DoD's $41M consulting contract with Deloitte for administrative management services awarded via full and open competition

Contract Overview

Contract Amount: $41,239,314 ($41.2M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2007-12-01

End Date: 2013-05-31

Contract Duration: 2,008 days

Daily Burn Rate: $20.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LABOR

Place of Performance

Location: MECHANICSBURG, CUMBERLAND County, PENNSYLVANIA, 17055

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Defense obligated $41.2 million to DELOITTE CONSULTING LLP for work described as: LABOR Key points: 1. The contract value of $41.2 million over its period of performance suggests a significant engagement for consulting services. 2. Awarded to Deloitte Consulting LLP, a major player in the consulting market, indicating a reliance on established contractors for complex needs. 3. The 'PA' (Procurement Administrative) type suggests a focus on the administrative aspects of procurement processes. 4. The contract duration of approximately 5 years (December 2007 to May 2013) allowed for sustained support. 5. The fixed-price contract type shifts performance risk to the contractor, potentially leading to cost efficiencies if managed well. 6. The absence of small business set-aside flags indicates this was not specifically targeted to smaller enterprises.

Value Assessment

Rating: good

Benchmarking this $41.2 million contract requires comparison to similar large-scale administrative management consulting engagements within the Department of Defense. Given the duration and the contractor's profile, the pricing is likely competitive for the scope of services. However, without specific deliverables and performance metrics, a precise value-for-money assessment is challenging. The fixed-price nature generally favors the government by capping costs, assuming the scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' suggesting that all responsible sources were permitted to submit bids. This typically leads to a more robust selection process and potentially better pricing due to market forces. The fact that it was a single delivery order under a larger contract vehicle implies that the initial competition for the vehicle itself was broad.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that drives down prices and encourages innovation, leading to better use of public funds.

Public Impact

The primary beneficiaries are likely the Department of Defense and its agencies, which received administrative management consulting services. Services delivered likely focused on improving the efficiency and effectiveness of defense procurement and administrative processes. The geographic impact is centered around the Department of Defense's operational areas, primarily within Pennsylvania where the contract was administered. Workforce implications could include support for government personnel in understanding and implementing new administrative procedures or systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements were not clearly defined, leading to cost overruns despite fixed-price.
Over-reliance on a single large contractor could limit future flexibility or innovation from smaller, specialized firms.
Ensuring the 'administrative management' services directly translated to measurable improvements in defense operations requires ongoing evaluation.

Positive Signals

Award through full and open competition suggests a fair and transparent process, maximizing potential for competitive pricing.
Fixed-price contract type aligns incentives towards efficient delivery and cost control by the contractor.
The contractor, Deloitte Consulting LLP, is a well-established firm with a track record in government consulting, suggesting a level of expertise.

Sector Analysis

This contract falls within the professional services sector, specifically management and administrative consulting. The federal government is a significant consumer of these services to improve operational efficiency, manage complex programs, and implement policy. Spending in this category often fluctuates with agency needs for strategic planning, process improvement, and IT-related administrative support. Benchmarks for similar large-scale consulting contracts within defense agencies typically range from tens to hundreds of millions of dollars, depending on scope and duration.

Small Business Impact

The contract data indicates no specific small business set-aside (sb: false) and the prime contractor is a large firm (Deloitte Consulting LLP). This suggests that small businesses were unlikely to be direct prime contractors on this award. However, there may have been subcontracting opportunities, though these are not detailed in the provided data. The overall impact on the small business ecosystem would depend on the extent of any subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA). As a fixed-price contract, oversight would focus on ensuring deliverables meet specifications and timelines. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Defense Information Systems Agency (DISA) Contracts
Administrative Management Consulting Services
Department of Defense IT Services
Professional Services Contracts

Risk Flags

Potential for scope creep
Contract duration may outpace evolving needs
Performance metrics not detailed

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.2 million to DELOITTE CONSULTING LLP. LABOR

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $41.2 million.

What is the period of performance?

Start: 2007-12-01. End: 2013-05-31.

What specific administrative management challenges was Deloitte tasked with addressing for the Department of Defense?

The provided data indicates the contract's North American Industry Classification System (NAICS) code is 541611, which covers Administrative Management and General Management Consulting Services. While the specific challenges are not detailed, typical engagements under this code involve improving organizational efficiency, streamlining business processes, strategic planning, human capital management, and financial management support. For the Department of Defense, this could translate to optimizing procurement processes, enhancing internal reporting mechanisms, or supporting the implementation of new administrative policies and technologies. The contract type (PA - Procurement Administrative) suggests a focus on the administrative aspects of the defense procurement lifecycle.

How does the $41.2 million contract value compare to typical spending on similar consulting services within the DoD?

A $41.2 million contract awarded over approximately five years for administrative management consulting is a substantial investment, but not unusual for the Department of Defense. Large federal agencies frequently engage major consulting firms for complex challenges requiring specialized expertise. Comparable contracts within the DoD for management and strategic consulting can range from tens of millions to well over a hundred million dollars, depending on the breadth of services, duration, and the criticality of the mission supported. The value here suggests a significant, long-term engagement rather than a short-term project.

What risks are associated with a fixed-price contract of this magnitude and duration?

While fixed-price contracts generally shift risk to the contractor and can offer cost certainty for the government, risks remain. For a contract of this size ($41.2M) and duration (approx. 5 years), potential risks include: 1) Inadequate initial scope definition leading to contractor claims for additional work or scope creep. 2) Contractor prioritizing profit over quality if performance targets are not rigorously monitored. 3) Potential for the contractor to under-invest in resources if the fixed price proves too low for the actual effort required. 4) Difficulty in adapting to evolving requirements over the contract's lifespan without costly change orders. Robust oversight and clear performance metrics are crucial to mitigate these risks.

What was Deloitte Consulting LLP's track record with the DoD prior to or during this contract?

Deloitte Consulting LLP is a major global professional services firm with extensive experience serving the Department of Defense and other federal agencies. While specific performance details for this particular $41.2 million contract are not provided, Deloitte has a long history of securing and performing large-scale contracts across various domains, including defense, technology, and management consulting. Their track record generally involves providing strategic advice, implementing complex systems, and managing large programs. Agencies often select contractors like Deloitte based on their established reputation, demonstrated capabilities, and past performance on similar government contracts, assuming a baseline level of competence and reliability.

How did the 'full and open competition' impact the pricing and selection of Deloitte for this contract?

Full and open competition is designed to maximize the number of potential bidders, thereby increasing the likelihood of receiving competitive offers. For this $41.2 million contract, it means that multiple firms were likely invited to bid, and Deloitte was selected based on a combination of factors, potentially including technical approach, past performance, and price. The competitive pressure inherent in this process generally drives down prices compared to sole-source or limited competition awards. It ensures that the government is obtaining services from the best-qualified offeror at a reasonable price, as determined through the evaluation of proposals against established criteria.

What does the 'PA' contract type signify in terms of the services provided?

The 'PA' designation typically stands for 'Procurement Administrative' or a similar classification related to the administrative functions supporting the procurement process. This suggests that the services provided by Deloitte Consulting LLP were focused on enhancing or managing the administrative aspects of the Department of Defense's procurement activities. This could encompass a range of tasks such as improving procurement documentation, streamlining approval workflows, ensuring regulatory compliance within procurement, managing procurement data, or providing support for procurement system implementation and administration. It implies a focus on the 'how' of procurement rather than the direct acquisition of goods or services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte LLP (UEI: 014127109)

Address: 4301 N FAIRFAX DR STE 210, ARLINGTON, VA, 22203

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

Financial Breakdown

Contract Ceiling: $41,239,372

Exercised Options: $41,239,314

Current Obligation: $41,239,314

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS23F9796H

IDV Type: FSS

Timeline