DoD's $17.9M consulting contract with Deloitte awarded via full and open competition

Contract Overview

Contract Amount: $17,931,398 ($17.9M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2020-02-08

End Date: 2025-08-08

Contract Duration: 2,008 days

Daily Burn Rate: $8.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: STRATEGY, PLANS&PROGRAMS SUPPORT

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 $17.9 million to DELOITTE CONSULTING LLP for work described as: STRATEGY, PLANS&PROGRAMS SUPPORT Key points: 1. Contract awarded to a large, established consulting firm with a significant federal presence. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. Competition was robust, indicating potential for competitive pricing and value. 4. The contract duration is substantial, suggesting a long-term need for these services. 5. The North American Industry Classification System (NAICS) code points to general management consulting services. 6. The contract is managed by Washington Headquarters Services, a key administrative body within the DoD. 7. The contract is a BPA Call, indicating it's part of a larger pre-negotiated agreement.

Value Assessment

Rating: good

The contract's firm fixed price structure is a positive indicator for cost control. While specific performance metrics are not detailed here, the competitive award suggests that the pricing was deemed reasonable at the time of award. Benchmarking against similar administrative and management consulting services for the Department of Defense would provide further insight into the value proposition. The long duration (over 5 years) implies a sustained need, and the fixed price helps manage expectations over this period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The presence of 3 bidders suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and ensures that the government receives offers from multiple qualified vendors, increasing the likelihood of selecting the best value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces and ensures that government funds are used efficiently by selecting the most cost-effective solution.

Public Impact

The Department of Defense benefits from strategic planning and program support services. This contract supports administrative functions within the Washington Headquarters Services. The primary geographic impact is within the District of Columbia. The contract likely supports a workforce of consultants, contributing to the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to potential scope creep if not managed tightly.
Reliance on a single large contractor may limit future flexibility or innovation.
The specific deliverables and performance standards are not detailed, posing a potential risk if not clearly defined.

Positive Signals

Firm Fixed Price contract shifts cost risk to the contractor.
Awarded through full and open competition, indicating a competitive market.
Contractor is a well-established firm with extensive federal contracting experience.
BPA Call structure suggests efficiency within a pre-negotiated framework.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This is a significant sector for federal spending, supporting a wide range of agency operations. The total federal spending on management consulting services is substantial, and this contract represents a portion of the Department of Defense's investment in such support. Benchmarking against similar contracts within the DoD for management consulting would reveal its relative scale.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). As a result, small businesses are unlikely to be direct beneficiaries of this award. However, the prime contractor, Deloitte Consulting LLP, may engage small businesses as subcontractors to fulfill specific aspects of the contract, though this is not explicitly stated in the provided data. The absence of a set-aside means the primary competition was open to all responsible sources, including large businesses.

Oversight & Accountability

The contract is managed by Washington Headquarters Services, which is responsible for overseeing administrative functions within the DoD. Oversight mechanisms would typically involve contract performance reviews, milestone tracking, and financial reporting. As a federal contract, it is subject to oversight by the Department of Defense's Inspector General and potentially the Government Accountability Office (GAO) for bid protests or performance audits. Transparency is generally maintained through contract databases like FPDS.

Related Government Programs

Department of Defense Management and Consulting Services
Washington Headquarters Services Contracts
Administrative Management and General Management Consulting Services
Federal Strategic Planning Support
BPA Call Contracts

Risk Flags

Long contract duration
Potential for scope creep
Reliance on a single large contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.9 million to DELOITTE CONSULTING LLP. STRATEGY, PLANS&PROGRAMS SUPPORT

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 $17.9 million.

What is the period of performance?

Start: 2020-02-08. End: 2025-08-08.

What is Deloitte Consulting LLP's track record with the Department of Defense?

Deloitte Consulting LLP has a substantial track record of contracting with the Department of Defense, as well as other federal agencies. Their experience spans a wide array of services, including IT, management consulting, cybersecurity, and financial management. The firm is a major player in the federal contracting space, consistently awarded significant contracts. Reviewing historical award data would reveal the volume and types of services they have provided to the DoD. Their long-standing presence suggests a capacity to meet the complex needs of the department, though it also means they are a large, established entity, which can sometimes be associated with higher price points compared to smaller, niche providers.

How does the value of this contract compare to similar consulting contracts within the DoD?

The $17.9 million value over approximately five years (February 2020 to August 2025) places this contract in the mid-to-large tier for consulting services within the Department of Defense. Many DoD consulting contracts can range from a few million to tens or even hundreds of millions of dollars, depending on the scope and duration. This specific contract's value is consistent with support for strategic plans and programs, which often require extensive analysis and planning. A direct comparison would require identifying contracts with similar NAICS codes (541611) and service descriptions awarded by DoD entities during a comparable timeframe. However, the full and open competition suggests the pricing was deemed competitive at the time of award.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks include potential scope creep, contractor performance issues, and cost overruns (though mitigated by FFP). Scope creep is a risk in long-term contracts; mitigation involves robust contract management, clear statement of work, and change control processes. Contractor performance risk is managed through performance monitoring, defined metrics, and potential remedies for non-performance. The Firm Fixed Price (FFP) structure inherently mitigates cost overrun risk for the government by placing that burden on the contractor. However, FFP can sometimes lead to contractors cutting corners if not adequately monitored for quality. The long duration also poses a risk of the contracted services becoming outdated if not regularly reviewed and adapted.

How effective are consulting contracts like this in achieving DoD's strategic goals?

The effectiveness of consulting contracts in achieving DoD's strategic goals is highly dependent on the clarity of objectives, the quality of the contractor's work, and the government's ability to integrate the contractor's recommendations. Contracts for 'Strategy, Plans & Programs Support' are intended to provide expertise and analytical capacity that may be lacking internally or to offer an objective external perspective. When well-defined and managed, these contracts can lead to improved strategic planning, more efficient program execution, and better decision-making. However, effectiveness can be hampered by poorly defined requirements, lack of government oversight, or a failure to act upon the contractor's findings. The long-term nature and significant value suggest a perceived need and potential for impact.

What are the historical spending patterns for administrative management and general management consulting services within the DoD?

The Department of Defense is a consistent and significant spender on administrative management and general management consulting services, as indicated by the NAICS code 541611. Historical data shows substantial annual outlays in this category, reflecting the complexity of managing a large military organization. Spending often fluctuates based on strategic priorities, budget cycles, and specific program needs. Major events or shifts in defense strategy can lead to increased demand for consulting services related to organizational restructuring, process improvement, and policy development. The DoD's reliance on external expertise in this area is a long-standing pattern, driven by the need for specialized skills and objective analysis across its vast operations.

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

Solicitation ID: HQ003415R0054

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: $18,445,753

Exercised Options: $18,093,431

Current Obligation: $17,931,398

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,523,174

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ003415A0040

IDV Type: BPA

Timeline