DoD's $23.6M contract with Deloitte & Touche LLP for accounting services awarded via full and open competition

Contract Overview

Contract Amount: $23,571,169 ($23.6M)

Contractor: Deloitte & Touche LLP

Awarding Agency: Department of Defense

Start Date: 2023-06-15

End Date: 2025-01-11

Contract Duration: 576 days

Daily Burn Rate: $40.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PKS - ROSS - CARMONA PAREDES - FIAR TO 0054

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20330

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $23.6 million to DELOITTE & TOUCHE LLP for work described as: PKS - ROSS - CARMONA PAREDES - FIAR TO 0054 Key points: 1. Contract awarded to a large, established firm with a significant presence in government contracting. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. Duration of 576 days suggests a substantial, ongoing need for accounting services. 4. Awarded by the Department of the Air Force, indicating a focus on defense-related financial operations. 5. The North American Industry Classification System (NAICS) code 541211 points to specialized accounting services. 6. No indication of small business set-aside, suggesting the primary awardee is not a small business.

Value Assessment

Rating: good

Benchmarking the value of this contract requires more detailed service descriptions and comparison to similar engagements. However, the firm fixed price structure is generally favorable for the government, as it caps potential cost overruns. The total award amount of approximately $23.6 million over nearly two years suggests a significant scope of work, which, if executed efficiently, could represent good value. Further analysis would involve comparing the per-hour rates or project milestones against industry standards for large accounting firms providing similar services to federal agencies.

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 offers. The specific number of bidders is not provided, but this method of procurement generally fosters a competitive environment, which can lead to better pricing and service quality. The Air Force's decision to use full and open competition suggests confidence in the market's ability to provide qualified accounting firms.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the potential for competitive pricing and ensures that the government receives the best possible value by considering a wide range of qualified offerors.

Public Impact

The Department of the Air Force benefits from specialized accounting expertise to manage its financial operations. Services likely include financial statement preparation, auditing, accounting system support, and compliance. The contract supports financial integrity and accountability within a major branch of the U.S. military. Workforce implications are minimal for the public, but the contract supports jobs within Deloitte & Touche LLP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the contractor's efficiency and effectiveness.
The duration of the contract could lead to complacency if not actively managed.
Potential for scope creep if not clearly defined and monitored.
Reliance on a single large contractor may limit future flexibility or innovation.

Positive Signals

Award to a reputable firm like Deloitte & Touche LLP suggests a high likelihood of meeting contractual requirements.
Firm Fixed Price contract incentivizes the contractor to manage costs effectively.
Full and open competition indicates a robust selection process.
The contract is for essential accounting services, supporting critical government functions.

Sector Analysis

The accounting services sector is a mature market with numerous established firms, ranging from large multinational corporations to specialized local practices. Federal agencies, particularly large departments like Defense, often require complex financial management and auditing services that necessitate experienced contractors. Spending in this category is consistent across government, driven by regulatory compliance, financial reporting, and operational efficiency needs. This contract fits within the broader landscape of professional services procured by the DoD, supporting its vast financial infrastructure.

Small Business Impact

This contract does not appear to have a small business set-aside (SS=false, SB=false). This suggests that the primary contract was not specifically targeted towards small businesses. While the prime contractor is a large firm, there may be opportunities for small businesses to participate as subcontractors, depending on Deloitte & Touche LLP's subcontracting plan. However, the absence of a set-aside indicates that the primary focus was on securing services from the most capable offeror, regardless of size.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Air Force. Performance monitoring, invoice review, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases, though specific performance details may be internal. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Department of Defense Financial Management
Federal Audit Services
Government Accounting Standards
Professional Services Contracts

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Contractor performance risk.
Data security and confidentiality concerns.
Over-reliance on a single large contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.6 million to DELOITTE & TOUCHE LLP. PKS - ROSS - CARMONA PAREDES - FIAR TO 0054

Who is the contractor on this award?

The obligated recipient is DELOITTE & TOUCHE LLP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $23.6 million.

What is the period of performance?

Start: 2023-06-15. End: 2025-01-11.

What specific accounting functions will Deloitte & Touche LLP perform under this contract?

While the provided data does not detail the specific tasks, the NAICS code 541211 (Offices of Certified Public Accountants) and the awarding agency (Department of the Air Force) strongly suggest the services will encompass a range of financial and accounting support. This likely includes, but is not limited to, financial statement preparation and auditing, accounting system analysis and support, internal control assessments, compliance reviews related to federal regulations, and potentially advisory services on financial management best practices. The firm fixed price nature indicates well-defined deliverables or scopes of work are expected.

How does the $23.6 million award compare to historical spending on similar accounting services by the Department of the Air Force?

Without access to historical spending data for the Department of the Air Force specifically for accounting services from firms like Deloitte & Touche LLP, a direct comparison is challenging. However, $23.6 million over approximately 21 months (June 2023 - January 2025) represents a significant investment. Large federal agencies routinely award multi-million dollar contracts for professional services, including accounting and auditing. The amount is plausible for a contract of this duration and scope, especially considering the complexity of military financial operations. Further analysis would require querying historical contract databases for similar NAICS codes and agencies.

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

Key risks include potential cost overruns if the scope is not well-defined (though mitigated by the Firm Fixed Price structure), contractor performance issues (mitigated by selection of a reputable firm and oversight), and reliance on a single vendor. Risks related to data security and confidentiality are also present, given the sensitive financial information handled. Mitigation strategies typically involve robust contract management, clear performance expectations, regular reporting, and adherence to strict data handling protocols mandated by the government.

What is Deloitte & Touche LLP's track record with federal government contracts, particularly with the Department of Defense?

Deloitte & Touche LLP is a major global professional services firm with an extensive history of contracting with the U.S. federal government, including significant work with the Department of Defense. They are a frequent recipient of large contracts across various agencies for services including financial management, IT consulting, cybersecurity, and auditing. Their established presence and past performance indicate a strong capability to handle complex government requirements. Specific details on past performance metrics for this particular type of service would require deeper contract database analysis.

What is the potential impact of this contract on the broader accounting services market, including competition?

Awarding a contract of this magnitude to a 'Big Four' firm like Deloitte & Touche LLP reinforces their dominant position in the federal accounting services market. While full and open competition theoretically allows all qualified firms to bid, the reality is that large, complex contracts often favor firms with established infrastructure, security clearances, and a proven track record with government agencies. This can create barriers to entry for smaller or less experienced firms, potentially limiting the diversity of competition for future large-scale contracts. However, it also signals a demand for high-level expertise.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Offices of Certified Public Accountants

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

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: $23,571,169

Exercised Options: $23,571,169

Current Obligation: $23,571,169

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $146,816

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA701418D5000

IDV Type: IDC

Timeline