USAID's $23M contract with Deloitte Consulting LLP for Sri Lanka services awarded under full and open competition

Contract Overview

Contract Amount: $22,965,235 ($23.0M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Agency for International Development

Start Date: 2019-08-20

End Date: 2025-02-13

Contract Duration: 2,004 days

Daily Burn Rate: $11.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: PFM+T SRI LANKA AWARD

Plain-Language Summary

Agency for International Development obligated $23.0 million to DELOITTE CONSULTING LLP for work described as: PFM+T SRI LANKA AWARD Key points: 1. Contract awarded to a large, established firm, suggesting a focus on established capabilities. 2. The contract duration of over 2000 days indicates a long-term need for the services. 3. The 'All Other Professional, Scientific, and Technical Services' NAICS code suggests a broad scope of work. 4. The contract type 'COST PLUS FIXED FEE' can lead to cost overruns if not managed carefully. 5. The award amount of $22.9M over several years warrants scrutiny for value for money. 6. Limited information on specific performance metrics makes it difficult to assess effectiveness. 7. The absence of small business set-asides may limit opportunities for smaller, specialized firms.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging without detailed service descriptions and performance data. However, a $23 million award over approximately five years for professional services to a single contractor suggests a significant investment. Comparing it to similar USAID contracts for technical assistance in developing nations would be necessary to determine if the pricing is competitive. The cost-plus-fixed-fee structure, while common for complex services, carries inherent risks of cost escalation if not rigorously monitored.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This approach generally promotes competitive pricing and allows the agency to select the most qualified offeror. The presence of six bidders (no) suggests a reasonable level of interest in the opportunity, which is positive for price discovery and ensuring the government receives good value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and ensures that the most capable contractor is selected, leading to more efficient use of public funds.

Public Impact

The primary beneficiaries are likely the government of Sri Lanka and its citizens, who will receive the services provided under this contract. The contract aims to deliver professional, scientific, and technical services, which could encompass a wide range of support activities. The geographic impact is focused on Sri Lanka, indicating a specific development or assistance objective in that region. Workforce implications could include the employment of numerous consultants and experts by Deloitte, both locally and internationally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize contractors to increase costs to maximize their fee, requiring robust oversight.
The broad NAICS code 'All Other Professional, Scientific, and Technical Services' may obscure the specific nature and potential risks of the services being procured.
A long contract duration (2004 days) increases the risk of scope creep or misalignment with evolving needs if not actively managed.
Lack of transparency regarding specific performance metrics makes it difficult to assess the contractor's effectiveness and value for money.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process that should yield better pricing.
The selection of Deloitte Consulting LLP, a large and experienced firm, implies a degree of confidence in their ability to deliver complex services.
The contract is managed by the Agency for International Development (USAID), an agency with significant experience in managing international development contracts.
The contract has a defined end date, providing a clear timeframe for service delivery and evaluation.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under the broad category of 'All Other Professional, Scientific, and Technical Services' (NAICS 541990). This sector is characterized by a wide array of specialized services, including management consulting, research and development, and technical support. The global market for such services is substantial, with governments being significant clients. USAID's spending in this area often supports foreign policy objectives, economic development, and humanitarian aid. Comparable spending benchmarks would typically involve analyzing other large, multi-year service contracts awarded by development agencies for similar geographic regions or program types.

Small Business Impact

This contract does not appear to have a small business set-aside (ss=false, sb=false). The prime contractor, Deloitte Consulting LLP, is a large business. There is no information provided regarding subcontracting plans or goals for small businesses. This suggests that opportunities for small businesses may be limited to potential subcontracting roles, rather than direct prime contracting. Further investigation into subcontracting requirements would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Agency for International Development (USAID). As a cost-plus-fixed-fee contract, rigorous financial oversight is crucial to monitor expenditures and ensure the fixed fee is earned appropriately. USAID typically employs contract officers and technical monitors to oversee performance and compliance. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance details may be less public. The Inspector General of USAID would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.

Related Government Programs

USAID Development Assistance Programs
International Technical Assistance Contracts
Professional and Management Consulting Services
Government Contracts in South Asia

Risk Flags

Cost-plus-fixed-fee contract type carries inherent risk of cost overruns.
Broad NAICS code may lack specificity, hindering performance tracking.
Long contract duration increases risk of misalignment with evolving needs.
Lack of public detail on specific performance metrics hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $23.0 million to DELOITTE CONSULTING LLP. PFM+T SRI LANKA AWARD

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Agency for International Development (Agency for International Development).

What is the total obligated amount?

The obligated amount is $23.0 million.

What is the period of performance?

Start: 2019-08-20. End: 2025-02-13.

What specific services are being provided under this contract, and how do they align with USAID's mission in Sri Lanka?

The contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This broad classification suggests the services could range widely, potentially including policy analysis, program management support, technical expertise in areas like economic development, governance, health, or education, and capacity building for local institutions. Without more specific details in the award data, it's difficult to pinpoint the exact services. However, given USAID's mandate, these services are likely designed to support development objectives in Sri Lanka, such as fostering economic growth, strengthening democratic institutions, improving public health, or promoting environmental sustainability. The alignment would be assessed by reviewing USAID's country development cooperation strategy for Sri Lanka and comparing it with the stated or implied objectives of this contract.

How does the cost-plus-fixed-fee (CPFF) contract structure potentially impact the overall cost and efficiency compared to other contract types?

The Cost-Plus-Fixed-Fee (CPFF) structure means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or is expected to evolve, offering flexibility. However, it carries a risk of cost escalation, as the contractor has less incentive to control costs beyond what is necessary to complete the work, since their profit (the fee) is fixed regardless of the total cost. For taxpayers, this means the final cost could be higher than anticipated if costs are not meticulously managed and audited by the agency. Compared to a firm-fixed-price contract, CPFF offers less cost certainty but potentially greater adaptability to changing project needs. Robust oversight and clear definition of allowable costs are critical to mitigate risks associated with CPFF.

What is Deloitte Consulting LLP's track record with USAID, particularly on similar international development contracts?

Deloitte Consulting LLP is a major global professional services firm with extensive experience contracting with U.S. government agencies, including USAID. They have a history of performing a wide range of services, including management consulting, IT solutions, and program implementation support, often in complex international environments. While specific details on their past performance with USAID on Sri Lanka-specific projects are not provided in this dataset, their general profile suggests they possess the scale and expertise to handle large, multi-year development contracts. A comprehensive assessment would require reviewing USAID's past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) for Deloitte on similar contracts to gauge their reliability, quality of service, and adherence to budget and schedule.

Given the $22.9 million award value and a duration of over 2000 days, what is the approximate annual spending rate, and how does it compare to benchmarks for similar services?

The contract award is $22,965,235 with an estimated period of performance from August 20, 2019, to February 13, 2025. This period spans approximately 5.5 years (roughly 2004 days). Dividing the total award by the number of years gives an approximate annual spending rate of $4.17 million per year ($22,965,235 / 5.5 years). Benchmarking this rate against similar USAID contracts for professional, scientific, and technical services in South Asia or for comparable development objectives would be necessary for a precise comparison. However, an annual spend of over $4 million for a single, large-scale consulting contract is substantial and indicates a significant program or service requirement.

What are the potential risks associated with the 'All Other Professional, Scientific, and Technical Services' classification and the long contract duration?

The broad NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' presents a risk of ambiguity regarding the specific nature and scope of work. This lack of specificity can make it challenging for oversight bodies and even the agency itself to precisely track deliverables and measure performance against defined objectives. It could potentially mask less critical or less defined tasks within a larger contract. Coupled with a long duration (over 2000 days), there's an increased risk that the services may become outdated, misaligned with evolving needs on the ground, or that scope creep could occur without adequate controls. Effective contract management, including regular reviews and potential modifications, is essential to mitigate these risks over the extended period.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical 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: 72038319R00001

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Financial Advisory Services 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: $22,965,235

Exercised Options: $22,965,235

Current Obligation: $22,965,235

Actual Outlays: $20,271,549

Subaward Activity

Number of Subawards: 12

Total Subaward Amount: $10,684,648

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 7200AA18D00009

IDV Type: IDC

Timeline