VA awards $48.2M to Deloitte Consulting for business architecture and strategy services

Contract Overview

Contract Amount: $48,184,983 ($48.2M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Veterans Affairs

Start Date: 2017-09-29

End Date: 2023-03-28

Contract Duration: 2,006 days

Daily Burn Rate: $24.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF BUSINESS ARCHITECTURE, REQUIREMENTS, AND STRATEGY (BARS)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $48.2 million to DELOITTE CONSULTING LLP for work described as: IGF::OT::IGF BUSINESS ARCHITECTURE, REQUIREMENTS, AND STRATEGY (BARS) Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. Services focus on administrative management and general management consulting, critical for agency operations. 3. The contract duration of over 2000 days indicates a long-term need for these strategic services. 4. Fixed-price contract type helps manage cost certainty for the government. 5. The awardee, Deloitte Consulting, is a major player in the federal consulting space. 6. Awarded by the Department of Veterans Affairs, highlighting a significant investment in internal strategy and operations.

Value Assessment

Rating: good

The contract value of $48.2 million over approximately 5.5 years represents a substantial investment in consulting services. Benchmarking this against similar large-scale management consulting contracts for federal agencies suggests a moderate to high value, depending on the specific deliverables and scope. The fixed-price nature of the contract provides cost predictability. However, a detailed value assessment would require comparing the specific services rendered against industry standards and the outcomes achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 5 bids suggests a healthy level of interest and competition for this significant contract. A competitive process like this generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the government's investment in strategic consulting services.

Public Impact

The Department of Veterans Affairs benefits directly through improved business architecture, requirements definition, and strategic planning. Agency leadership and program managers will likely see enhanced decision-making capabilities. The services provided can lead to more efficient and effective delivery of benefits and services to veterans. Workforce implications are indirect, but improved agency strategy can lead to better resource allocation and operational efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the long duration and strategic nature of the services.
Ensuring continued alignment with evolving VA strategic priorities throughout the contract term.
Measuring the tangible impact and return on investment for consulting services can be challenging.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Fixed-price contract type offers cost control and predictability.
The contractor, Deloitte Consulting, has extensive experience in federal consulting.
The contract addresses critical areas of business architecture and strategy for a major federal agency.

Sector Analysis

This contract falls within the professional services sector, specifically management and administrative consulting. The federal government is a significant consumer of these services to improve efficiency, modernize operations, and implement new strategies. The market for federal IT and management consulting is large and competitive, with major firms like Deloitte playing a prominent role. This contract represents a significant portion of spending within the administrative management and general management consulting services category (NAICS 541611).

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. As a large contract awarded to a major consulting firm, the primary focus is likely on the prime contractor's capabilities. However, large prime contractors often utilize small business subcontractors for specialized services, which could provide opportunities for small businesses within the federal ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Veterans Affairs. Performance reviews, regular reporting requirements, and adherence to the contract's statement of work are standard oversight mechanisms. Transparency is generally maintained through contract award databases and public reporting, though the specifics of internal strategic planning may be less public.

Related Government Programs

Federal IT Consulting Services
Management and Strategy Consulting
Department of Veterans Affairs IT Modernization
Government Business Process Improvement
Strategic Planning Contracts

Risk Flags

Long contract duration may increase risk of misalignment with evolving agency needs.
Measuring the tangible ROI of strategic consulting services can be challenging.
Potential for scope creep in long-term strategic initiatives.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $48.2 million to DELOITTE CONSULTING LLP. IGF::OT::IGF BUSINESS ARCHITECTURE, REQUIREMENTS, AND STRATEGY (BARS)

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $48.2 million.

What is the period of performance?

Start: 2017-09-29. End: 2023-03-28.

What is Deloitte Consulting's track record with the Department of Veterans Affairs and other federal agencies for similar services?

Deloitte Consulting LLP has a substantial track record of serving the Department of Veterans Affairs (VA) and numerous other federal agencies across a wide range of services, including IT, management consulting, and strategic planning. For the VA specifically, Deloitte has been involved in various large-scale projects aimed at modernizing systems, improving business processes, and enhancing veteran services. Their federal portfolio often includes contracts related to financial management, cybersecurity, and program management. This extensive experience suggests a deep understanding of the federal procurement landscape and the unique challenges faced by government entities. However, as with any large contractor, past performance reviews and specific contract outcomes would provide a more granular assessment of their success on individual engagements.

How does the $48.2 million contract value compare to other federal spending on administrative and management consulting services?

The $48.2 million contract value for administrative management and general management consulting services (NAICS 541611) awarded to Deloitte Consulting LLP by the VA is a significant sum, placing it among larger federal consulting awards. Federal spending on management and consulting services is substantial, often running into billions of dollars annually across various agencies. Contracts of this magnitude are typically awarded for complex, long-term strategic initiatives or large-scale program support. When benchmarked against similar contracts for strategic planning, business architecture, and requirements definition, this award appears to be within the expected range for a major federal agency like the VA undertaking significant operational improvements. The duration of the contract (over 2000 days) also contributes to the overall value, indicating a sustained need for these services.

What are the primary risks associated with a long-term, fixed-price consulting contract of this nature?

Long-term, fixed-price consulting contracts, such as this $48.2 million award to Deloitte for business architecture and strategy, carry several inherent risks. For the government, a key risk is that the fixed price may not adequately account for unforeseen changes in requirements, technology, or agency priorities over the extended contract period, potentially leading to a less-than-optimal value if the scope needs significant adjustment. Conversely, if the contractor underestimates the effort required, they may cut corners on quality. For the contractor, the risk lies in underestimating the effort or encountering scope creep without adequate change orders, impacting profitability. There's also the risk of the contractor's proposed solution becoming outdated or misaligned with evolving agency needs if not managed proactively. Effective contract management, clear communication, and robust change control processes are crucial to mitigate these risks.

What specific performance metrics or outcomes are likely being tracked for this contract?

For a contract focused on business architecture, requirements, and strategy, performance metrics would likely revolve around the successful development and delivery of key strategic documents, frameworks, and actionable plans. This could include the creation of comprehensive business architecture models, validated requirements documentation for future systems or process changes, and strategic roadmaps aligned with VA objectives. Performance might be measured by the timeliness of deliverables, the quality and completeness of the work products as assessed by VA stakeholders, and the degree to which the delivered strategy is adopted and implemented. Ultimately, the success of this contract would be gauged by its contribution to the VA's ability to achieve its strategic goals, improve operational efficiency, and better serve veterans.

How has federal spending on management and administrative consulting services evolved over the past five years?

Federal spending on management and administrative consulting services has generally seen a steady increase over the past five years, driven by agencies' needs to modernize operations, improve efficiency, address cybersecurity threats, and implement new technologies. Agencies like the Department of Veterans Affairs frequently leverage external expertise for strategic planning, IT modernization, and business process re-engineering. Factors such as evolving regulatory landscapes, the push for digital transformation, and the need for specialized skills that may not be available in-house contribute to this sustained demand. While specific figures fluctuate annually based on budget appropriations and agency priorities, the overall trend indicates a continued reliance on consulting services to support complex government functions and achieve strategic objectives.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

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: $48,184,983

Exercised Options: $48,184,983

Current Obligation: $48,184,983

Actual Outlays: $22,702,221

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $12,755,615

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F0028Y

IDV Type: FSS

Timeline