Deloitte Consulting LLP awarded $11.1M for Defense Health Agency J7 continuing education support

Contract Overview

Contract Amount: $11,129,203 ($11.1M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2022-08-01

End Date: 2027-01-31

Contract Duration: 1,644 days

Daily Burn Rate: $6.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONTINUING EDUCATION PROGRAM OFFICE SUPPORT SERVICES FOR THE DEFENSE HEALTH AGENCY J7.

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22042

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.1 million to DELOITTE CONSULTING LLP for work described as: CONTINUING EDUCATION PROGRAM OFFICE SUPPORT SERVICES FOR THE DEFENSE HEALTH AGENCY J7. Key points: 1. Contract value represents a significant investment in specialized support services for a critical defense health initiative. 2. The award to a single, large contractor suggests a focus on established expertise and capacity. 3. Potential risks include contractor performance dependency and the need for robust oversight to ensure value. 4. This contract supports the Defense Health Agency's educational mission, crucial for maintaining medical readiness. 5. The engineering services NAICS code indicates a focus on technical and programmatic support rather than direct medical care.

Value Assessment

Rating: good

The contract value of $11.1 million over approximately 4.5 years appears reasonable for specialized support services to a major agency like the Defense Health Agency. Benchmarking against similar contracts for program management and technical support within federal health initiatives would provide a more precise value-for-money assessment. The firm-fixed-price contract type generally offers cost certainty, but the specific deliverables and performance metrics are key to evaluating true value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of two bidders suggests a competitive environment, though the exact number of proposals received and the evaluation process would offer more insight into the strength of the competition. A robust competition typically drives better pricing and service quality.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the government's investment. Full and open competition increases the likelihood of fair pricing and encourages contractors to offer innovative solutions.

Public Impact

The primary beneficiaries are the personnel within the Defense Health Agency J7, who will receive enhanced support for continuing education programs. Services delivered include program management, administrative support, and potentially technical assistance related to educational platforms and content. The geographic impact is primarily within the Defense Health Agency's operational sphere, likely supporting personnel across various military treatment facilities and commands. Workforce implications include the potential for specialized roles within Deloitte to support this contract, and indirectly, the enhanced skills of military medical personnel through improved education.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Over-reliance on a single contractor for critical support functions.
Ensuring continued alignment with evolving Defense Health Agency needs throughout the contract duration.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Firm-fixed-price contract type provides cost predictability.
Contract duration allows for sustained support and knowledge transfer.
Contractor's established presence and experience in federal contracting.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically engineering services. The federal market for such services supporting defense and health initiatives is substantial. Comparable spending benchmarks would involve analyzing other contracts for program management, administrative support, and technical consulting within the Department of Defense and other federal health agencies. The size of this award is moderate within the context of large federal service contracts.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). Therefore, there are no direct subcontracting implications mandated by a small business set-aside for this particular award. The focus appears to be on securing the best overall solution through full and open competition, rather than specifically targeting small business prime contractors.

Oversight & Accountability

Oversight will likely be managed by the Defense Health Agency's contracting officers and program managers responsible for the J7 directorate. Accountability measures are embedded within the firm-fixed-price contract terms, requiring specific deliverables and performance standards. Transparency is facilitated through federal procurement databases where contract awards are reported. The Inspector General for the Department of Defense may conduct audits or investigations if specific concerns arise regarding performance or financial integrity.

Related Government Programs

Defense Health Agency Operations Support
Medical Education and Training Programs
Federal IT and Professional Services Contracts
Department of Defense Program Management Support

Risk Flags

Potential for contractor performance issues impacting critical educational programs.
Risk of scope creep in a long-term support contract.
Dependency on a single large contractor for essential services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.1 million to DELOITTE CONSULTING LLP. CONTINUING EDUCATION PROGRAM OFFICE SUPPORT SERVICES FOR THE DEFENSE HEALTH AGENCY J7.

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $11.1 million.

What is the period of performance?

Start: 2022-08-01. End: 2027-01-31.

What is Deloitte Consulting LLP's track record with the Defense Health Agency and similar federal health organizations?

Deloitte Consulting LLP has a significant history of contracting with various U.S. federal agencies, including the Department of Defense and its sub-agencies like the Defense Health Agency (DHA). Their engagements often span a wide range of services, including IT modernization, management consulting, cybersecurity, and program support. For the DHA specifically, Deloitte has been involved in numerous projects related to healthcare transformation, electronic health records, and operational efficiency. Their extensive experience suggests a strong understanding of the federal healthcare landscape and the specific needs of military health systems. However, a detailed review of past performance evaluations and any past disputes or corrective actions would be necessary for a comprehensive assessment of their track record on similar contracts.

How does the $11.1 million contract value compare to similar continuing education support contracts within the federal government?

The $11.1 million contract value for continuing education program office support services for the Defense Health Agency J7 is a moderate-sized award within the federal contracting landscape. To benchmark effectively, one would need to compare it against contracts with similar scope, duration (1644 days/approx. 4.5 years), and service requirements (program management, administrative support, technical assistance) awarded to other large, established contractors. Contracts for broader IT services or large-scale system implementation within the DoD or HHS might be significantly larger, while smaller, more localized support contracts could be substantially less. The firm-fixed-price nature suggests a defined scope, which aids in comparison. Without access to a detailed database of comparable contracts filtered by specific service codes (like NAICS 541330, Engineering Services, though this seems broad for the description) and agency, a precise comparison is difficult, but it represents a substantial, focused investment.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential contractor performance issues, where Deloitte might not meet the required service levels or deadlines, impacting the DHA's educational programs. Another risk is vendor lock-in or over-reliance, making it difficult for the DHA to switch providers or bring services in-house if needed. Scope creep is also a concern, where the requirements might expand beyond the initial agreement, leading to cost overruns or delays, although the firm-fixed-price structure aims to mitigate this. Mitigation strategies typically involve robust contract oversight by the DHA, clearly defined performance metrics and deliverables, regular progress reviews, and potentially incorporating incentives or penalties within the contract terms. The competitive award process itself also serves as a risk mitigation by selecting a contractor with a demonstrated capability.

How effective is the current continuing education program office support, and what impact is this contract expected to have?

The effectiveness of the current support is not explicitly detailed in the provided data. However, the award of this contract signifies the Defense Health Agency's (DHA) commitment to enhancing its continuing education (CE) programs, suggesting a need for improved or sustained support. This contract is expected to provide dedicated resources to manage and administer these vital CE programs, ensuring they meet the evolving needs of military medical personnel. The anticipated impact includes more streamlined educational processes, potentially higher quality training content and delivery, better tracking of professional development, and ultimately, improved medical readiness and patient care within the military health system. The support aims to ensure that healthcare providers maintain their skills and certifications.

What are the historical spending patterns for continuing education support services within the Defense Health Agency?

Historical spending patterns for continuing education support services within the Defense Health Agency are not directly available from the provided data snippet. To analyze this, one would need to examine historical contract awards for the DHA J7 directorate or similar entities over several fiscal years, looking for contracts with keywords related to 'continuing education,' 'program support,' 'training management,' and relevant service codes. This analysis would reveal trends in contract values, types of services procured, and the contractors frequently utilized. It would also help determine if this $11.1 million award represents an increase, decrease, or continuation of previous spending levels for such services, and whether the DHA has historically relied on full and open competition or other procurement methods for this type of support.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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

Solicitation ID: W81XWH22R0031

Offers Received: 2

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: $15,654,744

Exercised Options: $15,019,642

Current Obligation: $11,129,203

Actual Outlays: $758,318

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $5,846,619

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU113

IDV Type: IDC

Timeline