DoD's $17.9M Deloitte Contract for Accounting Services: Full & Open Competition
Contract Overview
Contract Amount: $17,948,900 ($17.9M)
Contractor: Deloitte Consulting LLP
Awarding Agency: Department of Defense
Start Date: 2020-09-24
End Date: 2023-09-23
Contract Duration: 1,094 days
Daily Burn Rate: $16.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: LEVEL OF EFFORT
Place of Performance
Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374
Plain-Language Summary
Department of Defense obligated $17.9 million to DELOITTE CONSULTING LLP for work described as: LEVEL OF EFFORT Key points: 1. Significant contract value for accounting services. 2. Awarded via full and open competition, suggesting market availability. 3. Potential for cost overruns with Time and Materials pricing. 4. Focus on accounting services within the defense sector.
Value Assessment
Rating: fair
The contract's Time and Materials pricing structure presents a risk for cost control. Without a fixed ceiling or clear deliverables, the final cost could exceed initial expectations compared to fixed-price contracts for similar accounting services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating multiple vendors were considered. This method generally promotes competitive pricing, but the Time and Materials (T&M) pricing type may limit the price discovery benefits.
Taxpayer Impact: Taxpayer funds are utilized for accounting services. The T&M pricing model necessitates careful oversight to ensure efficiency and prevent unnecessary expenditures.
Public Impact
Ensures essential accounting functions for the Department of the Navy. Supports military operations through financial management. Potential for cost efficiencies if managed effectively.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Lack of specific performance metrics in provided data
Positive Signals
- Full and open competition
- Experienced contractor (Deloitte)
Sector Analysis
This contract falls under Other Accounting Services (NAICS 541219) within the professional services sector. Spending benchmarks for similar government accounting contracts vary widely based on scope and duration, but $17.9M over three years is a substantial award.
Small Business Impact
The contract was awarded to Deloitte Consulting LLP, a large business. There is no indication in the provided data that small businesses were involved as subcontractors or prime contractors.
Oversight & Accountability
The contract's duration and T&M pricing necessitate robust oversight from the Department of the Navy to ensure efficient use of funds and adherence to contract terms. Regular performance reviews and cost tracking are crucial.
Related Government Programs
- Other Accounting Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Time and Materials pricing model
- Potential for cost overruns
- Lack of detailed performance metrics
- Limited visibility into small business participation
Tags
other-accounting-services, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.9 million to DELOITTE CONSULTING LLP. LEVEL OF EFFORT
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 $17.9 million.
What is the period of performance?
Start: 2020-09-24. End: 2023-09-23.
What specific accounting services are being provided under this contract, and how do they align with the Department of the Navy's core mission requirements?
The contract is categorized under 'Other Accounting Services' (NAICS 541219). While the exact services aren't detailed, they likely encompass financial reporting, auditing support, accounting system maintenance, or advisory services critical for the Department of the Navy's operational and administrative functions. Effective alignment ensures taxpayer funds are managed efficiently to support national defense objectives.
What are the primary risks associated with the Time and Materials pricing structure for this $17.9M contract, and what mitigation strategies are in place?
The primary risk of Time and Materials (T&M) pricing is the potential for cost escalation without a defined ceiling, as contractor effort is billed hourly. Mitigation strategies typically include establishing labor hour limitations, requiring detailed timesheets, implementing strong project management oversight, and conducting regular cost reviews to ensure the work remains within anticipated budgets and scope.
How does the use of a large, established contractor like Deloitte Consulting LLP impact the overall effectiveness and potential for innovation in delivering these accounting services?
Utilizing a large, established contractor like Deloitte can bring significant expertise, established processes, and a proven track record, potentially enhancing effectiveness and reliability. However, it might also lead to less flexibility or slower adoption of innovative solutions compared to smaller, more agile firms. The government's oversight is key to ensuring both efficiency and encouraging innovative approaches.
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: 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: $18,097,068
Exercised Options: $18,097,068
Current Obligation: $17,948,900
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $2,616,189
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
Start Date: 2020-09-24
Current End Date: 2023-09-23
Potential End Date: 2023-09-23 00:00:00
Last Modified: 2025-05-15
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