DoD's $25M contract for financial improvement services awarded to Deloitte & Touche LLP
Contract Overview
Contract Amount: $25,009,233 ($25.0M)
Contractor: Deloitte & Touche LLP
Awarding Agency: Department of Defense
Start Date: 2025-07-23
End Date: 2025-11-30
Contract Duration: 130 days
Daily Burn Rate: $192.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PKS-DOLAN-SPEARS - FINANCIAL IMPROVEMENT AND AUDIT REMEDIATION
Place of Performance
Location: JB ANDREWS, PRINCE GEORGES County, MARYLAND, 20762
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $25.0 million to DELOITTE & TOUCHE LLP for work described as: PKS-DOLAN-SPEARS - FINANCIAL IMPROVEMENT AND AUDIT REMEDIATION Key points: 1. Value for money assessed through competitive bidding process. 2. Competition dynamics indicate a robust market for financial improvement services. 3. Risk indicators are moderate, given the firm fixed-price contract type. 4. Performance context is set by a defined delivery order period. 5. Sector positioning places this within IT consulting services for the federal government.
Value Assessment
Rating: good
The contract value of $25,009,233.32 for financial improvement and audit remediation services appears reasonable given the scope and duration. Benchmarking against similar contracts for large-scale financial consulting is challenging without more specific service details, but the competitive award suggests a fair market price was achieved. The firm fixed-price structure provides cost certainty for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive environment that likely drove pricing towards market rates. This approach is generally favored for ensuring the government receives the best value.
Taxpayer Impact: A full and open competition process helps ensure taxpayer dollars are used efficiently by fostering a competitive environment that can lead to lower prices and higher quality services.
Public Impact
The Department of Defense benefits from improved financial management and audit readiness. Services delivered include financial improvement and audit remediation. The geographic impact is primarily within the Department of the Air Force's operational areas. Workforce implications may involve specialized financial auditors and consultants.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if initial financial assessment is incomplete.
- Dependence on contractor expertise for critical financial remediation tasks.
- Ensuring effective knowledge transfer to government personnel.
Positive Signals
- Firm fixed-price contract limits cost overruns.
- Award to a well-established firm with known capabilities.
- Clear delivery order period with defined end date.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically IT consulting and financial services. The federal market for these services is substantial, with agencies consistently seeking expertise to manage complex financial systems and comply with audit requirements. Comparable spending benchmarks would involve other large-scale financial system modernization or audit remediation contracts across various federal agencies.
Small Business Impact
The contract was awarded to Deloitte & Touche LLP, a large business. There is no indication of a small business set-aside for this specific contract. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data. The primary impact is on the large business segment of the IT and financial consulting market.
Oversight & Accountability
Oversight will likely be managed by the contracting officer and the Department of the Air Force's program management team. Accountability measures are inherent in the firm fixed-price contract type and the defined performance period. Transparency is facilitated by the public award notice, though detailed performance metrics are not publicly available.
Related Government Programs
- Financial Improvement and Audit Remediation (FIAR)
- Department of Defense Financial Management
- IT Consulting Services
- Audit Support Services
Risk Flags
- Potential for cost overruns if scope is not well-defined.
- Dependence on contractor expertise for critical financial functions.
- Ensuring effective knowledge transfer to government personnel.
Tags
it-consulting, financial-services, department-of-defense, department-of-the-air-force, delivery-order, firm-fixed-price, full-and-open-competition, large-business, maryland, professional-services, audit-remediation
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.0 million to DELOITTE & TOUCHE LLP. PKS-DOLAN-SPEARS - FINANCIAL IMPROVEMENT AND AUDIT REMEDIATION
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 $25.0 million.
What is the period of performance?
Start: 2025-07-23. End: 2025-11-30.
What is Deloitte & Touche LLP's track record with similar federal financial improvement contracts?
Deloitte & Touche LLP is a major global professional services firm with extensive experience in government contracting, including financial improvement and audit remediation. They have a history of performing large-scale financial management and transformation projects for various federal agencies, including the Department of Defense. Their track record typically involves assisting agencies in achieving audit readiness, implementing financial systems, and improving internal controls. Specific details on past performance for very similar contracts would require deeper analysis of federal procurement databases and agency performance reports, but their general reputation and market presence suggest a strong capability in this domain.
How does the awarded amount compare to the estimated value or benchmark for similar services?
The awarded amount of $25,009,233.32 is for a delivery order with a defined period of performance (approximately 4 months). Without knowing the specific tasks, deliverables, and the government's initial estimate, a direct comparison is difficult. However, given the complexity of financial improvement and audit remediation for a large entity like the Department of the Air Force, this value appears within a reasonable range for specialized consulting services. Benchmarking would ideally involve comparing the proposed labor rates and total effort against other full and open competitive awards for similar services, considering factors like the number of personnel, their seniority, and the duration of the engagement.
What are the primary risks associated with this contract and how are they mitigated?
Key risks include potential scope creep if the initial financial assessment is not thorough, leading to increased costs or delays. There's also a risk related to the contractor's ability to effectively transfer knowledge to government personnel, ensuring long-term sustainability of improvements. Mitigation strategies are primarily embedded in the contract structure: the firm fixed-price nature caps financial risk for the government, and the defined delivery order period sets clear expectations for completion. The Department of the Air Force's oversight and active program management are crucial for monitoring progress, managing scope, and ensuring successful knowledge transfer.
How effective is the 'full and open competition' approach for this type of service?
The 'full and open competition' approach is generally considered highly effective for services like financial improvement and audit remediation, especially for large-value contracts. It maximizes the pool of potential bidders, encouraging a wider range of solutions and competitive pricing. This process helps ensure that the government selects the offeror that provides the best overall value, considering both technical approach and cost. For complex services requiring specialized expertise, this method allows the government to solicit proposals that best meet its unique needs, fostering innovation and driving down costs through market forces.
What is the historical spending pattern for financial improvement and audit remediation services within the Department of the Air Force?
Historical spending on financial improvement and audit remediation (FIAR) within the Department of the Air Force (and DoD broadly) has been substantial and ongoing for many years, driven by legislative mandates like the National Defense Authorization Act requiring auditable financial statements. Spending in this category typically involves significant investments in consulting services, system upgrades, and process re-engineering. While specific annual figures fluctuate based on agency priorities and audit findings, the trend indicates a consistent and considerable allocation of resources towards achieving auditability. This contract represents a portion of that ongoing investment.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
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: $25,009,233
Exercised Options: $25,009,233
Current Obligation: $25,009,233
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $440,688
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS00F029DA
IDV Type: FSS
Timeline
Start Date: 2025-07-23
Current End Date: 2025-11-30
Potential End Date: 2025-11-30 00:00:00
Last Modified: 2025-10-01
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