Deloitte Consulting LLP awarded $45.7M for Other Management Consulting Services by the Department of the Navy

Contract Overview

Contract Amount: $45,670,183 ($45.7M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2018-06-01

End Date: 2019-06-07

Contract Duration: 371 days

Daily Burn Rate: $123.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::IOT::IGF TRANSFORMATION - RDO

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $45.7 million to DELOITTE CONSULTING LLP for work described as: IGF::IOT::IGF TRANSFORMATION - RDO Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can introduce cost overrun risks. 3. The duration of the contract is 371 days, indicating a short-to-medium term engagement. 4. The award falls under the 'Other Management Consulting Services' category, a broad service area. 5. The contract was awarded by the Department of the Navy, a significant defense agency. 6. The primary place of performance is Virginia, a state with a strong federal contracting presence.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific deliverables. However, the $45.7 million award for a 371-day engagement suggests a significant investment in consulting services. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, can lead to higher costs if not managed tightly, as the contractor is reimbursed for allowable costs plus a fixed fee. Comparing this to similar large-scale management consulting contracts within the DoD would provide a clearer picture of its value proposition.

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 a bid. The number of bidders is not specified, but this method generally fosters price discovery and allows the government to select the best value offer. The open competition suggests a healthy market for these types of consulting services.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the selection of a contractor based on merit and value, rather than sole-source limitations.

Public Impact

The Department of the Navy benefits from specialized management consulting expertise to support its operations. Services delivered likely include strategic planning, process improvement, or organizational development. The primary geographic impact is in Virginia, where the services are performed. The contract supports the federal government's administrative and operational functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to incur costs to increase profit.
Lack of specific performance metrics makes it difficult to assess the true value and impact of the consulting services.
The broad nature of 'Other Management Consulting Services' could lead to scope creep if not carefully managed.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
The contractor, Deloitte Consulting LLP, is a well-established firm with significant experience in government contracting.
The contract supports a critical agency, the Department of the Navy, suggesting alignment with important government missions.

Sector Analysis

Management consulting services are a significant part of the professional services sector supporting government operations. The federal government frequently procures these services to address complex challenges, improve efficiency, and implement new strategies. The market for these services is competitive, with large firms like Deloitte playing a major role. Spending in this category is often tied to specific agency initiatives or modernization efforts.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, large prime contractors like Deloitte may engage small businesses as subcontractors, though this is not guaranteed or mandated by the contract terms as presented.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of the Navy. Performance reviews, regular reporting, and adherence to the Cost Plus Fixed Fee terms are key accountability measures. Transparency is generally maintained through contract award databases, but detailed performance data may be less accessible to the public.

Related Government Programs

Department of Defense Management Consulting Services
Navy IT and Management Support Contracts
Professional Services Contracts

Risk Flags

Cost Plus Fixed Fee contract type may lead to cost overruns.
Broad service category ('Other Management Consulting Services') could indicate undefined scope.
Lack of specific performance metrics in summary data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.7 million to DELOITTE CONSULTING LLP. IGF::IOT::IGF TRANSFORMATION - RDO

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 $45.7 million.

What is the period of performance?

Start: 2018-06-01. End: 2019-06-07.

What specific deliverables or outcomes were expected from Deloitte Consulting LLP under this $45.7 million contract?

The provided data does not specify the exact deliverables or outcomes for this contract. The contract is categorized under 'Other Management Consulting Services' (NAICS 541618), which is a broad category. Typically, such contracts could involve strategic planning, organizational analysis, process improvement, policy development, or program management support. Without access to the Statement of Work (SOW) or contract modifications, it is impossible to detail the specific services rendered or the expected results. The Cost Plus Fixed Fee (CPFF) structure suggests that the contractor was reimbursed for allowable costs plus a predetermined fixed fee, implying a defined scope of work was agreed upon at the outset.

How does the Cost Plus Fixed Fee (CPFF) structure of this contract potentially impact its final cost compared to other contract types?

The Cost Plus Fixed Fee (CPFF) contract type means the government reimburses the contractor for all allowable costs incurred, plus a fixed fee representing profit. This structure is often used when the scope of work cannot be precisely defined at the outset, offering flexibility. However, it carries a risk of cost overruns, as the contractor has less incentive to control costs compared to fixed-price contracts, since their profit (the fixed fee) is predetermined. The government bears the risk of cost increases. Effective oversight and cost monitoring by the contracting agency are crucial to manage this risk and ensure value for money.

What is the typical range for 'Other Management Consulting Services' contracts awarded by the Department of the Navy, and how does this award compare?

The Department of the Navy, like other large federal agencies, procures a wide range of management consulting services. Contract values can vary significantly based on the scope, duration, and complexity of the services required. Awards can range from a few hundred thousand dollars for specialized, short-term support to tens or even hundreds of millions for large-scale, multi-year engagements. A $45.7 million award for a 371-day contract falls within the upper range for a single delivery order, suggesting a substantial project. Benchmarking requires comparing it to contracts with similar objectives and durations, which are not detailed here.

What is Deloitte Consulting LLP's track record with the Department of Defense and federal agencies for similar consulting services?

Deloitte Consulting LLP is a major federal contractor with extensive experience providing a wide array of professional services, including management consulting, to the Department of Defense (DoD) and other federal agencies. They have a long history of securing large contracts across various domains, such as IT modernization, financial management, strategic planning, and cybersecurity. Their track record generally indicates a capacity to handle complex, high-value engagements. Specific performance details for individual contracts are often subject to government evaluation and may not be fully public, but their consistent presence as a prime contractor suggests a generally positive performance history and strong past performance ratings.

What are the potential risks associated with a 371-day contract for management consulting services, and what mitigation strategies might be in place?

A 371-day duration for a management consulting contract presents risks such as potential scope creep, evolving requirements, and the need for sustained engagement and knowledge transfer. If the project's objectives are not clearly defined or if the environment changes rapidly, the initial plan may become obsolete. Mitigation strategies typically include robust contract management, regular performance reviews, clear communication channels between the contractor and the government, and mechanisms for contract modifications or re-negotiations if significant changes occur. The CPFF structure also requires diligent oversight to ensure costs remain reasonable and aligned with the evolving scope.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0018914RZ014

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Financial Advisory Services LLP

Address: 1725 DUKE ST, ALEXANDRIA, VA, 22314

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

Financial Breakdown

Contract Ceiling: $45,670,183

Exercised Options: $45,670,183

Current Obligation: $45,670,183

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,503,675

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N0018915DZ007

IDV Type: IDC

Timeline