HUD awards $16.4M to Deloitte for project management support, enhancing business solutions

Contract Overview

Contract Amount: $16,376,808 ($16.4M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Housing and Urban Development

Start Date: 2022-12-15

End Date: 2026-06-14

Contract Duration: 1,277 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CONTRACTOR TO PROVIDE SUPPORT AND FURTHER ENHANCE HUD'S PROJECT MANAGEMENT BUSINESS SOLUTIONS AND SERVICES.

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209

State: Virginia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $16.4 million to DELOITTE CONSULTING LLP for work described as: CONTRACTOR TO PROVIDE SUPPORT AND FURTHER ENHANCE HUD'S PROJECT MANAGEMENT BUSINESS SOLUTIONS AND SERVICES. Key points: 1. Contract focuses on enhancing existing project management solutions and services. 2. Deloitte Consulting LLP, a large established firm, is the awardee. 3. The contract is a Firm Fixed Price type, indicating predictable costs. 4. Performance is concentrated in Virginia, impacting the local federal IT ecosystem. 5. This award falls under the Administrative Management and General Management Consulting Services NAICS code. 6. The contract duration extends over three years, suggesting a need for sustained support.

Value Assessment

Rating: good

The contract value of $16.4 million over approximately 3.5 years for administrative management and general management consulting services appears reasonable. Benchmarking against similar contracts for project management support within federal agencies suggests this pricing is within expected ranges. The firm fixed-price structure provides cost certainty for the government, although it may limit flexibility if requirements change significantly. The specific value of the BPA call within a larger BPA framework would provide more granular insight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 4 bids suggests a healthy level of interest and competition for this type of service. This competitive process is expected to drive better pricing and service quality as vendors vied to win the contract.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and prevent price inflation.

Public Impact

The Department of Housing and Urban Development (HUD) benefits from enhanced project management capabilities. Federal employees within HUD will receive support for their project management business solutions. The services delivered are expected to improve the efficiency and effectiveness of HUD's project execution. The primary geographic impact is in Virginia, where the contractor's performance is located. The contract supports the federal IT and management consulting workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if project management needs evolve beyond initial expectations.
Dependence on a single large contractor for critical project management functions.
Ensuring continued innovation and adaptation of solutions over the contract life.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm Fixed Price contract type provides cost predictability for the government.
Experienced contractor with a track record in consulting services.
Contract supports essential project management functions for a key federal agency.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector, a significant area of federal spending. Agencies frequently procure these services to improve operational efficiency, manage complex projects, and implement new technologies. The market for these services is competitive, with numerous large and small firms offering specialized expertise. HUD's spending on such services is typical for an agency of its size and scope, aiming to optimize its internal processes and project delivery.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, Deloitte Consulting LLP, is a large business. There is no explicit mention of subcontracting requirements for small businesses within the provided data. Therefore, the direct impact on the small business ecosystem appears limited for this specific award, though larger prime contractors often engage small businesses in their supply chains.

Oversight & Accountability

The contract is managed by the Department of Housing and Urban Development (HUD). Oversight mechanisms would typically include regular performance reviews, milestone tracking, and adherence to the firm fixed-price agreement. Transparency is generally maintained through federal procurement databases like FPDS. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise during contract performance.

Related Government Programs

Federal IT Consulting Services
Project Management Support Contracts
Administrative Management Services
Management and Consulting Services

Risk Flags

Potential for contractor lock-in due to specialized knowledge.
Risk of solutions becoming outdated if not continuously updated.
Dependence on contractor performance for critical agency functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $16.4 million to DELOITTE CONSULTING LLP. CONTRACTOR TO PROVIDE SUPPORT AND FURTHER ENHANCE HUD'S PROJECT MANAGEMENT BUSINESS SOLUTIONS AND SERVICES.

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of Housing and Urban Development (Department of Housing and Urban Development).

What is the total obligated amount?

The obligated amount is $16.4 million.

What is the period of performance?

Start: 2022-12-15. End: 2026-06-14.

What is Deloitte Consulting LLP's track record with federal contracts, particularly within HUD?

Deloitte Consulting LLP is a major federal contractor with a substantial history of awards across numerous agencies, including HUD. Their federal contract portfolio often includes IT modernization, management consulting, cybersecurity, and financial management services. Within HUD, Deloitte has likely supported various initiatives related to housing, urban development, and agency operations. A detailed review of past performance evaluations and contract history within FPDS would reveal specific project successes, challenges, and overall satisfaction levels with their previous work for HUD and other federal entities. Their extensive experience suggests a strong understanding of federal procurement processes and agency needs.

How does the $16.4 million value compare to similar project management support contracts at HUD or other agencies?

The $16.4 million contract value for project management support over approximately 3.5 years is a moderate-sized award within the federal consulting services landscape. For a large agency like HUD, this amount is reasonable for enhancing critical business solutions and project management capabilities. Comparable contracts for similar services at agencies like GSA, HHS, or DOD can range significantly based on scope, duration, and complexity. However, this value aligns with typical procurements for specialized management and IT consulting services aimed at improving agency operations and project delivery, suggesting it is within a standard range for such support.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include potential scope creep, where project requirements expand beyond the initial agreement, leading to cost overruns or schedule delays. Another risk is the contractor's ability to deliver innovative and effective solutions consistently over the contract's lifespan. Mitigation strategies likely involve robust contract management by HUD, including clear definition of tasks, regular performance monitoring, and change control processes. The firm fixed-price nature of the contract also incentivizes the contractor to manage costs effectively. Ensuring clear communication channels and performance metrics are established from the outset helps manage expectations and identify issues early.

How effective is the firm fixed-price (FFP) contract type in ensuring value for money for this specific service?

The Firm Fixed Price (FFP) contract type is generally effective in ensuring value for money when the scope of work is well-defined and unlikely to change significantly. For administrative management and general management consulting services, where the objectives are often to enhance existing systems or processes, FFP provides cost certainty for the government. This structure shifts the risk of cost overruns to the contractor, incentivizing them to perform efficiently. However, if unforeseen complexities arise or requirements evolve, the inflexibility of FFP could potentially lead to disputes or a need for costly contract modifications, which might diminish the initial value proposition.

What are the historical spending patterns for administrative management and general management consulting services at HUD?

Historical spending patterns for administrative management and general management consulting services at HUD, like most large federal agencies, typically show consistent investment in these areas. Agencies procure these services to support strategic planning, operational improvements, IT system enhancements, and program management. HUD's spending in this category would likely fluctuate based on specific agency priorities, budget allocations, and the initiation of new projects or modernization efforts. Analyzing past FPDS data would reveal trends in contract values, awardees, and the types of consulting services most frequently sought, providing context for the current $16.4 million award.

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: 86615122Q00006

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

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: $16,376,808

Exercised Options: $16,376,808

Current Obligation: $16,376,808

Actual Outlays: $4,287,922

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $523,357

Parent Contract

Parent Award PIID: 86615121A00003

IDV Type: BPA

Timeline