Grant Thornton LLP awarded $13.4M contract for administrative management consulting services by the Department of the Army

Contract Overview

Contract Amount: $13,460,204 ($13.5M)

Contractor: Grant Thornton LLP

Awarding Agency: Department of Defense

Start Date: 2008-04-08

End Date: 2011-02-15

Contract Duration: 1,043 days

Daily Burn Rate: $12.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: BASE YEAR SERVICES

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $13.5 million to GRANT THORNTON LLP for work described as: BASE YEAR SERVICES Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The duration of the contract (1043 days) indicates a significant, long-term need for these services. 3. The contract type is Time and Materials, which can pose cost control risks if not managed diligently. 4. The agency is the Department of the Army, a major component of the Department of Defense. 5. The North American Industry Classification System (NAICS) code 541611 points to general management consulting services. 6. The contract was awarded to Grant Thornton LLP, a well-established professional services firm.

Value Assessment

Rating: fair

The base year value of $13.46 million for administrative management and general management consulting services is a substantial investment. Benchmarking this specific contract's value is challenging without more granular data on the scope of services and the specific deliverables. However, given the duration and the nature of consulting services, the price appears within a plausible range for a large federal contract of this type. Further analysis would require comparing the hourly rates and total compensation against similar contracts awarded by the Department of Defense or other large federal agencies for comparable consulting expertise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition process, indicating that all responsible sources were permitted to submit bids. The presence of 8 bidders (no) suggests a healthy level of competition for this requirement. A competitive process generally helps ensure that the government receives fair market prices and that the most capable contractor is selected. The number of bidders provides some assurance that the pricing offered is likely to be competitive.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it drives down costs through competitive bidding and ensures that government funds are used efficiently by selecting the best value offer.

Public Impact

The Department of the Army benefits from expert administrative management and general management consulting services to improve operational efficiency. The services delivered are expected to enhance the administrative functions and overall management practices within the Army. The geographic impact is primarily within the operational areas of the Department of the Army, likely supporting various installations and commands. The contract supports the professional services sector, contributing to the workforce within management consulting firms.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
The long duration of the contract may require ongoing scrutiny to ensure continued value.
Reliance on external consultants for core management functions could raise questions about internal capacity building.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Multiple bidders participated, suggesting a competitive environment that likely benefited pricing.
The contractor, Grant Thornton LLP, is a reputable firm with experience in government contracting.

Sector Analysis

The administrative management and general management consulting services sector is a significant part of the professional services industry. Federal agencies, particularly large ones like the Department of Defense, frequently procure these services to address complex operational challenges, improve efficiency, and implement strategic initiatives. The market for these services is competitive, with numerous large and small firms vying for government contracts. This contract fits within the broader category of professional services procurement, which represents a substantial portion of federal spending.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, the primary contractor, Grant Thornton LLP, is likely to be a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem from this particular contract is likely minimal, though large prime contractors often engage small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer within the Department of the Army. Performance monitoring and quality assurance would be key oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Management Consulting Services
Army Administrative Support Contracts
Professional Services Contracts
General Management Consulting

Risk Flags

Time and Materials Contract Type
Long Contract Duration
Potential for Cost Overruns
Reliance on External Expertise

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.5 million to GRANT THORNTON LLP. BASE YEAR SERVICES

Who is the contractor on this award?

The obligated recipient is GRANT THORNTON 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 $13.5 million.

What is the period of performance?

Start: 2008-04-08. End: 2011-02-15.

What is the specific scope of work for Grant Thornton LLP under this contract?

The provided data indicates the contract is for 'Administrative Management and General Management Consulting Services' under NAICS code 541611. However, the specific scope of work, deliverables, and objectives are not detailed in the summary data. Typically, such contracts involve providing expert advice and support to improve organizational efficiency, strategic planning, process re-engineering, financial management, and human capital management. The Department of the Army would have defined these requirements in the Statement of Work (SOW) attached to the contract, outlining the precise tasks, expected outcomes, and performance standards Grant Thornton is expected to meet.

How does the $13.46 million base year cost compare to similar consulting contracts awarded by the Department of the Army?

Directly comparing the $13.46 million base year cost without knowing the specific services, duration, and complexity is difficult. However, the Department of the Army, as part of the Department of Defense, frequently awards large contracts for management and consulting services. Contracts in the multi-million dollar range for base years are common for significant projects. To benchmark effectively, one would need to analyze contracts with similar NAICS codes (541611), similar contract types (Time and Materials), and similar agencies within DoD. Factors like the number of hours estimated, the labor categories proposed, and the specific expertise required would heavily influence the total cost. A preliminary assessment suggests this is a substantial but not necessarily outlier value for a large federal agency's consulting needs.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude and duration?

Time and Materials contracts, like this one, carry inherent risks, primarily related to cost control. Since payment is based on the hours worked by contractor personnel and the cost of materials used, there is a risk of cost overruns if the project scope expands, if efficiency is low, or if contractor hours are not diligently managed and monitored by the government. For a contract valued at $13.46 million for its base year and lasting over 1000 days, effective government oversight is crucial. This includes rigorous tracking of labor hours, validation of material costs, and proactive management of any scope changes to prevent uncontrolled cost escalation. The government must ensure that the contractor's efforts are efficient and directly contribute to the contract's objectives.

What is Grant Thornton LLP's track record with federal contracts, particularly with the Department of Defense?

Grant Thornton LLP is a large, well-established professional services firm with significant experience in serving both commercial and government clients. They have a history of holding numerous federal contracts across various agencies, including the Department of Defense. Their track record generally includes providing a wide range of services such as audit, tax, advisory, and consulting. While specific performance details for every contract are not publicly available, their continued success in winning competitive bids and securing follow-on work suggests a generally positive performance history. Federal procurement data systems would provide a more detailed history of their awards, values, and contract types with the DoD.

How does the level of competition (8 bidders) impact the value received by the government for this contract?

Having 8 bidders for this contract signifies a healthy level of competition. In a full and open competition, a larger number of bidders generally leads to more competitive pricing as firms vie to win the contract. This increased competition can drive down costs, encourage innovation in proposed solutions, and ensure that the government selects the offer that provides the best overall value, considering both price and technical merit. The presence of multiple bidders suggests that the government had a good selection pool, increasing the likelihood that the awarded price reflects fair market value and that taxpayer dollars are being used efficiently. It also reduces the risk of vendor lock-in.

What are the potential implications of this contract on the Department of the Army's internal consulting capabilities?

Awarding a significant contract like this to an external firm like Grant Thornton LLP can have several implications for the Department of the Army's internal capabilities. On one hand, it allows the Army to access specialized expertise, cutting-edge methodologies, and additional bandwidth that may not be available internally, enabling them to tackle complex challenges efficiently. On the other hand, a heavy reliance on external consultants could potentially lead to a diminished development of internal expertise over time, or create a dependency that is costly in the long run. Effective knowledge transfer clauses within the contract and strategic decisions about which functions are best kept in-house versus outsourced are crucial for managing this balance.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W81XWH05R0004

Offers Received: 8

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Grant Thornton International Ltd (UEI: 347201258)

Address: 333 JOHN CARLYLE ST STE 500, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership

Financial Breakdown

Contract Ceiling: $13,460,204

Exercised Options: $13,460,204

Current Obligation: $13,460,204

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W81XWH08D0027

IDV Type: IDC

Timeline