GSA awards $57.3M contract to Deloitte for INDO-PACOM professional services, with a 17-month duration

Contract Overview

Contract Amount: $57,309,877 ($57.3M)

Contractor: Deloitte Consulting LLP

Awarding Agency: General Services Administration

Start Date: 2025-03-01

End Date: 2026-07-31

Contract Duration: 517 days

Daily Burn Rate: $110.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: THE PURPOSE OF THIS AWARD IS TO PROVIDE ENTERPRISE-WIDE PROFESSIONAL SERVICES TO SUPPORT UNITED STATES INDO-PACIFIC COMMAND.

Place of Performance

Location: CAMP H M SMITH, HONOLULU County, HAWAII, 96861

State: Hawaii Government Spending

Plain-Language Summary

General Services Administration obligated $57.3 million to DELOITTE CONSULTING LLP for work described as: THE PURPOSE OF THIS AWARD IS TO PROVIDE ENTERPRISE-WIDE PROFESSIONAL SERVICES TO SUPPORT UNITED STATES INDO-PACIFIC COMMAND. Key points: 1. Contract provides essential enterprise-wide professional services for U.S. INDO-PACOM. 2. Awarded through full and open competition, suggesting a robust market. 3. The contract type is Cost Plus Award Fee (CPAF), which incentivizes performance. 4. Duration of 517 days (approx. 17 months) indicates a focused, medium-term engagement. 5. The primary NAICS code (541330) points to engineering services, though the description is broader. 6. The contract is not set aside for small businesses. 7. The award is a Delivery Order, likely against a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $57.3 million over approximately 17 months suggests a significant investment in professional services for a major combatant command. Benchmarking this against similar large-scale professional services contracts for defense organizations is crucial. The Cost Plus Award Fee (CPAF) structure allows for flexibility and incentivizes contractor performance, but requires careful monitoring to ensure value for money. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive nature of the award is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 3 bidders (as indicated by 'no': 3) suggests a reasonable level of competition for this type of specialized service. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among bidders.

Public Impact

U.S. INDO-PACOM personnel and operations will benefit from enhanced professional services. Services will support the strategic objectives and readiness of a key U.S. military command. The geographic impact is primarily within the INDO-PACOM area of responsibility, potentially including Hawaii. The contract may indirectly support a workforce of skilled professionals in engineering and related fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPAF contracts if not closely managed.
Scope creep could increase the total cost beyond the initial award amount.
Dependence on a single contractor for critical enterprise-wide services could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a healthy market and potential for competitive pricing.
The CPAF structure incentivizes high performance and successful mission accomplishment.
The contractor, Deloitte Consulting LLP, is a well-established firm with significant experience in government contracting.

Sector Analysis

This contract falls within the professional services sector, specifically supporting defense operations. The market for enterprise-wide professional services for major military commands is substantial, with significant spending allocated annually. Comparable spending benchmarks would involve analyzing other large professional services contracts awarded to support combatant commands or major defense agencies, often in the hundreds of millions of dollars over multiple years. The engineering services NAICS code (541330) suggests a focus on technical and analytical support.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). This means the competition was open to all responsible sources, including large businesses. While there are no direct subcontracting requirements specified in the provided data, large prime contractors are often encouraged or required to subcontract portions of their work to small businesses on larger contracts. The absence of a specific small business set-aside means that opportunities for small businesses to directly compete for this prime contract were limited.

Oversight & Accountability

Oversight for this contract will likely be managed by the General Services Administration (GSA) as the issuing agency, and the U.S. INDO-PACOM as the end-user. The Cost Plus Award Fee (CPAF) structure necessitates robust performance monitoring and evaluation by the government to ensure award fees are justified. Transparency will depend on GSA's reporting practices and any public disclosures related to contract performance. Inspector General jurisdiction would typically fall under the Department of Defense, given the end-user.

Related Government Programs

U.S. INDO-PACOM Operations Support
Defense Professional Services Contracts
GSA Federal Acquisition Service Contracts
Engineering Services for Government

Risk Flags

Potential for cost overruns in CPAF contracts.
Reliance on contractor performance for critical command functions.
Scope definition and management challenges in broad professional services contracts.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $57.3 million to DELOITTE CONSULTING LLP. THE PURPOSE OF THIS AWARD IS TO PROVIDE ENTERPRISE-WIDE PROFESSIONAL SERVICES TO SUPPORT UNITED STATES INDO-PACIFIC COMMAND.

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $57.3 million.

What is the period of performance?

Start: 2025-03-01. End: 2026-07-31.

What is Deloitte Consulting LLP's track record with similar large-scale professional services contracts for defense organizations?

Deloitte Consulting LLP has a substantial track record in providing professional services to various U.S. government agencies, including defense organizations. They frequently win large, complex contracts involving strategic planning, IT modernization, cybersecurity, and operational support. For instance, they have held significant contracts with the Department of Defense, Army, Navy, and Air Force, often valued in the tens or hundreds of millions of dollars. Their experience typically includes supporting major command structures and complex operational environments similar to INDO-PACOM. A review of federal procurement databases (like FPDS or SAM.gov) would reveal specific contract vehicles, past performance evaluations, and any reported issues or successes.

How does the $57.3 million value compare to other professional services contracts supporting U.S. INDO-PACOM or similar commands?

The $57.3 million value for approximately 17 months of service is substantial but falls within the typical range for enterprise-wide professional support for a major U.S. combatant command. Large commands like INDO-PACOM require extensive support across various domains, including strategic planning, intelligence analysis, logistics, and operational readiness. Contracts for such comprehensive support can easily reach tens or hundreds of millions of dollars over their full performance periods. For comparison, similar contracts supporting U.S. Central Command (CENTCOM) or U.S. European Command (EUCOM) often have similar or higher total values, reflecting the scale and complexity of their respective areas of responsibility and missions.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract structure for this type of service?

The primary risks with a CPAF contract revolve around cost control and performance measurement. While CPAF incentivizes high performance by offering award fees based on achieving specific criteria, it can also lead to cost growth if the base cost is not well-defined or if the award criteria are not meticulously structured and monitored. There's a risk that contractors might focus on maximizing award fees rather than strictly controlling costs, or that the government may struggle to objectively measure performance against the award criteria. Effective oversight, clear performance metrics, and rigorous evaluation processes are critical to mitigating these risks and ensuring the government receives good value.

How effective is 'full and open competition' in ensuring competitive pricing for specialized defense support services?

Full and open competition is generally the most effective method for ensuring competitive pricing, as it allows all responsible sources to participate. This broad participation increases the likelihood of receiving multiple competitive offers, which drives down prices and encourages innovation. For specialized defense support services, however, the pool of qualified bidders might be limited, potentially reducing the intensity of competition. Even with a limited number of bidders (like the 3 indicated here), full and open competition is still preferable to sole-source or limited competition, as it provides a baseline for price discovery and allows the government to select the best value offer based on both technical merit and cost.

What are the historical spending patterns for professional services supporting U.S. INDO-PACOM?

Historical spending patterns for professional services supporting U.S. INDO-PACOM typically show significant and consistent investment. Major combatant commands require ongoing support for strategic planning, operational analysis, intelligence fusion, and readiness initiatives. Spending often occurs through a mix of large, multi-year IDIQ contracts and specific task orders or delivery orders like this one. Annual spending can range from tens to hundreds of millions of dollars, depending on the command's current operational tempo, strategic priorities, and specific requirements. Analyzing past INDO-PACOM budgets and contract awards would reveal trends in service types and funding levels.

What are the implications of the NAICS code 541330 (Engineering Services) for a contract described as 'enterprise-wide professional services'?

The assignment of NAICS code 541330 (Engineering Services) suggests that a significant portion of the professional services required under this contract will involve engineering expertise. This could include areas like systems engineering, technical analysis, infrastructure design, or support for complex military systems. However, the description 'enterprise-wide professional services' implies a broader scope that may encompass management consulting, strategic planning, policy development, and other non-engineering professional disciplines. The primary NAICS code often reflects the predominant service, but the contract's actual deliverables may be more diverse, requiring careful review of the Performance Work Statement (PWS) for a complete understanding.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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

Solicitation ID: 47QFCA24R0053

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

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: $467,329,930

Exercised Options: $118,562,501

Current Obligation: $57,309,877

Subaward Activity

Number of Subawards: 15

Total Subaward Amount: $32,885,550

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU113

IDV Type: IDC

Timeline