Deloitte Consulting LLP awarded $14.4M contract for business management support to the Department of the Navy

Contract Overview

Contract Amount: $14,385,610 ($14.4M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2024-11-13

End Date: 2025-11-12

Contract Duration: 364 days

Daily Burn Rate: $39.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: BUSINESS MANAGEMENT SPT FOR DTO

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20350

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $14.4 million to DELOITTE CONSULTING LLP for work described as: BUSINESS MANAGEMENT SPT FOR DTO Key points: 1. Contract provides essential administrative and management consulting services. 2. Awarded through full and open competition, suggesting a robust bidding process. 3. Duration of one year indicates a focused scope of work. 4. Contract type is Cost Plus Fixed Fee, which can incentivize cost control. 5. The services fall under Administrative Management and General Management Consulting. 6. Geographic location of performance is Washington D.C.

Value Assessment

Rating: good

The contract value of $14.4 million for a one-year period for business management support appears reasonable given the nature of consulting services. Benchmarking against similar contracts for administrative management consulting services would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee structure allows for cost reimbursement plus a predetermined profit, which can be effective if managed properly, but requires diligent oversight to ensure costs remain within reasonable bounds.

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 number of bidders is not specified, but this method generally fosters a competitive environment, which can lead to better pricing and service quality. The agency's decision to use full and open competition suggests confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the potential for competitive pricing and encourages a wider range of innovative solutions, potentially leading to better value for public funds.

Public Impact

The Department of the Navy benefits from enhanced business management and administrative support. Services delivered are expected to improve operational efficiency and strategic planning within the agency. The primary geographic impact is within the District of Columbia, where the contractor will perform services. The contract supports specialized consulting roles, potentially impacting the federal workforce through the engagement of external expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require careful monitoring to ensure costs do not escalate beyond initial projections.
The specific deliverables and performance metrics need to be clearly defined and tracked to ensure accountability.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
The contract has a defined one-year term, suggesting a clear scope and timeline.
The contractor, Deloitte Consulting LLP, is a well-established firm with significant experience in government contracting.

Sector Analysis

Administrative Management and General Management Consulting Services (NAICS 541611) represent a significant segment of the professional services market supporting federal agencies. This sector encompasses a wide range of advisory and assistance services aimed at improving organizational efficiency and effectiveness. Spending in this category often fluctuates based on agency needs for strategic planning, process improvement, and operational support. Comparable contracts within this sector typically range from hundreds of thousands to tens of millions of dollars, depending on the scope and duration.

Small Business Impact

There is no indication that this contract includes a small business set-aside. Given the nature of the services and the prime contractor, it is possible that small businesses could be involved as subcontractors. However, without specific subcontracting plans or goals outlined, the direct impact on the small business ecosystem is unclear. Further analysis would be needed to determine if opportunities exist for small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting officers and program managers. Accountability measures will be tied to the terms of the Cost Plus Fixed Fee agreement, including adherence to the fixed fee and management of allowable costs. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance details may be internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Management and Financial Consulting, Acquisition and Technology Services
Professional, Scientific, and Technical Services
Defense-Wide Administrative Support Contracts

Risk Flags

Cost Plus Fixed Fee contract requires diligent oversight to manage costs.
Scope creep potential in consulting contracts needs careful management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.4 million to DELOITTE CONSULTING LLP. BUSINESS MANAGEMENT SPT FOR DTO

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 $14.4 million.

What is the period of performance?

Start: 2024-11-13. End: 2025-11-12.

What is Deloitte Consulting LLP's track record with the Department of Defense and specifically the Department of the Navy?

Deloitte Consulting LLP has a substantial track record with the Department of Defense (DoD) and its various branches, including the Department of the Navy. They have been awarded numerous contracts across a wide spectrum of services, including IT, management consulting, financial management, and strategic planning. Their history with these entities suggests familiarity with federal procurement processes, compliance requirements, and the specific operational needs of military branches. Analyzing past performance evaluations and contract histories would reveal specific areas of strength and any potential concerns. For instance, their involvement in large-scale digital transformation initiatives or complex program management support for the DoD indicates a capacity to handle significant federal contracts. The value and duration of previous awards can also provide context for the current $14.4 million contract.

How does the $14.4 million value compare to similar administrative management consulting contracts awarded by the Navy or DoD?

The $14.4 million value for a one-year contract for business management support is within the typical range for large-scale consulting engagements within the Department of the Navy and the broader Department of Defense. Consulting services, particularly those involving strategic planning, process optimization, and complex administrative support, often command significant budgets. Contracts of this nature can range from a few million to tens of millions of dollars annually, depending on the complexity, scope, and duration. Factors such as the specific expertise required, the number of personnel involved, and the criticality of the support to the agency's mission influence the overall cost. This award appears to be a substantial, but not unprecedented, investment for specialized management consulting services.

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

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type for business management support revolve around cost control and potential for scope creep. While the fixed fee provides the contractor with a defined profit margin, the 'cost plus' component means the government reimburses allowable costs incurred by the contractor. If not rigorously managed, this can lead to higher-than-expected total costs if the contractor's expenses are not efficiently managed or if the scope of work expands without proper adjustments. For the government, the risk lies in potentially paying more than anticipated if cost oversight is insufficient. Conversely, the contractor bears the risk if actual costs exceed estimates, as their profit is fixed. Effective risk mitigation requires robust government oversight, clear definition of allowable costs, and diligent tracking of expenditures against the contract's objectives.

What is the expected impact of these services on the Department of the Navy's operational effectiveness?

The expected impact of these business management support services on the Department of the Navy's operational effectiveness is anticipated to be positive, focusing on enhancing efficiency, strategic alignment, and administrative processes. By engaging Deloitte Consulting LLP, the Navy aims to leverage external expertise to identify areas for improvement, streamline operations, and potentially implement best practices in management and administration. This could translate into more effective resource allocation, better decision-making support, and improved execution of the Navy's core missions. The specific impact will depend on the precise nature of the support provided, such as process re-engineering, organizational design, or strategic planning assistance, and the Navy's ability to integrate the consultants' recommendations into its existing structures and culture.

How has federal spending on administrative management and general management consulting services trended over the past five years?

Federal spending on administrative management and general management consulting services (NAICS 541611) has generally shown a steady or increasing trend over the past five years, reflecting agencies' ongoing needs for specialized expertise to address complex challenges, improve efficiency, and support strategic initiatives. Factors influencing this trend include evolving technological landscapes, shifts in government priorities, and the need for organizational modernization. While specific year-over-year fluctuations can occur due to budget cycles and agency-specific requirements, the overall demand for these services remains robust. Agencies frequently utilize external consultants for areas such as IT modernization, cybersecurity strategy, human capital management, and process improvement, driving consistent spending in this sector. The Department of Defense, being the largest federal agency, is a significant contributor to this spending.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0018923RZ069

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, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,385,610

Exercised Options: $14,385,610

Current Obligation: $14,385,610

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $3,123,660

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0018924DZ004

IDV Type: IDC

Timeline