DoD awards $5.5M contract for program execution support, with Deloitte selected

Contract Overview

Contract Amount: $5,511,339 ($5.5M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2024-11-01

End Date: 2026-10-31

Contract Duration: 729 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROGRAM EXECUTION SUPPORT SERVICES

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $5.5 million to DELOITTE CONSULTING LLP for work described as: PROGRAM EXECUTION SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger contract vehicle. 3. Pricing is firm fixed price, providing cost certainty for the government. 4. The contract duration is 729 days, indicating a medium-term engagement. 5. The awardee, Deloitte Consulting LLP, is a large, established government contractor. 6. The contract falls under Engineering Services NAICS code 541330.

Value Assessment

Rating: good

The contract value of $5.5 million over approximately two years appears reasonable for program execution support services. Benchmarking against similar contracts for specialized consulting services in the defense sector would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs, but the specific pricing details and comparison to market rates for similar services are not publicly available in this summary.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this specific delivery order. While more than one bidder participated, the exact number of proposals received and the evaluation criteria are not detailed here, which limits a full assessment of the competitive dynamics.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging multiple vendors to offer competitive pricing and innovative solutions, potentially leading to better value.

Public Impact

The Department of Defense (DoD) will benefit from enhanced program execution support. Services delivered will likely contribute to the efficient management and oversight of defense programs. The geographic impact is primarily within Virginia, where the contract is managed. The contract supports specialized professional services, potentially impacting the consulting workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited transparency on the specific deliverables and performance metrics.
Potential for cost overruns if scope creep occurs, despite fixed-price nature.
Dependence on a single large contractor for critical support functions.

Positive Signals

Awarded through full and open competition, indicating a fair process.
Firm fixed-price contract type provides cost predictability.
Awardee has extensive experience in government contracting.
Contract duration aligns with typical program support needs.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically engineering services. The federal government is a significant consumer of these services, particularly within the Department of Defense, for program management, technical analysis, and strategic planning. Spending in this category often supports complex, long-term initiatives. Comparable spending benchmarks would involve analyzing other contracts for program execution support across various defense agencies.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is false for this specific award. There is no indication of a small business set-aside or subcontracting requirements in this summary. Therefore, this contract is unlikely to directly benefit the small business ecosystem through direct award or mandated subcontracting.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Health Agency (DHA) contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, requiring delivery of specified services. Transparency is limited by the public availability of detailed contract performance data. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Program Management Support
Professional Services Contracts
Engineering Consulting Services
Department of Defense IT and Support Services

Risk Flags

Potential for scope creep
Contractor performance risk
Limited competition noted (2 bidders)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.5 million to DELOITTE CONSULTING LLP. PROGRAM EXECUTION SUPPORT SERVICES

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 $5.5 million.

What is the period of performance?

Start: 2024-11-01. End: 2026-10-31.

What is Deloitte Consulting LLP's track record with the Department of Defense for similar program execution support services?

Deloitte Consulting LLP has a substantial track record of performing various support services for the Department of Defense and other federal agencies. Their experience often includes program management, strategic planning, systems engineering, and financial management support. Analyzing past performance evaluations and contract histories for Deloitte within the DoD, particularly for contracts with similar scope and value to this $5.5 million award, would reveal their proficiency and reliability in delivering program execution support. Specific details on past performance metrics, such as on-time delivery, adherence to budget, and quality of service, are crucial for a comprehensive assessment. Their extensive presence in the federal contracting space suggests a familiarity with government processes and requirements.

How does the $5.5 million contract value compare to similar program execution support contracts awarded by the Defense Health Agency or other DoD components?

The $5.5 million contract value for approximately two years of program execution support services appears to be within a moderate range for specialized consulting within the defense sector. To benchmark effectively, one would compare this value against similar contracts awarded by the Defense Health Agency (DHA) or other DoD entities for comparable services, such as program management, strategic planning, or operational support. Factors like the specific scope of work, required expertise, contract duration, and the number of bidders influence pricing. If this contract represents a standard delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, its value might be typical for individual task orders. A detailed comparison would require access to a broader dataset of recent DoD contracts for similar services.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks for this contract include potential scope creep, where the requirements may expand beyond the initial agreement, leading to cost overruns despite the firm fixed-price structure. Another risk is the potential for underperformance or failure to meet critical program execution milestones, impacting the efficiency of DoD programs. Dependence on a single large contractor like Deloitte could also pose a risk if their resources become strained or if there are unforeseen issues with their personnel. Mitigation strategies typically involve robust contract management by the Defense Health Agency, including clear definition of scope, regular performance monitoring, and proactive communication with the contractor. The firm fixed-price nature itself acts as a cost control mechanism, and the contract likely includes clauses for remedies in case of non-performance.

How effective is the 'full and open competition' approach likely to be in ensuring value for money for this specific contract?

The 'full and open competition' approach is generally effective in promoting value for money by encouraging a wide range of potential contractors to submit bids, thereby fostering price competition and innovation. For this $5.5 million program execution support contract, this approach suggests that the Defense Health Agency sought the best possible offer from the market. However, the effectiveness is contingent on the number of bids received and the clarity of the solicitation. With two bids noted, the competition was present but perhaps not as robust as it could be with more participants. The firm fixed-price (FFP) contract type further enhances value by capping the government's financial exposure, provided the scope is well-defined and managed.

What is the historical spending pattern for program execution support services by the Defense Health Agency?

Historical spending patterns for program execution support services by the Defense Health Agency (DHA) would likely show a consistent need for external expertise to manage and advance complex healthcare programs within the military. The DHA, responsible for a vast array of healthcare services, relies on contractors for specialized support in areas like strategic planning, IT implementation, operational efficiency, and policy development. Annual spending in this category can fluctuate based on specific program initiatives, modernization efforts, and budget allocations. Analyzing DHA's procurement data over the past several fiscal years would reveal trends in contract values, types of services procured, and the primary contractors utilized for program execution support, providing context for the current $5.5 million award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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

Solicitation ID: HT942524R0077

Offers Received: 2

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: $7,689,817

Exercised Options: $5,511,339

Current Obligation: $5,511,339

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $807,385

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU113

IDV Type: IDC

Timeline