DoD Awards $12M Contract to Deloitte for Navy Support Services, Ending March 2026

Contract Overview

Contract Amount: $11,959,093 ($12.0M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2021-09-26

End Date: 2026-03-25

Contract Duration: 1,641 days

Daily Burn Rate: $7.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: NKSA SUPPORT SERVICES

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $12.0 million to DELOITTE CONSULTING LLP for work described as: NKSA SUPPORT SERVICES Key points: 1. The Department of Defense awarded a significant contract to Deloitte Consulting LLP for administrative and management consulting services. 2. This contract, valued at over $11.9 million, aims to support the Department of the Navy. 3. The contract duration extends through March 2026, indicating a long-term need for these services. 4. The specific NAICS code (541611) points to general management consulting, a broad but critical service area. 5. The absence of small business participation is noted.

Value Assessment

Rating: good

The contract's value of $11.9 million for a period of approximately 4.5 years appears reasonable for comprehensive administrative and general management consulting services. Benchmarking against similar large-scale consulting contracts within the DoD would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors have the opportunity to bid.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring the government receives the best value for its investment.

Public Impact

Enhances operational efficiency within the Department of the Navy through expert consulting. Supports critical administrative and management functions, potentially improving service delivery. The large contract value signifies a substantial investment in specialized expertise. Lack of small business involvement may limit opportunities for smaller, specialized firms.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

No small business participation noted.
Contract type is Cost Plus Fixed Fee, which can carry higher risk of cost overruns if not managed tightly.

Positive Signals

Awarded under full and open competition.
Long contract duration suggests sustained need and potential for stable support.
Experienced contractor (Deloitte Consulting LLP) likely brings significant expertise.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative and general management consulting. Spending in this sector is substantial across government agencies, supporting a wide range of operational and strategic initiatives.

Small Business Impact

The data indicates that this contract did not involve small business participation. This is a missed opportunity to leverage the capabilities of small businesses and promote economic diversity within government contracting.

Oversight & Accountability

The contract's duration and value necessitate robust oversight to ensure performance objectives are met and costs remain controlled. The Department of Defense's established oversight mechanisms will be crucial for accountability.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
No small business participation noted, potentially limiting broader economic impact.
Long contract duration requires sustained oversight to ensure continued value.
Specific performance metrics and expected outcomes require detailed scrutiny.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.0 million to DELOITTE CONSULTING LLP. NKSA 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 $12.0 million.

What is the period of performance?

Start: 2021-09-26. End: 2026-03-25.

What specific improvements in administrative and management functions are expected from this contract, and how will their achievement be measured?

The contract is expected to yield improvements in areas such as process optimization, strategic planning, and organizational efficiency within the Department of the Navy. Success will be measured through key performance indicators (KPIs) outlined in the contract, including metrics related to cost savings, efficiency gains, and successful implementation of recommended strategies. Regular performance reviews and milestone achievements will track progress.

Given the Cost Plus Fixed Fee (CPFF) contract type, what measures are in place to mitigate the risk of cost overruns and ensure fair pricing?

The CPFF structure requires diligent oversight to manage costs. Mitigation strategies likely include detailed scope definition, rigorous monitoring of incurred costs against the fixed fee, and performance-based incentives. The Department of the Navy will need to actively manage the contractor's expenditures and ensure that all costs are reasonable, allocable, and necessary for contract performance.

How does the selection of Deloitte Consulting LLP, a large firm, align with the government's goals for promoting small business participation in contracting?

The award to Deloitte, while potentially bringing significant expertise, does not directly align with goals to increase small business participation. Agencies are encouraged to set aside portions of contracts for small businesses or ensure prime contractors utilize small business subcontractors. The absence of small business involvement here suggests a potential gap in subcontracting opportunities or a focus on large-scale prime contracting.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0018921RZ011

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

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: $13,275,983

Exercised Options: $11,990,234

Current Obligation: $11,959,093

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,048,671

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0018921DZ039

IDV Type: IDC

Timeline