VA's $30.4M PMCOE SME Support Contract Awarded to Deloitte Consulting LLP

Contract Overview

Contract Amount: $30,401,712 ($30.4M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Veterans Affairs

Start Date: 2014-08-12

End Date: 2016-07-07

Contract Duration: 695 days

Daily Burn Rate: $43.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: Other

Official Description: IGF::CL::IGF PROJECT MANAGEMENT CENTER OF EXCELLENCE (PMCOE) SUBJECT MATTER EXPERT (SME) SUPPORT SERVICES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $30.4 million to DELOITTE CONSULTING LLP for work described as: IGF::CL::IGF PROJECT MANAGEMENT CENTER OF EXCELLENCE (PMCOE) SUBJECT MATTER EXPERT (SME) SUPPORT SERVICES. Key points: 1. Contract provides critical project management expertise to the VA's PMCOE. 2. Deloitte Consulting LLP, a large established firm, secured this contract. 3. The contract was awarded via full and open competition, suggesting a competitive process. 4. Performance period spanned nearly two years, indicating a medium-term engagement. 5. The contract type was labor hours, common for consulting services. 6. The contract was not set aside for small businesses. 7. The contract was awarded as a delivery order, suggesting it was part of a larger indefinite-delivery contract vehicle.

Value Assessment

Rating: good

The contract value of $30.4 million over approximately two years for project management consulting services appears reasonable given the scope and the contractor's expertise. Benchmarking against similar large-scale consulting engagements for federal agencies suggests that pricing for specialized project management support can range significantly, but this award falls within expected parameters for a firm of Deloitte's caliber. The absence of specific performance metrics makes a definitive value-for-money assessment challenging, but the duration and nature of the services imply a substantial need for expert support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders were likely solicited and evaluated. The presence of two bidders suggests a moderate level of competition for this specific award. While full and open competition is generally preferred for maximizing price discovery and ensuring fair access to government contracts, the specific number of bidders can influence the intensity of price competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and a wider pool of qualified contractors, ultimately driving better value for government spending.

Public Impact

The Department of Veterans Affairs benefits from enhanced project management capabilities. Services delivered include subject matter expertise to support the PMCOE. The geographic impact is primarily within the District of Columbia, where the VA headquarters is located. The contract supports a workforce of consultants providing specialized project management skills.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on external consultants for core project management functions.
Limited transparency on specific performance outcomes and impact on VA project success.
The labor hour contract type can sometimes lead to cost overruns if not closely managed.

Positive Signals

Leverages specialized expertise from a leading consulting firm to bolster VA project management.
Full and open competition suggests a robust procurement process.
The contract duration indicates a sustained need for these critical services.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector (NAICS 541611). This sector is characterized by firms providing expertise in areas such as organizational planning, business process reengineering, and project management. The federal government is a significant consumer of these services, particularly for large agencies like the VA, to improve operational efficiency and manage complex projects. Spending in this sector can vary widely based on agency needs and project complexity.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of small business subcontracting requirements. The award to a large, established firm like Deloitte Consulting LLP suggests that the primary focus was on securing specialized expertise, potentially overlooking opportunities for small business participation in this specific instance.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Veterans Affairs' contracting officers and program managers. The Inspector General's office may also conduct audits or investigations if performance issues or concerns arise. Transparency is generally facilitated through contract award databases, but detailed performance reports are often internal.

Related Government Programs

VA Project Management Support Services
Federal Management and Consulting Contracts
PMCOE Operations Support

Risk Flags

Potential for cost overruns due to labor-hour contract type.
Limited public information on specific performance metrics and outcomes.
Contract awarded to a large business, potentially limiting small business subcontracting opportunities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $30.4 million to DELOITTE CONSULTING LLP. IGF::CL::IGF PROJECT MANAGEMENT CENTER OF EXCELLENCE (PMCOE) SUBJECT MATTER EXPERT (SME) SUPPORT SERVICES.

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 $30.4 million.

What is the period of performance?

Start: 2014-08-12. End: 2016-07-07.

What was the specific nature of the 'SME Support Services' provided under this contract?

The 'SME Support Services' under contract number IGF::CL::IGF PROJECT MANAGEMENT CENTER OF EXCELLENCE (PMCOE) SUBJECT MATTER EXPERT (SME) SUPPORT SERVICES likely involved providing specialized knowledge and expertise in various aspects of project management. This could encompass areas such as strategic planning, risk management, schedule development, cost estimation, performance monitoring, and stakeholder communication. The Subject Matter Experts (SMEs) would have been tasked with advising VA project managers, contributing to the development of best practices, and potentially assisting in the oversight and execution of key VA initiatives managed through the PMCOE. The exact deliverables and specific areas of expertise would be detailed in the contract's Statement of Work (SOW).

How does the $30.4 million contract value compare to other VA project management consulting contracts?

The $30.4 million contract value for approximately two years of project management consulting services for the VA's PMCOE is substantial, reflecting the scale and importance of the support provided. Comparing this to other VA consulting contracts requires access to a broader dataset of similar procurements. However, for large federal agencies, multi-million dollar contracts for specialized consulting services, particularly those involving project management offices (PMOs) or centers of excellence (COEs), are not uncommon. The value is influenced by factors such as the number of SMEs, their seniority and specialized skills, the duration of the contract, and the complexity of the projects being supported. Without specific benchmarks for VA PMCOE support, it's difficult to definitively state if it's high or low, but it indicates a significant investment in expert project management capabilities.

What were the key performance indicators (KPIs) or success metrics for this contract?

Specific Key Performance Indicators (KPIs) or success metrics for this contract are not publicly detailed in the provided data. Typically, for consulting services contracts, KPIs would be outlined in the Statement of Work (SOW) and could include metrics related to project delivery timelines, budget adherence, quality of deliverables, client satisfaction, and the successful implementation of project management methodologies. For SME support, metrics might also relate to the effectiveness of advice provided, the successful resolution of project challenges, and contributions to the overall efficiency and effectiveness of the PMCOE. The absence of readily available KPIs makes it challenging to objectively assess the contractor's performance and the overall success of the engagement from a public perspective.

What is the track record of Deloitte Consulting LLP in providing similar services to the federal government?

Deloitte Consulting LLP has a long and extensive track record of providing a wide range of consulting services, including project management, IT strategy, and administrative management, to various federal government agencies. They are a major federal contractor with numerous awards across different departments and agencies. Their experience spans complex transformations, system implementations, and operational improvements. For the Department of Veterans Affairs specifically, Deloitte has been involved in numerous contracts, often related to healthcare IT, benefits processing, and management consulting. Their established presence and consistent awards suggest a strong capability and a generally positive performance history in meeting federal government requirements, though specific contract performance can vary.

Were there any identified risks or challenges associated with this contract during its performance period?

The provided data does not explicitly detail specific risks or challenges encountered during the performance of this contract. However, common risks associated with large consulting contracts include scope creep, potential cost overruns if not managed tightly (especially with labor-hour contracts), challenges in integrating external expertise with internal government staff, and ensuring the effective transfer of knowledge. For a contract supporting a Project Management Center of Excellence, risks might also involve ensuring that the provided expertise aligns with evolving VA strategic goals and that the recommendations are practical and implementable within the VA's complex organizational structure. Without specific reports or audits, these remain general potential risks.

How has the VA's spending on project management consulting services evolved over time?

The provided data focuses on a single contract award and does not offer a historical trend of the VA's spending on project management consulting services. To analyze the evolution of VA spending in this area, one would need to examine aggregated contract data over multiple fiscal years, looking at the total dollar amounts awarded for NAICS codes related to management and consulting services (like 541611), and specifically filtering for contracts related to project management or PMOs. Such an analysis would reveal whether spending has increased, decreased, or remained stable, potentially correlating with shifts in VA priorities, project portfolios, or strategic initiatives requiring external expertise.

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: 2

Pricing Type: LABOR HOURS (Z)

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: $30,670,207

Exercised Options: $30,401,712

Current Obligation: $30,401,712

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA79811D0124

IDV Type: IDC

Timeline