DOJ's $6.36M Deloitte Contract for Audit Liaison Support Under Scrutiny
Contract Overview
Contract Amount: $6,364,217 ($6.4M)
Contractor: Deloitte & Touche LLP
Awarding Agency: Department of Justice
Start Date: 2022-06-01
End Date: 2026-05-31
Contract Duration: 1,460 days
Daily Burn Rate: $4.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: IT
Official Description: A-123 AND AUDIT LIAISON SUPPORT FOR QCCG
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209
State: Virginia Government Spending
Plain-Language Summary
Department of Justice obligated $6.4 million to DELOITTE & TOUCHE LLP for work described as: A-123 AND AUDIT LIAISON SUPPORT FOR QCCG Key points: 1. Contract awarded to Deloitte & Touche LLP for audit liaison support. 2. Significant spending on 'Other Computer Related Services' (NAICS 541519). 3. Full and open competition was utilized. 4. Potential for cost savings given the labor hour pricing model.
Value Assessment
Rating: fair
The contract's labor hour pricing makes direct cost comparison difficult without detailed task breakdowns. Benchmarking against similar audit support contracts is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the labor hour pricing may limit price discovery and could lead to cost overruns if not managed effectively.
Taxpayer Impact: Taxpayer funds are being utilized for audit liaison support services. The effectiveness of the competition and contract management will determine the ultimate taxpayer impact.
Public Impact
Citizens expect efficient use of taxpayer money in government contracts. Transparency in government spending is crucial for public trust. Effective audit support can lead to better financial management within the DOJ.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Labor hour pricing can lead to cost overruns.
- Lack of specific deliverables makes value assessment challenging.
- Potential for scope creep without strict oversight.
Positive Signals
- Awarded through full and open competition.
- Supports critical audit functions within the DOJ.
Sector Analysis
The IT services sector, particularly 'Other Computer Related Services', is broad. Spending benchmarks for audit liaison support are not readily available, but this contract represents a moderate investment for the DOJ's specific needs.
Small Business Impact
This contract was awarded to Deloitte & Touche LLP, a large business. There is no indication that small businesses were involved in this specific award, missing an opportunity for small business participation.
Oversight & Accountability
Oversight will be critical to ensure the labor hours are used efficiently and effectively for the intended audit liaison support. The Department of Justice's Offices, Boards and Divisions are responsible for managing this contract.
Related Government Programs
- Other Computer Related Services
- Department of Justice Contracting
- Offices, Boards and Divisions Programs
Risk Flags
- Labor hour pricing model.
- Lack of specific performance metrics.
- Potential for scope creep.
- No small business participation noted.
Tags
other-computer-related-services, department-of-justice, va, bpa-call, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $6.4 million to DELOITTE & TOUCHE LLP. A-123 AND AUDIT LIAISON SUPPORT FOR QCCG
Who is the contractor on this award?
The obligated recipient is DELOITTE & TOUCHE LLP.
Which agency awarded this contract?
Awarding agency: Department of Justice (Offices, Boards and Divisions).
What is the total obligated amount?
The obligated amount is $6.4 million.
What is the period of performance?
Start: 2022-06-01. End: 2026-05-31.
What is the expected outcome or deliverable from this audit liaison support contract, and how is its success measured?
The contract aims to provide support for the Quality Control and Compliance Group (QCCG) within the DOJ. Success measurement likely involves the efficiency and effectiveness of the audit process, adherence to compliance standards, and timely reporting. Specific deliverables might include audit reports, compliance assessments, and recommendations for process improvements, though these are not explicitly detailed in the provided data.
Given the labor hour pricing, what mechanisms are in place to mitigate the risk of cost overruns and ensure fair pricing?
Mitigation strategies for labor hour contracts typically include establishing clear labor categories with pre-defined rates, setting not-to-exceed (NTE) limits for specific tasks or the overall contract, and implementing robust oversight to monitor hours worked and task progress. Regular performance reviews and detailed invoicing requirements are also crucial to ensure fair pricing and prevent unnecessary expenditure.
How does this contract contribute to the overall effectiveness of the DOJ's financial oversight and compliance efforts?
This contract is intended to enhance the effectiveness of the DOJ's financial oversight by providing specialized support for audit liaison functions. By ensuring efficient communication and coordination between audit teams and internal DOJ entities, it can help streamline the audit process, identify compliance issues proactively, and contribute to stronger internal controls and more accurate financial reporting, ultimately bolstering the department's accountability.
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) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
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: $10,440,068
Exercised Options: $7,953,603
Current Obligation: $6,364,217
Actual Outlays: $5,406,224
Subaward Activity
Number of Subawards: 2
Total Subaward Amount: $5,221,492
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 15JPSS21A00000067
IDV Type: BPA
Timeline
Start Date: 2022-06-01
Current End Date: 2026-05-31
Potential End Date: 2027-05-31 00:00:00
Last Modified: 2026-02-23
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