DOJ awards $25M BPA Call to Deloitte for administrative support, raising value-for-money questions

Contract Overview

Contract Amount: $24,974,394 ($25.0M)

Contractor: Deloitte & Touche LLP

Awarding Agency: Department of Justice

Start Date: 2024-05-01

End Date: 2028-11-30

Contract Duration: 1,674 days

Daily Burn Rate: $14.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: LABOR HOURS

Sector: Other

Official Description: ADMINISTRATIVE AND PROFESSIONAL SERVICES SUPPORT

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $25.0 million to DELOITTE & TOUCHE LLP for work described as: ADMINISTRATIVE AND PROFESSIONAL SERVICES SUPPORT Key points: 1. The contract's value of $24.97M over approximately 5.5 years suggests a significant investment in administrative services. 2. Competition was full and open, indicating a potentially robust market for these services. 3. The use of a Blanket Purchase Agreement (BPA) Call implies a pre-negotiated framework, which can offer efficiency but may limit price flexibility. 4. The North American Industry Classification System (NAICS) code 541519 (Other Computer Related Services) seems broad for administrative support, warranting further clarity on the specific services rendered. 5. The contract duration of 1674 days (approx. 5.5 years) is substantial, requiring ongoing performance monitoring. 6. The award to a single contractor, Deloitte & Touche LLP, highlights the concentration of large federal contracts within major consulting firms. 7. The contract type is Labor Hours, which can be efficient if well-managed but carries risks of cost overruns if not closely monitored.

Value Assessment

Rating: fair

Benchmarking the value-for-money for this contract is challenging without detailed service descriptions and performance metrics. The total award value of nearly $25 million over 5.5 years averages around $4.5 million annually. This figure needs to be compared against the scope and complexity of the administrative and professional services provided. Given the contractor is Deloitte & Touche LLP, a large firm, pricing is likely competitive but may reflect higher overheads. The 'Labor Hours' contract type necessitates careful oversight to ensure efficient use of billable hours and prevent scope creep.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' suggesting that all responsible sources were permitted to submit bids. The presence of 10 bids indicates a healthy level of interest and competition for this requirement. This broad competition is generally positive for price discovery and ensures the government has a range of options to choose from, potentially leading to better value.

Taxpayer Impact: A competitive bidding process for administrative support services helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging high-quality service delivery.

Public Impact

Federal Bureau of Investigation (FBI) personnel will benefit from enhanced administrative and professional services, potentially improving operational efficiency. The services delivered are broadly categorized under administrative and professional support, likely encompassing tasks such as program management, financial analysis, and logistical support. The contract is geographically focused on Virginia (VA), indicating a concentration of administrative support needs within the FBI's operations in that state. The contract may have implications for the workforce, potentially supporting roles within Deloitte & Touche LLP and indirectly impacting FBI staff by freeing them for core duties.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the 'Labor Hours' contract type if not meticulously managed.
The broad NAICS code (541519) could obscure the true nature and cost-effectiveness of the services rendered.
Long contract duration requires sustained vigilance to ensure continued value and performance.
Reliance on a single large contractor for critical administrative functions could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
The BPA Call mechanism can streamline procurement and potentially reduce administrative burden for the agency.
The contractor, Deloitte & Touche LLP, is a well-established firm with significant experience in government contracting.
Multiple bids received (10) indicate a robust market and potential for quality service providers.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to administrative and computer-related services. The market for such services to federal agencies is substantial, with significant spending allocated annually. This contract with the FBI represents a portion of that spending, likely supporting critical operational functions. Comparable spending benchmarks would involve analyzing other large administrative support contracts awarded to major consulting firms across various federal agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded to a major firm like Deloitte & Touche LLP, it is unlikely to involve significant subcontracting opportunities for small businesses unless explicitly mandated or pursued by the prime contractor. The focus appears to be on large-scale service delivery rather than fostering small business participation.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the Federal Bureau of Investigation. The 'Labor Hours' contract type necessitates close monitoring of hours billed against tasks performed. Transparency is facilitated through contract award databases, but detailed performance reports and specific service delivery metrics are typically internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Administrative Support Services
Professional Services Contracts
IT Consulting Services
Federal Bureau of Investigation Contracts
Department of Justice Contracts
Blanket Purchase Agreements (BPAs)

Risk Flags

Potential for cost creep due to 'Labor Hours' contract type.
Broad NAICS code may obscure specific service details and cost-effectiveness.
Long contract duration requires sustained oversight for relevance and performance.
Concentration of administrative support with a single large vendor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $25.0 million to DELOITTE & TOUCHE LLP. ADMINISTRATIVE AND PROFESSIONAL SERVICES SUPPORT

Who is the contractor on this award?

The obligated recipient is DELOITTE & TOUCHE LLP.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $25.0 million.

What is the period of performance?

Start: 2024-05-01. End: 2028-11-30.

What is the specific breakdown of services provided under this contract, and how does the NAICS code 541519 accurately reflect these services?

The provided data lists the NAICS code as 541519, 'Other Computer Related Services,' and the description as 'ADMINISTRATIVE AND PROFESSIONAL SERVICES SUPPORT.' This presents a potential mismatch or broad categorization. Typically, administrative and professional support services might fall under codes like 541611 (Administrative Management and General Management Consulting Services) or 541612 (Human Resources Consulting Services), depending on the specifics. The broadness of 541519 suggests that IT-related aspects might be intertwined with the administrative support, or it's being used as a catch-all. A detailed review of the Statement of Work (SOW) would be necessary to understand the precise nature of the services, the allocation of resources (e.g., labor hours) to different task categories, and whether the chosen NAICS code is the most appropriate descriptor for the primary function of the contract.

How does the average annual cost of approximately $4.5 million compare to similar administrative support contracts awarded by the FBI or other large federal agencies?

Determining the precise value-for-money requires a detailed comparison with similar contracts, considering factors like the scope of services, duration, contractor experience, and specific agency needs. An average annual cost of $4.5 million for administrative and professional services support is substantial. To benchmark this, one would need to identify contracts with comparable objectives, such as program management support, financial analysis, or operational assistance, awarded to large firms like Deloitte. Factors such as the number of full-time equivalents (FTEs) supported, the complexity of the tasks, and the criticality of the functions are crucial. Without access to detailed contract databases that allow for granular comparison based on service type and agency, it's difficult to definitively state if this represents excellent, fair, or concerning value. However, the competitive bidding process suggests an effort to achieve fair market value.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how is Deloitte & Touche LLP's performance being measured?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a 'Labor Hours' contract of this magnitude and duration, robust performance metrics are essential for effective oversight. Typical KPIs might include timeliness of task completion, accuracy rates for administrative processes, responsiveness to requests, and overall client satisfaction. SLAs would define acceptable performance thresholds. The FBI's contracting officers and program managers are responsible for establishing and monitoring these metrics. Regular performance reviews, likely conducted quarterly or semi-annually, would assess Deloitte's adherence to the SOW and any defined KPIs/SLAs. The effectiveness of these oversight mechanisms directly impacts the realization of value for taxpayer money.

Given the contract's duration (over 5 years), what mechanisms are in place to ensure continued relevance and adaptability of the services provided?

Contracts with durations exceeding five years, like this one, require built-in flexibility to adapt to evolving agency needs and technological advancements. Mechanisms for ensuring continued relevance often include contract modification clauses, periodic reviews of the Statement of Work (SOW), and opportunities for the contractor to propose innovative solutions. The agency (FBI) typically retains the right to modify the scope of work within certain parameters, often requiring equitable adjustments to price or schedule. Regular strategic discussions between the FBI program managers and Deloitte & Touche LLP would be crucial to anticipate future requirements and ensure the services remain aligned with the Bureau's mission and operational landscape throughout the contract term.

What is Deloitte & Touche LLP's track record with the federal government, particularly concerning administrative support or similar service contracts?

Deloitte & Touche LLP is a major global professional services firm with extensive experience contracting with the U.S. federal government across numerous agencies and functional areas. They frequently hold large, complex contracts involving management consulting, IT services, financial advisory, and administrative support. Their track record generally includes successful delivery on many high-profile engagements. However, like any large contractor, they may have faced past performance issues or contract disputes on specific projects. Accessing historical performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would provide a more granular view of their specific performance on federal contracts, including this agency (DOJ/FBI) and potentially similar service types. Their size and reputation suggest a generally reliable, though potentially premium-priced, service provider.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related 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

Offers Received: 10

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Consulting LLP

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: $283,560,162

Exercised Options: $79,938,999

Current Obligation: $24,974,394

Actual Outlays: $6,889,880

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $26,087,470

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15F06722A0000173

IDV Type: BPA

Timeline