GSA awards Deloitte $86M for Enterprise Program Management Support, with 2 delivery orders

Contract Overview

Contract Amount: $86,231,545 ($86.2M)

Contractor: Deloitte Consulting LLP

Awarding Agency: General Services Administration

Start Date: 2021-09-29

End Date: 2026-09-28

Contract Duration: 1,825 days

Daily Burn Rate: $47.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: ENTERPRISE PROGRAM MANAGEMENT SUPPORT

Place of Performance

Location: SEASIDE, MONTEREY County, CALIFORNIA, 93955

State: California Government Spending

Plain-Language Summary

General Services Administration obligated $86.2 million to DELOITTE CONSULTING LLP for work described as: ENTERPRISE PROGRAM MANAGEMENT SUPPORT Key points: 1. Value for money appears fair given the contract duration and scope, though specific performance metrics are not detailed. 2. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 3. Risk indicators are moderate, with potential for cost overruns in time and materials contracts. 4. Performance context is broad, covering enterprise program management support across unspecified federal agencies. 5. The contract fits within the professional services sector, specifically engineering and management consulting.

Value Assessment

Rating: fair

The total award amount of $86.2 million over five years for enterprise program management support is substantial. Benchmarking against similar large-scale consulting contracts is difficult without more granular detail on the specific services provided. However, the time and materials pricing structure, while flexible, can introduce cost uncertainty if not closely managed. The contract's duration suggests a long-term need for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of two delivery orders suggests ongoing tasking under this contract. The competitive nature of the award process is generally expected to drive more favorable pricing for the government.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a market where providers compete on price and quality, potentially leading to cost savings and better service delivery.

Public Impact

Federal agencies requiring program management expertise are the primary beneficiaries. Services delivered include program management support, potentially encompassing planning, execution, and oversight. The geographic impact is likely nationwide, supporting federal operations across various locations. Workforce implications include the potential for employment of consultants and program managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and materials pricing can lead to cost escalation if not carefully monitored and controlled.
The broad scope of 'enterprise program management support' may lead to scope creep if not clearly defined in task orders.
Dependence on a single large contractor for critical program management functions could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The contract has a defined period of performance, allowing for structured engagement.
Deloitte Consulting LLP is a large, established firm with significant experience in government contracting.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically engineering and management consulting services. The market for these services is large and competitive, with numerous firms offering program management expertise to federal agencies. Spending in this category is often driven by the complexity of federal programs and the need for specialized skills not always available in-house.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no explicit mention of subcontracting goals for small businesses. This suggests that the primary awardee, Deloitte Consulting LLP, will likely perform the majority of the work, with potential for subcontracting opportunities being less emphasized or directed towards larger partners.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA) through its Federal Acquisition Service. Task orders issued under this contract would have specific government contracting officers responsible for monitoring performance and ensuring compliance. Transparency is facilitated through contract databases like FPDS, which provide basic award information.

Related Government Programs

Management and Consulting Services
Program Management Support
Federal IT Consulting
Engineering Services

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Broad scope of 'enterprise program management support' may lead to undefined requirements or scope creep.
Lack of specific performance metrics makes value assessment challenging.
Dependence on a single large contractor for critical functions.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $86.2 million to DELOITTE CONSULTING LLP. ENTERPRISE PROGRAM MANAGEMENT SUPPORT

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 $86.2 million.

What is the period of performance?

Start: 2021-09-29. End: 2026-09-28.

What is Deloitte Consulting LLP's track record with the General Services Administration (GSA) on similar large-scale contracts?

Deloitte Consulting LLP has a substantial history of contracting with the GSA across various service areas. While specific details for this $86 million Enterprise Program Management Support contract are limited to the award information, Deloitte consistently secures large federal contracts. Their track record generally indicates significant experience in providing professional services, including program management, IT consulting, and strategic planning, to numerous federal agencies. Analyzing their past performance on GSA contracts, particularly those involving time and materials pricing and long durations, would be crucial for a comprehensive assessment. This would involve reviewing past performance evaluations, any documented disputes or corrective actions, and the overall value and scope of previously awarded contracts to gauge their reliability and effectiveness in delivering complex federal program support.

How does the awarded amount of $86.2 million compare to typical spending on enterprise program management support contracts?

The $86.2 million award for Enterprise Program Management Support over a five-year period (1825 days) represents an average annual value of approximately $17.2 million. This figure is substantial and falls within the range of large-scale federal support contracts. However, 'enterprise program management support' is a broad category. To provide a precise comparison, one would need to benchmark against contracts with similar scopes of work, service levels, and agency types. Generally, federal agencies often award multi-million dollar contracts for comprehensive program management, especially for large, complex initiatives. The value is indicative of a significant need for specialized expertise and sustained support, suggesting this contract addresses a critical function within the GSA or for agencies served by GSA.

What are the primary risks associated with a Time and Materials (T&M) contract of this magnitude and duration?

The primary risk with a Time and Materials (T&M) contract of this magnitude ($86.2 million over five years) is the potential for cost escalation and lack of defined scope. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual time and materials used. This structure can incentivize longer project durations or higher resource utilization if not rigorously managed. For taxpayers, this means the final cost is less predictable and could exceed initial estimates if oversight is insufficient. Key risks include scope creep, where the project's objectives expand without a corresponding increase in budget control, and potential inefficiencies in labor or material usage. Effective risk mitigation requires strong government oversight, detailed tracking of hours and expenses, and clear task order definitions to ensure value for money.

How effective is 'full and open competition' in ensuring competitive pricing for engineering and management services?

Full and open competition is generally considered the most effective method for ensuring competitive pricing in federal contracting, including for engineering and management services. By allowing all responsible sources to submit bids, it maximizes the number of potential offerors, thereby increasing the likelihood of receiving competitive proposals. This broad participation drives down prices as contractors vie for the award. For a contract valued at $86.2 million, this approach is crucial. It allows agencies like GSA to leverage market forces to obtain the best possible value. While other factors like technical approach and past performance are also evaluated, the competitive nature of the bidding process itself is a primary mechanism for achieving cost efficiency and preventing inflated pricing.

What are the implications of this contract being awarded to Deloitte Consulting LLP for the broader small business ecosystem?

Given that this contract was awarded under 'full and open competition' and the 'sb' (small business) indicator is false, the direct implications for the small business ecosystem are minimal in terms of set-aside awards. This large contract is unlikely to be directly set aside for small businesses. However, large prime contractors like Deloitte often engage small businesses as subcontractors. The extent to which Deloitte will utilize small business subcontractors for this specific contract is not detailed in the provided data. If Deloitte actively seeks small business partners for specialized services, it could provide opportunities. Conversely, if the work is largely performed in-house or subcontracted to other large firms, the direct benefit to the small business ecosystem from this specific award would be limited.

What oversight mechanisms are typically in place for a GSA contract of this nature?

Oversight for a GSA contract like this typically involves multiple layers. The Contracting Officer (CO) and Contracting Officer's Representative (COR) at GSA are directly responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. For a Time and Materials contract, rigorous oversight of labor hours, rates, and material costs is essential. GSA's Federal Acquisition Service, which awarded this contract, has established policies and procedures for contract administration. Additionally, the Government Accountability Office (GAO) and the GSA Office of Inspector General (OIG) provide independent oversight, conducting audits and investigations to ensure program integrity, prevent fraud, and promote efficiency. Transparency is further supported by public contract databases that record award details.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFMA21Q0029

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: $86,662,869

Exercised Options: $86,662,869

Current Obligation: $86,231,545

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $5,356,900

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