OPM's $32.7M Deloitte contract for training services shows fair value with competitive pricing

Contract Overview

Contract Amount: $32,715,095 ($32.7M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Office of Personnel Management

Start Date: 2014-11-03

End Date: 2017-09-22

Contract Duration: 1,054 days

Daily Burn Rate: $31.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CL::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20415

State: District of Columbia Government Spending

Plain-Language Summary

Office of Personnel Management obligated $32.7 million to DELOITTE CONSULTING LLP for work described as: IGF::CL::IGF Key points: 1. Contract awarded to a large, established firm, indicating a focus on proven capabilities. 2. Pricing appears competitive given the scope of professional development and management training. 3. The contract duration and delivery order structure suggest flexibility in service provision. 4. Performance context is key, as training effectiveness is difficult to quantify directly. 5. This contract falls within the professional services sector, supporting government workforce development. 6. No small business set-aside was utilized, potentially limiting broader participation.

Value Assessment

Rating: good

The contract's total value of $32.7 million over approximately three years for professional and management development training appears reasonable when benchmarked against similar government-wide training initiatives. While specific per-unit costs for individual training sessions are not detailed, the overall price reflects the comprehensive nature of the services provided by a large consulting firm. The firm-fixed-price structure suggests that the government secured predictable costs for the defined scope of work, contributing to a fair assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is expected to drive more favorable pricing and service offerings for the government. The presence of a single award, a delivery order, suggests that Deloitte Consulting LLP was selected as the prime contractor through a competitive process, likely a task order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a standalone competitive bid.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring that the government receives the best possible value through a wide range of potential providers and competitive pricing pressures.

Public Impact

Federal employees across various agencies benefit from enhanced professional and management development. Services delivered include training programs aimed at improving leadership, management, and operational skills. The geographic impact is primarily within the District of Columbia, where OPM is headquartered, but training may extend to federal employees nationwide. Workforce implications include upskilling and professionalization of the federal workforce, potentially leading to improved government efficiency and effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the direct impact and ROI of the training.
Potential for vendor lock-in if the training curriculum becomes highly specialized or proprietary.
Reliance on a single large contractor may limit opportunities for smaller, specialized training providers.

Positive Signals

Award to a reputable firm like Deloitte suggests a high likelihood of professional service delivery.
Full and open competition indicates a robust selection process, aiming for best value.
The firm-fixed-price contract provides cost certainty for the government.
The contract duration allows for sustained development and implementation of training programs.

Sector Analysis

This contract falls within the professional services sector, specifically focusing on management consulting and training. The market for government training and development is substantial, with agencies consistently investing in workforce enhancement. Comparable spending benchmarks would involve looking at other large-scale training contracts awarded by OPM or other federal agencies to major consulting firms for similar professional development services. The size of this contract is significant, reflecting a substantial investment in human capital development.

Small Business Impact

The contract was not awarded as a small business set-aside, nor does it indicate specific subcontracting goals for small businesses. This suggests that the primary focus was on selecting the best overall offer from any qualified source. While this may limit direct opportunities for small businesses as prime contractors on this specific award, it does not preclude them from potentially subcontracting with Deloitte if their expertise aligns with the training needs.

Oversight & Accountability

Oversight for this contract would typically reside with the Office of Personnel Management (OPM) contracting officers and program managers. Accountability measures would be embedded in the contract terms, including performance standards and delivery requirements. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.

Related Government Programs

Federal Workforce Development Programs
Government Management Consulting Services
Professional Development Training Contracts
Office of Personnel Management (OPM) Contracts

Risk Flags

Contract Duration
Performance Measurement Difficulty
Large Contractor Reliance

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $32.7 million to DELOITTE CONSULTING LLP. IGF::CL::IGF

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Office of Personnel Management (Office of Personnel Management).

What is the total obligated amount?

The obligated amount is $32.7 million.

What is the period of performance?

Start: 2014-11-03. End: 2017-09-22.

What specific types of professional and management development training were delivered under this contract?

While the contract broadly covers 'Professional and Management Development Training,' the specific curriculum and modules would have been detailed in the statement of work (SOW). Typically, such training encompasses leadership development, supervisory skills, strategic planning, performance management, communication, and other areas crucial for effective federal agency operations. The training could have included workshops, seminars, online courses, and potentially customized programs tailored to OPM's or other agencies' needs. The exact breakdown would be found in the contract's SOW and any subsequent modifications or task orders issued.

How does the pricing of this contract compare to similar training contracts awarded by other federal agencies?

Benchmarking this $32.7 million contract requires comparing it to similar large-scale professional development and management training contracts awarded by agencies like GSA, DoD, or HHS to major consulting firms. Factors such as the duration, scope of services, number of personnel trained, and the specific expertise required influence pricing. Given that Deloitte is a major consulting firm, their rates are likely at the higher end of the market. However, the full and open competition process suggests that the pricing was deemed competitive and offered good value relative to the market for such comprehensive services. Without access to detailed pricing structures of comparable contracts, a precise per-unit comparison is challenging, but the overall value appears fair for the scope.

What were the key performance indicators (KPIs) used to evaluate the success of the training programs?

The specific Key Performance Indicators (KPIs) for this contract would have been defined in the Performance Work Statement (PWS) or Statement of Work (SOW). Common KPIs for training contracts include participant satisfaction surveys, pre- and post-training knowledge assessments, completion rates, and sometimes, longer-term impact assessments such as observed changes in on-the-job behavior or performance improvements. The effectiveness of training is often subjective and difficult to measure directly, so contracts typically rely on a combination of participant feedback and objective measures where feasible. The government would have monitored these KPIs to ensure Deloitte met its contractual obligations.

What is Deloitte Consulting LLP's track record with federal training and management consulting contracts?

Deloitte Consulting LLP is a well-established and reputable firm with extensive experience in providing a wide range of professional services to the federal government, including management consulting, IT solutions, and human capital development. They have a long history of securing and successfully executing large federal contracts across numerous agencies. Their track record typically involves delivering complex projects, managing large teams, and adhering to stringent government requirements. Past performance evaluations, often available through government contract databases or agency reports, would provide specific insights into their performance on similar training and development contracts.

What was the historical spending trend for professional and management development training at OPM prior to this contract?

Analyzing historical spending trends for professional and management development training at OPM would involve reviewing OPM's budget allocations and contract awards over several fiscal years. This contract, valued at $32.7 million over its period of performance (approximately 2014-2017), represents a significant investment. Understanding prior spending would help determine if this contract represented an increase, decrease, or consistent level of investment in training. Factors influencing historical spending could include agency priorities, budget availability, and the specific needs for workforce development at the time. Without access to OPM's historical procurement data, a precise trend analysis is not possible.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $32,715,095

Exercised Options: $32,715,095

Current Obligation: $32,715,095

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $2,071,431

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: OPM1912C0023

IDV Type: IDC

Timeline