Deloitte Consulting LLP awarded $20.8M for DSCA strategic plan integration support, a sole-source contract

Contract Overview

Contract Amount: $20,861,858 ($20.9M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2015-05-28

End Date: 2019-01-31

Contract Duration: 1,344 days

Daily Burn Rate: $15.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF FINANCIAL IMPROVEMENT AND AUDIT READINESS (FIAR), MANAGERS INTERNAL CONTROL PROGRAM (MICP), AND STRATEGIC PLAN TRANSFORMATION PROGRAM INTEGRATION SUPPORT TO THE DEFENSE SECURITY COOPERATION AGENCY (DSCA).

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.9 million to DELOITTE CONSULTING LLP for work described as: IGF::OT::IGF FINANCIAL IMPROVEMENT AND AUDIT READINESS (FIAR), MANAGERS INTERNAL CONTROL PROGRAM (MICP), AND STRATEGIC PLAN TRANSFORMATION PROGRAM INTEGRATION SUPPORT TO THE DEFENSE SECURITY COOPERATION AGENCY (DSCA). Key points: 1. Contract awarded on a firm-fixed-price basis, indicating defined scope and cost. 2. The contract was not competed, raising questions about potential price efficiencies. 3. Performance period spans over three years, suggesting a sustained need for services. 4. The contract falls under the 'Offices of Certified Public Accountants' NAICS code. 5. Awarded by Washington Headquarters Services, supporting the Defense Security Cooperation Agency. 6. No small business set-aside was utilized for this procurement.

Value Assessment

Rating: fair

The contract's value of $20.8 million over approximately three years for strategic plan integration support appears substantial. Without direct benchmarks for similar sole-source engagements for DSCA's specific needs, assessing value for money is challenging. The firm-fixed-price structure provides cost certainty, but the lack of competition limits opportunities for price discovery and potential savings that might be realized in a more competitive environment. Further analysis would require comparing the scope and deliverables to other government-wide or agency-specific contracts for management and financial consulting services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when a specific contractor possesses unique capabilities or when circumstances preclude full and open competition. The lack of competition means that taxpayers did not benefit from the potential price reductions and innovation that can arise from a competitive bidding process. It also limits the government's ability to explore alternative solutions or contractors.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as there is no competitive pressure to drive down prices. This limits the government's leverage in negotiating favorable terms and pricing.

Public Impact

The primary beneficiary is the Defense Security Cooperation Agency (DSCA), which receives support for its strategic planning and financial improvement initiatives. Services delivered include integration support for the Financial Improvement and Audit Readiness (FIAR), Managers' Internal Control Program (MICP), and Strategic Plan Transformation Program. The geographic impact is primarily within the Washington D.C. metropolitan area, where DSCA is headquartered. The contract supports specialized consulting services, likely involving a team of experienced professionals rather than a broad workforce impact.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have resulted in a higher price than if the contract had been competed.
Sole-source awards can reduce transparency and accountability compared to competitive procurements.
The substantial dollar value warrants close scrutiny of deliverables and performance to ensure value for money.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
The contract duration suggests a recognized and ongoing need for these specialized services.
Award to a well-known consulting firm like Deloitte may indicate access to specialized expertise.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management and financial consulting. The NAICS code 541211 ('Offices of Certified Public Accountants') suggests a focus on accounting and auditing-related advisory services, though the description points to broader strategic integration. The federal government spends billions annually on consulting services across various agencies. Benchmarking this contract's value would require comparing it to similar sole-source or competed contracts for strategic planning, audit readiness, and internal control program support within the Department of Defense or other large federal agencies.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned. The award to a large prime contractor like Deloitte suggests that the primary focus was on acquiring specialized expertise, potentially overlooking opportunities to engage small businesses in this specific procurement. This could limit the participation of small businesses in supporting critical defense agency initiatives.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer at Washington Headquarters Services and the program managers within the Defense Security Cooperation Agency. Given the sole-source nature and significant value, robust oversight is crucial to ensure performance aligns with objectives and that funds are used efficiently. Transparency may be limited due to the lack of a competitive process, but contract performance reports and internal agency reviews would serve as accountability measures.

Related Government Programs

Defense Security Cooperation Agency (DSCA) Operations
Financial Improvement and Audit Readiness (FIAR) Programs
Managers' Internal Control Program (MICP)
Strategic Planning and Transformation Initiatives
Federal Management Consulting Services

Risk Flags

Sole-source award
Lack of competition
Significant contract value

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.9 million to DELOITTE CONSULTING LLP. IGF::OT::IGF FINANCIAL IMPROVEMENT AND AUDIT READINESS (FIAR), MANAGERS INTERNAL CONTROL PROGRAM (MICP), AND STRATEGIC PLAN TRANSFORMATION PROGRAM INTEGRATION SUPPORT TO THE DEFENSE SECURITY COOPERATION AGENCY (DSCA).

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $20.9 million.

What is the period of performance?

Start: 2015-05-28. End: 2019-01-31.

What is the track record of Deloitte Consulting LLP in performing similar strategic integration and financial improvement services for federal agencies?

Deloitte Consulting LLP has a significant track record in providing a wide range of professional services to federal agencies, including strategic planning, financial management, audit readiness, and IT modernization. They are a major contractor across the Department of Defense and other civilian agencies. For DSCA specifically, their experience would likely involve supporting complex organizational transformations and compliance initiatives. A review of past performance evaluations and contract awards would provide a more detailed understanding of their success in delivering similar outcomes, including adherence to schedules, budget, and quality standards. Their extensive experience suggests a capacity to handle the scope of this contract, but specific project successes and challenges would need to be examined.

How does the awarded amount of $20.8 million compare to similar sole-source contracts for strategic planning support within the Department of Defense?

Comparing the $20.8 million award to similar sole-source contracts is challenging without access to a comprehensive database of all sole-source procurements and their specific scopes. However, for large federal agencies like the Department of Defense, multi-million dollar sole-source contracts for specialized consulting services are not uncommon, especially when dealing with complex, long-term initiatives like audit readiness and strategic transformation. The value is substantial, suggesting a significant scope of work or a prolonged period of support. A more precise comparison would require identifying contracts with identical or highly similar objectives, durations, and the specific agency components being supported, which is often difficult due to data limitations on sole-source awards.

What are the primary risks associated with a sole-source award of this magnitude for strategic integration support?

The primary risks associated with a sole-source award of this magnitude include potential overpayment due to the absence of competitive pricing, limited innovation from a lack of market exploration, and a reduced incentive for the contractor to perform exceptionally if they perceive little risk of losing future business. There's also a risk that the chosen contractor may not be the most suitable or cost-effective solution available in the market. Furthermore, sole-source awards can sometimes be perceived as lacking transparency, potentially leading to scrutiny regarding the justification for not competing the requirement. Ensuring robust oversight and clear performance metrics becomes critical to mitigate these risks.

How effective has the Financial Improvement and Audit Readiness (FIAR) program been within the Department of Defense, and how does this contract contribute to its success?

The Department of Defense's Financial Improvement and Audit Readiness (FIAR) program has been a long-standing and complex initiative aimed at achieving auditable financial statements. Progress has been incremental, with significant challenges related to the vastness and complexity of DoD's financial systems and transactions. Contracts like this one, providing integration support for FIAR, are crucial for driving forward these efforts by offering specialized expertise in areas such as process improvement, system integration, and internal control development. The effectiveness of this specific contract hinges on its ability to facilitate these improvements within DSCA, contributing to the broader DoD FIAR goals, though the overall success of FIAR is a multi-faceted challenge involving numerous programs and contractors.

What is the historical spending pattern for management and financial consulting services by Washington Headquarters Services or DSCA?

Historical spending patterns for management and financial consulting services by Washington Headquarters Services (WHS) and the Defense Security Cooperation Agency (DSCA) would likely show a consistent need for such support, particularly given their roles in managing complex defense operations and financial systems. WHS, as an overarching service provider, often procures a variety of support services. DSCA's specific needs would relate to its mission of security cooperation. Analyzing past contract awards, including their values, durations, and types (competed vs. sole-source), would reveal trends in reliance on external expertise for strategic planning, financial management, and program integration. This contract's value and sole-source nature should be viewed within this broader context of historical procurement practices.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Offices of Certified Public Accountants

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HQ001315R0006

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte & Touche LLP

Address: 1725 DUKE ST, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,861,858

Exercised Options: $20,861,858

Current Obligation: $20,861,858

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $542,567

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline