GSA awards $3.66M for Aviation and Navy Product Lifecycle Management, with Deloitte & Touche LLP as contractor

Contract Overview

Contract Amount: $3,655,800 ($3.7M)

Contractor: Deloitte & Touche LLP

Awarding Agency: General Services Administration

Start Date: 2024-09-16

End Date: 2026-09-15

Contract Duration: 729 days

Daily Burn Rate: $5.0K/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: NDMS AVIATION PRODUCT LIFECYCLE MANAGEMENT AVPLM AND NAVY PRODUCT LIFECYCLE MANAGEMENT NPLM

Place of Performance

Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $3.7 million to DELOITTE & TOUCHE LLP for work described as: NDMS AVIATION PRODUCT LIFECYCLE MANAGEMENT AVPLM AND NAVY PRODUCT LIFECYCLE MANAGEMENT NPLM Key points: 1. Contract awarded under Special Acquisition Procedures (SAP), suggesting a streamlined process. 2. The contract type is Time and Materials, which can pose cost control challenges. 3. Deloitte & Touche LLP, a large established firm, is the awardee. 4. The contract duration is 729 days, indicating a medium-term engagement. 5. The award is a BPA Call, implying it's part of a larger pre-negotiated agreement. 6. The contract is not set aside for small businesses, suggesting a focus on larger prime contractors.

Value Assessment

Rating: fair

The contract value of $3.66 million over approximately two years for product lifecycle management services is within a typical range for such specialized IT support. However, the Time and Materials (T&M) pricing model, while flexible, offers less certainty on final costs compared to fixed-price contracts. Benchmarking against similar IT services contracts for lifecycle management is difficult without more specific details on the scope of work and required expertise. The absence of a specific Product and Service Code (PSC) beyond the NAICS code makes direct comparison challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Special Acquisition Procedures (SAP), which is a method for acquiring supplies and services that are not expected to exceed the simplified acquisition threshold. While the exact competition details are not provided, SAP typically allows for a broader range of competition than sole-source or limited sources. The fact that it was competed suggests multiple vendors likely had an opportunity to bid, which aids in price discovery and ensures a reasonable price for the government.

Taxpayer Impact: Competing the contract, even under SAP, helps ensure that taxpayer funds are used efficiently by fostering a competitive environment that drives down costs.

Public Impact

The primary beneficiaries are the Navy and potentially other aviation-related entities within the Department of Defense, receiving enhanced product lifecycle management capabilities. Services delivered will focus on custom computer programming and related IT support for managing complex product data throughout its lifecycle. The geographic impact is likely concentrated around the contracting agency (GSA) and the operational bases of the Navy and aviation programs, primarily in Maryland. Workforce implications may include the need for specialized IT professionals with expertise in product lifecycle management software and systems.

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 monitored.
Lack of specific Product and Service Code (PSC) makes detailed benchmarking difficult.
Reliance on a single awardee for a critical function like lifecycle management could pose a risk if performance issues arise.

Positive Signals

Awarded by the General Services Administration (GSA), a reputable agency for federal procurement.
The contract was competed, indicating a level of market vetting and potential for competitive pricing.
Deloitte & Touche LLP is a well-established contractor with significant experience in IT services.

Sector Analysis

This contract falls within the Information Technology (IT) services sector, specifically focusing on custom computer programming and IT management. The market for Product Lifecycle Management (PLM) software and services is substantial, driven by industries with complex product development and manufacturing processes, such as aerospace and defense. Spending in this area is critical for maintaining operational efficiency, ensuring compliance, and managing vast amounts of technical data. Comparable spending benchmarks would typically be found within IT services procurements for large federal agencies requiring specialized software development and system integration.

Small Business Impact

This contract was not set aside for small businesses, as indicated by the 'sb: false' field. This suggests that the procurement was open to all eligible offerors, and the award went to a large business prime contractor, Deloitte & Touche LLP. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal, unless Deloitte & Touche LLP voluntarily includes small businesses in its subcontracting plan.

Oversight & Accountability

The General Services Administration (GSA) typically employs robust oversight mechanisms for its contracts, including performance monitoring and financial reviews. As this is a BPA Call, the underlying Blanket Purchase Agreement (BPA) likely has established terms and conditions governing oversight. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected within the contract's execution.

Related Government Programs

Defense Logistics Agency (DLA) IT Services
Naval Sea Systems Command (NAVSEA) IT Support
Air Force Materiel Command (AFMC) Software Development
Department of Defense Enterprise Software Initiative (ESI)
GSA IT Schedule 70 (now IT Professional Services)

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Risk of technology obsolescence over the contract duration.
Dependency on a single contractor for critical lifecycle management functions.
Limited visibility into specific performance metrics without further data.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $3.7 million to DELOITTE & TOUCHE LLP. NDMS AVIATION PRODUCT LIFECYCLE MANAGEMENT AVPLM AND NAVY PRODUCT LIFECYCLE MANAGEMENT NPLM

Who is the contractor on this award?

The obligated recipient is DELOITTE & TOUCHE LLP.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $3.7 million.

What is the period of performance?

Start: 2024-09-16. End: 2026-09-15.

What is the specific scope of 'Aviation Product Lifecycle Management (AVPLM) and Navy Product Lifecycle Management (NPLM)' services being procured?

The provided data indicates the contract is for 'NDMS AVIATION PRODUCT LIFECYCLE MANAGEMENT AVPLM AND NAVY PRODUCT LIFECYCLE MANAGEMENT NPLM' and falls under NAICS code 541511 (Custom Computer Programming Services). This suggests the services involve the development, implementation, customization, and maintenance of software systems designed to manage product data throughout its entire lifecycle – from conception and design through manufacturing, service, and disposal. For aviation and naval applications, this would likely encompass managing complex engineering designs, bill of materials, configuration management, change control, and potentially integration with other enterprise systems like ERP or PLM platforms. The 'NDMS' prefix might refer to a specific program or system within the Navy or GSA.

How does the Time and Materials (T&M) pricing structure compare to industry standards for similar IT lifecycle management contracts?

Time and Materials (T&M) contracts are common for IT services, especially when the scope of work is not fully defined or is expected to evolve. However, they are often viewed with caution by federal agencies due to the potential for cost overruns. Industry standards often favor fixed-price or cost-plus-fixed-fee contracts for projects with well-defined scopes to ensure better cost predictability. For T&M contracts, robust oversight, detailed tracking of labor hours and materials, and clear ceiling prices are crucial. The benchmark for 'value for money' with T&M hinges on the contractor's efficiency and the government's ability to manage the contract effectively to prevent scope creep and ensure fair pricing for the effort expended.

What is Deloitte & Touche LLP's track record with similar government IT lifecycle management contracts?

Deloitte & Touche LLP is a major global professional services firm with extensive experience in providing IT consulting and implementation services to government agencies. While specific contract details for AVPLM/NPLM are not provided, Deloitte has a history of performing large-scale IT modernization, system integration, and software development projects for various federal departments, including the Department of Defense. Their track record typically involves managing complex programs, adhering to security requirements, and delivering solutions across diverse IT domains. Performance on similar contracts would be assessed through past performance evaluations during the bidding process and potentially through contract performance reports available in federal procurement databases.

What are the potential risks associated with a 729-day contract duration for product lifecycle management services?

A 729-day (approximately two-year) duration for product lifecycle management services presents several potential risks. Firstly, technology and requirements can evolve rapidly in the IT sector; by the end of the contract, the implemented solutions might be outdated or no longer fully aligned with the agency's strategic goals. Secondly, long-term reliance on a single contractor for critical system management can lead to vendor lock-in and reduced flexibility for the agency. Thirdly, maintaining consistent performance and knowledge transfer over an extended period requires diligent contract management. Finally, if the contract is T&M, the extended duration increases the potential for cumulative cost escalation if not meticulously managed.

How does the BPA Call award mechanism influence the overall cost and efficiency compared to a direct contract award?

A Blanket Purchase Agreement (BPA) Call is a task order issued against an existing BPA. BPAs are established with vendors to streamline the procurement of commonly purchased supplies or services. Using a BPA Call generally leads to increased efficiency and potentially lower costs because many terms, conditions, and pricing structures have already been negotiated and agreed upon in the underlying BPA. This reduces the administrative burden and lead time associated with issuing a new contract. For the government, it means faster access to services, and for the contractor, it provides a predictable stream of work. The efficiency gain comes from pre-competed terms and established relationships, allowing for quicker response times and potentially volume discounts.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 47QFAA24Q0007

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

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: $4,671,625

Exercised Options: $4,671,625

Current Obligation: $3,655,800

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QFAA21A0002

IDV Type: BPA

Timeline