Deloitte Consulting LLP awarded $77.3M contract by USAID for professional services over 16+ years

Contract Overview

Contract Amount: $77,299,978 ($77.3M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Agency for International Development

Start Date: 2006-09-26

End Date: 2023-03-29

Contract Duration: 6,028 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: SABEQ

Plain-Language Summary

Agency for International Development obligated $77.3 million to DELOITTE CONSULTING LLP for work described as: SABEQ Key points: 1. Contract duration significantly exceeds typical service agreements, raising questions about sustained need and potential for scope creep. 2. The 'All Other Professional, Scientific, and Technical Services' NAICS code suggests a broad scope, making specific performance evaluation challenging. 3. A single award over such an extended period may indicate limited market engagement or a highly specialized, long-term requirement. 4. The Cost Plus Fixed Fee (CPFF) contract type can incentivize cost increases if not rigorously managed. 5. The absence of small business set-aside suggests large prime contractor focus, with potential subcontracting opportunities for smaller firms. 6. Significant contract value over a long period warrants close monitoring for efficiency and alignment with evolving agency needs.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging due to its extensive duration and broad service category. The total award of $77.3 million spread over approximately 16 years suggests an average annual value of around $4.8 million. This figure appears moderate for a large consulting firm like Deloitte, especially considering the wide range of potential services under NAICS 541990. However, without specific deliverables or performance metrics, a definitive value-for-money assessment is difficult. The CPFF structure requires careful oversight to ensure costs remain reasonable and justified.

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. However, the fact that it resulted in a single definitive contract awarded to Deloitte Consulting LLP suggests that either Deloitte was the most competitive offer, or the nature of the requirement favored a specific, long-term partnership. The extended duration might also have influenced the competitive landscape, potentially deterring bidders unwilling or unable to commit to such a long-term engagement.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through market forces. However, the long duration of this contract means that initial competitive advantages may diminish over time if market conditions or agency needs change significantly.

Public Impact

The primary beneficiary is the Agency for International Development (USAID), receiving a wide array of professional, scientific, and technical support services. Services likely encompass program management, technical assistance, policy analysis, and other specialized support critical to USAID's global development mission. The geographic impact is global, supporting USAID's operations and projects in various countries worldwide. Workforce implications include direct employment by Deloitte and potential subcontracting opportunities, contributing to the professional services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended contract duration (over 16 years) increases risk of obsolescence of services or misalignment with evolving agency needs.
Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed with stringent oversight.
Broad NAICS code (541990) makes it difficult to precisely define and measure performance outcomes and value.
Lack of specific small business set-aside may limit opportunities for smaller, innovative firms to participate directly.
Single award over a long period could indicate a lack of ongoing competitive pressure to drive innovation and cost efficiencies.

Positive Signals

Awarded under full and open competition, suggesting a competitive process was initiated.
Long-term nature of the contract may provide stability and continuity for critical agency functions.
Deloitte Consulting LLP is a large, established firm with significant resources and experience, potentially ensuring reliable service delivery.
The definitive contract type provides a framework for a long-term relationship, allowing for deep understanding of agency requirements.

Sector Analysis

The contract falls under the broad category of professional, scientific, and technical services (NAICS 541990). This sector is characterized by a wide range of specialized expertise, from management consulting to scientific research. The market is competitive, with numerous large and small firms offering diverse capabilities. USAID's spending in this area supports its complex international development programs, requiring adaptable and expert support. Comparable spending benchmarks are difficult without specific service details, but large federal agencies frequently contract for such broad support services, often in the tens to hundreds of millions of dollars annually.

Small Business Impact

This contract does not appear to have a specific small business set-aside (sb=false). As a large definitive contract awarded to a major prime contractor, Deloitte Consulting LLP, the primary impact on small businesses would be through subcontracting opportunities. The broad nature of the services could potentially create diverse subcontracting needs, but the extent to which small businesses are utilized is not detailed in the provided data. The absence of a set-aside suggests the primary focus was on securing capabilities from large, established firms.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). As a Cost Plus Fixed Fee (CPFF) contract, rigorous financial oversight is crucial to monitor costs, ensure they are reasonable and allocable, and verify that the fixed fee is earned based on performance. USAID's contracting officers and program managers are responsible for performance monitoring, deliverable acceptance, and ensuring compliance with contract terms. Transparency would be enhanced through regular reporting requirements and potentially through public contract data portals, though specific oversight mechanisms are not detailed here.

Related Government Programs

USAID Program Management Support Contracts
Professional and Technical Services for International Development
Government-wide Acquisition Contracts (GWACs) for IT and Professional Services
Consulting Services for Federal Agencies

Risk Flags

Long Contract Duration
Cost Plus Fixed Fee Structure
Broad Service Scope (NAICS 541990)
Potential for Scope Creep
Limited Visibility on Small Business Utilization

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $77.3 million to DELOITTE CONSULTING LLP. SABEQ

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 $77.3 million.

What is the period of performance?

Start: 2006-09-26. End: 2023-03-29.

What specific types of professional, scientific, and technical services has Deloitte Consulting LLP provided under this contract?

The provided data indicates the contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This broad classification suggests a wide range of potential services, which could include areas such as program management, policy analysis, technical assistance, research and development support, data analysis, strategic planning, and other specialized consulting functions supporting USAID's mission. Without access to contract line item details, task orders, or performance reports, the precise nature and scope of services rendered remain unspecified. However, given USAID's mandate, these services are likely geared towards supporting international development initiatives, humanitarian aid, and global health programs.

How does the total contract value of $77.3 million compare to similar long-term service contracts awarded by USAID or other agencies?

The total contract value of $77.3 million over approximately 16 years averages to about $4.8 million annually. This annual figure is moderate for a large consulting firm like Deloitte supporting a major federal agency. Many large-scale federal contracts, especially those involving complex program management or IT modernization, can reach hundreds of millions or even billions of dollars over similar or shorter durations. For instance, major IT system development contracts or large-scale logistics support contracts often exceed this value significantly. USAID itself awards numerous contracts for development projects that can range widely in value. Therefore, while substantial, $77.3 million over 16 years does not appear exceptionally high in the context of large federal service contracts, suggesting a potentially focused or specialized scope of work relative to the agency's overall spending.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type used for this award?

The Cost Plus Fixed Fee (CPFF) contract type presents inherent risks, primarily related to cost control and potential for contractor inefficiency. In a CPFF arrangement, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. The risk for the government is that the contractor may have less incentive to control costs compared to fixed-price contracts, as cost overruns do not directly reduce their profit (only the fee is fixed). This can lead to higher overall costs for the government if not managed with rigorous oversight. Contractors may also prioritize activities that generate more costs to ensure they meet the 'cost' threshold for the fee. Effective management requires detailed cost monitoring, robust auditing, and clear performance metrics to ensure the fixed fee is justified and that costs remain reasonable.

Given the 16-year duration, how can USAID ensure the services remain relevant and effective over time?

Ensuring relevance and effectiveness over a 16-year contract requires proactive contract management and built-in flexibility. USAID can employ several strategies. Firstly, incorporating regular review periods (e.g., annually or biennially) to assess performance, evaluate the continued need for specific services, and adjust the scope as necessary. Secondly, building mechanisms for scope adjustments or modifications into the contract allows for adaptation to changing agency priorities, technological advancements, or geopolitical shifts. Thirdly, maintaining strong communication channels with the contractor to foster collaboration and identify potential issues early. Finally, USAID could consider performance-based metrics that are tied to evolving strategic goals, ensuring that the contractor's efforts remain aligned with the agency's current objectives, even if the specific tasks change over the contract's lifespan.

What is Deloitte Consulting LLP's track record with similar large, long-term federal service contracts?

Deloitte Consulting LLP is a major global professional services firm with extensive experience holding and performing on numerous large, long-term federal contracts across various agencies, including the Department of Defense, Health and Human Services, and others. Their track record typically involves providing a wide array of services, such as IT modernization, management consulting, cybersecurity, and program management support. While specific performance details for every contract are not publicly available, Deloitte is generally recognized for its capacity to manage complex, high-value engagements. However, like any large contractor, they may have faced scrutiny or challenges on specific contracts related to cost, performance, or delivery timelines, which are common in the federal contracting landscape. A deeper dive into contract performance reports and agency evaluations would be needed for a precise assessment of their record on contracts similar to this USAID award.

What are the implications of this contract being a 'definitive contract' versus other contract types like Indefinite Delivery/Indefinite Quantity (IDIQ)?

A 'definitive contract' typically outlines all terms and conditions, including scope, price, and delivery schedule, for a specific project or service over a set period. In this case, it's a single award covering a long duration (over 16 years). This contrasts with Indefinite Delivery/Indefinite Quantity (IDIQ) contracts, which establish a framework for services but allow for task orders to be issued over time with varying quantities and specific scopes. The definitive nature here suggests a more predictable, albeit broad, set of requirements established upfront. The long duration implies a stable, ongoing need. However, it might offer less flexibility than an IDIQ in adapting to rapidly changing requirements or exploring different vendor solutions over time, as the primary relationship and terms are fixed for the contract's life.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: JORDAN0608

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Touche Tohmatsu Limited

Address: 1725 DUKE ST, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $77,337,098

Exercised Options: $77,337,098

Current Obligation: $77,299,978

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Timeline