State Department awards $23.5M Deloitte contract for OPM-MOI staff augmentation in Saudi Arabia
Contract Overview
Contract Amount: $23,533,251 ($23.5M)
Contractor: Deloitte Consulting LLP
Awarding Agency: Department of State
Start Date: 2009-11-06
End Date: 2014-11-05
Contract Duration: 1,825 days
Daily Burn Rate: $12.9K/day
Competition Type: FULL AND OPEN COMPETITION
Sector: Other
Official Description: SAQMMA10L0027 IS AWARDED TO DELOITTE CONSULTING TO PROVIDE SKILLED PROGRAM MANAGEMENT, LEGAL AND OTHER PERSONNEL AS AUTHORIZED BY THE CONTRACTING OFFICER REPRESENTATIVE TO AUGMENT THE STAFF OF OPM-MOI IN RIYADH, SAUDI ARABIA.
Plain-Language Summary
Department of State obligated $23.5 million to DELOITTE CONSULTING LLP for work described as: SAQMMA10L0027 IS AWARDED TO DELOITTE CONSULTING TO PROVIDE SKILLED PROGRAM MANAGEMENT, LEGAL AND OTHER PERSONNEL AS AUTHORIZED BY THE CONTRACTING OFFICER REPRESENTATIVE TO AUGMENT THE STAFF OF OPM-MOI IN RIYADH, SAUDI ARABIA. Key points: 1. Contract awarded to Deloitte Consulting for skilled personnel to support OPM-MOI in Riyadh. 2. The contract value is $23,533,250.97 over a period of 1825 days. 3. Competition method was 'Full and Open', suggesting a competitive bidding process. 4. The NAICS code 541611 indicates services related to Administrative Management and General Management Consulting.
Value Assessment
Rating: fair
The contract value of $23.5M over 5 years for consulting services in a foreign location appears within a reasonable range, though specific benchmarks for this type of augmentation are not readily available. Pricing would need to be compared against similar OPM-MOI support contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. The use of a BPA (Blanket Purchase Agreement) as the award type suggests a pre-negotiated framework, but the specific pricing mechanisms within it would determine the extent of price discovery.
Taxpayer Impact: Taxpayer funds are being used for personnel augmentation in a foreign government agency, the value of which is determined through a competitive process.
Public Impact
Supports the operational capacity of the OPM-MOI in Saudi Arabia. Provides specialized program management, legal, and other personnel. Contract duration of 5 years indicates a long-term need for these services. International scope of the contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if personnel rates are not closely managed.
- Geopolitical risks associated with operating in Saudi Arabia.
- Dependency on a single contractor for critical staff augmentation.
Positive Signals
- Awarded through full and open competition.
- Clear statement of work for personnel augmentation.
- Long-term contract provides stability for support.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically management consulting. Spending in this sector can vary widely based on agency needs and project scope. Benchmarks for international staff augmentation for foreign government agencies are not standard.
Small Business Impact
The contract was awarded to Deloitte Consulting LLP, a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award.
Oversight & Accountability
Oversight would be managed by the Contracting Officer Representative (COR) at OPM-MOI. The Department of State's procurement regulations and contract clauses would govern accountability. Regular performance reviews and financial audits would be standard oversight mechanisms.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- Contract awarded to a large, established firm.
- Services provided in a foreign country.
- Long contract duration (5 years).
- Potential for personnel costs to escalate over time.
- Reliance on contractor for critical functions.
Tags
administrative-management-and-general-ma, department-of-state, bpa, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $23.5 million to DELOITTE CONSULTING LLP. SAQMMA10L0027 IS AWARDED TO DELOITTE CONSULTING TO PROVIDE SKILLED PROGRAM MANAGEMENT, LEGAL AND OTHER PERSONNEL AS AUTHORIZED BY THE CONTRACTING OFFICER REPRESENTATIVE TO AUGMENT THE STAFF OF OPM-MOI IN RIYADH, SAUDI ARABIA.
Who is the contractor on this award?
The obligated recipient is DELOITTE CONSULTING LLP.
Which agency awarded this contract?
Awarding agency: Department of State (Department of State).
What is the total obligated amount?
The obligated amount is $23.5 million.
What is the period of performance?
Start: 2009-11-06. End: 2014-11-05.
What is the specific value proposition of augmenting OPM-MOI staff with external personnel versus internal hiring or training?
Augmenting staff externally can provide specialized skills not readily available internally, offer flexibility to scale up or down quickly, and potentially reduce long-term personnel overhead. The value proposition hinges on the criticality of the augmented functions, the uniqueness of the skills provided by Deloitte, and the efficiency gains compared to alternative staffing solutions for OPM-MOI's specific mission requirements in Riyadh.
What are the key risks associated with providing consulting services in a foreign, potentially sensitive, geopolitical environment like Saudi Arabia?
Key risks include geopolitical instability, differing legal and regulatory frameworks, cultural misunderstandings impacting project execution, security concerns for personnel, and potential supply chain disruptions. Additionally, currency fluctuations and compliance with local labor laws present financial and operational challenges. Robust risk mitigation strategies, including security protocols and cultural sensitivity training, are crucial.
How effectively does this contract measure and ensure the delivery of skilled program management, legal, and other personnel to meet OPM-MOI's needs?
Effectiveness is measured through the COR's performance evaluations, adherence to contract deliverables, and the successful integration of augmented staff into OPM-MOI operations. Key performance indicators (KPIs) related to project milestones, problem resolution, and client satisfaction would be critical. Regular reporting and feedback loops are essential to ensure continuous alignment with OPM-MOI's evolving requirements.
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
Evaluated Preference: NONE
Contractor Details
Parent Company: Deloitte LLP (UEI: 014127109)
Address: 4301 N FAIRFAX DR STE 210, ARLINGTON, VA, 22203
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $23,533,251
Exercised Options: $23,533,251
Current Obligation: $23,533,251
Parent Contract
Parent Award PIID: SAQMMA08A0428
IDV Type: BPA
Timeline
Start Date: 2009-11-06
Current End Date: 2014-11-05
Potential End Date: 2014-11-05 00:00:00
Last Modified: 2015-03-26
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