USAID's HR Transformation Services contract awarded to Deloitte Consulting LLP for over $87 million

Contract Overview

Contract Amount: $87,000,849 ($87.0M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Agency for International Development

Start Date: 2016-10-10

End Date: 2022-09-30

Contract Duration: 2,181 days

Daily Burn Rate: $39.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::CL::IGF THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE SUPPORT TO USAIDS HUMAN RESOURCE (HR) TRANSFORMATION SERVICES TO SUPPORT THE WORKFORCE CARRY OUT USAID S MISSION AND IMPLEMENT LASTING CHANGE.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20523

State: District of Columbia Government Spending

Plain-Language Summary

Agency for International Development obligated $87.0 million to DELOITTE CONSULTING LLP for work described as: IGF::CL::IGF THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE SUPPORT TO USAIDS HUMAN RESOURCE (HR) TRANSFORMATION SERVICES TO SUPPORT THE WORKFORCE CARRY OUT USAID S MISSION AND IMPLEMENT LASTING CHANGE. Key points: 1. The contract aims to support USAID's human resources transformation, focusing on workforce development and change implementation. 2. Awarded under full and open competition, indicating a broad market search for qualified contractors. 3. The contract duration spans nearly six years, suggesting a long-term need for these HR services. 4. The task order is a Time and Materials type, which can pose cost control challenges if not managed closely. 5. The primary service category is Administrative Management and General Management Consulting Services. 6. The contract was awarded as a Delivery Order under a larger contract vehicle.

Value Assessment

Rating: fair

The total award amount of over $87 million for nearly six years of HR transformation support appears substantial. Benchmarking this against similar large-scale HR consulting contracts for federal agencies is difficult without more specific service details. The Time and Materials pricing structure, while common, requires diligent oversight to ensure cost-effectiveness and prevent scope creep. The contract's value proposition hinges on its ability to deliver tangible improvements in USAID's workforce capabilities and operational efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of four bidders indicates a competitive environment. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers, although the specific pricing outcomes are not detailed here.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and encouraging innovation among bidders.

Public Impact

Employees within USAID will benefit from improved HR services and support, potentially leading to enhanced job satisfaction and productivity. The services delivered are intended to modernize USAID's human capital management, aligning it with strategic mission objectives. The geographic impact is primarily within USAID's headquarters and potentially its global operations, affecting its ability to manage its international workforce. Workforce implications include the potential for improved training, development, and retention of USAID personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not closely monitored.
The significant duration of the contract requires ongoing performance evaluation to ensure continued value.
The broad scope of 'HR Transformation' could lead to undefined requirements if not managed proactively.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The contract supports a critical function (HR Transformation) for USAID's mission effectiveness.
The long-term nature of the contract indicates a strategic investment in human capital.

Sector Analysis

This contract falls within the professional services sector, specifically management and administrative consulting. The federal government is a significant consumer of such services, particularly for large-scale organizational change initiatives. Comparable spending benchmarks would involve analyzing other large federal HR transformation or consulting contracts, which often run into tens or hundreds of millions of dollars over several years, depending on the agency's size and complexity.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. As it was awarded under full and open competition, it is possible that small businesses could have participated as prime contractors or subcontractors. However, without explicit set-aside information or subcontracting plans, the direct impact on the small business ecosystem is unclear, though large consulting firms often utilize small business partners.

Oversight & Accountability

Oversight for this contract would typically be managed by contracting officers and program managers within USAID. Performance monitoring, review of deliverables, and financial oversight are standard accountability measures. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

USAID Human Capital Management
Federal HR Consulting Services
Government-wide Acquisition Contracts (GWACs) for Professional Services
Management and Consulting Services

Risk Flags

Cost Control Risk (Time and Materials)
Scope Creep Potential
Long-Term Contract Management

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $87.0 million to DELOITTE CONSULTING LLP. IGF::CL::IGF THE PURPOSE OF THIS TASK ORDER IS TO PROVIDE SUPPORT TO USAIDS HUMAN RESOURCE (HR) TRANSFORMATION SERVICES TO SUPPORT THE WORKFORCE CARRY OUT USAID S MISSION AND IMPLEMENT LASTING CHANGE.

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 $87.0 million.

What is the period of performance?

Start: 2016-10-10. End: 2022-09-30.

What specific HR transformation initiatives are being undertaken under this contract, and what are the key performance indicators (KPIs) for success?

The provided data is limited and does not detail the specific HR transformation initiatives. Generally, such initiatives could include modernizing HR systems, improving talent acquisition and retention processes, enhancing employee development programs, and implementing new performance management frameworks. Key Performance Indicators (KPIs) would likely be defined in the contract's Statement of Work (SOW) and could include metrics such as reduced time-to-hire, improved employee engagement scores, increased participation in training programs, and successful implementation of new HR policies or technologies. Without access to the SOW or performance reports, a precise answer is not possible.

How does the $87 million contract value compare to historical spending on HR consulting services at USAID or similar agencies?

Direct comparison is challenging without specific historical data for USAID's HR consulting spend or comparable agency data. However, $87 million over nearly six years averages to approximately $14.5 million annually. This figure is substantial and suggests a significant investment in HR transformation. Large federal agencies often spend millions annually on HR-related consulting, especially during periods of major organizational change or system modernization. The value is relative to the scope and complexity of USAID's global operations and workforce size.

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

The primary risks with a T&M contract of this scale and duration include cost overruns and potential lack of contractor efficiency. Since the contractor is reimbursed for direct labor hours and materials, there is less incentive to control costs compared to a fixed-price contract. Scope creep is another significant risk; without clear definition and management, the project's objectives can expand, leading to increased costs and timelines. Effective oversight, detailed task orders, and robust performance monitoring are crucial to mitigate these risks and ensure value for money.

What is Deloitte Consulting LLP's track record with large federal HR transformation contracts?

Deloitte Consulting LLP is a major federal contractor with extensive experience in management consulting, including human capital and HR transformation services. They have a history of winning and performing on large-scale government contracts across various agencies. While specific details of their past performance on similar USAID contracts are not provided here, their general profile suggests they possess the capabilities and experience required for such a complex undertaking. Performance reviews and past performance information in federal procurement databases would offer more granular insights.

What is the expected impact of this contract on USAID's overall mission effectiveness and ability to implement its programs globally?

The intended impact of this HR transformation contract is to significantly enhance USAID's ability to carry out its mission. By modernizing HR processes, improving workforce capabilities, and fostering a culture of change, the contract aims to make USAID a more agile, efficient, and effective organization. This, in turn, should enable better program implementation globally, as a well-managed and motivated workforce is crucial for achieving development objectives in complex international environments. Improved HR functions can lead to better talent acquisition, deployment, and retention of personnel critical to USAID's field operations.

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: SOL-OAA-16-000072

Offers Received: 4

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: $94,932,661

Exercised Options: $94,932,661

Current Obligation: $87,000,849

Actual Outlays: $56,798,347

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $7,343,386

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00F0028Y

IDV Type: FSS

Timeline