Commerce Department awards $2.1M for organizational strategy support to Deloitte Consulting

Contract Overview

Contract Amount: $2,137,749 ($2.1M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Commerce

Start Date: 2024-09-30

End Date: 2026-06-21

Contract Duration: 629 days

Daily Burn Rate: $3.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DOC OHRM ORGANIZATIONAL STRATEGY AND OPERATIONS SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20230

State: District of Columbia Government Spending

Plain-Language Summary

Department of Commerce obligated $2.1 million to DELOITTE CONSULTING LLP for work described as: DOC OHRM ORGANIZATIONAL STRATEGY AND OPERATIONS SUPPORT Key points: 1. Contract awarded through a broad agency announcement (BAA) call, indicating a focus on research or innovative solutions. 2. The contract duration of 629 days suggests a need for sustained support in organizational strategy. 3. Fixed-price contract type aims to control costs and provide predictability for the agency. 4. The North American Industry Classification System (NAICS) code 541611 points to general management consulting services. 5. Awarded to a large, established firm, suggesting a need for extensive experience and capacity. 6. The contract is not set aside for small businesses, implying a focus on specialized expertise or market conditions.

Value Assessment

Rating: fair

The contract value of $2.14 million over approximately 21 months represents a moderate investment for organizational strategy support. Benchmarking against similar contracts for management consulting services is challenging without more specific details on the scope of work. However, the fixed-price nature suggests an attempt to manage costs effectively. The absence of a specific per-unit cost makes a direct value-for-money assessment difficult, but the overall award amount appears reasonable for a comprehensive organizational strategy engagement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, likely through a Broad Agency Announcement (BAA) call, which typically solicits proposals for research and development or innovative solutions. The specific number of bidders is not provided, but full and open competition generally implies a robust bidding process. This approach is intended to ensure the government receives the best value by considering a wide range of potential offerors.

Taxpayer Impact: Full and open competition maximizes the potential for competitive pricing, which benefits taxpayers by ensuring that the government is not overpaying for the services rendered.

Public Impact

The Department of Commerce's Office of the Secretary will benefit from enhanced organizational strategy and operations support. Services delivered are expected to improve administrative management and general management consulting. The geographic impact is primarily within the District of Columbia, where the Department of Commerce is headquartered. Workforce implications may include internal process improvements and strategic guidance for departmental staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the tangible impact of the consulting services.
The broad nature of 'organizational strategy and operations support' could lead to scope creep if not tightly managed.
Reliance on a single large contractor may limit opportunities for smaller, specialized firms to contribute.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield good value.
Fixed-price contract type helps control costs and provides budget certainty for the agency.
The contractor, Deloitte Consulting LLP, is a well-established firm with extensive experience in management consulting.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The market for these services is large and competitive, with numerous firms offering expertise in organizational strategy, process improvement, and administrative management. Government spending in this area is common as agencies seek external expertise to navigate complex challenges and improve operational efficiency. Comparable spending benchmarks would typically involve analyzing other contracts for similar consulting services across various federal agencies.

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, established firm like Deloitte Consulting LLP suggests that the scope of work or the required expertise was deemed best met by a major contractor. This means that direct opportunities for small businesses through this specific award are unlikely, though the prime contractor may engage small businesses for specific tasks if needed.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Commerce's Office of the Secretary, with a designated Contracting Officer's Representative (COR) responsible for monitoring performance and ensuring compliance with the contract terms. Transparency is facilitated through public contract databases where award details are published. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise during the contract performance.

Related Government Programs

Management and Financial Consulting, Acquisition and Technology Services
Professional, Scientific, and Technical Services
Administrative Management and General Management Consulting Services

Risk Flags

Potential for scope creep due to broad service description.
Effectiveness of delivered recommendations requires careful monitoring.
Knowledge transfer to agency staff needs to be ensured.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $2.1 million to DELOITTE CONSULTING LLP. DOC OHRM ORGANIZATIONAL STRATEGY AND OPERATIONS SUPPORT

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of Commerce (Office of the Secretary).

What is the total obligated amount?

The obligated amount is $2.1 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-06-21.

What specific deliverables are expected from Deloitte Consulting LLP under this contract?

The provided data does not specify the exact deliverables. However, based on the NAICS code (541611 - Administrative Management and General Management Consulting Services) and the contract description ('DOC OHRM ORGANIZATIONAL STRATEGY AND OPERATIONS SUPPORT'), deliverables likely include strategic plans, operational assessments, process improvement recommendations, organizational structure analyses, and implementation roadmaps. The Office of Human Resources Management (OHRM) within the Department of Commerce would be the primary stakeholder, expecting actionable insights to enhance efficiency, effectiveness, and alignment of organizational strategies with departmental goals. The fixed-price nature suggests that the scope and expected outcomes are well-defined to allow for such pricing.

How does the $2.14 million award compare to typical spending on organizational strategy consulting by federal agencies?

The $2.14 million award for organizational strategy and operations support over approximately 21 months is a moderate-sized contract within the federal consulting landscape. Federal agencies frequently engage consulting firms for strategic planning, process re-engineering, and organizational design. Annual spending on management and consulting services across the federal government can reach billions of dollars. While this specific award is not exceptionally large, it reflects a significant investment for a single office or function. Benchmarking requires comparing it to contracts with similar scope, duration, and complexity, which are not detailed here. However, it is within the typical range for specialized, high-level consulting engagements.

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

Key risks include potential scope creep, where the project expands beyond its original objectives, leading to cost overruns or delays. Another risk is the contractor's ability to deliver actionable and impactful recommendations that the agency can effectively implement. The agency's reliance on external consultants might also lead to a knowledge transfer gap. Mitigation strategies likely involve robust contract management by the COR, clear definition of deliverables and milestones, regular progress reviews, and ensuring the contractor possesses the necessary expertise and experience, as suggested by the award to Deloitte Consulting LLP. The fixed-price contract type also mitigates financial risk for the government.

What is Deloitte Consulting LLP's track record with federal contracts, particularly in organizational strategy?

Deloitte Consulting LLP is a major federal contractor with a substantial history of performing a wide range of services for various government agencies. They have extensive experience in management consulting, IT services, cybersecurity, and strategic planning. While specific details on their past performance for the Department of Commerce's OHRM are not provided in this data snippet, their general reputation and consistent presence as a prime contractor indicate a strong track record. Federal procurement databases would contain detailed performance records, past performance evaluations, and a history of awards for Deloitte across different agencies and contract types, likely showing significant success in organizational strategy and operations support.

How does the use of a Broad Agency Announcement (BAA) call influence the nature and potential outcomes of this contract?

A Broad Agency Announcement (BAA) call is typically used by agencies to solicit proposals for basic and applied research and development, or for innovative solutions that may not fit standard procurement categories. Using a BAA call for organizational strategy support suggests the Department of Commerce may be seeking novel approaches or cutting-edge methodologies to address complex organizational challenges. This approach often fosters collaboration and innovation, potentially leading to more transformative outcomes than traditional, prescriptive contracts. It implies a focus on problem-solving and strategic thinking rather than routine service delivery, and it allows for greater flexibility in defining the scope and objectives as research progresses.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $2,387,331

Exercised Options: $2,387,331

Current Obligation: $2,137,749

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 1331L519A13ES0015

IDV Type: BPA

Timeline