GSA awards $20.3M contract for strategic business planning and process improvement support to Deloitte Consulting LLP

Contract Overview

Contract Amount: $20,349,945 ($20.3M)

Contractor: Deloitte Consulting LLP

Awarding Agency: General Services Administration

Start Date: 2010-12-15

End Date: 2012-09-30

Contract Duration: 655 days

Daily Burn Rate: $31.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: LABOR HOURS

Sector: Other

Official Description: STRATEGIC BUSINESS PLANNING AND PROCESS IMPROVEMENT PROGRAM MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20190

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $20.3 million to DELOITTE CONSULTING LLP for work described as: STRATEGIC BUSINESS PLANNING AND PROCESS IMPROVEMENT PROGRAM MANAGEMENT SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a robust market for these services. 2. The contract duration of 655 days indicates a significant need for ongoing support. 3. The primary service category, Administrative Management and General Management Consulting Services, is a common area for federal agency support. 4. The award to a large, established firm like Deloitte suggests a focus on experience and capability. 5. The contract value of over $20 million signifies a substantial investment in strategic planning and process improvement. 6. The contract was awarded under the Federal Acquisition Service, indicating a centralized procurement approach.

Value Assessment

Rating: good

The contract value of $20.3 million for approximately two years of support appears reasonable for strategic business planning and process improvement services, especially when provided by a large, reputable firm like Deloitte Consulting LLP. Benchmarking against similar large-scale consulting contracts within the federal government would provide a more precise value-for-money assessment. However, the absence of specific performance metrics or detailed deliverables in the provided data makes a definitive value assessment challenging. The contract type (labor hours) allows for flexibility but can also lead to cost overruns if not managed tightly.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This competitive process is generally expected to yield fair market prices and encourage innovative solutions. The presence of 3 bidders suggests a moderate level of competition for this specific requirement. A higher number of bidders might have further driven down costs or led to a wider range of technical approaches.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it promotes a competitive environment that can lead to better pricing and service quality, ensuring federal dollars are used efficiently.

Public Impact

Federal agencies, specifically those utilizing the General Services Administration's Federal Acquisition Service, benefit from improved strategic planning and process efficiencies. The services delivered are expected to enhance the operational effectiveness and management of government programs. The geographic impact is primarily within the agency utilizing the services, likely concentrated in Washington D.C. metro area where GSA is headquartered. The contract supports a workforce of consultants, contributing to the professional services sector employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in labor-hour contracts if not meticulously managed.
Reliance on a single large contractor may limit future competition or innovation if not carefully monitored.
The broad nature of 'strategic business planning' could lead to ambiguity in deliverables if not clearly defined.

Positive Signals

Awarded through full and open competition, indicating a healthy market and potential for strong vendor performance.
Contracting with an established firm like Deloitte suggests a focus on proven expertise and reliability.
The contract aims to improve government efficiency, a positive outcome for federal operations.

Sector Analysis

This contract falls within the professional services sector, specifically management and strategy consulting. This is a significant market within the federal government, with agencies frequently seeking external expertise to address complex management challenges, improve operational efficiency, and develop strategic plans. Spending in this category is often driven by the need for specialized knowledge, objective analysis, and support for large-scale transformation initiatives. Comparable spending benchmarks would involve analyzing other large consulting contracts awarded by GSA or other federal agencies for similar strategic support services.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). The award to Deloitte Consulting LLP, a large prime contractor, suggests that small businesses are unlikely to be directly involved as prime awardees. However, there may be opportunities for small businesses to participate as subcontractors, depending on Deloitte's subcontracting plan and the specific needs of the project. The lack of a small business set-aside means that the direct impact on the small business ecosystem for this specific contract is likely minimal.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the General Services Administration's Federal Acquisition Service. Performance monitoring, deliverable acceptance, and invoice approval are standard oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Management and Consulting Services
Strategic Planning Support
Process Improvement Initiatives
Federal IT Consulting
Government Program Management

Risk Flags

Potential for cost overruns due to labor-hour contract type.
Risk of vendor lock-in with a large, established contractor.
Ambiguity in 'strategic business planning' scope if not clearly defined.
Dependence on contractor's personnel for critical institutional knowledge.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $20.3 million to DELOITTE CONSULTING LLP. STRATEGIC BUSINESS PLANNING AND PROCESS IMPROVEMENT PROGRAM MANAGEMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $20.3 million.

What is the period of performance?

Start: 2010-12-15. End: 2012-09-30.

What is Deloitte Consulting LLP's track record with the federal government, particularly on similar large-scale consulting contracts?

Deloitte Consulting LLP is a major federal contractor with a long history of providing a wide range of services, including management consulting, IT solutions, and strategic planning, to various government agencies. They have secured numerous large contracts across different departments and administrations. Their track record often includes supporting complex transformations, modernizing systems, and improving operational efficiencies. While specific performance details for individual contracts are not always publicly available, their consistent presence as a prime contractor on significant federal awards suggests a generally positive performance history and established capabilities. However, like any large contractor, they may have faced past performance issues or disputes on specific contracts, which would typically be documented in agency performance evaluations and potentially accessible through contract data systems.

How does the $20.3 million contract value compare to similar strategic business planning contracts awarded by GSA or other federal agencies?

The $20.3 million contract value for approximately two years of strategic business planning and process improvement support is substantial, placing it in the upper tier for consulting services. To benchmark effectively, one would need to compare it against contracts with similar scope, duration, and complexity awarded by agencies like GSA, DOD, or HHS. Contracts for enterprise-wide strategic planning, organizational redesign, or major process re-engineering often fall within this range or higher. Factors influencing value include the level of expertise required, the number of personnel involved, and the criticality of the agency's mission. Without access to detailed task orders and specific deliverables, a precise comparison is difficult, but this award indicates a significant investment in strategic modernization or improvement efforts.

What are the key performance indicators (KPIs) or metrics used to assess the success of this contract?

The provided data does not specify the key performance indicators (KPIs) or metrics used to assess the success of this contract. Typically, for strategic business planning and process improvement services, KPIs might include the successful development and approval of strategic plans, quantifiable improvements in process efficiency (e.g., reduced cycle times, cost savings), successful implementation of recommendations, stakeholder satisfaction, and achievement of specific organizational goals outlined in the contract's statement of work. The contracting officer's representative (COR) and the contracting officer (CO) would be responsible for monitoring performance against these metrics, which are usually detailed within the contract's performance work statement (PWS) or statement of objectives (SOO).

What is the potential risk associated with relying on a single large contractor like Deloitte for such a critical function?

Relying on a single large contractor like Deloitte for critical functions such as strategic business planning and process improvement presents several potential risks. Firstly, there's a risk of vendor lock-in, where the agency becomes overly dependent on the contractor's knowledge and processes, making it difficult to transition to another vendor or bring the function in-house. Secondly, a lack of sustained competition could lead to complacency and potentially higher costs or reduced innovation over time. Thirdly, if the contractor experiences financial instability or significant personnel turnover, it could disrupt service delivery. Finally, there's the risk that the contractor's perspective might be biased towards solutions that align with their broader service offerings, rather than purely objective recommendations. Robust contract management, clear performance expectations, and contingency planning are crucial to mitigate these risks.

How has federal spending on management and general management consulting services evolved over the past five years, and where does this contract fit?

Federal spending on management and general management consulting services (NAICS code 541611) has generally seen a steady increase over the past five years, driven by agencies' needs for expertise in areas like digital transformation, cybersecurity, strategic planning, and operational efficiency. This $20.3 million contract awarded in late 2010 fits within this trend, representing a significant investment by the GSA during that period. While this specific award is from an earlier period, the overall demand for these services has continued, with agencies increasingly looking to consultants to navigate complex policy changes, implement new technologies, and improve service delivery to citizens. Analyzing broader spending trends would show fluctuations based on budget cycles, administration priorities, and emerging national challenges.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: PA72

Offers Received: 3

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte LLP (UEI: 014127109)

Address: 1725 DUKE ST, ALEXANDRIA, VA, 08

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership

Financial Breakdown

Contract Ceiling: $20,349,945

Exercised Options: $20,349,945

Current Obligation: $20,349,945

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS10F0083L

IDV Type: FSS

Timeline