GSA Awards $55.4M Digital Transformation Services Contract to Deloitte for NAVFAC

Contract Overview

Contract Amount: $55,385,515 ($55.4M)

Contractor: Deloitte Consulting LLP

Awarding Agency: General Services Administration

Start Date: 2020-09-29

End Date: 2025-05-28

Contract Duration: 1,702 days

Daily Burn Rate: $32.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: IT

Official Description: NAVFAC ENTERPRISE DIGITAL TRANSFORMATION AND ANALYSIS SERVICES

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $55.4 million to DELOITTE CONSULTING LLP for work described as: NAVFAC ENTERPRISE DIGITAL TRANSFORMATION AND ANALYSIS SERVICES Key points: 1. Contract awarded to a single large business, Deloitte Consulting LLP. 2. Focus on computer systems design services for NAVFAC. 3. Significant contract value of $55.4 million over its period of performance. 4. Full and open competition was utilized, suggesting a robust price discovery process.

Value Assessment

Rating: fair

The contract is a Time and Materials type, which can lead to cost overruns if not managed carefully. Benchmarking against similar digital transformation contracts is difficult without more granular data on specific services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is positive for price discovery. However, the award to a single large contractor may limit the range of innovative solutions or cost efficiencies that could have been achieved through broader competition.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process, but the Time and Materials pricing structure warrants close monitoring to ensure cost-effectiveness and prevent overspending.

Public Impact

Enhances digital capabilities for the Navy's facilities engineering command. Supports critical infrastructure and operational efficiency through technology. Potential for long-term impact on government IT modernization efforts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost uncertainty.
Award to a single large business may limit broader competition benefits.

Positive Signals

Full and open competition utilized.
Contract supports critical defense infrastructure.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. Spending in this area is substantial across the federal government as agencies modernize their digital infrastructure. Benchmarks for similar large-scale digital transformation projects vary widely based on scope and complexity.

Small Business Impact

The contract was awarded to a large business and there is no indication of small business participation in this specific award. Opportunities for small businesses may exist further down the contracting chain as subcontractors, but this is not explicitly stated.

Oversight & Accountability

The General Services Administration (GSA) managed this award through its Federal Acquisition Service, indicating established procurement processes. Oversight will be crucial to manage the Time and Materials aspects and ensure delivery meets NAVFAC's digital transformation goals.

Related Government Programs

Computer Systems Design Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Time and Materials contract type.
Lack of explicit small business participation.
Potential for scope creep in digital transformation projects.
Reliance on a single large contractor.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $55.4 million to DELOITTE CONSULTING LLP. NAVFAC ENTERPRISE DIGITAL TRANSFORMATION AND ANALYSIS SERVICES

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 $55.4 million.

What is the period of performance?

Start: 2020-09-29. End: 2025-05-28.

What specific digital transformation capabilities are being procured, and how do they align with NAVFAC's strategic objectives?

The contract is for 'Digital Transformation and Analysis Services.' While specific capabilities are not detailed, it likely encompasses areas such as cloud migration, data analytics, cybersecurity enhancements, and modernizing IT infrastructure to improve operational efficiency and decision-making for naval facilities worldwide. Alignment with strategic objectives would focus on enhancing mission readiness and optimizing resource management through advanced technological solutions.

What are the primary risks associated with the Time and Materials contract type for this digital transformation effort?

The primary risks of a Time and Materials (T&M) contract for digital transformation include potential cost overruns due to undefined scope, contractor inefficiency driving up hours billed, and a lack of incentive for the contractor to complete tasks efficiently. Effective government oversight, clear task definitions, and robust monitoring of labor hours and rates are essential to mitigate these risks and ensure value for taxpayer money.

How will the success of Deloitte's digital transformation services be measured and evaluated by NAVFAC?

Success will likely be measured through a combination of performance metrics tied to specific deliverables, achievement of key performance indicators (KPIs) related to system uptime, data accuracy, user adoption rates, and cost savings realized through digital improvements. Regular progress reviews, milestone completions, and user feedback will be critical components of the evaluation process to ensure the transformation efforts meet NAVFAC's operational and strategic goals.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

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: $63,729,175

Exercised Options: $58,450,707

Current Obligation: $55,385,515

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $2,591,765

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0029

IDV Type: GWAC

Timeline