DoD's $18.6M FIAR PM Contract Awarded to Deloitte & Touche LLP

Contract Overview

Contract Amount: $18,601,916 ($18.6M)

Contractor: Deloitte & Touche LLP

Awarding Agency: Department of Defense

Start Date: 2010-09-30

End Date: 2015-09-24

Contract Duration: 1,820 days

Daily Burn Rate: $10.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PM FOR FIAR

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 $18.6 million to DELOITTE & TOUCHE LLP for work described as: PM FOR FIAR Key points: 1. Significant investment in financial improvement and audit readiness. 2. Deloitte & Touche LLP, a major player, secured the contract. 3. The contract duration spans nearly five years. 4. Focus on accounting services within the Defense sector.

Value Assessment

Rating: fair

The contract was awarded via a delivery order under a larger contract, making direct price comparison difficult. The Time and Materials pricing structure can lead to cost overruns if not managed closely.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the use of a delivery order might limit the scope of competition for this specific task.

Taxpayer Impact: Taxpayer funds are being utilized for a critical audit readiness initiative, aiming for long-term financial accountability improvements.

Public Impact

Enhances financial transparency and accountability within the Department of Defense. Supports the government's efforts to achieve audit readiness. Potential for improved financial management and reduced waste. Impacts the efficiency of defense spending oversight.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost uncertainty.
Contract duration is substantial, requiring ongoing oversight.
No small business participation noted.

Positive Signals

Full and open competition utilized.
Addresses a critical government financial management need.
Awarded to a reputable firm.

Sector Analysis

This contract falls under Other Accounting Services (NAICS 541219), a common area for government consulting. Spending in this sector is often driven by regulatory compliance and efficiency initiatives.

Small Business Impact

The data indicates no small business participation in this contract. This suggests that the prime contractor, Deloitte & Touche LLP, is handling the entire scope of work, potentially missing opportunities for small business engagement.

Oversight & Accountability

The contract's duration and value necessitate robust oversight from the Defense Finance and Accounting Service to ensure performance and cost control. Regular reviews of deliverables and expenditures are crucial.

Related Government Programs

Other Accounting Services
Department of Defense Contracting
Defense Finance and Accounting Service Programs

Risk Flags

Time and Materials pricing structure.
Lack of small business participation.
Long contract duration requires sustained oversight.
Complexity of FIAR initiative.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.6 million to DELOITTE & TOUCHE LLP. PM FOR FIAR

Who is the contractor on this award?

The obligated recipient is DELOITTE & TOUCHE LLP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Finance and Accounting Service).

What is the total obligated amount?

The obligated amount is $18.6 million.

What is the period of performance?

Start: 2010-09-30. End: 2015-09-24.

What specific FIAR objectives does this contract aim to achieve, and how will success be measured?

This contract likely supports the broader Financial Improvement and Audit Readiness (FIAR) goals of the DoD, which include achieving auditable financial statements. Success will be measured through milestones related to data validation, process improvements, and ultimately, the ability to support an independent audit of the DoD's financial information.

What are the primary risks associated with a Time and Materials contract for a project of this nature?

The primary risks with Time and Materials contracts, especially for complex projects like FIAR, include potential cost overruns due to undefined scope or scope creep, and a lack of contractor incentive to control costs. Effective government oversight and clear task definitions are critical to mitigate these risks.

How does this contract contribute to the overall effectiveness of DoD's financial management systems?

This contract contributes to the effectiveness of DoD's financial management by providing specialized expertise to address complex accounting and financial reporting challenges. By improving data quality and processes, it lays the groundwork for more accurate financial reporting, better decision-making, and enhanced accountability, ultimately strengthening the entire financial ecosystem.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting 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: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte LLP (UEI: 014127109)

Address: 1919 N LYNN ST, ARLINGTON, VA, 22209

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,601,916

Exercised Options: $18,601,916

Current Obligation: $18,601,916

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $780,492

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F8132H

IDV Type: FSS

Timeline