Deloitte Consulting LLP awarded $42.6M contract for administrative management services by Department of Defense

Contract Overview

Contract Amount: $42,590,185 ($42.6M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2018-09-28

End Date: 2024-03-27

Contract Duration: 2,007 days

Daily Burn Rate: $21.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PWS TASKS 3.1-3.3; IGF::OT::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $42.6 million to DELOITTE CONSULTING LLP for work described as: PWS TASKS 3.1-3.3; IGF::OT::IGF Key points: 1. Contract awarded via BPA Call, indicating a pre-competed framework. 2. Services encompass administrative management and general management consulting. 3. Contract duration is substantial at 2007 days. 4. The contract is firm-fixed-price, shifting risk to the contractor. 5. No small business set-aside was utilized. 6. The contract is for services within the District of Columbia. 7. The North American Industry Classification System (NAICS) code is 541611.

Value Assessment

Rating: fair

The contract's value of $42.6 million over approximately 5.5 years suggests a significant investment in consulting services. Benchmarking this against similar contracts for administrative and management consulting within the Department of Defense is crucial for a true value assessment. Without specific performance metrics or comparison data, it's difficult to definitively state if this represents excellent value. The firm-fixed-price nature provides cost certainty but requires careful scope management to avoid scope creep.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The fact that it was a BPA Call indicates that a broader competition likely occurred to establish the Basic Ordering Agreement (BOA) from which this call was made. The number of bidders for the specific call is not provided, but the initial competition for the BPA should have fostered price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging a wider range of offers, potentially leading to more competitive pricing and innovative solutions.

Public Impact

The Department of Defense benefits from enhanced administrative and management consulting services. Services are delivered within the Washington Headquarters Services, impacting operations in the District of Columbia. The contract supports the agency's general management and administrative functions. Workforce implications are likely related to the integration of external consulting expertise with internal government staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on external consultants for core functions.
Scope creep could increase costs beyond initial projections if not managed tightly.
Ensuring knowledge transfer to internal staff is critical for long-term sustainability.

Positive Signals

Firm-fixed-price contract structure provides cost predictability.
Full and open competition suggests a competitive bidding process.
BPA Call mechanism implies a pre-vetted and potentially efficient procurement method.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The market for government consulting services is substantial, with agencies like the Department of Defense being major clients. This contract likely supports the agency's efforts to improve efficiency, implement new strategies, or manage complex administrative processes. Comparable spending benchmarks would involve looking at other large-scale consulting contracts awarded to major firms within the federal government.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business, and the direct impact on the small business ecosystem may be limited unless Deloitte actively engages small businesses as subcontractors. Further investigation into subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Defense. The firm-fixed-price nature provides a degree of accountability for performance within the agreed-upon cost. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Administrative Support Contracts
Management and Consulting Services for Federal Agencies
Basic Ordering Agreements (BOAs) and Blanket Purchase Agreements (BPAs)
Federal IT and Management Consulting Spending

Risk Flags

Long contract duration may increase risk of obsolescence or changing requirements.
Lack of specific performance metrics in provided data hinders value assessment.
Potential for scope creep in large consulting engagements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.6 million to DELOITTE CONSULTING LLP. PWS TASKS 3.1-3.3; IGF::OT::IGF

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 $42.6 million.

What is the period of performance?

Start: 2018-09-28. End: 2024-03-27.

What specific deliverables or outcomes were expected from Deloitte Consulting LLP under this contract?

The provided data does not detail the specific deliverables or outcomes. However, given the NAICS code 541611 (Administrative Management and General Management Consulting Services) and the awarding agency (Department of Defense), the expected outcomes likely relate to improving organizational efficiency, strategic planning, process optimization, or implementing management best practices within the Washington Headquarters Services. The Performance Work Statement (PWS) tasks, mentioned as 'PWS TASKS 3.1-3.3; IGF::OT::IGF', would contain the granular details of these expectations, but are not accessible here. A thorough review of the PWS would be necessary to understand the precise scope of work and expected results.

How does the $42.6 million contract value compare to similar administrative management consulting contracts awarded by the DoD?

Comparing the $42.6 million contract value requires access to a broader dataset of similar contracts. However, for a contract spanning approximately 5.5 years (2007 days), this value suggests a substantial engagement. Large federal agencies like the DoD frequently award multi-million dollar contracts for consulting services. The average value can vary significantly based on the specific services, duration, and complexity. Without comparative data on the number of bidders, specific service levels, and contract durations for similar DoD consulting contracts, it's challenging to definitively label this as high or low. However, it represents a significant investment in external expertise.

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

The primary risk with a firm-fixed-price (FFP) contract of this magnitude and duration is the potential for the contractor to cut corners on quality or scope to maintain profitability if costs escalate unexpectedly. Conversely, the government bears the risk of paying a premium if the contractor's actual costs are significantly lower than anticipated. For the government, effective oversight is crucial to ensure the contractor meets all performance requirements. Scope creep is another significant risk; if the requirements evolve, managing changes under an FFP contract can lead to disputes or costly modifications. The long duration also increases the risk of the contracted services becoming outdated or misaligned with evolving agency needs.

What is the track record of Deloitte Consulting LLP in performing similar federal contracts?

Deloitte Consulting LLP is a major global professional services firm with extensive experience in performing a wide array of contracts for the U.S. federal government, including the Department of Defense. They have a well-established track record in areas such as management consulting, technology implementation, cybersecurity, and financial management. While specific performance ratings for individual contracts are often proprietary or require access to government past performance databases (like the Contractor Performance Assessment Reporting System - CPARS), Deloitte is generally considered a capable and experienced contractor for large-scale federal engagements. Their ability to secure contracts like this one, awarded under full and open competition, suggests a history of successful performance and competitive pricing.

How has federal spending on administrative management and general management consulting services trended over the past five years?

Federal spending on administrative management and general management consulting services (NAICS code 541611) has generally seen fluctuations but has remained a significant category within federal procurement. Agencies like the Department of Defense, Health and Human Services, and Veterans Affairs are consistent large spenders in this area, seeking expertise to improve operational efficiency, manage complex programs, and implement policy changes. While specific year-over-year percentage changes require detailed analysis of federal procurement data (e.g., from FPDS or USAspending.gov), the overall trend indicates a sustained demand for these services, driven by the need for specialized knowledge and the government's focus on modernization and efficiency improvements across various departments.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

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: $42,603,185

Exercised Options: $42,603,185

Current Obligation: $42,590,185

Actual Outlays: $3,339,679

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $5,098,683

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ003417A0013

IDV Type: BPA

Timeline