Deloitte Consulting LLP awarded $40.3M FFP contract for administrative management consulting services by DoD

Contract Overview

Contract Amount: $40,289,011 ($40.3M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2013-03-21

End Date: 2018-08-31

Contract Duration: 1,989 days

Daily Burn Rate: $20.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF NON-PERSONAL SERVICES -- FFP

Place of Performance

Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32503

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $40.3 million to DELOITTE CONSULTING LLP for work described as: IGF::OT::IGF NON-PERSONAL SERVICES -- FFP Key points: 1. Contract awarded via full and open competition, suggesting a robust market for these services. 2. The contract duration of 1989 days (approx. 5.5 years) indicates a long-term need for consulting expertise. 3. Fixed-price contract type may offer cost certainty for the government, shifting performance risk to the contractor. 4. The specific NAICS code (541611) points to a focus on general management and administrative consulting. 5. Awarded by the Defense Information Systems Agency, highlighting its role in supporting defense IT and management functions. 6. The contract value of $40.3M falls within a moderate spending range for large-scale consulting engagements.

Value Assessment

Rating: good

The contract value of $40.3M for approximately 5.5 years of administrative management consulting services appears reasonable given the scope and duration. Benchmarking against similar large-scale consulting contracts awarded by the Department of Defense for management services suggests this price point is competitive. The firm-fixed-price structure also implies that the contractor bears the risk of cost overruns, which can be advantageous for the government if performance is met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 5 bidders (no) suggests a healthy level of competition for this requirement. This competitive process is expected to drive more favorable pricing and service offerings for the government.

Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by ensuring that the government receives the most competitive pricing and the best available services through a wide selection of potential contractors.

Public Impact

The Department of Defense benefits from enhanced administrative management and general management consulting services. Services delivered likely support strategic planning, organizational efficiency, and operational improvements within defense agencies. The geographic impact is primarily within the Department of Defense's operational areas, potentially supporting various branches and agencies. Workforce implications may include the augmentation of government staff with specialized consulting expertise, leading to improved project outcomes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly due to the long duration.
Reliance on a single large contractor could limit future flexibility or innovation if not carefully monitored.
Ensuring consistent quality and performance over the 5.5-year period requires robust oversight.

Positive Signals

Awarded through full and open competition, indicating a competitive process that likely secured good value.
Firm-fixed-price contract type provides cost predictability for the government.
The contractor, Deloitte Consulting LLP, is a well-established firm with significant experience in government contracting.
The contract supports critical administrative and management functions within the Department of Defense.

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 spending, supporting a wide array of government functions. The market for these services is competitive, with numerous large and small firms offering specialized expertise. The $40.3M award is a substantial but not extraordinary sum for a multi-year, large-scale consulting engagement within the federal government.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While the primary award went to a large firm, Deloitte Consulting LLP, there is always potential for subcontracting opportunities for small businesses within the broader ecosystem. However, without specific subcontracting plans or goals detailed in the award, the direct impact on small businesses is unclear. Further analysis would be needed to determine if small business participation was encouraged or mandated.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Defense Information Systems Agency. As a firm-fixed-price contract, performance monitoring is key to ensuring deliverables meet requirements. Transparency is generally maintained through contract award databases and reporting. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Management and Financial Consulting, Acquisition and Technology Services
Professional Services
Defense Information Technology Support Services
Administrative and Support Services

Risk Flags

Long contract duration may increase risk of scope irrelevance or performance degradation.
Firm-fixed-price requires careful monitoring to ensure contractor performance and value.
Lack of explicit small business subcontracting goals requires further investigation for potential impact.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.3 million to DELOITTE CONSULTING LLP. IGF::OT::IGF NON-PERSONAL SERVICES -- FFP

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 $40.3 million.

What is the period of performance?

Start: 2013-03-21. End: 2018-08-31.

What specific types of administrative and general management consulting services were procured under this contract?

The contract, identified by NAICS code 541611, specifically covers Administrative Management and General Management Consulting Services. This broad category typically includes services such as strategic planning, organizational design and restructuring, business process improvement, performance management, policy development, and general management support. Given the awarding agency is the Defense Information Systems Agency (DISA), the services likely focused on enhancing DISA's operational efficiency, IT management strategies, acquisition processes, or internal administrative functions to better support the Department of Defense's mission.

How does the $40.3 million contract value compare to typical spending on similar consulting services by the Department of Defense?

The $40.3 million contract value over approximately 5.5 years represents a significant investment in consulting services. While specific benchmarks vary widely based on the exact nature of the services, duration, and complexity, this amount is within the expected range for large-scale, multi-year consulting engagements awarded by major federal agencies like the Department of Defense. For context, DoD awards billions annually in professional services, and contracts in the tens of millions for specialized consulting are common, particularly for strategic or complex operational support.

What are the potential risks associated with a firm-fixed-price contract of this duration?

A primary risk with firm-fixed-price (FFP) contracts, especially those spanning nearly six years, is the potential for the contractor to underperform if the fixed price is too low or if market conditions change significantly, impacting their ability to deliver profitably. Conversely, if the price was set too high, the government might overpay. For the government, the risk lies in ensuring the scope of work remains relevant and that the contractor maintains motivation and quality over the long term. Scope creep, if not managed meticulously, can also become a significant issue, potentially leading to disputes or the need for contract modifications.

What is Deloitte Consulting LLP's track record with federal contracts, particularly with the Department of Defense?

Deloitte Consulting LLP is a major federal contractor with a substantial history of awards across various agencies, including the Department of Defense. They consistently rank among the top recipients of federal contracts, particularly in areas like IT consulting, management consulting, and professional services. Their extensive experience suggests a strong understanding of government procurement processes and requirements. While specific performance details for individual contracts are not publicly detailed in this summary, their continued success in securing large contracts with DoD indicates a generally positive track record and perceived capability.

How does the competition level (5 bidders) impact the value received by the government?

Having five bidders for this contract suggests a healthy level of competition. More bidders generally increase the likelihood that the government will receive competitive pricing and a wider range of innovative solutions. A competitive environment incentivizes contractors to offer their best value proposition to win the award. While five bidders is a good number, the optimal level can depend on the specificity and size of the requirement. However, it is significantly better than a sole-source or limited competition scenario, which typically results in higher prices and potentially less optimal service selection.

Industry Classification

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

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

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: $40,289,011

Exercised Options: $40,289,011

Current Obligation: $40,289,011

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $49,099,245

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS10F0083L

IDV Type: FSS

Timeline