Deloitte Consulting LLP awarded $24M contract for accounting services by the Department of the Navy

Contract Overview

Contract Amount: $24,029,945 ($24.0M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2020-09-24

End Date: 2023-03-23

Contract Duration: 910 days

Daily Burn Rate: $26.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: LABOR - FMO

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 $24.0 million to DELOITTE CONSULTING LLP for work described as: LABOR - FMO Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 910 days indicates a medium-term engagement for accounting services. 3. Services provided fall under 'Other Accounting Services,' a broad category within professional services. 4. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The time and materials pricing structure may lead to cost variability depending on actual effort expended. 6. The contract was awarded to a single vendor, Deloitte Consulting LLP.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without knowing the scope of services and the specific tasks performed under the 'Other Accounting Services' category. However, a $24 million contract over approximately 2.5 years for accounting services suggests a significant engagement. The time and materials (T&M) pricing model can sometimes lead to higher costs compared to fixed-price contracts if not carefully managed, as it directly ties costs to labor hours and material usage. Further analysis would require comparing the hourly rates and overhead applied to similar government accounting service contracts.

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 data shows one award, suggesting that while multiple entities may have bid, Deloitte Consulting LLP was selected as the most advantageous offer. The level of competition is not explicitly detailed (e.g., number of bids received), but the designation implies a robust process was intended.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and improve service quality, ensuring the government receives the best value for its investment.

Public Impact

The Department of the Navy benefits from specialized accounting services to manage its financial operations. This contract supports the financial management and accounting functions within the Department of Defense. The services likely contribute to accurate financial reporting, auditing support, and compliance for naval operations. The contract's impact on the workforce is primarily through the employment of accounting professionals by Deloitte Consulting LLP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not closely monitored.
Lack of specific details on the scope of 'Other Accounting Services' makes value assessment difficult.
Award to a single vendor, while common for delivery orders, warrants scrutiny of the competitive process.

Positive Signals

Awarded through full and open competition, indicating a commitment to a fair bidding process.
The contract duration suggests a stable, ongoing need for these critical accounting services.
Services provided are essential for the financial integrity and operational efficiency of the Department of the Navy.

Sector Analysis

The 'Other Accounting Services' category (NAICS 541219) encompasses a wide range of professional accounting activities beyond basic bookkeeping or tax preparation. This includes services like financial statement analysis, forensic accounting, accounting system design, and internal control assessment. The federal government frequently procures such specialized services to support complex financial management, regulatory compliance, and audit readiness across various agencies. Spending in this sector is driven by the need for expert financial insights and support for large-scale government operations. Comparable spending benchmarks would typically involve analyzing other large-scale accounting service contracts awarded to major consulting firms by defense or civilian agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically tied to small business set-asides for this particular award. The primary contractor, Deloitte Consulting LLP, is a large business. While large prime contractors often have subcontracting plans that include small businesses, the details of such plans are not provided here. The absence of a small business set-aside means the opportunity was open to all responsible sources, including large businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Navy's contracting and financial management offices. As a delivery order under a potential IDIQ contract, oversight would involve monitoring performance against the specific task orders issued, ensuring compliance with contract terms, and managing payments. Transparency is facilitated through contract databases like FPDS.gov, which record award details. While no specific Inspector General (IG) jurisdiction is mentioned, the Department of Defense's Inspector General would have oversight authority over potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Defense Financial Management
Navy Financial Operations
Accounting and Auditing Services
Professional Services Contracts
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Ambiguity in 'Other Accounting Services' scope requires careful monitoring.
Dependence on a single contractor for critical financial functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.0 million to DELOITTE CONSULTING LLP. LABOR - FMO

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 $24.0 million.

What is the period of performance?

Start: 2020-09-24. End: 2023-03-23.

What is the specific nature of the 'Other Accounting Services' provided under this contract?

The provided data classifies the contract under NAICS code 541219, 'Other Accounting Services.' This broad category can encompass a wide array of specialized financial services beyond standard bookkeeping or tax preparation. Examples include financial statement analysis, forensic accounting, internal control assessments, accounting system implementation and support, audit liaison services, and financial process improvement consulting. Without access to the specific Statement of Work (SOW) or task orders associated with this delivery order, the precise services rendered remain undefined. However, given the awarding agency (Department of the Navy) and the contract value, it is likely related to supporting complex financial operations, ensuring compliance with federal regulations, or assisting with financial audits and reporting.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar services?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change significantly. They reimburse the contractor for the cost of labor (at specified hourly rates) and materials, plus a fee or profit. Compared to fixed-price contracts, T&M offers flexibility but carries a higher risk of cost overruns for the government if not managed diligently. For accounting services, where the effort can be variable, T&M can be appropriate. However, fixed-price or cost-plus-fixed-fee contracts might offer better cost certainty if the scope is well-defined. Benchmarking T&M rates against government-wide schedules or similar agency contracts for accounting services would be necessary to assess if Deloitte's rates are competitive.

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

Deloitte Consulting LLP is a major federal contractor with a significant history of providing professional services, including accounting and financial management, to various government agencies, including the Department of Defense (DoD). Accessing detailed contract history databases (like FPDS or agency-specific procurement records) would reveal the extent and nature of their previous work with the DoD. This would include the types of accounting services rendered, contract values, performance ratings, and any past performance issues or commendations. A review of their broader DoD portfolio would indicate their experience level and established presence in supporting defense financial operations, which can be a positive signal for contract performance.

What are the potential risks associated with a $24 million contract for 'Other Accounting Services' awarded as a delivery order?

Several risks are associated with this contract. Firstly, the broad 'Other Accounting Services' classification means the specific deliverables and performance standards might be less defined, increasing the risk of scope creep or misaligned expectations. Secondly, the Time and Materials (T&M) pricing structure, while flexible, introduces financial risk if labor hours or material costs escalate beyond initial projections without adequate oversight. Thirdly, as a delivery order, it implies it's part of a larger IDIQ vehicle; the overall performance and value depend on the underlying IDIQ's structure and the quality of subsequent task orders. Finally, the reliance on a single large contractor, even if selected through competition, carries inherent risks related to vendor lock-in or potential disruptions if the contractor faces internal issues.

How does this contract's value and duration compare to typical federal accounting service contracts?

A $24 million contract awarded over approximately 910 days (about 2.5 years) for accounting services is a substantial engagement. Federal contracts for accounting and financial consulting services vary widely in value and duration, from small, short-term projects to multi-year, multi-billion dollar IDIQ vehicles. This specific contract appears to be a medium-to-large sized award for a defined period. To provide a precise comparison, one would need to analyze the average contract size and duration for NAICS 541219 within the Department of Defense or across the federal government over a similar timeframe. However, the value suggests a significant scope of work, likely involving complex financial management support rather than routine tasks.

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: N0018920RZ381

Offers Received: 1

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: $30,126,655

Exercised Options: $30,126,655

Current Obligation: $24,029,945

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $1,157,846

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