Deloitte Consulting LLP awarded $63.7M for BUMED Support Services, a significant contract for administrative management

Contract Overview

Contract Amount: $63,749,887 ($63.7M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2014-09-30

End Date: 2018-05-31

Contract Duration: 1,339 days

Daily Burn Rate: $47.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: IGF::OT::IGF BUMED SUPPORT SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20372

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $63.7 million to DELOITTE CONSULTING LLP for work described as: IGF::OT::IGF BUMED SUPPORT SERVICES Key points: 1. The contract value of $63.7 million represents a substantial investment in administrative and management consulting services. 2. Competition dynamics for this contract are crucial for understanding price discovery and potential value for money. 3. Risk indicators will be assessed based on contractor performance history and the complexity of services required. 4. Performance context is provided by the contract duration of 1339 days, spanning over three years. 5. This contract positions Deloitte within the broader defense healthcare support sector, a key area for federal spending.

Value Assessment

Rating: good

The contract's value of $63.7 million for administrative management services appears reasonable given the duration and scope. Benchmarking against similar contracts for management consulting within the Department of Defense would provide a clearer picture of value for money. The firm fixed-price structure suggests a degree of cost certainty for the government, though it shifts performance risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of full and open competition generally fosters a more competitive environment, potentially leading to better pricing and a wider range of solutions. The specific number of bidders and the evaluation process would offer further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining services at competitive prices and encourages innovation among potential contractors.

Public Impact

The primary beneficiaries are the Bureau of Medicine and Surgery (BUMED) and its operational units, receiving enhanced administrative and management support. Services delivered include general management consulting, administrative support, and potentially strategic planning to improve BUMED's efficiency. The geographic impact is likely concentrated around BUMED's primary locations, potentially including Washington D.C. and other naval medical facilities. Workforce implications may involve the utilization of specialized consulting expertise to augment government personnel and improve operational outcomes.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Reliance on a single large contractor could limit future flexibility or innovation.
Ensuring consistent quality of service delivery over the contract's duration.

Positive Signals

Award to a well-established contractor like Deloitte suggests a high likelihood of successful execution.
Firm fixed-price contract incentivizes contractor efficiency and cost control.
Full and open competition indicates a robust selection process.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is a significant component of federal spending, supporting a wide array of government functions. Comparable spending benchmarks would involve analyzing other large-scale management consulting contracts awarded to major firms within the defense and healthcare industries.

Small Business Impact

The contract was awarded under full and open competition and does not indicate a specific small business set-aside. While Deloitte Consulting LLP is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific requirements of the services rendered.

Oversight & Accountability

Oversight for this contract would typically be managed by contracting officers and program managers within the Department of the Army and BUMED. Accountability measures are embedded in the firm fixed-price contract terms and performance metrics. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD Healthcare Management Support
Military Health System Administration
Federal Management Consulting Services
Naval Medical Command Support

Risk Flags

Contract Duration
Scope Definition
Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $63.7 million to DELOITTE CONSULTING LLP. IGF::OT::IGF BUMED SUPPORT 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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $63.7 million.

What is the period of performance?

Start: 2014-09-30. End: 2018-05-31.

What is Deloitte Consulting LLP's track record with similar federal contracts, particularly within the Department of Defense and healthcare sectors?

Deloitte Consulting LLP has a substantial track record with federal contracts, including numerous awards from the Department of Defense and other civilian agencies. They frequently engage in providing a wide range of services, from IT modernization and cybersecurity to strategic planning and administrative support. Within the healthcare sector, Deloitte has supported initiatives related to health IT, public health programs, and healthcare system optimization. Their performance on past contracts, often reflected in federal procurement data and past performance reviews, generally indicates a capacity to handle large, complex engagements. However, specific performance metrics and any past issues on contracts similar to BUMED Support Services would require a deeper dive into contract databases and agency reports.

How does the awarded amount of $63.7 million compare to the estimated value or budget for similar administrative support contracts within the DoD?

Comparing the $63.7 million award to similar administrative support contracts within the DoD requires access to detailed contract databases and budget information. However, for a contract spanning over three years (1339 days) and involving comprehensive administrative and management consulting services for a major entity like BUMED, this figure appears within a plausible range for large-scale federal support contracts. Factors influencing this value include the specific scope of work, the level of expertise required, the number of personnel involved, and the prevailing market rates for consulting services. Without direct comparable contract data, it's challenging to definitively benchmark, but the amount suggests a significant and complex undertaking.

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

Primary risk indicators for this contract could include the complexity of integrating consulting services into existing BUMED operations, potential for scope creep if requirements are not tightly managed, and reliance on contractor personnel for critical administrative functions. Performance risk is also present, ensuring the contractor meets all service level agreements and quality standards. Mitigation strategies likely involve robust contract oversight by government program managers, clearly defined performance metrics and deliverables, regular progress reviews, and potentially contingency planning for key personnel turnover. The firm fixed-price nature of the contract also incentivizes the contractor to manage risks effectively to maintain profitability.

How effective has full and open competition been in ensuring value for money for this specific BUMED Support Services contract?

The effectiveness of full and open competition in ensuring value for money for this BUMED Support Services contract is suggested by the award to Deloitte Consulting LLP, a major player in the consulting market. Full and open competition theoretically drives down prices by encouraging multiple bidders to offer their best terms. However, the true measure of value for money depends on the quality of services delivered relative to the cost, and whether the competitive process led to optimal pricing. Without knowing the number of bids received, the range of proposed prices, and the specific evaluation criteria used, it's difficult to definitively assess the extent to which competition maximized value. Nonetheless, the process itself provides a baseline for competitive pricing.

What is the historical spending pattern for BUMED administrative and management support services, and how does this $63.7M award fit within that trend?

Analyzing historical spending patterns for BUMED administrative and management support services would require access to multi-year federal procurement data. This $63.7 million award represents a significant, multi-year investment. If BUMED has historically relied on external contractors for similar services, this award might represent a continuation or expansion of those efforts. If it's a new or significantly larger requirement, it could indicate a shift in how BUMED is resourcing its administrative functions. Understanding whether spending in this category has been increasing, decreasing, or remaining stable over time would provide crucial context for evaluating the appropriateness and scale of this particular award.

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: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Touche Tohmatsu Limited

Address: 12010 SUNSET HILLS RD STE 500, RESTON, VA, 20190

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $63,749,887

Exercised Options: $63,749,887

Current Obligation: $63,749,887

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W81XWH08D0028

IDV Type: IDC

Timeline