Deloitte Consulting LLP awarded $32.7M for FIAR Support Services by the Department of the Navy

Contract Overview

Contract Amount: $32,718,178 ($32.7M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2019-09-24

End Date: 2020-09-23

Contract Duration: 365 days

Daily Burn Rate: $89.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: FIAR SUPPORT SERVICES

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $32.7 million to DELOITTE CONSULTING LLP for work described as: FIAR SUPPORT SERVICES Key points: 1. Contract value represents a significant investment in financial improvement and audit readiness. 2. Full and open competition suggests a robust market for these specialized services. 3. The contract duration of one year indicates a focused scope of work. 4. Delivery order under a larger contract structure implies potential for follow-on work. 5. The 'Other Accounting Services' NAICS code points to a broad range of financial support activities. 6. The contractor, Deloitte, is a major player in government consulting, suggesting established capabilities.

Value Assessment

Rating: good

The contract value of $32.7 million for one year of FIAR support appears reasonable given the complexity of financial improvement and audit readiness initiatives within large federal agencies. Benchmarking against similar large-scale financial consulting contracts would provide a more precise value assessment. The Time and Materials pricing structure, while common, warrants scrutiny to ensure efficient resource utilization and prevent cost overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This approach generally fosters competitive pricing and encourages innovation. The fact that it was a delivery order suggests it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, where competition might have occurred at the IDIQ level or for each delivery order.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and ensures the government receives the best value for its investment.

Public Impact

The Department of the Navy benefits from enhanced financial reporting and audit readiness. Services provided likely include financial statement preparation, data reconciliation, and internal control assessments. The primary geographic impact is within the Department of the Navy's operational areas. The contract supports a workforce of skilled financial analysts and consultants.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in Time and Materials contracts if not closely managed.
Reliance on a single large contractor may limit future competition if not carefully planned.
The effectiveness of FIAR initiatives can be challenging to measure directly.

Positive Signals

Award to a well-established firm like Deloitte suggests a high likelihood of successful execution.
Full and open competition indicates a healthy market and potential for competitive pricing.
The contract addresses a critical government requirement for financial accountability.

Sector Analysis

The Financial Improvement and Audit Readiness (FIAR) sector within government contracting is a critical area focused on ensuring federal agencies can produce auditable financial statements. This contract fits within the broader professional services market, specifically accounting and management consulting. Spending in this area has been substantial across the Department of Defense and other agencies as mandated by various financial management reforms.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. While Deloitte is a large business, there is no information provided on subcontracting plans for small businesses. The absence of set-aside provisions means small businesses were unlikely to be primary awardees for this specific delivery order, though they may participate as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Navy. Performance monitoring, invoice review, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

Financial Improvement and Audit Readiness (FIAR)
Department of Defense Financial Management
Accounting Services Contracts
Management and Consulting Services

Risk Flags

Time and Materials pricing structure requires close monitoring to control costs.
Scope creep potential in complex financial improvement projects.
Effectiveness of FIAR initiatives can be difficult to quantify in the short term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.7 million to DELOITTE CONSULTING LLP. FIAR 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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $32.7 million.

What is the period of performance?

Start: 2019-09-24. End: 2020-09-23.

What is Deloitte Consulting LLP's track record with similar FIAR support contracts within the Department of Defense?

Deloitte Consulting LLP has a significant track record supporting federal agencies, including the Department of Defense, with financial improvement and audit readiness initiatives. They have been involved in numerous large-scale financial system modernization and audit support efforts across various branches of the military and defense agencies. Their experience often includes assisting with the implementation of financial management systems, developing internal controls, and preparing financial statements for audit. Publicly available data and past performance reviews often highlight their capacity to handle complex financial challenges. However, specific details on past performance for identical FIAR support contracts, including performance ratings and any past issues, would require deeper access to government contract databases and performance records.

How does the $32.7 million contract value compare to other FIAR support contracts awarded by the Navy or DoD?

The $32.7 million contract value for one year of FIAR support is substantial, reflecting the complexity and scope typically involved in such engagements. Comparing this to other FIAR contracts requires analyzing the specific services rendered, the duration, and the agency. Larger, multi-year FIAR programs within the DoD can run into hundreds of millions or even billions of dollars. For a single year of focused support, this amount is within the expected range for a major contractor like Deloitte supporting a large entity like the Department of the Navy. However, without a detailed breakdown of the services and the specific objectives of this contract, a precise benchmark is difficult. Contracts for audit remediation or system implementation might command higher or lower values depending on their specific deliverables.

What are the primary risks associated with this Time and Materials (T&M) contract for FIAR support?

The primary risk associated with this Time and Materials (T&M) contract is the potential for cost overruns if not managed diligently. T&M contracts pay for the labor hours and materials used, which can lead to higher costs than fixed-price contracts if the project scope expands or if contractor efficiency is low. For FIAR support, risks include the contractor potentially taking longer than anticipated to complete tasks, requiring more personnel hours, or incurring unexpected material costs. Effective oversight by the government is crucial to monitor labor hours, ensure efficient work, and control the overall expenditure. Scope creep, where the requirements of the contract expand beyond the original intent without a corresponding adjustment in price ceilings or contract modifications, is another significant risk.

How effective are FIAR support services in achieving audit readiness for the Department of the Navy?

The effectiveness of FIAR support services in achieving audit readiness is a critical measure of success for the Department of the Navy. These services are designed to address the complex challenges of financial reporting and compliance required for an audit. When executed properly, they lead to improved financial data accuracy, stronger internal controls, and ultimately, the ability to pass financial audits. However, achieving full audit readiness is a long-term, multifaceted endeavor that involves not only external support but also internal process improvements, system upgrades, and sustained commitment from agency leadership. The success of this specific contract would be measured by its contribution to the Navy's overall progress towards its FIAR goals, such as the timely production of auditable financial statements and the remediation of identified audit deficiencies.

What has been the historical spending trend for FIAR support services within the Department of the Navy over the past five years?

Historical spending trends for FIAR support services within the Department of the Navy have generally shown a consistent and significant investment. Driven by legislative mandates and the ongoing need for financial accountability, the Navy, like other branches of the DoD, allocates substantial resources to audit readiness. While specific annual figures fluctuate based on program needs, contract renewals, and the awarding of new large-scale initiatives, the overall trend indicates sustained spending. Factors influencing these trends include the maturity of the Navy's FIAR program, the complexity of its financial systems, and the specific audit findings that require remediation. Analyzing detailed spending data over the past five years would reveal patterns in contract awards, types of services procured, and the prime contractors involved.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting 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

Solicitation ID: N0018915RZ006

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

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: $34,228,071

Exercised Options: $34,228,071

Current Obligation: $32,718,178

Actual Outlays: $5,717,426

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0018918DZ013

IDV Type: IDC

Timeline