State Dept. awards $22M for consulting services to Deloitte, highlighting need for business analysis and process reengineering

Contract Overview

Contract Amount: $22,085,570 ($22.1M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of State

Start Date: 2010-01-01

End Date: 2015-06-30

Contract Duration: 2,006 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: THE OBJECTIVE OF THIS TASK ORDER IS TO ACQUIRE ADVISORY ASSISTANCE EXPERTISE AND SKILLED RESOURCES IN BUSINESS REQUIREMENTS, BUSINESS ANALYSIS, BUSINESS VALIDATION, PASSPORT FORECASTING, PRIVACY ANALYSIS, PROCESS REENGINEERING, AND SHAREPOINT SUPPORT.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20037

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $22.1 million to DELOITTE CONSULTING LLP for work described as: THE OBJECTIVE OF THIS TASK ORDER IS TO ACQUIRE ADVISORY ASSISTANCE EXPERTISE AND SKILLED RESOURCES IN BUSINESS REQUIREMENTS, BUSINESS ANALYSIS, BUSINESS VALIDATION, PASSPORT FORECASTING, PRIVACY ANALYSIS, PROCESS REENGINEERING, AND SHAREPOINT SUPPORT. Key points: 1. Spending focused on specialized advisory services including business analysis, privacy, and process reengineering. 2. Deloitte Consulting LLP secured the contract, indicating potential market concentration in this service area. 3. The contract duration spans over 5 years, suggesting a long-term need for these services. 4. Risk is moderate, tied to the reliance on external expertise for critical business functions.

Value Assessment

Rating: fair

The contract value of $22M over 5 years averages around $4.4M annually. Benchmarking this against similar large-scale consulting engagements for federal agencies suggests this is within a reasonable range, though specific service details are needed for precise comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition via a BPA Call. This method generally promotes competitive pricing, but the specific impact on price discovery for these specialized services is not detailed.

Taxpayer Impact: Taxpayer funds are utilized for acquiring specialized expertise to improve government operations and efficiency.

Public Impact

Enhances government efficiency through expert analysis and process improvements. Supports critical functions like passport forecasting and privacy analysis. Ensures specialized skills are available to the Department of State without long-term hiring.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Reliance on a single contractor for diverse advisory needs.
Potential for scope creep in long-term consulting engagements.
Limited visibility into specific performance metrics and outcomes.

Positive Signals

Awarded through full and open competition.
Addresses a broad range of critical business support functions.
Provides flexibility through a BPA Call mechanism.

Sector Analysis

The contract falls under Administrative Management and General Management Consulting Services (NAICS 541611). Federal spending in this sector often involves significant investment in improving operational efficiency and strategic planning, with benchmarks varying widely based on agency size and complexity.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). This suggests that the scale and specialized nature of the services required were likely beyond the capacity of most small business contractors.

Oversight & Accountability

Awarded via a BPA Call, which typically has established oversight mechanisms. However, specific details on performance monitoring and accountability for this task order are not provided in the data.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of State Contracting
Department of State Programs

Risk Flags

Lack of specific performance metrics.
Potential for vendor lock-in despite full and open competition.
Limited insight into knowledge transfer mechanisms.
Reliance on external consultants for core business functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $22.1 million to DELOITTE CONSULTING LLP. THE OBJECTIVE OF THIS TASK ORDER IS TO ACQUIRE ADVISORY ASSISTANCE EXPERTISE AND SKILLED RESOURCES IN BUSINESS REQUIREMENTS, BUSINESS ANALYSIS, BUSINESS VALIDATION, PASSPORT FORECASTING, PRIVACY ANALYSIS, PROCESS REENGINEERING, AND SHAREPOINT SUPPORT.

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 $22.1 million.

What is the period of performance?

Start: 2010-01-01. End: 2015-06-30.

What specific metrics are used to evaluate the success of the advisory assistance and process reengineering efforts?

The provided data does not specify the metrics for evaluating success. Typically, such contracts would include Key Performance Indicators (KPIs) related to process efficiency gains, cost savings achieved, successful implementation of reengineered processes, and client satisfaction. Without these, assessing the true value delivered is difficult.

How does the Department of State ensure that the expertise provided by Deloitte remains current and relevant to evolving business needs?

Ensuring relevance usually involves regular performance reviews, contract modifications to adapt to changing requirements, and potentially incorporating clauses that mandate the contractor to bring forward best practices. The Department likely relies on its Contracting Officer's Representative (COR) to manage this relationship and ensure the advisory services align with current and future strategic objectives.

What is the long-term strategy for integrating the knowledge gained from these consulting services into the Department's internal capabilities?

Effective knowledge transfer is crucial for long-term value. This often involves requirements for documentation, training sessions for internal staff, and collaborative work between consultants and government personnel. The Department should have a plan to institutionalize the improvements and retain the expertise gained, rather than relying solely on external support indefinitely.

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

Pricing Type: LABOR HOURS (Z)

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: $22,085,570

Exercised Options: $22,085,570

Current Obligation: $22,085,570

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SAQMMA08A0428

IDV Type: BPA

Timeline