DoD Awards $57.5M Contract to Deloitte for Air Force Consulting Services
Contract Overview
Contract Amount: $57,525,449 ($57.5M)
Contractor: Deloitte Consulting LLP
Awarding Agency: Department of Defense
Start Date: 2023-07-29
End Date: 2026-05-27
Contract Duration: 1,033 days
Daily Burn Rate: $55.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PKS-HILL-BERISH-OPTION YR TO FOR AMC SOCAAS
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20330
Plain-Language Summary
Department of Defense obligated $57.5 million to DELOITTE CONSULTING LLP for work described as: PKS-HILL-BERISH-OPTION YR TO FOR AMC SOCAAS Key points: 1. Contract awarded to a large, established firm (Deloitte). 2. Full and open competition suggests a competitive bidding process. 3. Potential for high-value services in administrative management. 4. Risk associated with long-term contracts and service delivery.
Value Assessment
Rating: good
The award amount of $57.5M over approximately 3 years is substantial. Benchmarking against similar large-scale consulting contracts is difficult without more granular service details, but the firm-fixed-price structure aims to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award is intended to ensure taxpayer funds are used efficiently for necessary consulting services.
Public Impact
Supports critical administrative and management functions for the Air Force. Potential impact on operational efficiency and strategic planning. Ensures access to specialized consulting expertise for the DoD.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to scope creep.
- Reliance on a single large contractor.
- Potential for cost overruns if not managed tightly.
Positive Signals
- Awarded through full and open competition.
- Firm fixed-price contract type.
- Experienced contractor selected.
Sector Analysis
This contract falls under Administrative Management and General Management Consulting Services. Spending in this sector is common across government agencies for specialized expertise, with benchmarks varying widely based on the scope and duration of services.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to a large corporation. There is no direct indication of small business subcontracting opportunities within this specific award notice.
Oversight & Accountability
The contract is a delivery order under a larger agreement, suggesting existing oversight mechanisms. The firm-fixed-price structure and defined period of performance provide a framework for accountability.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long contract duration.
- Potential for vendor lock-in.
- Lack of specific service details.
- Reliance on a single large contractor.
Tags
administrative-management-and-general-ma, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $57.5 million to DELOITTE CONSULTING LLP. PKS-HILL-BERISH-OPTION YR TO FOR AMC SOCAAS
Who is the contractor on this award?
The obligated recipient is DELOITTE CONSULTING 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 $57.5 million.
What is the period of performance?
Start: 2023-07-29. End: 2026-05-27.
What specific administrative and general management consulting services are being provided under this contract?
The contract notice specifies the North American Industry Classification System (NAICS) code 541611 for Administrative Management and General Management Consulting Services. However, the precise nature of the services, such as strategic planning, organizational restructuring, process improvement, or policy development, is not detailed in this summary. Further information would be needed to understand the exact scope of work and its direct impact on Air Force operations.
What is the risk associated with the long duration and potential for service degradation over time?
A contract duration of over 1000 days (approximately 3 years) carries inherent risks. Service quality could degrade if contractor performance is not consistently monitored. There's also a risk of the contractor becoming entrenched, making it harder to adapt to changing needs or switch providers if performance issues arise. Robust performance metrics and regular reviews are crucial to mitigate these risks.
How does the firm-fixed-price structure ensure cost-effectiveness for these consulting services?
The firm-fixed-price (FFP) contract type shifts the cost risk to the contractor. This means Deloitte is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This structure incentivizes the contractor to manage their resources efficiently and control expenses, thereby promoting cost-effectiveness for the government. It provides budget certainty for the Air Force.
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
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: $57,525,449
Exercised Options: $57,525,449
Current Obligation: $57,525,449
Actual Outlays: $2,003,563
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $3,521,484
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA701420D0007
IDV Type: IDC
Timeline
Start Date: 2023-07-29
Current End Date: 2026-05-27
Potential End Date: 2026-05-27 00:00:00
Last Modified: 2025-11-25
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