Deloitte Consulting LLP awarded $11.1M contract for Navy programmatic and administrative support

Contract Overview

Contract Amount: $11,088,070 ($11.1M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2024-02-01

End Date: 2026-01-31

Contract Duration: 730 days

Daily Burn Rate: $15.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: PROGRAMMATIC AND ADMINISTRATIVE SUPPORT SERVICES FOR BUMED SUPPORT AND LOGISTICS PROGRAM (N4)

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.1 million to DELOITTE CONSULTING LLP for work described as: PROGRAMMATIC AND ADMINISTRATIVE SUPPORT SERVICES FOR BUMED SUPPORT AND LOGISTICS PROGRAM (N4) Key points: 1. Contract provides essential programmatic and administrative support for the Navy's BUMED Support and Logistics Program. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract duration of 730 days indicates a medium-term need for these services. 4. The Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring of costs against the fixed fee. 5. The contract value is relatively modest within the broader context of defense contracting. 6. This award falls under Engineering Services (NAICS 541330).

Value Assessment

Rating: good

The contract value of approximately $11.1 million over two years for programmatic and administrative support appears reasonable for a large, established contractor like Deloitte. Benchmarking against similar support contracts within the Department of Defense is necessary for a definitive value assessment. The CPFF structure, while common, necessitates robust oversight to ensure costs remain aligned with the fixed fee and the overall value delivered.

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 bids. The presence of two bidders suggests a moderate level of competition for this specific requirement. While two bidders is better than a sole-source award, a higher number of bids would typically lead to more aggressive pricing and potentially better value for the government.

Taxpayer Impact: Full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging competitive pricing and ensuring the government has access to a range of qualified contractors.

Public Impact

The primary beneficiaries are the Department of the Navy and its Bureau of Medicine and Surgery (BUMED) through enhanced logistical and administrative support. Services delivered include programmatic and administrative support crucial for the efficient operation of the BUMED Support and Logistics Program. The geographic impact is primarily within the operational sphere of the Department of the Navy, likely supporting medical logistics functions. Workforce implications may include the utilization of Deloitte's skilled personnel to augment Navy staff in specialized support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can incentivize contractors to increase costs if not properly managed, as the fee is fixed regardless of cost overruns.
Limited competition (2 bidders) may result in less aggressive pricing than a more robust bidding environment.
The specific nature of 'programmatic and administrative support' can be broad, requiring clear performance metrics to ensure accountability.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
Deloitte Consulting LLP is a large, reputable contractor with extensive experience in government support services.
The contract is for essential support functions, indicating a clear government need.
The fixed fee component of the CPFF contract provides some cost certainty for the government.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which encompasses firms providing engineering consulting and design services. The market for such services within the defense sector is substantial, with numerous large and small businesses competing for government contracts. This specific award supports a critical Navy program, highlighting the ongoing demand for specialized programmatic and administrative expertise within military healthcare logistics.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false, sb=false). Therefore, there are no direct subcontracting implications mandated by a set-aside. However, the prime contractor, Deloitte, may still engage small businesses as subcontractors to fulfill certain aspects of the contract, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy contracting officers and program managers. Performance will be monitored against the contract's statement of work and deliverables. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Program Management Support
Navy Medical Logistics Support
Administrative and Management Consulting Services
Engineering Services Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Performance Monitoring Intensity
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 million to DELOITTE CONSULTING LLP. PROGRAMMATIC AND ADMINISTRATIVE SUPPORT SERVICES FOR BUMED SUPPORT AND LOGISTICS PROGRAM (N4)

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 $11.1 million.

What is the period of performance?

Start: 2024-02-01. End: 2026-01-31.

What is Deloitte Consulting LLP's track record with similar programmatic and administrative support contracts for the Department of Defense?

Deloitte Consulting LLP has a significant history of performing programmatic and administrative support services for various Department of Defense agencies. Their extensive experience includes providing strategic planning, operational support, financial management, and IT integration services across numerous defense programs. Publicly available contract data indicates a consistent pattern of awards for complex support functions, often involving large dollar values and multi-year durations. Their performance on these contracts has generally been rated positively, though specific details on past performance metrics for similar BUMED support are not detailed in this award notice. A deeper dive into past performance reviews and any documented issues would provide a more comprehensive understanding of their suitability for this specific role.

How does the awarded amount of $11.1 million compare to similar programmatic and administrative support contracts within the Navy or DoD?

The $11.1 million award for 730 days of programmatic and administrative support for the BUMED Support and Logistics Program is a moderate-sized contract within the DoD. Similar contracts for comprehensive program management and logistical support can range from a few million dollars for specialized tasks to hundreds of millions for large-scale, multi-year endeavors. Given that this contract is for a specific bureau (BUMED) and focuses on programmatic and administrative functions, its value appears aligned with the scope of work. However, without detailed statements of work for comparable contracts, a precise value-for-money assessment is challenging. Factors such as the complexity of the logistics program, the number of personnel supported, and the criticality of the administrative functions would influence the appropriate contract value.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this type of service?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract structure, like the one awarded to Deloitte, is the potential for cost overruns. While the contractor's profit (the fixed fee) is predetermined, they are reimbursed for all allowable costs incurred. If costs escalate beyond initial projections, the government bears the financial burden. This necessitates robust oversight from the government to ensure that all claimed costs are reasonable, allocable, and directly related to the contract's objectives. Ineffective cost control by the contractor or inadequate government surveillance can lead to the government paying more than anticipated for the services rendered. The fixed fee itself does not incentivize cost reduction, only the completion of the defined scope.

What is the expected effectiveness of the services provided under this contract for the BUMED Support and Logistics Program?

The expected effectiveness of the services provided under this contract hinges on the contractor's ability to deliver high-quality programmatic and administrative support that enhances the efficiency and operational readiness of the BUMED Support and Logistics Program. This includes streamlining processes, improving data management, ensuring timely logistical coordination, and providing reliable administrative functions. The success will be measured by the contractor's adherence to the statement of work, meeting performance metrics, and contributing to the overall mission objectives of BUMED. Given Deloitte's experience, the expectation is that they will provide competent support, but ongoing monitoring and performance evaluations are crucial to ensure these services effectively contribute to the program's goals.

How has spending on programmatic and administrative support services for the Navy's medical logistics evolved over the past five years?

Analyzing historical spending trends for programmatic and administrative support services specifically for the Navy's medical logistics over the past five years requires access to detailed historical contract data. Generally, spending in this area tends to be relatively stable, driven by the enduring need for efficient healthcare support within the military. However, fluctuations can occur due to shifts in defense budgets, changes in operational tempo, or specific program initiatives. For instance, increased focus on readiness or modernization efforts could lead to augmented spending. Conversely, budget constraints or program restructuring might result in reduced outlays. Without specific data, it's presumed that spending has remained consistent with the operational requirements of the BUMED Support and Logistics Program, with potential minor adjustments based on annual budget allocations and strategic priorities.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: N0018923R3039

Offers Received: 2

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: $30,806,935

Exercised Options: $16,621,591

Current Obligation: $11,088,070

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,726,838

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D7502

IDV Type: IDC

Timeline