DoD's Defense Health Agency Spends $30M on Deloitte Consulting for Program Management Support
Contract Overview
Contract Amount: $29,992,026 ($30.0M)
Contractor: Deloitte Consulting LLP
Awarding Agency: Department of Defense
Start Date: 2021-10-01
End Date: 2022-09-30
Contract Duration: 364 days
Daily Burn Rate: $82.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: PROGRAM MANAGEMENT SUPPORT SERVICES INCLUDING CONFIGURATION MANAGEMENT AND OTHER BUSINESS, TECHNICAL AND ADMINISTRATION FUNCTIONS AND ACTIVITIES
Place of Performance
Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $30.0 million to DELOITTE CONSULTING LLP for work described as: PROGRAM MANAGEMENT SUPPORT SERVICES INCLUDING CONFIGURATION MANAGEMENT AND OTHER BUSINESS, TECHNICAL AND ADMINISTRATION FUNCTIONS AND ACTIVITIES Key points: 1. Significant contract awarded to a major consulting firm, Deloitte Consulting LLP. 2. Services encompass program management, configuration management, and administrative functions. 3. The contract was awarded under a full and open competition. 4. The total award value is approximately $30 million over one year. 5. The NAICS code 541611 indicates a focus on management consulting services.
Value Assessment
Rating: good
The contract value of $30 million for a one-year period appears reasonable for comprehensive program management support services. Benchmarking against similar large-scale consulting contracts for federal agencies would provide further context on pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple vendors had the opportunity to bid.
Taxpayer Impact: The competitive award process likely ensured taxpayer funds were used efficiently for these essential program management services.
Public Impact
Ensures continuity and effectiveness of critical defense health programs. Supports administrative and technical functions within the Defense Health Agency. Leverages expertise from a leading consulting firm to manage complex operations. Potential for improved efficiency and outcomes in healthcare delivery for service members and their families.
Waste & Efficiency Indicators
Waste Risk Score: 85 / 10
Positive Signals
- Full and open competition ensures market-driven pricing.
- Award to a reputable firm suggests capability and experience.
- Services directly support critical healthcare functions for the DoD.
Sector Analysis
The Defense Health Agency operates within the healthcare sector, requiring specialized management and administrative support. Spending on program management services is common in large federal agencies to ensure efficient operations and project execution.
Small Business Impact
This contract was awarded to Deloitte Consulting LLP and did not indicate any specific set-aside for small businesses. Therefore, the direct impact on small businesses is likely minimal, though subcontractors could be involved.
Oversight & Accountability
The contract was awarded under a BPA Call, which is a mechanism for streamlining procurement. Oversight would involve monitoring performance against contract requirements and ensuring adherence to terms and conditions.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Defense Health Agency Programs
Risk Flags
- Potential for cost overruns if scope creeps.
- Dependence on a single large contractor for critical functions.
- Ensuring adequate knowledge transfer and documentation for future contracts.
Tags
administrative-management-and-general-ma, department-of-defense, va, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $30.0 million to DELOITTE CONSULTING LLP. PROGRAM MANAGEMENT SUPPORT SERVICES INCLUDING CONFIGURATION MANAGEMENT AND OTHER BUSINESS, TECHNICAL AND ADMINISTRATION FUNCTIONS AND ACTIVITIES
Who is the contractor on this award?
The obligated recipient is DELOITTE CONSULTING LLP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Health Agency).
What is the total obligated amount?
The obligated amount is $30.0 million.
What is the period of performance?
Start: 2021-10-01. End: 2022-09-30.
What specific metrics are used to evaluate the effectiveness of Deloitte's program management support?
The contract likely includes performance work statements (PWS) with specific deliverables and key performance indicators (KPIs). These could include metrics related to project timelines, budget adherence, quality of reports, successful implementation of configuration management, and overall stakeholder satisfaction. Regular performance reviews would assess adherence to these metrics.
What is the risk of vendor lock-in or over-reliance on Deloitte for these critical functions?
The risk of vendor lock-in is moderate given the specialized nature of program management and configuration support. However, the full and open competition award mechanism and the defined contract period (one year) mitigate this risk by allowing for re-competition. The DHA should ensure knowledge transfer and documentation are robust.
How does this spending align with the Defense Health Agency's strategic goals for modernization and efficiency?
This spending directly supports the DHA's strategic goals by providing the necessary management and administrative infrastructure to execute its programs effectively. Efficient program management and configuration control are foundational for modernizing healthcare systems and improving operational efficiency, ultimately benefiting service members.
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
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: $29,992,026
Exercised Options: $29,992,026
Current Obligation: $29,992,026
Actual Outlays: $4,706,169
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $16,831,576
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HT001120A1011
IDV Type: BPA
Timeline
Start Date: 2021-10-01
Current End Date: 2022-09-30
Potential End Date: 2022-09-30 00:00:00
Last Modified: 2025-02-27
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