DoD Awards $59.3M for DHIMS Garrison DT&E Services to Deloitte Consulting LLP
Contract Overview
Contract Amount: $59,284,907 ($59.3M)
Contractor: Deloitte Consulting LLP
Awarding Agency: Department of Defense
Start Date: 2009-12-17
End Date: 2013-04-30
Contract Duration: 1,230 days
Daily Burn Rate: $48.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: DHIMS GARRISON DT&E SERVICES
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $59.3 million to DELOITTE CONSULTING LLP for work described as: DHIMS GARRISON DT&E SERVICES Key points: 1. Contract awarded to a large, established firm, indicating potential for specialized expertise. 2. The contract's value is significant, suggesting a critical need for these services. 3. Full and open competition was used, which is generally positive for price discovery. 4. The Administrative Management and General Management Consulting Services sector is broad, requiring specific context for benchmarking.
Value Assessment
Rating: fair
The contract is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar contracts is difficult without more detailed service descriptions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was utilized, providing a broad base for potential bidders. This method typically fosters competitive pricing, though the final price is influenced by the Cost Plus Fixed Fee structure.
Taxpayer Impact: Taxpayer funds are being used for management consulting services. The effectiveness of the competition and contract management will determine the ultimate value for taxpayers.
Public Impact
Supports Department of Defense operations through essential management consulting. The contract duration spans over three years, indicating ongoing service requirements. Awarded to a single entity, highlighting the specialized nature of the services required.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure can incentivize higher costs.
- Lack of specific performance metrics makes value assessment challenging.
- Contract duration is substantial, requiring ongoing monitoring.
Positive Signals
- Full and open competition utilized.
- Awarded to a well-known consulting firm.
- Services support critical defense functions.
Sector Analysis
This contract falls under Administrative Management and General Management Consulting Services. Spending in this sector can vary widely based on agency needs and the complexity of the services provided.
Small Business Impact
The contract was awarded to Deloitte Consulting LLP, a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
The Defense Contract Management Agency is responsible for oversight. The Cost Plus Fixed Fee nature of the contract necessitates robust oversight to control costs and ensure performance.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee structure.
- Lack of detailed performance metrics.
- Long contract duration.
- No stated small business participation.
Tags
administrative-management-and-general-ma, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $59.3 million to DELOITTE CONSULTING LLP. DHIMS GARRISON DT&E SERVICES
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 Contract Management Agency).
What is the total obligated amount?
The obligated amount is $59.3 million.
What is the period of performance?
Start: 2009-12-17. End: 2013-04-30.
What specific deliverables and performance metrics are associated with these consulting services to ensure effective value for the $59.3M?
The provided data lacks specific details on deliverables and performance metrics. To assess value effectively, a breakdown of expected outcomes, key performance indicators (KPIs), and how they align with the $59.3M expenditure is crucial. Without this, it's difficult to determine if the investment yields optimal results for the Department of Defense.
How does the Cost Plus Fixed Fee structure mitigate risks of cost overruns for this extensive contract?
The Cost Plus Fixed Fee (CPFF) structure inherently carries a risk of cost overruns as the contractor is reimbursed for actual costs plus a fixed fee. Mitigation relies heavily on stringent government oversight, detailed cost tracking, and clear definition of allowable costs. Without robust monitoring mechanisms and defined cost ceilings, this structure can lead to expenditures exceeding initial expectations.
What is the long-term strategic impact of awarding this significant contract to a single large firm for DT&E services?
Awarding a large, long-term contract to a single firm can ensure continuity and deep expertise in specialized areas like DT&E. However, it may also limit opportunities for smaller, innovative firms and potentially reduce competitive pressure over time. The strategic impact depends on whether the chosen firm consistently delivers superior performance and adapts to evolving defense needs.
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
Solicitation ID: W81XWH05R0004
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Deloitte LLP (UEI: 014127109)
Address: 12010 SUNSET HILLS RD STE 500, RESTON, VA, 20190
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $82,894,586
Exercised Options: $59,642,641
Current Obligation: $59,284,907
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W81XWH08D0028
IDV Type: IDC
Timeline
Start Date: 2009-12-17
Current End Date: 2013-04-30
Potential End Date: 2013-04-30 00:00:00
Last Modified: 2018-06-06
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