DoD's $12.2M logistics support contract awarded to Deloitte Consulting LLP, with 2 bidders

Contract Overview

Contract Amount: $12,214,797 ($12.2M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2025-08-21

End Date: 2026-08-20

Contract Duration: 364 days

Daily Burn Rate: $33.6K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: Other

Official Description: SUPPORT FOR LOGISTICS AND SHARED SERVICES, SUPPLY, CONTINGENCY SUPPORT, AND TRANSPORTATION

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22350

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $12.2 million to DELOITTE CONSULTING LLP for work described as: SUPPORT FOR LOGISTICS AND SHARED SERVICES, SUPPLY, CONTINGENCY SUPPORT, AND TRANSPORTATION Key points: 1. Contract aims to enhance logistics, shared services, supply chain, and transportation capabilities. 2. Awarded to a single vendor, raising questions about competitive pressure on pricing. 3. Fixed Price Level of Effort contract type suggests defined scope but potential for cost overruns if effort exceeds estimates. 4. Performance period of one year with options for extension indicates a need for ongoing support. 5. The contract falls under the 'Process, Physical Distribution, and Logistics Consulting Services' NAICS code. 6. Awarded under a Blanket Purchase Agreement (BPA) Call, suggesting a pre-negotiated framework. 7. The contractor, Deloitte Consulting LLP, has a significant presence in federal contracting.

Value Assessment

Rating: fair

The contract value of $12.2 million for a one-year period for logistics and shared services support appears within a reasonable range for large-scale federal contracts of this nature. However, without specific details on the scope of services and deliverables, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for comprehensive logistics and transportation support would be necessary for a more definitive evaluation. The fixed-price nature of the contract provides some cost certainty, but the level-of-effort component means actual costs could fluctuate based on the resources expended.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was competed under a Blanket Purchase Agreement (BPA) Call, which typically involves a pre-established contract vehicle. While it was competed, the data indicates only two bidders participated. A limited number of bidders, especially in a competitive solicitation, can sometimes lead to less aggressive pricing and potentially higher costs for the government compared to a full and open competition with numerous offers. The specific details of the BPA and the solicitation process would determine the extent of competition achieved.

Taxpayer Impact: With only two bidders, taxpayers may not have benefited from the full spectrum of competitive pricing that a larger pool of offerors could have provided, potentially leading to a higher overall cost for the services.

Public Impact

The Department of Defense (DoD) is the primary beneficiary, receiving enhanced support for critical logistics and transportation functions. Services delivered include support for shared services, supply chain management, contingency operations, and transportation. The geographic impact is likely broad, supporting DoD operations across various locations, though specific deployment details are not provided. Workforce implications may include the utilization of specialized consulting expertise from Deloitte, potentially augmenting government personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may have reduced price discovery and potentially increased costs for taxpayers.
The 'level of effort' component in a fixed-price contract introduces risk if the actual effort significantly exceeds initial estimates.
Lack of detailed performance metrics makes it difficult to assess the efficiency and effectiveness of the services provided.
The reliance on a single vendor for a year, even under a BPA call, could create dependency and limit flexibility.

Positive Signals

Awarded to a reputable contractor, Deloitte Consulting LLP, known for its extensive experience in federal contracting.
The contract falls under a BPA call, suggesting that some level of pre-qualification and negotiation has already occurred, potentially streamlining the process.
The fixed-price structure provides a degree of cost control, assuming the level of effort is well-defined and managed.
The contract duration of one year with options allows for continuity of essential logistics and transportation support.

Sector Analysis

This contract operates within the professional, scientific, and technical services sector, specifically focusing on management and technical consulting related to logistics and supply chain operations. The federal government is a significant consumer of these services to manage complex operational needs. Comparable spending benchmarks would involve analyzing other large-scale contracts for logistics support, transportation management, and shared services across various federal agencies, particularly within the Department of Defense.

Small Business Impact

The provided data indicates that small business participation (sb) is false and that the contract was not set aside for small businesses (ss is false). This suggests that the primary award was made to a large business, Deloitte Consulting LLP. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award appears minimal, and there is no indication of set-aside benefits.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices. As a BPA Call, the underlying BPA likely has its own oversight mechanisms. Accountability measures would be tied to the performance against the contract's objectives and deliverables. Transparency is facilitated by federal contract databases, but detailed operational oversight and Inspector General jurisdiction would depend on the specific nature of the services and any potential issues that arise during performance.

Related Government Programs

Department of Defense Logistics Support Contracts
Federal Supply Chain Management Services
Government Transportation Services
Shared Services Agreements
Management and Consulting Services

Risk Flags

Limited Competition
Potential for Cost Overruns (Level of Effort)
Lack of Small Business Participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.2 million to DELOITTE CONSULTING LLP. SUPPORT FOR LOGISTICS AND SHARED SERVICES, SUPPLY, CONTINGENCY SUPPORT, AND TRANSPORTATION

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 $12.2 million.

What is the period of performance?

Start: 2025-08-21. End: 2026-08-20.

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

Deloitte Consulting LLP has a substantial history of contracting with the Department of Defense across various service areas, including logistics, IT, and management consulting. Analyzing their past performance on similar contracts would involve reviewing contract databases for awards related to supply chain optimization, transportation management, and shared services. Key indicators would include contract values, duration, performance reviews, and any instances of contract disputes or terminations. A review of their historical engagement with DoD would likely reveal a pattern of successfully managing large-scale, complex projects, though specific details on this particular type of support would require deeper investigation into their portfolio.

How does the $12.2 million value compare to other federal contracts for logistics and shared services support?

The $12.2 million contract value for a one-year period of logistics and shared services support is a significant but not extraordinary amount within the federal contracting landscape, especially for the Department of Defense. Large federal agencies frequently award contracts in the tens or hundreds of millions for comprehensive support. To benchmark effectively, one would compare this to contracts with similar scopes of work (e.g., end-to-end supply chain management, contingency logistics, transportation network optimization) awarded by DoD or other large agencies like the General Services Administration (GSA) or the Department of Homeland Security (DHS). The 'level of effort' component also means the actual expenditure could vary, making direct comparisons to fixed-price, outcome-based contracts less precise.

What are the primary risks associated with a 'Fixed Price Level of Effort' contract type for logistics support?

The primary risks with a Fixed Price Level of Effort (FPLE) contract for logistics support revolve around the potential for the contractor to expend more effort than initially estimated, leading to reduced profit margins for the contractor, or conversely, for the government to pay for effort that does not yield the desired outcomes if not closely monitored. For the government, the risk is that the contractor may pace their work to meet the estimated effort rather than optimizing for efficiency, or that the defined 'level of effort' might prove insufficient to achieve the full scope of objectives. Effective oversight is crucial to ensure the contractor is working efficiently and that the effort aligns with the government's needs and objectives.

What does the limited competition (2 bidders) imply for the government's ability to secure optimal pricing and innovation?

Limited competition, such as only two bidders responding to a solicitation, generally implies a reduced ability for the government to secure optimal pricing and foster innovation. With fewer offerors, the competitive pressure to offer the lowest price and the most innovative solutions is diminished. Each bidder knows the pool of competitors is small, potentially allowing them to price more conservatively or focus on meeting minimum requirements rather than exceeding them. This scenario can lead to higher costs for the government and less incentive for contractors to invest in novel approaches or efficiencies, as the risk of losing the contract to a more competitive offer is lower.

How does this contract fit into the broader context of federal spending on logistics and support services?

This contract represents a component of the substantial federal spending dedicated to logistics and support services, which are critical for the operational readiness and effectiveness of agencies like the Department of Defense. Federal spending in this area encompasses a wide range of activities, from supply chain management and transportation to maintenance, repair, and operational support. Contracts like this one, often awarded through various vehicles including BPAs, are essential for augmenting government capabilities and accessing specialized expertise. The overall trend in federal logistics spending is influenced by geopolitical factors, modernization efforts, and the need for efficient resource management across diverse operational environments.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services

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

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: HQ003425RE081

Offers Received: 2

Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)

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: $64,844,768

Exercised Options: $12,214,797

Current Obligation: $12,214,797

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $14,726,687

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: HQ003416A0015

IDV Type: BPA

Timeline