DoD's $10.75M Deloitte contract for management consulting services awarded via full and open competition

Contract Overview

Contract Amount: $10,751,317 ($10.8M)

Contractor: Deloitte & Touche LLP

Awarding Agency: Department of Defense

Start Date: 2007-10-17

End Date: 2010-10-31

Contract Duration: 1,110 days

Daily Burn Rate: $9.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: CONSULTANT

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $10.8 million to DELOITTE & TOUCHE LLP for work described as: CONSULTANT Key points: 1. Contract awarded for administrative management and general management consulting services. 2. Significant contract value suggests a need for specialized expertise. 3. Awarded under a definitive contract vehicle. 4. Contract duration spanned over three years. 5. The contract was not set aside for small businesses. 6. Services were procured through a full and open competition process.

Value Assessment

Rating: good

The contract's value of $10.75 million for administrative management and general management consulting services appears reasonable given the three-year duration. Benchmarking against similar large-scale consulting engagements within the Department of Defense (DoD) would provide further context on value for money. The use of a definitive contract suggests a structured procurement process. Without specific deliverables or performance metrics, a precise value assessment is challenging, but the scale indicates a substantial need for expert advisory services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, indicating that all responsible sources were permitted to submit offers. This approach generally fosters a competitive environment, potentially leading to better pricing and service quality. The number of bidders is not specified, but the open competition suggests a robust selection process was intended.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the assurance that the government sought the best value from a wide pool of qualified contractors.

Public Impact

The Department of the Army, a component of the Department of Defense, is the primary beneficiary of these consulting services. Services likely focused on improving administrative processes, management strategies, and operational efficiency within the Army. The geographic impact is primarily within the Department of Defense's operational areas, potentially supporting national defense initiatives. Workforce implications could include enhanced management practices and potentially the implementation of new organizational structures or technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the direct impact and success of the consulting services.
The broad nature of 'Administrative Management and General Management Consulting Services' can sometimes lead to scope creep if not tightly managed.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded good value.
The contract was awarded to a well-established firm (Deloitte & Touche LLP), implying a level of trust and proven capability.
The multi-year duration allowed for sustained support and implementation of recommendations.

Sector Analysis

Administrative Management and General Management Consulting Services (NAICS 541611) represent a significant segment of the professional services market. This contract falls within the broader professional, scientific, and technical services sector. Spending in this area by federal agencies is common for strategic planning, organizational improvement, and operational efficiency initiatives. Comparable spending benchmarks would typically be found within large federal agencies undertaking complex management reforms or modernization efforts.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses. The award to a large firm like Deloitte & Touche LLP suggests that the primary focus was on specialized expertise rather than small business participation. This means opportunities for small businesses to directly participate in this specific contract were likely limited.

Oversight & Accountability

As a definitive contract awarded by the Department of the Army, oversight would typically be managed by contracting officers and program managers within the agency. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's performance or closeout.

Related Government Programs

Department of Defense Management Consulting Services
Army Strategic Planning Contracts
Federal Administrative Services Contracts
General Management Consulting Engagements

Risk Flags

Contract Duration
Lack of Specific Deliverables
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.8 million to DELOITTE & TOUCHE LLP. CONSULTANT

Who is the contractor on this award?

The obligated recipient is DELOITTE & TOUCHE 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 $10.8 million.

What is the period of performance?

Start: 2007-10-17. End: 2010-10-31.

What specific projects or initiatives did Deloitte & Touche LLP undertake under this $10.75 million contract for the Department of the Army?

The provided data indicates the contract was for 'Administrative Management and General Management Consulting Services' (NAICS 541611) awarded to Deloitte & Touche LLP by the Department of the Army. However, the specific projects or initiatives are not detailed in the summary data. Typically, such contracts support a range of activities including organizational analysis, process improvement, strategic planning, policy development, and the implementation of new management systems. Without access to the contract's statement of work or performance reports, the precise nature of the work remains unspecified. These services are often crucial for large organizations like the Army to enhance efficiency, effectiveness, and responsiveness in complex operational environments.

How does the $10.75 million contract value compare to other similar management consulting contracts awarded by the Department of Defense or other federal agencies?

The $10.75 million contract value for administrative and general management consulting services awarded to Deloitte & Touche LLP by the Department of the Army is a substantial sum, indicative of a significant engagement. Federal agencies, particularly large departments like Defense, frequently award multi-million dollar contracts for consulting services to address complex strategic, operational, and administrative challenges. While this amount is significant, it is not uncommon within the federal contracting landscape for major consulting projects. For instance, contracts for enterprise resource planning (ERP) implementation, cybersecurity strategy, or large-scale organizational restructuring can easily reach tens or even hundreds of millions of dollars. A direct comparison would require analyzing contracts with similar scope, duration, and specific service categories within the DoD and other large federal entities over the same period (2007-2010).

What was the track record of Deloitte & Touche LLP with the federal government prior to or during this contract period?

Deloitte & Touche LLP, as part of the larger Deloitte network, has a long-standing and extensive history of contracting with the U.S. federal government across various agencies and service areas. Prior to and during the 2007-2010 period of this specific Department of the Army contract, Deloitte was a major player in federal IT consulting, management consulting, audit, and advisory services. They have consistently secured large contracts with departments such as Defense, Homeland Security, Health and Human Services, and others. Their track record generally includes experience with large-scale system implementations, strategic planning, financial management, and operational improvements. While specific performance ratings for individual contracts are not always publicly available, Deloitte's continued success in winning significant federal contracts suggests a generally positive performance history and established credibility with government clients.

What were the primary risks associated with this type of management consulting contract for the Department of the Army?

Key risks associated with management consulting contracts for agencies like the Department of the Army often revolve around scope definition and management, contractor performance, and the realization of intended benefits. A primary risk is 'scope creep,' where the project's objectives expand beyond the original agreement, leading to cost overruns and schedule delays. Another significant risk is the contractor's ability to deliver actionable insights and effective solutions that are truly implementable within the unique context of a large military organization. Furthermore, there's a risk that the recommendations provided may not be fully adopted or may face internal resistance, diminishing the return on investment. Ensuring clear communication, robust oversight, and realistic expectations are crucial to mitigating these risks.

How did the 'full and open competition' procurement method potentially impact the cost and quality of services received by the Department of the Army?

The 'full and open competition' method is designed to maximize competition by allowing all interested and qualified sources to submit proposals. This process typically leads to a wider range of solutions and potentially more competitive pricing as contractors vie for the award. For the Department of the Army, this method likely resulted in receiving proposals from multiple firms, enabling a thorough evaluation of both technical capabilities and cost. The expectation is that this competitive pressure would drive down costs while simultaneously encouraging contractors to offer high-quality services to win the contract. The ultimate impact on cost and quality depends on the specific evaluation criteria used and the rigor of the source selection process.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91WAW07R0081

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte LLP

Address: 1750 TYSONS BLVD STE 800, MC LEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,751,317

Exercised Options: $10,751,317

Current Obligation: $10,751,317

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline