GSA awards $36.3M contract to Deloitte for administrative management consulting services

Contract Overview

Contract Amount: $36,278,598 ($36.3M)

Contractor: Deloitte Consulting LLP

Awarding Agency: General Services Administration

Start Date: 2023-09-29

End Date: 2026-09-28

Contract Duration: 1,095 days

Daily Burn Rate: $33.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: FBI STOR 193

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20535

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $36.3 million to DELOITTE CONSULTING LLP for work described as: FBI STOR 193 Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. Deloitte Consulting LLP, a large established firm, secured the award. 3. The contract duration is 3 years, indicating a medium-term need for services. 4. Services fall under Administrative Management and General Management Consulting. 5. The contract type is Time and Materials, which can pose cost control challenges. 6. The award is a Delivery Order under a larger contract vehicle. 7. No small business set-aside was utilized for this specific award.

Value Assessment

Rating: fair

Benchmarking the value of this $36.3 million contract requires more specific service details. However, the award to a large, established firm like Deloitte suggests a competitive pricing process. The Time and Materials (T&M) contract type, while flexible, can sometimes lead to higher costs if not managed closely, compared to fixed-price contracts. Without specific performance metrics or comparable T&M rates for similar consulting services, a definitive value-for-money 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 all responsible sources were permitted to submit bids. The presence of 6 bidders suggests a healthy level of competition for this requirement. This broad competition is generally favorable for price discovery and ensures the government can select from a range of qualified contractors.

Taxpayer Impact: Full and open competition typically leads to more competitive pricing, which is beneficial for taxpayers by potentially lowering the overall cost of services procured.

Public Impact

Federal agencies requiring administrative and general management consulting services will benefit from this contract. The services delivered are expected to improve operational efficiency and management practices within the agency. The contract is geographically focused on the District of Columbia. The contract is likely to support a workforce of consultants provided by Deloitte.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
Lack of specific performance metrics makes it difficult to assess the true value and impact of the consulting services.
The broad nature of 'Administrative Management and General Management Consulting Services' could lead to scope creep if not well-defined.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Contract awarded to a reputable and experienced contractor, Deloitte Consulting LLP.
The contract is a Delivery Order under a larger, established contract vehicle, suggesting a structured procurement process.

Sector Analysis

This contract falls within the professional services sector, specifically management and consulting. The market for these services is large and competitive, with numerous firms offering expertise in administrative and general management. Federal spending in this category is substantial, as agencies frequently engage consultants to improve efficiency, implement new strategies, or manage complex projects. Benchmarks for similar consulting contracts vary widely based on the specific services and contractor, but this award appears to be within a typical range for a multi-year engagement with a major consulting firm.

Small Business Impact

This contract was not awarded as a small business set-aside, and the contractor, Deloitte Consulting LLP, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem for this specific award is likely minimal, though larger prime contractors often engage small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the designated contracting officer's representative (COR) within the procuring agency. The General Services Administration (GSA) Federal Acquisition Service, which issued the award, has established procurement regulations and oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. The Inspector General for the relevant agency would have jurisdiction to investigate any potential fraud, waste, or abuse.

Related Government Programs

Management and Consulting Services
Professional Services Contracts
GSA Federal Supply Schedule Contracts
Time and Materials Contracts

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Scope creep risk if requirements are not clearly defined.
Dependence on contractor performance for achieving desired outcomes.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $36.3 million to DELOITTE CONSULTING LLP. FBI STOR 193

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 $36.3 million.

What is the period of performance?

Start: 2023-09-29. End: 2026-09-28.

What is Deloitte Consulting LLP's track record with federal contracts, particularly in administrative and management consulting?

Deloitte Consulting LLP is a major federal contractor with a significant history of awards across various agencies and service areas. They frequently win contracts related to management consulting, IT services, and program management. Their track record generally indicates experience in delivering complex solutions to government clients. Specific performance data for past contracts would be available through federal procurement databases, allowing for a detailed review of their past performance ratings, any past performance issues, and the types of administrative and management consulting services they have successfully provided to the government. This history suggests a strong capability to perform the services required under this new contract.

How does the $36.3 million value compare to similar administrative management consulting contracts awarded by the GSA or other agencies?

The $36.3 million value for a three-year contract for administrative management and general management consulting services is within a common range for engagements with large consulting firms. Contracts of this magnitude are typical for providing comprehensive support to federal agencies. For instance, similar contracts for strategic planning, organizational redesign, or process improvement often fall within this price bracket. However, without knowing the specific deliverables and the exact scope of work, a precise comparison is difficult. Contracts with more specialized or technical consulting requirements, or those involving larger teams or longer durations, could significantly exceed this amount. Conversely, smaller, more focused consulting tasks would be valued lower.

What are the primary risks associated with a Time and Materials (T&M) contract for consulting services, and how are they mitigated?

The primary risk with Time and Materials (T&M) contracts is the potential for cost overruns, as the contractor is reimbursed for direct labor hours at specified rates and for the cost of materials. This structure can incentivize longer project durations or less efficient work if not managed diligently. Mitigation strategies include establishing clear labor categories with defined rates, setting a ceiling on the total contract value, requiring detailed timesheets and progress reports, and implementing robust oversight by a Contracting Officer's Representative (COR). The government must actively monitor labor hours, task progress, and overall spending to ensure the work remains within scope and budget. The flexibility of T&M is beneficial for projects with uncertain scope, but it demands vigilant government management.

What is the expected effectiveness or impact of these administrative management consulting services on the procuring agency's operations?

The expected effectiveness of these administrative management consulting services hinges on the specific objectives outlined in the Statement of Work (SOW). Generally, such services aim to enhance operational efficiency, improve organizational structures, streamline processes, implement best practices, and support strategic decision-making. The impact could range from cost savings through process optimization to improved service delivery to citizens or enhanced internal agency functions. The success will depend on the clarity of the agency's needs, the quality of Deloitte's proposed solutions, and the collaborative effort between the contractor and agency personnel. Measurable outcomes, such as reduced processing times, cost reductions, or improved employee satisfaction, would define the ultimate effectiveness.

How has federal spending on administrative management and general management consulting services trended over the past five years?

Federal spending on administrative management and general management consulting services has generally seen a steady increase over the past five years, reflecting agencies' ongoing needs for expertise in areas like organizational efficiency, strategic planning, and digital transformation. While specific figures fluctuate annually based on budget allocations and agency priorities, the overall trend indicates a sustained reliance on external consultants to address complex challenges and implement government-wide initiatives. Factors such as evolving technological landscapes, changing regulatory environments, and the need for specialized skills often drive this demand. This upward trend suggests that consulting services remain a critical component of federal agency operations and modernization efforts.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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: 47QFSA23Q0058

Offers Received: 6

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: $73,886,898

Exercised Options: $39,351,019

Current Obligation: $36,278,598

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $28,496,907

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAA18D001P

IDV Type: FSS

Timeline