DoD awards $36.4M Engineering Services contract to Deloitte Consulting LLP for PSS

Contract Overview

Contract Amount: $36,424,525 ($36.4M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2017-07-20

End Date: 2022-07-19

Contract Duration: 1,825 days

Daily Burn Rate: $20.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST NO FEE

Sector: Defense

Official Description: IGF::OT::IGF PMW 750 PSS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $36.4 million to DELOITTE CONSULTING LLP for work described as: IGF::OT::IGF PMW 750 PSS Key points: 1. Contract awarded to a single, large vendor, indicating potential for concentrated market share. 2. The contract spans five years, suggesting a long-term need for these engineering services. 3. No small business participation noted, which could be a missed opportunity for economic inclusion. 4. The sector is Engineering Services, a critical component for defense infrastructure and development.

Value Assessment

Rating: fair

The contract's total value is $36.4M over five years. Without specific performance metrics or comparable contract data, assessing the value for money is difficult. The 'COST NO FEE' pricing structure suggests costs are reimbursed, requiring robust oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is positive for price discovery. However, the award type is a 'DELIVERY ORDER', suggesting it might be part of a larger indefinite-delivery indefinite-quantity (IDIQ) contract, where initial competition might have been broader.

Taxpayer Impact: The use of full and open competition aims to secure competitive pricing, benefiting taxpayers. However, the long duration and specific nature of engineering services may limit the number of truly competitive bids.

Public Impact

Supports critical Department of the Navy engineering and program management functions. Impacts the defense sector's ability to execute complex projects and maintain readiness. Potential for follow-on work or similar contracts in the defense engineering space.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation.
Cost-reimbursement contract requires strong oversight.
Long contract duration may limit flexibility.

Positive Signals

Awarded under full and open competition.
Supports essential defense operations.
Experienced contractor selected.

Sector Analysis

Engineering Services (NAICS 541330) are crucial for the Department of Defense, encompassing design, consulting, and management for various projects. Benchmarks for similar contracts are highly variable based on scope and duration.

Small Business Impact

This contract did not involve small business participation. While awarded under full and open competition, the absence of small business set-asides or subcontracting requirements represents a missed opportunity to leverage the capabilities of smaller firms in the engineering sector.

Oversight & Accountability

The 'COST NO FEE' pricing structure necessitates diligent oversight by the Department of Defense to ensure costs are reasonable and allocable. Monitoring performance and expenditures will be key to accountability throughout the contract's lifespan.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for cost overruns due to 'COST NO FEE' structure.
Lack of small business participation.
Long contract duration may limit adaptability to changing requirements.
Need for rigorous government oversight to ensure cost reasonableness.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.4 million to DELOITTE CONSULTING LLP. IGF::OT::IGF PMW 750 PSS

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $36.4 million.

What is the period of performance?

Start: 2017-07-20. End: 2022-07-19.

How does the cost of this contract compare to similar engineering services contracts awarded by the DoD for comparable projects?

Benchmarking this contract's cost is challenging without detailed project scope and deliverables. However, the average value per year is approximately $7.28 million. A comprehensive review would require comparing specific engineering tasks, labor categories, and overhead rates against a database of similar DoD contracts to determine if the pricing is competitive and reflects fair market value.

What are the primary risks associated with the 'COST NO FEE' pricing structure for this engineering services contract?

The primary risk with a 'COST NO FEE' contract is the potential for cost overruns, as the contractor is reimbursed for incurred costs. This necessitates robust government oversight to scrutinize expenses, ensure they are reasonable and allocable to the contract, and prevent unnecessary spending. Without effective monitoring, the total cost could exceed initial estimates, impacting taxpayer value.

To what extent does this contract contribute to the Department of the Navy's overall mission effectiveness and technological advancement?

This contract directly supports the Department of the Navy's engineering and program management needs, which are vital for maintaining and advancing its operational capabilities and infrastructure. The services provided likely contribute to the successful execution of complex projects, ensuring platforms are mission-ready and incorporating necessary technological upgrades. The long-term nature suggests a sustained contribution to these critical functions.

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: N0002416R3201

Offers Received: 5

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

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

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, Subchapter S Corporation, Indian (Subcontinent) American Owned Business, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $53,404,936

Exercised Options: $53,404,936

Current Obligation: $36,424,525

Actual Outlays: $2,754,462

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $2,310,529

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017814D7917

IDV Type: IDC

Timeline