12-19

Contract Duration: 729 days

Daily Burn Rate: $12.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: DATA SCIENCE

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33613

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $9.2 million to DELOITTE CONSULTING LLP for work described as: DATA SCIENCE Key points: 1. Deloitte Consulting LLP secured a significant contract for data science services. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The Cost Plus Fixed Fee pricing structure introduces a risk of exceeding the initial estimated cost. 4. The 'All Other Professional, Scientific, and Technical Services' sector is broad, making direct benchmarking challenging.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee (CPFF) contract type, with an award amount of $9,221,283.96, carries inherent risk. While a fixed fee is established, the government bears the cost of all allowable direct and indirect costs, potentially leading to spending exceeding initial estimates if not closely managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing, but the CPFF structure can still lead to cost escalations if not rigorously overseen.

Taxpayer Impact: Taxpayer funds are utilized for this contract. The CPFF structure necessitates careful monitoring to ensure costs remain within reasonable bounds and deliver value for the investment.

Public Impact

Advanced data science capabilities will be leveraged by the Department of the Air Force. The contract duration of 729 days suggests a substantial project scope. Potential for cost overruns exists due to the CPFF contract type, impacting taxpayer investment. The specific data science applications are not detailed, limiting public understanding of the direct impact.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee pricing structure
Broad service category (NAICS 541990)
Potential for scope creep without strict oversight

Positive Signals

Awarded under full and open competition
Significant investment in data science capabilities

Sector Analysis

This contract falls under the 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990). Spending in this broad sector can vary widely, but significant government investment in data science indicates a trend towards leveraging advanced analytics for operational improvements and decision-making.

Small Business Impact

The contract was awarded to Deloitte Consulting LLP, a large business. There is no indication that small businesses were involved as subcontractors in this specific award, suggesting limited direct benefit to the small business sector from this particular contract.

Oversight & Accountability

The Department of the Air Force is responsible for oversight. The CPFF contract type requires diligent monitoring of costs and performance to ensure accountability and prevent wasteful spending. The number of delivery orders (4) suggests phased execution.

Related Government Programs

All Other Professional, Scientific, and Technical Services
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure increases risk of cost overruns.
Broad NAICS code (541990) makes direct cost benchmarking difficult.
Lack of specific details on data science applications and performance metrics.
Potential for scope creep without stringent oversight.
No explicit mention of small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.2 million to DELOITTE CONSULTING LLP. DATA SCIENCE

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 $9.2 million.

What is the period of performance?

Start: 2024-12-20. End: 2026-12-19.

What specific data science methodologies and technologies will be employed, and how will their effectiveness be measured against defined performance metrics?

The contract details do not specify the exact data science methodologies or technologies. Effectiveness measurement will likely rely on the Air Force's internal performance metrics and deliverables outlined in the contract's statement of work. Without this detail, it's difficult to assess the potential for innovation or the alignment with specific mission objectives.

Given the CPFF structure, what mechanisms are in place to control costs and prevent potential overruns, especially considering the broad service category?

The CPFF structure necessitates robust government oversight. Mechanisms likely include detailed cost tracking, regular audits, strict adherence to the statement of work, and clear change control processes. The Air Force contracting officers must actively manage the contract to ensure costs remain reasonable and aligned with the fixed fee and anticipated value.

How will the data science services provided by Deloitte contribute to the Department of the Air Force's strategic goals and enhance operational effectiveness?

The contract aims to leverage data science for the Air Force's benefit, likely in areas such as operational efficiency, intelligence analysis, or resource management. The specific strategic contributions are not detailed, but the investment suggests a belief in data-driven improvements. Measuring the actual enhancement of operational effectiveness will be key to assessing the contract's success.

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: COST PLUS FIXED FEE (U)

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: $9,221,284

Exercised Options: $9,221,284

Current Obligation: $9,221,284

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $3,160,154

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA714619D0720

IDV Type: IDC

Timeline