DoD Awards Deloitte $24.6M for FIAR Support, Raising Questions on Value and Competition

Contract Overview

Contract Amount: $24,634,072 ($24.6M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2019-09-23

End Date: 2021-09-23

Contract Duration: 731 days

Daily Burn Rate: $33.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: FIAR SUPPORT OF FMO BASE YEAR

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $24.6 million to DELOITTE CONSULTING LLP for work described as: FIAR SUPPORT OF FMO BASE YEAR Key points: 1. Significant contract value for accounting services. 2. Deloitte Consulting LLP is a major player in the federal contracting space. 3. Potential concerns regarding the effectiveness of competition and taxpayer value. 4. Spending falls within the 'Other Accounting Services' sector.

Value Assessment

Rating: questionable

The contract's Time and Materials pricing structure, coupled with a lack of detailed performance metrics, makes it difficult to assess value for money. The awarded amount of $24.6M over two years suggests a high per-unit cost, especially without clear deliverables.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

While advertised as full and open competition, the award was a delivery order, suggesting a pre-existing contract vehicle. The impact on price discovery is unclear without knowing the specifics of the underlying contract and the number of bids received.

Taxpayer Impact: The substantial award of $24.6M warrants scrutiny to ensure taxpayer funds are used efficiently and effectively for the intended purpose of FIAR support.

Public Impact

Taxpayers are funding critical financial improvement and audit readiness efforts for the Department of Defense. The contract supports the Navy's compliance with financial reporting standards. The use of a large, established contractor like Deloitte raises questions about equitable access for smaller businesses.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of clear performance metrics
Time and Materials pricing
Potential for cost overruns
Limited transparency on competition effectiveness

Positive Signals

Supports critical audit readiness mission
Awarded to a reputable contractor

Sector Analysis

This contract falls under 'Other Accounting Services,' a broad category. Federal spending in this sector often supports essential government functions like financial management, auditing, and compliance. Benchmarks for similar contracts are difficult to ascertain without more specific service details.

Small Business Impact

The contract was awarded to Deloitte Consulting LLP, a large business. There is no indication that small businesses were involved in this specific award, which could limit opportunities for smaller firms in this segment of federal contracting.

Oversight & Accountability

Oversight of this contract would involve monitoring Deloitte's performance against contract requirements, ensuring adherence to the Time and Materials pricing structure, and verifying that the services provided are necessary and effective for the Navy's FIAR goals.

Related Government Programs

Other Accounting Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of defined deliverables
Time and Materials pricing model
Potential for cost creep
Limited transparency on competition effectiveness
High contract value for accounting services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.6 million to DELOITTE CONSULTING LLP. FIAR SUPPORT OF FMO BASE YEAR

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 $24.6 million.

What is the period of performance?

Start: 2019-09-23. End: 2021-09-23.

What specific FIAR support activities are being performed, and how do they directly contribute to audit readiness?

The contract is for FIAR (Financial Improvement and Audit Readiness) support for the FMO (Financial Management Office) base year. This likely involves assisting the Department of the Navy in preparing its financial statements for audit, identifying and remediating deficiencies, implementing internal controls, and ensuring compliance with federal financial management regulations. The direct contribution is enabling the Navy to meet its audit obligations.

How was the $24.6M figure determined, and what is the projected cost per deliverable or outcome?

The $24.6M represents the total value awarded for the contract period. As a Time and Materials contract, the final cost is dependent on the hours worked by contractor personnel and their associated rates. Without defined deliverables or fixed pricing for specific tasks, establishing a precise cost per outcome is challenging. This pricing model necessitates robust oversight to manage costs effectively.

What measures were in place to ensure robust competition and achieve the best possible price for taxpayers?

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit offers. However, it was awarded as a delivery order against a potentially pre-existing contract vehicle. The effectiveness of the competition in driving down prices depends on the number of bids received and the specific terms of the underlying contract vehicle used for the award.

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: $28,826,181

Exercised Options: $28,826,181

Current Obligation: $24,634,072

Actual Outlays: $3,280,188

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