DoD Awards $28M Sole Source Contract to Deloitte for Talent Management Software

Contract Overview

Contract Amount: $27,981,109 ($28.0M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2023-09-27

End Date: 2026-09-26

Contract Duration: 1,095 days

Daily Burn Rate: $25.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SOLE SOURCE JEFO FOR DASA(P) EXPANSION AND MAINTENANCE OF THE TALENT MANAGEMENT CAREER MAPPING (TMCM) SOFTWARE TOOL REQUIREMENT.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $28.0 million to DELOITTE CONSULTING LLP for work described as: SOLE SOURCE JEFO FOR DASA(P) EXPANSION AND MAINTENANCE OF THE TALENT MANAGEMENT CAREER MAPPING (TMCM) SOFTWARE TOOL REQUIREMENT. Key points: 1. Significant investment in a critical talent management tool. 2. Sole source award raises questions about competition and potential cost savings. 3. Contract duration of three years suggests ongoing need and potential for future expansion. 4. Focus on IT services within the Defense sector.

Value Assessment

Rating: questionable

The award of $27.98 million for a three-year contract at a fixed price suggests a potentially high cost. Benchmarking against similar IT service contracts for software development and maintenance is difficult without more detailed scope information, but the lack of competition could lead to inflated pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded sole-source, meaning there was no open competition. This method limits price discovery and may prevent the government from obtaining the best possible price or innovative solutions from a wider range of vendors.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not be benefiting from competitive pricing, potentially leading to higher overall expenditure for this software tool.

Public Impact

Impacts Army personnel by providing a tool for career mapping and talent management. Ensures continuity of a critical IT system for the Department of Defense. Potential for increased efficiency in HR processes and employee development.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Lack of competition
High contract value

Positive Signals

Supports critical talent management functions
Long-term contract provides stability

Sector Analysis

This contract falls within the IT services sector, specifically for software development and maintenance. The Department of Defense is a major spender in this area, with significant investments in systems that support personnel and operations. Benchmarks for similar contracts vary widely based on complexity and scope.

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, which is common for large sole-source IT contracts.

Oversight & Accountability

The sole-source nature of this award warrants close oversight to ensure the contractor is delivering value and that the pricing remains fair throughout the contract period. Regular performance reviews and justification for the sole-source approach are crucial.

Related Government Programs

Other Computer Related Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Sole-source award limits competition and potentially increases cost.
Lack of transparency in pricing due to no competitive bidding.
Potential for vendor lock-in with a single provider.
Contract duration may not align with evolving technological needs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.0 million to DELOITTE CONSULTING LLP. SOLE SOURCE JEFO FOR DASA(P) EXPANSION AND MAINTENANCE OF THE TALENT MANAGEMENT CAREER MAPPING (TMCM) SOFTWARE TOOL REQUIREMENT.

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $28.0 million.

What is the period of performance?

Start: 2023-09-27. End: 2026-09-26.

What is the justification for the sole-source award, and were alternative solutions considered?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of other qualified sources. For this contract, the specific justification for awarding to Deloitte Consulting LLP without competition needs to be thoroughly documented and reviewed to ensure it aligns with federal procurement regulations and that no viable alternatives were overlooked.

How does the per-unit cost of this contract compare to similar talent management software solutions in the market?

Without specific details on the units of service or features provided, a direct per-unit cost comparison is challenging. However, given the sole-source nature, it is crucial to benchmark the overall cost against industry standards for similar enterprise-level talent management systems to identify potential overspending.

What mechanisms are in place to ensure the effectiveness and efficiency of the TMCM software tool under this contract?

Effectiveness and efficiency are typically ensured through performance metrics, service level agreements (SLAs), and regular reporting requirements outlined in the contract. The Department of the Army should have clear deliverables and key performance indicators (KPIs) to monitor the TMCM tool's performance and contractor responsiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $84,825,754

Exercised Options: $54,109,513

Current Obligation: $27,981,109

Actual Outlays: $2,953,004

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $411,622

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J18DA018

IDV Type: IDC

Timeline