DoD's $29.6M Deloitte contract for policy support shows fair value, but limited competition raises concerns

Contract Overview

Contract Amount: $29,648,607 ($29.6M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2022-09-23

End Date: 2026-09-22

Contract Duration: 1,460 days

Daily Burn Rate: $20.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INDUSTRIAL BASE POLICY TECHNICAL SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $29.6 million to DELOITTE CONSULTING LLP for work described as: INDUSTRIAL BASE POLICY TECHNICAL SUPPORT SERVICES Key points: 1. Contract awarded to a large, established firm with a strong track record. 2. Pricing appears competitive based on industry benchmarks for similar services. 3. Risk indicators are moderate, with no significant performance issues reported. 4. This contract supports essential policy development and administrative functions within the Department of Defense. 5. The services fall within the broad management consulting sector, a common area for federal procurement. 6. The contract's duration and value are typical for this type of support service.

Value Assessment

Rating: good

The contract's value appears reasonable when benchmarked against similar administrative and management consulting services procured by the federal government. Deloitte Consulting LLP is a well-established provider, and the firm-fixed-price structure suggests a degree of cost certainty. While specific per-unit cost data is not provided, the overall award amount aligns with the scope of technical support and policy analysis expected for a contract of this nature and duration. Further analysis would require detailed breakdowns of labor categories and hours.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of three bidders suggests a reasonable level of competition for this type of specialized support. This competitive process should have contributed to price discovery and ensured that the government received a fair offer. However, the specific details of the bidding process, such as the number of proposals received and the evaluation criteria, are not fully detailed.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality. It ensures that the government explores a wide range of potential providers, maximizing the chances of securing the best value.

Public Impact

The Department of Defense benefits from enhanced policy development and administrative support. Services delivered include general management and administrative consulting, aiding in operational efficiency. The geographic impact is primarily within the Washington D.C. metropolitan area, where the agency is located. The contract supports a workforce of skilled consultants, contributing to the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in due to the long-term nature of the contract.
Reliance on a single large contractor may limit opportunities for smaller, specialized firms.
Scope creep could increase costs if not managed tightly.
The broad nature of 'policy support' could lead to ambiguity in deliverables.

Positive Signals

Award to a reputable contractor with a proven track record.
Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a robust selection process.
Contract duration allows for continuity of essential services.
Services align with core agency functions, indicating strategic importance.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. This sector is a significant component of federal spending, supporting a wide array of government functions. Comparable spending benchmarks for administrative and management consulting services often range from tens of thousands to millions of dollars annually, depending on the scope and duration. The $29.6 million award over four years is substantial but not unusual for comprehensive support to a major federal agency like the Department of Defense.

Small Business Impact

The contract was not set aside for small businesses, and the prime contractor, Deloitte Consulting LLP, is a large corporation. There is no explicit information regarding small business subcontracting plans within the provided data. This suggests that the primary focus was on securing specialized expertise from a large, established firm, potentially limiting direct opportunities for small businesses as prime contractors on this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Washington Headquarters Services. Performance monitoring, adherence to contract terms, and quality assurance are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Management Consulting Services
Federal Administrative Support Contracts
Policy Development and Analysis Services
Professional Services Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts

Risk Flags

Potential for scope creep due to broad service definition.
Long-term reliance on a single large contractor.
Limited visibility into specific performance metrics.
Contract duration may exceed immediate needs if priorities shift.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.6 million to DELOITTE CONSULTING LLP. INDUSTRIAL BASE POLICY TECHNICAL SUPPORT SERVICES

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 $29.6 million.

What is the period of performance?

Start: 2022-09-23. End: 2026-09-22.

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

Deloitte Consulting LLP has a substantial history of contracting with the Department of Defense across various service areas, including management consulting, IT support, and strategic planning. Their extensive experience with federal agencies, particularly DoD, suggests a deep understanding of government processes and requirements. While specific performance metrics for this particular contract are not detailed, Deloitte's general reputation and past performance on similar large-scale contracts indicate a capacity to deliver complex policy and administrative support services. Their ability to secure and execute such contracts signifies a level of trust and proven capability within the defense sector.

How does the per-contractor cost compare to other full-and-open competition contracts for similar policy support services?

Benchmarking the per-contractor cost requires detailed data on the specific services rendered and the labor mix. However, given the $29.6 million total award over approximately four years, the average annual value is around $7.4 million. For full-and-open competition contracts involving comprehensive policy and administrative support for a major agency like the DoD, this annual value is within a reasonable range. Contracts of this nature often involve high-level strategic advice, research, and analysis, justifying significant investment. Without specific breakdowns of labor hours, rates, and deliverables, a precise comparison is difficult, but the overall contract value appears aligned with market rates for large-scale consulting engagements.

What are the primary risk indicators associated with this contract, and how are they being mitigated?

Primary risk indicators for this contract include potential scope creep, reliance on a single large contractor, and the inherent complexity of policy development. Scope creep is a risk because the definition of 'policy support' can be broad, potentially leading to expanded tasks beyond the original intent. Mitigation involves clear task orders, regular performance reviews, and strong contract management by the COR. Reliance on a large firm like Deloitte can limit flexibility and potentially higher costs over time; this is mitigated by the initial competitive bidding process. The complexity of policy work is managed through defined deliverables, milestones, and quality assurance checks. The firm-fixed-price nature also helps mitigate cost overrun risks.

How effective has this contract been in achieving its stated objectives of providing policy support to the DoD?

Assessing the effectiveness of this contract requires access to performance reports, user feedback from the Department of Defense, and specific metrics related to policy development outcomes. The provided data focuses on the contract's award details rather than its operational performance. Generally, contracts of this nature aim to improve policy clarity, efficiency, and strategic alignment within the agency. Effectiveness would be measured by the quality of policy recommendations, the timeliness of support, and the extent to which DoD leadership finds the delivered analysis valuable for decision-making. Without specific performance data or testimonials, a definitive judgment on effectiveness cannot be made.

What are the historical spending patterns for similar policy support services within the Department of Defense?

Historical spending patterns for policy support services within the Department of Defense are substantial and varied, reflecting the agency's vast scope and complex needs. DoD frequently procures management and administrative consulting services, often through large, multi-year contracts awarded via full and open competition or other competitive methods. Annual spending in this category can range from tens of millions to hundreds of millions of dollars, depending on strategic priorities and specific project requirements. Contracts like this one, valued at approximately $7.4 million annually, represent a typical investment for specialized, high-level support aimed at enhancing policy formulation and implementation across various defense functions.

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: $54,250,504

Exercised Options: $40,492,409

Current Obligation: $29,648,607

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $5,961,142

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ003417A0013

IDV Type: BPA

Timeline