GSA awards $10.5M for Deloitte consulting on campaign studies, raising questions on value and competition

Contract Overview

Contract Amount: $10,498,172 ($10.5M)

Contractor: Deloitte Consulting LLP

Awarding Agency: General Services Administration

Start Date: 2004-08-18

End Date: 2008-01-22

Contract Duration: 1,252 days

Daily Burn Rate: $8.4K/day

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SPARE CAMPAIGN STUDY AND ANALYSIS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20330

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $10.5 million to DELOITTE CONSULTING LLP for work described as: SPARE CAMPAIGN STUDY AND ANALYSIS Key points: 1. High contract value for consulting services. 2. Sole-source award to Deloitte raises competition concerns. 3. Potential for cost overruns with Time and Materials contract type. 4. Administrative Management and General Management Consulting Services sector.

Value Assessment

Rating: questionable

The contract value of $10.5M for consulting services is substantial. Without a clear benchmark or comparison to similar contracts for specialized campaign analysis, assessing its value is difficult. The Time and Materials pricing structure also introduces risk for cost escalation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded sole-source to Deloitte Consulting LLP. This limits competition and potentially impacts price discovery, as there was no opportunity for other qualified firms to bid. The rationale for a sole-source award needs further scrutiny.

Taxpayer Impact: The sole-source nature and Time and Materials contract type may lead to higher costs for taxpayers than a competitively awarded, fixed-price contract.

Public Impact

Taxpayers may have paid a premium due to the lack of competition. The effectiveness of the consulting services in achieving campaign study goals is unclear. Oversight of the Time and Materials contract is crucial to control spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Time and Materials contract
Lack of clear deliverables/outcomes

Positive Signals

Experienced contractor (Deloitte)

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector. Spending in this sector can vary widely, but large sole-source awards warrant careful review to ensure efficiency and cost-effectiveness.

Small Business Impact

The sole-source award to a large, established firm like Deloitte likely excluded opportunities for small businesses to participate in this contract.

Oversight & Accountability

The General Services Administration (GSA) awarded this contract. Oversight would be critical to ensure the contractor is performing effectively and that costs are managed appropriately, especially given the sole-source and T&M nature.

Related Government Programs

Administrative Management and General Management Consulting Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Sole-source award limits competition.
Time and Materials contract type poses cost risk.
Lack of clear performance metrics or outcomes.
Potential for inflated pricing due to no competition.
Limited transparency on justification for sole-source.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $10.5 million to DELOITTE CONSULTING LLP. SPARE CAMPAIGN STUDY AND ANALYSIS

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 $10.5 million.

What is the period of performance?

Start: 2004-08-18. End: 2008-01-22.

What was the specific justification for awarding this contract sole-source to Deloitte?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or lack of other sources. Without specific documentation, it's impossible to confirm the validity of the sole-source justification. This lack of transparency raises concerns about whether the government received the best possible value and pricing.

How was the 'value' of the consulting services determined for this contract?

Determining the value of consulting services, especially for specialized studies, can be challenging. Without competitive bidding, it's difficult to establish a market-based price. The government likely relied on internal estimates or historical data, but the absence of competition makes it harder to validate if the $10.5M was a fair and reasonable price.

What mechanisms were in place to ensure effective oversight of the Time and Materials contract?

Effective oversight of Time and Materials contracts is crucial to prevent cost overruns. This typically involves detailed tracking of labor hours, material costs, and regular reviews of progress against defined milestones. The government agency should have had dedicated personnel to monitor expenditures and contractor performance closely.

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

Contractor Details

Parent Company: Deloitte LLP (UEI: 014127109)

Address: 4301 N FAIRFAX DR STE 210, ARLINGTON, VA, 08

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

Financial Breakdown

Contract Ceiling: $10,674,445

Exercised Options: $10,674,445

Current Obligation: $10,498,172

Parent Contract

Parent Award PIID: GS23F9796H

IDV Type: FSS

Timeline