State Department Spends $52.4M on Deloitte Consulting for Consular Affairs Labor Support
Contract Overview
Contract Amount: $52,429,011 ($52.4M)
Contractor: Deloitte Consulting LLP
Awarding Agency: Department of State
Start Date: 2016-06-15
End Date: 2021-02-15
Contract Duration: 1,706 days
Daily Burn Rate: $30.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: LABOR HOURS
Sector: Other
Official Description: IGF::OT::IGF LABOR SUPPORT FOR CONSULAR AFFAIRS.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20250
Plain-Language Summary
Department of State obligated $52.4 million to DELOITTE CONSULTING LLP for work described as: IGF::OT::IGF LABOR SUPPORT FOR CONSULAR AFFAIRS. Key points: 1. Significant contract value of $52.4 million awarded to a single vendor. 2. Competition was full and open, suggesting a competitive bidding process. 3. Contract duration spans nearly five years, indicating long-term support needs. 4. Services fall under Administrative Management and General Management Consulting.
Value Assessment
Rating: fair
The contract value of $52.4 million for administrative management consulting services over nearly five years appears substantial. Benchmarking against similar large-scale consulting contracts is necessary to determine if the pricing is competitive, especially given the 'labor hours' payment structure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes price discovery and competitive pricing. However, the specific pricing mechanisms and the number of bids received would provide a clearer picture of the price discovery effectiveness.
Taxpayer Impact: Taxpayer funds are being utilized for extensive consulting services. The effectiveness of these services in improving consular affairs operations will ultimately determine the value for taxpayers.
Public Impact
Impacts the operational efficiency of the Department of State's Consular Affairs. Potential for improved service delivery to citizens and foreign nationals. Ensures adequate staffing and management support for critical consular functions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High contract value.
- Long contract duration.
- Reliance on a single vendor for a significant period.
Positive Signals
- Full and open competition.
- Services support critical government functions.
Sector Analysis
This contract falls within the professional services sector, specifically management consulting. Government spending on such services is common for specialized expertise, but benchmarks are crucial to ensure cost-effectiveness compared to private sector rates and other government contracts.
Small Business Impact
The contract was awarded to Deloitte Consulting LLP, a large business. There is no indication of specific provisions or set-asides for small businesses within this award, suggesting limited direct impact on the small business sector for this particular contract.
Oversight & Accountability
Oversight would typically be managed by the Department of State contracting officers and program managers. Regular performance reviews and audits are essential to ensure the contractor meets performance standards and delivers value for the funds expended.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of State Contracting
- Department of State Programs
Risk Flags
- High contract value.
- Long contract duration.
- Potential for scope creep.
- Reliance on external expertise.
- Labor hour payment structure requires diligent oversight.
Tags
administrative-management-and-general-ma, department-of-state, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of State awarded $52.4 million to DELOITTE CONSULTING LLP. IGF::OT::IGF LABOR SUPPORT FOR CONSULAR AFFAIRS.
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 $52.4 million.
What is the period of performance?
Start: 2016-06-15. End: 2021-02-15.
What specific deliverables or performance metrics were established to measure the value and effectiveness of Deloitte's labor support for Consular Affairs?
The contract details do not explicitly state the specific deliverables or performance metrics. However, typical metrics for such contracts might include timely support, quality of advice, successful implementation of recommendations, and adherence to project timelines. A thorough review of the contract's statement of work and performance work statement would be necessary to ascertain these details and evaluate the contractor's performance against them.
Given the $52.4 million value and nearly five-year duration, what are the primary risks associated with this contract for the Department of State?
Key risks include potential cost overruns if labor hours exceed projections or if scope creep occurs. There's also a risk of vendor lock-in, reduced flexibility in adapting to changing needs, and potential over-reliance on external expertise. Ensuring robust contract management and clear performance standards are critical to mitigating these risks and ensuring the government receives adequate value.
How does the use of 'labor hours' as a payment method impact the overall cost-effectiveness and risk for the government in this contract?
The 'labor hours' payment method can be cost-effective if the work is well-defined and managed efficiently, as the government pays for actual effort. However, it carries a risk of increased costs if the contractor's hours are not diligently monitored or if the scope is not tightly controlled, potentially leading to higher-than-anticipated expenditures. Clear oversight is crucial to manage this risk.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
Pricing Type: LABOR HOURS (Z)
Evaluated Preference: NONE
Contractor Details
Parent Company: Deloitte Financial Advisory Services LLP
Address: 1919 N LYNN ST, ARLINGTON, VA, 22209
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $63,686,656
Exercised Options: $61,932,601
Current Obligation: $52,429,011
Actual Outlays: $325,406
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $797,588
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS00F0028Y
IDV Type: FSS
Timeline
Start Date: 2016-06-15
Current End Date: 2021-02-15
Potential End Date: 2021-02-15 00:00:00
Last Modified: 2024-07-02
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