DoD awards $13M contract for financial improvement and audit remediation support to Deloitte & Touche LLP

Contract Overview

Contract Amount: $13,010,091 ($13.0M)

Contractor: Deloitte & Touche LLP

Awarding Agency: Department of Defense

Start Date: 2025-03-15

End Date: 2026-03-14

Contract Duration: 364 days

Daily Burn Rate: $35.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FINANCIAL IMPROVEMENT AND AUDIT REMEDIATION SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.0 million to DELOITTE & TOUCHE LLP for work described as: FINANCIAL IMPROVEMENT AND AUDIT REMEDIATION SUPPORT SERVICES Key points: 1. Contract aims to enhance financial management and audit readiness within the Department of Defense. 2. Deloitte & Touche LLP, a major consulting firm, brings extensive experience in financial services and government contracting. 3. The contract is a firm-fixed-price delivery order, indicating a defined scope and cost. 4. Awarded under full and open competition, suggesting a competitive bidding process. 5. The duration of one year (364 days) allows for focused, short-term support. 6. This award aligns with ongoing government-wide efforts to improve financial accountability and audit compliance.

Value Assessment

Rating: good

The contract value of $13,010,090.61 for one year of financial improvement and audit remediation support appears reasonable given the complexity of DoD's financial systems. Benchmarking against similar large-scale financial consulting contracts for federal agencies suggests this pricing is within expected ranges. The firm-fixed-price structure provides cost certainty for the government, although it relies on accurate initial scope definition.

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 bids. The presence of multiple bidders in such a competitive environment typically drives down prices and encourages innovation. The specific number of bidders was not provided, but the category indicates a robust market engagement.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring the government receives competitive pricing and the best value for its investment, reducing the risk of overpayment.

Public Impact

The Department of Defense will benefit from improved financial accuracy and audit compliance. Services delivered will focus on financial improvement and audit remediation, critical for federal financial management. The geographic impact is primarily within the Washington D.C. metropolitan area, where Washington Headquarters Services is located. The contract supports a specialized workforce of financial analysts and consultants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not precisely defined.
Reliance on a single contractor for critical financial functions could pose a risk if performance falters.

Positive Signals

Award to a well-established firm with a proven track record in government contracting.
Firm-fixed-price contract provides budget predictability.
Competition ensures market-tested solutions and pricing.

Sector Analysis

This contract falls within the professional services sector, specifically IT and financial consulting for government clients. The market for financial improvement and audit remediation services is substantial, driven by regulatory requirements like the Federal Financial Management Improvement Act and the Federal Managers' Financial Integrity Act. Spending in this area is consistent across various large federal agencies seeking to modernize their financial systems and achieve auditability.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While Deloitte & Touche LLP is a large business, there may be opportunities for small businesses to participate as subcontractors, depending on the specific task orders and Deloitte's subcontracting plan. The primary awardee's size suggests a focus on large-scale, complex service delivery.

Oversight & Accountability

Oversight for this contract will likely be managed by Washington Headquarters Services (WHS) contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, requiring delivery of specified services within budget. Transparency is facilitated through federal procurement databases where contract awards are publicly reported. Inspector General jurisdiction may apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Financial Improvement and Audit Remediation (FIAR) Support
Department of Defense Financial Management Systems
Federal Consulting Services
Audit Liaison Services
Government Financial Reporting

Risk Flags

Potential for performance issues impacting critical financial operations.
Risk of scope creep if initial requirements are not precisely defined.
Over-reliance on a single vendor for specialized financial expertise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.0 million to DELOITTE & TOUCHE LLP. FINANCIAL IMPROVEMENT AND AUDIT REMEDIATION SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is DELOITTE & TOUCHE LLP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $13.0 million.

What is the period of performance?

Start: 2025-03-15. End: 2026-03-14.

What is Deloitte & Touche LLP's track record with similar federal financial improvement contracts?

Deloitte & Touche LLP has a significant history of performing financial management, audit, and IT consulting services for various federal agencies, including the Department of Defense. They have been involved in numerous large-scale financial system modernization and audit remediation efforts. Their experience often includes supporting agencies in achieving auditability, implementing financial controls, and improving financial reporting processes. Publicly available contract databases often show a consistent pattern of awards to Deloitte for complex financial services across multiple departments, indicating a strong and established presence in this market segment.

How does the $13 million award compare to previous spending on similar services by the DoD?

The $13 million award for one year of financial improvement and audit remediation support is a substantial but not unprecedented figure for the Department of Defense. DoD's financial management modernization and audit efforts are complex and require significant investment. Annual spending on such services can fluctuate based on specific audit findings, system upgrade cycles, and strategic initiatives. Historically, DoD has awarded multi-year contracts in the tens or hundreds of millions for comprehensive financial system support and audit readiness, making this $13 million delivery order a focused component within a larger, ongoing financial improvement strategy.

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

Key risks include potential scope creep if requirements are not clearly defined, contractor performance issues impacting critical financial operations, and reliance on a single vendor. Mitigation strategies involve robust contract management by Washington Headquarters Services, including detailed performance metrics and regular progress reviews. The firm-fixed-price nature of the contract incentivizes the contractor to manage costs and adhere to the defined scope. Furthermore, the competitive award process helps ensure the selection of a capable vendor, and contingency planning within DoD's financial management structure can address potential disruptions.

How effective are financial improvement and audit remediation services in achieving DoD's auditability goals?

These services are crucial for achieving DoD's auditability goals. They provide the specialized expertise, analytical tools, and process improvements necessary to address complex financial data, implement internal controls, and prepare for and pass financial statement audits. While these services are essential, their effectiveness is contingent on strong government leadership, clear strategic direction, adequate resource allocation, and the contractor's ability to deliver actionable insights and implement sustainable solutions. Success is measured by progress towards audit readiness, reduction in audit findings, and improved financial transparency and accountability.

What is the historical spending trend for financial improvement and audit remediation support services within the federal government?

Federal spending on financial improvement and audit remediation support services has been on a generally upward trend over the past decade, driven by legislative mandates and increased focus on accountability. Agencies like the DoD, GSA, and HHS consistently award significant contracts in this domain. This trend reflects the ongoing challenges federal agencies face in modernizing legacy financial systems, consolidating data, and meeting stringent audit requirements. Spending is often concentrated among large consulting firms and system integrators capable of handling the scale and complexity of government-wide financial management initiatives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $38,786,381

Exercised Options: $13,074,058

Current Obligation: $13,010,091

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,397,460

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00F029DA

IDV Type: FSS

Timeline