Deloitte Consulting LLP awarded $21.6M for clinical knowledge sustainment, facing 5 bidders in a full and open competition

Contract Overview

Contract Amount: $21,659,068 ($21.7M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2021-07-30

End Date: 2026-09-30

Contract Duration: 1,888 days

Daily Burn Rate: $11.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: THE TASK 5 VENDOR WILL PROVIDE SUPPORT FOR CLINICAL KNOWLEDGE, SKILLS AND ABILITIES (KSA) SUSTAINMENT AND DEVELOPMENT.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $21.7 million to DELOITTE CONSULTING LLP for work described as: THE TASK 5 VENDOR WILL PROVIDE SUPPORT FOR CLINICAL KNOWLEDGE, SKILLS AND ABILITIES (KSA) SUSTAINMENT AND DEVELOPMENT. Key points: 1. The contract focuses on critical clinical knowledge sustainment and development, indicating a need for ongoing expertise. 2. A full and open competition with 5 bidders suggests a healthy market for these specialized consulting services. 3. The firm-fixed-price contract type shifts performance risk to the contractor, potentially leading to cost efficiencies. 4. The contract duration of nearly 4 years (1888 days) points to a long-term strategic need for these services. 5. The administrative management and general management consulting services NAICS code (541611) is broad, but the specific tasking is focused on clinical KSA. 6. The award to Deloitte, a large established firm, suggests a preference for proven capabilities in complex healthcare support. 7. The contract is a delivery order under a larger contract vehicle, implying a streamlined procurement process for established needs.

Value Assessment

Rating: good

The total award of $21.6 million over approximately 4 years for clinical knowledge sustainment appears reasonable given the specialized nature of the services. Benchmarking against similar contracts for large-scale consulting support in the defense healthcare sector would provide a more precise value assessment. However, the competitive nature of the award suggests that pricing was scrutinized. The firm-fixed-price structure is generally favorable for the government when scope is well-defined, as it caps potential cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, with five vendors submitting bids. This indicates that the Defense Health Agency actively sought a broad range of qualified contractors. The presence of multiple bidders generally fosters price competition and encourages contractors to offer their best value propositions to secure the award. The level of competition suggests that the market is sufficiently robust to support this type of specialized consulting service.

Taxpayer Impact: A full and open competition with multiple bidders is beneficial for taxpayers as it drives down costs through competitive pricing and ensures the government receives the best possible value for its investment.

Public Impact

Military healthcare providers and personnel will benefit from sustained and developed clinical knowledge, enhancing readiness and patient care. The services delivered will support the ongoing training and competency of healthcare professionals within the Department of Defense. The geographic impact is likely widespread, supporting military health facilities across various locations where DoD personnel are stationed. Workforce implications include the potential for specialized consulting roles and the indirect impact on military healthcare professionals' skill sets.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of 'clinical knowledge sustainment and development' is not tightly managed.
Reliance on a single large contractor for critical knowledge sustainment could pose a risk if performance falters.
The long-term nature of the contract may require ongoing monitoring to ensure continued relevance and effectiveness of services.

Positive Signals

The full and open competition indicates a robust market and likely competitive pricing.
The firm-fixed-price contract type transfers performance risk to the contractor.
The award to a well-established firm like Deloitte suggests a high likelihood of successful execution.
The contract addresses a critical need for maintaining and advancing clinical expertise within the military healthcare system.

Sector Analysis

The healthcare consulting sector is a significant market driven by the complex needs of government agencies, particularly in defense and public health. The Department of Defense's Defense Health Agency requires specialized expertise to maintain the high standards of clinical knowledge for its medical personnel. This contract fits within the broader category of professional services supporting healthcare operations and readiness. Comparable spending benchmarks would likely be found in contracts for medical training, simulation, and knowledge management systems within the federal government.

Small Business Impact

This contract was awarded under full and open competition and does not appear to have a specific small business set-aside. While Deloitte Consulting LLP is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on Deloitte's strategy and the specific requirements of the task orders issued under this contract. Further analysis of subcontracting plans would be needed to assess the direct impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Health Agency contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which incentivizes the contractor to meet performance standards within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD Medical Education and Training Campus (METC)
TRICARE Health Management Services
Military Health System Electronic Health Record (EHR) Modernization
Clinical Decision Support Systems
Medical Simulation and Training Programs

Risk Flags

Potential for contractor performance issues
Risk of outdated knowledge content
Scope creep potential
Long-term contract dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.7 million to DELOITTE CONSULTING LLP. THE TASK 5 VENDOR WILL PROVIDE SUPPORT FOR CLINICAL KNOWLEDGE, SKILLS AND ABILITIES (KSA) SUSTAINMENT AND DEVELOPMENT.

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 $21.7 million.

What is the period of performance?

Start: 2021-07-30. End: 2026-09-30.

What is Deloitte Consulting LLP's track record with the Department of Defense and specifically the Defense Health Agency for similar knowledge management or training contracts?

Deloitte Consulting LLP has a significant history of contracting with the Department of Defense and various federal agencies, including the Defense Health Agency (DHA). They have been involved in numerous large-scale IT, management consulting, and healthcare-related projects. For the DHA, their past work has often centered on improving healthcare operations, implementing new systems, and providing strategic guidance. While specific details on prior 'clinical knowledge sustainment' contracts require deeper database dives, Deloitte's general expertise in areas like knowledge management, professional development, and healthcare system optimization suggests a strong foundation for this current award. Their extensive experience with complex government contracts and large workforces positions them as a capable provider for this requirement.

How does the $21.6 million contract value compare to other contracts for clinical knowledge sustainment or similar services within the federal government?

The $21.6 million contract value for clinical knowledge sustainment over approximately four years represents a substantial investment, averaging around $5.4 million annually. To benchmark this effectively, comparisons should be made with contracts for similar services, such as medical training, simulation development, knowledge management platforms, and specialized healthcare consulting within the Department of Defense and other federal health agencies like the VA. Contracts for large-scale enterprise IT implementations or broad healthcare system overhauls can reach hundreds of millions or billions, making this contract appear moderate in scale. However, when isolating the specific function of sustaining and developing clinical knowledge for a defined population, this value suggests a significant scope of work, likely involving extensive content development, platform management, and potentially training delivery.

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

Primary risks include potential scope creep, where the definition of 'clinical knowledge sustainment and development' expands beyond the initial intent, leading to cost overruns or schedule delays. Another risk is the contractor's ability to keep pace with rapidly evolving medical knowledge and technologies, potentially rendering delivered content outdated. Performance risk, ensuring the quality and effectiveness of the knowledge sustainment, is also present. Mitigation strategies likely include robust contract management by the DHA, clearly defined performance metrics and deliverables, regular progress reviews, and the firm-fixed-price contract structure which incentivizes the contractor to manage costs and scope effectively. The selection of an experienced contractor like Deloitte also serves as a risk mitigation factor.

How effective is the current approach to clinical knowledge sustainment within the DoD, and how does this contract aim to improve it?

The effectiveness of the current approach is implicitly addressed by the need for this contract. The award suggests that existing methods may be insufficient, outdated, or require augmentation to meet the evolving demands of military medicine. This contract aims to improve effectiveness by providing dedicated resources and expertise to systematically update, disseminate, and ensure the retention of critical clinical knowledge and skills among healthcare providers. This could involve developing new training modules, implementing advanced knowledge management systems, facilitating collaborative learning environments, and ensuring that all personnel are proficient in the latest medical practices and protocols, thereby enhancing overall military medical readiness and patient care quality.

What are the historical spending patterns for clinical knowledge management and sustainment services within the Defense Health Agency?

Historical spending patterns for clinical knowledge management and sustainment within the Defense Health Agency (DHA) would likely show a consistent need for such services, reflecting the dynamic nature of medical science and the critical importance of maintaining high standards for military healthcare providers. Spending in this area may have increased over time due to factors like the digitization of medical records, the introduction of new technologies and treatments, and the need for continuous professional development. While specific historical dollar amounts for this precise tasking are not provided, the DHA's overall budget for healthcare services, training, and IT modernization provides context. Awards for similar, albeit potentially broader, services related to medical education, training systems, and health IT infrastructure often run into the tens or hundreds of millions of dollars over several years, indicating a significant and ongoing investment in maintaining clinical expertise.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

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: $22,654,032

Exercised Options: $21,659,068

Current Obligation: $21,659,068

Actual Outlays: $1,769,846

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $50,320

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAA18D001P

IDV Type: FSS

Timeline