State Department awards $11.5M task order to Deloitte for business process improvements

Contract Overview

Contract Amount: $11,517,588 ($11.5M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of State

Start Date: 2018-09-30

End Date: 2021-06-30

Contract Duration: 1,004 days

Daily Burn Rate: $11.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TASK ORDER TO SUPPORT BUSINESS PROCESS IMPROVEMENTS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $11.5 million to DELOITTE CONSULTING LLP for work described as: TASK ORDER TO SUPPORT BUSINESS PROCESS IMPROVEMENTS Key points: 1. Contract focused on enhancing business process efficiency through IT systems design. 2. Awarded via full and open competition, suggesting a competitive bidding environment. 3. Performance period spans nearly three years, indicating a significant project scope. 4. Task order type is Time and Materials, which can pose cost control challenges. 5. The contractor, Deloitte, is a large, established firm with extensive government experience. 6. Services fall under Computer Systems Design, a common category for consulting firms.

Value Assessment

Rating: fair

The contract value of $11.5 million for a nearly three-year duration for business process improvement services appears within a reasonable range for a large consulting firm like Deloitte. However, the Time and Materials pricing structure warrants careful monitoring to ensure cost efficiency. Benchmarking against similar IT consulting contracts for process improvement at the Department of State or other agencies would provide a clearer picture of value for money. Without specific deliverables and performance metrics, a definitive value assessment is challenging.

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 had the opportunity to submit proposals. This method generally fosters price discovery and allows the government to select the best value offer. The number of bidders is not specified, but the competitive nature suggests that the pricing was likely scrutinized against market rates and other proposals.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing and the selection of a qualified contractor through a transparent process. Full and open competition aims to prevent inflated costs and ensure that public funds are used efficiently.

Public Impact

The primary beneficiary is the Department of State, which receives support for improving its internal business operations. Services delivered include IT system design and consulting aimed at process optimization. The geographic impact is primarily within the District of Columbia, where the Department of State is headquartered. Workforce implications may include the engagement of specialized consultants and potential internal training or process changes within the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely managed and monitored.
Lack of specific performance metrics in the provided data makes it difficult to assess the true impact and value of the services.
The broad nature of 'business process improvements' could lead to scope creep if not clearly defined and controlled.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Contractor is Deloitte, a reputable firm with significant experience in government contracting.
The contract duration of nearly three years allows for sustained focus on process improvement initiatives.

Sector Analysis

This contract falls within the IT consulting and professional services sector, specifically focusing on systems design and business process improvement. This is a significant market within the federal government, with agencies consistently seeking to modernize operations and enhance efficiency through technology. Comparable spending benchmarks for similar IT consulting services can vary widely based on scope, duration, and contractor expertise, but agencies often allocate substantial budgets to these types of engagements.

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 consulting firm, it is unlikely to have direct subcontracting opportunities specifically targeted at small businesses unless stipulated in the contract's statement of work. The primary impact on the small business ecosystem would be indirect, through the overall health of the federal contracting market.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of State's contracting officers and program managers. Accountability measures would be tied to the contract's performance metrics and deliverables, as well as the Time and Materials reporting requirements. Transparency is generally facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of State IT Modernization Efforts
Federal Management Consulting Services
Business Process Re-engineering Contracts
IT Systems Design and Integration
Professional Services Contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of specific performance metrics makes value assessment difficult.
Scope creep risk in 'business process improvements' without clear definition.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $11.5 million to DELOITTE CONSULTING LLP. TASK ORDER TO SUPPORT BUSINESS PROCESS IMPROVEMENTS

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $11.5 million.

What is the period of performance?

Start: 2018-09-30. End: 2021-06-30.

What specific business processes were targeted for improvement under this task order, and what were the key performance indicators (KPIs) for success?

The provided data describes the task order as supporting 'business process improvements' generally, falling under 'Computer Systems Design Services.' However, it does not specify which particular business processes were targeted (e.g., procurement, human resources, foreign affairs operations support) nor does it detail the key performance indicators (KPIs) established to measure the success of these improvements. Without this granular information, it is difficult to assess the effectiveness of the contractor's work or the tangible benefits realized by the Department of State. Typically, such task orders would include a detailed statement of work outlining specific processes, desired outcomes, and measurable metrics for evaluating performance and value.

How does the awarded amount of $11.5 million compare to the estimated value or budget for similar business process improvement initiatives within the Department of State or other large federal agencie

The $11.5 million award for a task order lasting nearly three years (1004 days) for business process improvements and computer systems design is substantial. For large federal agencies like the Department of State, significant investments in IT modernization and operational efficiency are common. Benchmarking this against similar contracts is challenging without more specific details on the scope and complexity of the improvements. However, large-scale IT consulting engagements for major federal departments can range from millions to tens of millions of dollars. The Time and Materials (T&M) nature of this contract means the final cost could fluctuate based on hours worked, making direct comparisons to fixed-price contracts difficult. Agencies often budget significant funds for such strategic initiatives to enhance service delivery and internal operations.

What is Deloitte Consulting LLP's track record with the Department of State and other federal agencies for similar IT consulting and business process improvement contracts?

Deloitte Consulting LLP is a major federal contractor with a long history of providing a wide range of services, including IT consulting and business process improvements, to numerous government agencies, including the Department of State. Their track record generally indicates extensive experience and capability in handling large, complex projects. Publicly available data often shows Deloitte winning significant contracts across various departments. For the Department of State specifically, Deloitte has likely been involved in numerous IT and management consulting engagements over the years. A deeper dive into contract databases and agency performance reviews would reveal specific past performance ratings and the success of their previous work, but as a 'large, established firm,' their general reputation suggests a capacity to deliver on such requirements.

Given the Time and Materials (T&M) contract type, what mechanisms were in place to control costs and prevent potential overruns during the contract's performance period?

Time and Materials (T&M) contracts, while offering flexibility, inherently carry a higher risk of cost overruns if not managed diligently. For this Department of State task order, effective cost control mechanisms would typically include a ceiling price that cannot be exceeded without formal modification, detailed labor hour tracking and reporting requirements, regular reviews of invoices against progress and deliverables, and potentially CLIN (Contract Line Item Number) level ceilings. The contracting officer's representative (COR) and program managers play a crucial role in monitoring the contractor's effort, ensuring that only necessary and efficient work is performed, and validating the labor hours charged. Without specific details on these oversight mechanisms, it's assumed standard government T&M management practices were applied.

What is the potential impact of this $11.5 million contract on the Department of State's overall IT modernization strategy and budget allocation for IT services?

This $11.5 million task order represents a specific investment within the Department of State's broader IT modernization strategy. Such contracts are often crucial for addressing specific operational inefficiencies or implementing new technological capabilities that support overarching modernization goals. The allocation of $11.5 million suggests that business process improvement through IT systems design is a priority for the agency. This funding would be part of the Department's overall IT budget, potentially drawing from funds allocated for systems development, IT services, or management consulting. The success of this task order could influence future budget requests and strategic decisions regarding IT investments in related areas.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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: 1

Pricing Type: TIME AND MATERIALS (Y)

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: $11,542,116

Exercised Options: $11,542,116

Current Obligation: $11,517,588

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q09BGD0018

IDV Type: GWAC

Timeline