GSA awards $100.8M in consulting services to Deloitte, highlighting administrative management needs

Contract Overview

Contract Amount: $100,768,796 ($100.8M)

Contractor: Deloitte Consulting LLP

Awarding Agency: General Services Administration

Start Date: 2012-09-22

End Date: 2018-03-23

Contract Duration: 2,008 days

Daily Burn Rate: $50.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: IGF::CL::IGF

Place of Performance

Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70129

State: Louisiana Government Spending

Plain-Language Summary

General Services Administration obligated $100.8 million to DELOITTE CONSULTING LLP for work described as: IGF::CL::IGF Key points: 1. Contract value of $100.8M indicates significant investment in administrative management and general management consulting. 2. Award to a single, large contractor suggests a focus on established expertise rather than broad market engagement. 3. The contract duration of nearly 6 years points to a long-term need for these consulting services. 4. Award type as a Delivery Order under a larger contract implies a structured procurement process with pre-negotiated terms. 5. The use of Labor Hours pricing may require careful monitoring to ensure efficiency and prevent cost overruns. 6. The absence of small business set-asides suggests this contract did not prioritize small business participation.

Value Assessment

Rating: good

The contract value of $100.8 million for administrative management and general management consulting services over nearly six years is substantial. Benchmarking against similar large-scale consulting contracts awarded by GSA or other agencies for management consulting would be necessary for a precise value-for-money assessment. However, the award to a well-established firm like Deloitte suggests a potentially competitive bidding process that resulted in a price deemed acceptable for the scope of work. The use of Labor Hours (LH) pricing is common in consulting but necessitates diligent oversight to ensure efficient resource utilization and alignment with project objectives.

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 fact that it resulted in a single delivery order suggests that while the initial solicitation was open, the final award was made to one entity. The number of bidders for the underlying contract is not specified, but the full and open nature generally promotes price discovery and allows the government to select from a wide range of qualified contractors.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages a competitive environment, potentially leading to better pricing and a wider selection of qualified service providers.

Public Impact

Federal agencies requiring administrative and general management consulting services benefit from the expertise provided by Deloitte. The services delivered likely aim to improve operational efficiency, strategic planning, and overall management within government operations. The geographic impact is likely nationwide, supporting various federal agencies across different locations. Workforce implications may include the utilization of specialized consulting talent, potentially augmenting government staff capabilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the long duration and labor hours pricing model.
Reliance on a single large contractor may limit opportunities for smaller, specialized firms.
Ensuring effective knowledge transfer from consultants to government staff is crucial for long-term sustainability.

Positive Signals

Award to a reputable contractor like Deloitte suggests a high likelihood of competent service delivery.
Full and open competition provides a baseline assurance of a fair and transparent procurement process.
The contract's long duration indicates a sustained commitment to addressing critical administrative and management challenges.

Sector Analysis

The administrative management and general management consulting services sector is a significant component of the professional services market. Federal agencies frequently procure these services to enhance efficiency, implement new strategies, and manage complex operations. Spending in this category is often driven by the need for specialized expertise that may not be available in-house. Comparable spending benchmarks would typically involve analyzing the total federal outlays for NAICS code 541611, which provides context for the scale of this particular award within the broader federal IT and professional services landscape.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The award to Deloitte Consulting LLP, a large business, suggests that the primary focus was on securing services from an established provider rather than specifically fostering small business participation through set-asides. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the General Services Administration (GSA), specifically the Federal Acquisition Service. Mechanisms likely include regular performance reviews, contract management personnel, and potentially Inspector General audits if specific concerns arise. Transparency is facilitated through contract databases like FPDS, where award details are recorded. Accountability rests with the contracting officer and the contractor's performance against the defined scope and deliverables.

Related Government Programs

Management and Financial Consulting, Acquisition and Grants Management Support and Business and Management Knowledge, and Research and Development Support Services
Management and Consulting Services
Professional Services

Risk Flags

Long contract duration may increase risk of vendor lock-in.
Labor Hours pricing requires diligent oversight to ensure cost control.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $100.8 million to DELOITTE CONSULTING LLP. IGF::CL::IGF

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $100.8 million.

What is the period of performance?

Start: 2012-09-22. End: 2018-03-23.

What is the historical spending trend for administrative management and general management consulting services by the General Services Administration?

Analyzing historical spending trends for administrative management and general management consulting services by the General Services Administration (GSA) requires examining procurement data over several fiscal years. GSA, as a major procurement agency, often awards significant contracts in this category to support its own operations and those of other federal agencies. Trends can be influenced by shifts in government priorities, budget allocations, and the increasing complexity of federal management challenges. For instance, periods of significant organizational change or the implementation of new government-wide initiatives often correlate with increased spending on consulting services. Without specific historical data for this contract's lifecycle or related GSA spending, it's difficult to pinpoint exact trends, but generally, federal spending on management consulting has seen fluctuations tied to economic conditions and policy directives, often showing growth during periods requiring efficiency improvements or strategic overhauls.

How does the awarded amount of $100.8 million compare to other similar consulting contracts awarded by GSA in the past five years?

The awarded amount of $100.8 million for administrative management and general management consulting services to Deloitte Consulting LLP is a substantial figure. To compare it effectively with similar contracts awarded by GSA in the past five years, one would need to access and analyze contract databases (like FPDS) filtering for NAICS code 541611 (Administrative Management and General Management Consulting Services) and agency 'General Services Administration'. Such an analysis would reveal the range of contract values, typical durations, and the types of contractors (large vs. small business) that GSA has engaged. If $100.8 million falls within the upper quartile of awarded contract values for similar services and durations, it suggests a significant investment. Conversely, if it's a common value for long-term, comprehensive consulting engagements, it indicates a standard market rate for such services.

What specific types of administrative and management consulting services were included in this $100.8 million contract?

The contract description specifies 'Administrative Management and General Management Consulting Services' under NAICS code 541611. While the exact statement of work (SOW) is not provided, this category typically encompasses a broad range of services aimed at improving organizational efficiency and effectiveness. These can include strategic planning, organizational design, process improvement, performance management, policy development, program management support, and general management advice. Given the substantial value and duration (nearly six years), the services likely involved complex, long-term projects requiring in-depth analysis and implementation support across various administrative functions within the agencies served by GSA. The 'Labor Hours' (LH) pricing structure suggests that the scope might have been flexible, allowing for adjustments based on evolving needs and the time required for consultants to deliver the specified outcomes.

What is Deloitte Consulting LLP's track record with federal government contracts, particularly in management consulting?

Deloitte Consulting LLP has a significant and extensive track record with federal government contracts, including a strong presence in management and administrative consulting services. As one of the 'Big Four' professional services networks, Deloitte consistently secures large, high-value contracts across numerous federal agencies. Their experience spans a wide array of domains, including IT modernization, cybersecurity, financial management, human capital, and strategic planning. Federal agencies often turn to Deloitte for their expertise in navigating complex regulatory environments, implementing large-scale transformations, and providing data-driven insights. A review of federal procurement data would likely show numerous awards to Deloitte for services aligning with NAICS code 541611 and related categories, indicating a high level of past performance and a demonstrated ability to meet government requirements, though specific contract performance ratings would require deeper data analysis.

Are there any identified risks associated with awarding a contract of this magnitude to a single vendor for an extended period?

Awarding a contract of $100.8 million to a single vendor like Deloitte Consulting LLP for nearly six years presents several potential risks. One primary concern is vendor lock-in, where the government becomes overly reliant on the contractor, making it difficult to switch providers or bring services in-house later. This can reduce future competition and potentially lead to higher costs. Another risk is complacency; a long-term, large contract might reduce the vendor's incentive to innovate or maintain peak performance if oversight is not rigorous. Furthermore, if the vendor's strategic direction or financial health changes significantly over the contract period, it could impact service delivery. Finally, the lack of ongoing competition during the contract term means that potential cost savings from market shifts or new entrants are not realized. Robust oversight, clear performance metrics, and well-defined exit strategies are crucial to mitigate these risks.

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: ID02120039

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte & Touche 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: $100,979,713

Exercised Options: $100,828,260

Current Obligation: $100,768,796

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,792,687

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS02F0130W

IDV Type: FSS

Timeline