DoD's PEO-EIS Program Management Contract Awarded to Deloitte for $45.8M

Contract Overview

Contract Amount: $45,792,687 ($45.8M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2011-01-16

End Date: 2016-01-15

Contract Duration: 1,825 days

Daily Burn Rate: $25.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THIS REQUIREMENT IS TO PROVIDE COMPREHENSIVE PROGRAM MANAGEMENT SUPPORT, FINANCIAL MANAGEMENT SUPPORT, ACQUISITION SUPPORT, CONTRACT AND ADMINISTRATIVE SUPPORT SERVICES AS WELL AS MANAGEMENT AND MAINTENANCE OF BUSINESS TOOL SUPPORT TO PEO-EIS. ALL SUPPORT SHALL BE PERFORMED IN ARLINGTON VIRGINIA AT THE PEO-EIS OFFICES.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $45.8 million to DELOITTE CONSULTING LLP for work described as: THIS REQUIREMENT IS TO PROVIDE COMPREHENSIVE PROGRAM MANAGEMENT SUPPORT, FINANCIAL MANAGEMENT SUPPORT, ACQUISITION SUPPORT, CONTRACT AND ADMINISTRATIVE SUPPORT SERVICES AS WELL AS MANAGEMENT AND MAINTENANCE OF BUSINESS TOOL SUPPORT TO PEO-EIS. ALL SUPPORT SHALL BE PERFORMED IN AR… Key points: 1. Contract awarded to Deloitte Consulting LLP for comprehensive program management support. 2. Services include financial management, acquisition support, and administrative services. 3. The contract was awarded under full and open competition. 4. Significant taxpayer investment of $45.8 million over five years. 5. Potential for cost overruns given the Cost Plus Fixed Fee structure.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) pricing structure can lead to cost overruns if not managed tightly. Benchmarking CPFF contracts for similar program management services is difficult without detailed scope, but the total value suggests a substantial investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust price discovery process. However, the CPFF structure means the final cost is not fixed upfront, potentially impacting the ultimate price paid by taxpayers.

Taxpayer Impact: Taxpayers are funding comprehensive support services for PEO-EIS, with the final cost dependent on actual expenses incurred plus a fixed fee.

Public Impact

Ensures continued operational support for PEO-EIS programs. Supports critical defense acquisition and program management functions. Potential impact on efficiency and effectiveness of defense programs. Deloitte's role in managing significant defense spending.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee structure may incentivize higher spending.
Lack of specific performance metrics makes value assessment difficult.
Concentration of support services with one contractor.

Positive Signals

Full and open competition ensures a competitive award process.
Contract supports critical PEO-EIS functions.
Experienced contractor selected.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting program management for the PEO-EIS. Spending in this area is crucial for the efficient execution of defense acquisition programs.

Small Business Impact

The contract data indicates that small businesses were not directly involved in this award, as Deloitte Consulting LLP is a large business and the contract was not set aside for small business participation.

Oversight & Accountability

Oversight is provided by the Defense Contract Management Agency (DCMA). The CPFF structure necessitates diligent oversight to control costs and ensure performance objectives are met.

Related Government Programs

Engineering Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Cost overruns due to CPFF structure.
Potential for scope creep without strict management.
Dependence on a single large contractor for critical functions.
Lack of explicit small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.8 million to DELOITTE CONSULTING LLP. THIS REQUIREMENT IS TO PROVIDE COMPREHENSIVE PROGRAM MANAGEMENT SUPPORT, FINANCIAL MANAGEMENT SUPPORT, ACQUISITION SUPPORT, CONTRACT AND ADMINISTRATIVE SUPPORT SERVICES AS WELL AS MANAGEMENT AND MAINTENANCE OF BUSINESS TOOL SUPPORT TO PEO-EIS. ALL SUPPORT SHALL BE PERFORMED IN ARLINGTON VIRGINIA AT THE PEO-EIS OFFICES.

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $45.8 million.

What is the period of performance?

Start: 2011-01-16. End: 2016-01-15.

What is the projected cost efficiency of this CPFF contract compared to other contract types for similar program management services?

CPFF contracts are generally less cost-efficient than fixed-price contracts because the government bears the risk of cost overruns. While they allow for flexibility in evolving requirements, they require robust oversight to prevent excessive spending. Benchmarking against similar contracts is challenging without detailed scope and performance data, but the potential for higher costs is inherent.

What are the key performance indicators (KPIs) used to measure the effectiveness of Deloitte's support services for PEO-EIS?

The provided data does not specify the key performance indicators (KPIs) for this contract. Effective oversight would require clearly defined KPIs related to program management efficiency, financial reporting accuracy, acquisition support timeliness, and administrative support responsiveness to ensure the contractor is meeting PEO-EIS needs.

How does the $45.8 million expenditure align with industry benchmarks for program management support in similar defense organizations?

Assessing alignment requires detailed comparison of the scope of services, complexity of programs managed by PEO-EIS, and the duration of the contract. Without this granular detail, it's difficult to definitively state if $45.8 million is high or low. However, it represents a significant investment in program management support for a major defense entity.

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: N0002410R3167

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte LLP (UEI: 014127109)

Address: 1725 DUKE ST, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $54,425,245

Exercised Options: $54,425,245

Current Obligation: $45,792,687

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4020

IDV Type: IDC

Timeline