Deloitte Consulting LLP awarded $12.9M contract for strategic business initiative consulting by GSA

Contract Overview

Contract Amount: $12,909,384 ($12.9M)

Contractor: Deloitte Consulting LLP

Awarding Agency: General Services Administration

Start Date: 2005-10-27

End Date: 2009-02-10

Contract Duration: 1,202 days

Daily Burn Rate: $10.7K/day

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: THE OBJECTIVE OF THIS TASK IS TO INCORPORATE A CONSULTATIVE APPROACH IN DEVELOPING AND DEFINING THE STRATEGIC BUSINESS INITIATIVES OF THE NCPHI PMO. CONTRACTOR SHALL RESEARCH AND ANALYZE MANAGEMENT PROCESSES AND PROCEDURES, INTERPRET RESULTS, IDENTIFY NEEDS AND PROVIDE ASSISTANCE TO CLIENT IN FORMULATING A UNIFIED IMPLEMENTATION PLAN. CONTRACTOR SHALL PROVIDE EXPERTISE TO REENGINEER ORGANIZATIONAL PERFORMANCE AND DRAFT RECOMMENDATIONS IN SUPPORT OF TACTICAL MEASURES EMPLOYED TO REACH STRATEGIC GOALS AND OBJECTIVES. CONTRACTOR SHALL BE INSTRUMENTAL IN DRAFTING, ADVISING AND PREPARING THE NCPHI BUSINESS PLAN.

Place of Performance

Location: ATLANTA, DEKALB County, GEORGIA, 30329

State: Georgia Government Spending

Plain-Language Summary

General Services Administration obligated $12.9 million to DELOITTE CONSULTING LLP for work described as: THE OBJECTIVE OF THIS TASK IS TO INCORPORATE A CONSULTATIVE APPROACH IN DEVELOPING AND DEFINING THE STRATEGIC BUSINESS INITIATIVES OF THE NCPHI PMO. CONTRACTOR SHALL RESEARCH AND ANALYZE MANAGEMENT PROCESSES AND PROCEDURES, INTERPRET RESULTS, IDENTIFY NEEDS AND PROVIDE ASSISTANCE… Key points: 1. Contract focuses on strategic business initiative development and implementation planning. 2. Services include research, analysis, and recommendations for organizational performance. 3. The contract aims to support tactical measures for achieving strategic goals. 4. Deloitte Consulting LLP is a major player in the management consulting sector.

Value Assessment

Rating: fair

The contract value of $12.9M over approximately 3.3 years suggests a significant investment in consulting services. Without specific deliverables or performance metrics, it's difficult to definitively assess value for money. The pricing appears to be on the higher end for management consulting, but may be justified by the scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract type is Time and Materials, which can lead to cost overruns if not closely managed. The method of competition is not specified, but for consulting services of this nature, it could range from full and open to limited competition. The lack of transparency on competition makes price discovery assessment challenging.

Taxpayer Impact: Taxpayer funds are being used for strategic planning and organizational improvement, which can yield long-term benefits if successful. However, the effectiveness and efficiency of the spending are key to determining the ultimate taxpayer impact.

Public Impact

Improved government efficiency through strategic business initiative development. Potential for better alignment of tactical actions with overarching agency goals. Enhanced organizational performance and service delivery through expert consulting. Investment in strategic planning could lead to more effective use of future resources. Public trust may be bolstered by demonstrated efforts towards operational excellence.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of defined performance metrics.
Potential for cost overruns with Time and Materials contract.
Unclear competition method impacting price reasonableness.

Positive Signals

Focus on strategic business initiatives.
Involvement of a reputable consulting firm.
Potential for significant organizational improvement.

Sector Analysis

This contract falls under Administrative Management and General Management Consulting Services (NAICS 541611). Spending in this sector is common for government agencies seeking to improve operations and strategic planning. Benchmarks for similar contracts vary widely based on scope and duration.

Small Business Impact

The data does not indicate any specific provisions or set-asides for small businesses in this contract. Large consulting firms like Deloitte are typically awarded these types of broad strategic initiatives.

Oversight & Accountability

Oversight would be crucial to ensure the contractor is meeting objectives and managing costs effectively, especially given the Time and Materials contract type. The General Services Administration (GSA) is responsible for awarding and overseeing this contract.

Related Government Programs

Administrative Management and General Management Consulting Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Contract duration is substantial (1202 days).
Time and Materials contract type carries inherent cost risk.
Scope is broad, focusing on strategic initiatives and organizational reengineering.
Lack of specific performance metrics in the provided data.
Competition method is not detailed, impacting price reasonableness assessment.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $12.9 million to DELOITTE CONSULTING LLP. THE OBJECTIVE OF THIS TASK IS TO INCORPORATE A CONSULTATIVE APPROACH IN DEVELOPING AND DEFINING THE STRATEGIC BUSINESS INITIATIVES OF THE NCPHI PMO. CONTRACTOR SHALL RESEARCH AND ANALYZE MANAGEMENT PROCESSES AND PROCEDURES, INTERPRET RESULTS, IDENTIFY NEEDS AND PROVIDE ASSISTANCE TO CLIENT IN FORMULATING A UNIFIED IMPLEMENTATION PLAN. CONTRACTOR SHALL PROVIDE EXPERTISE TO REENGINEER ORGANIZATIONAL PERFORMANCE AND DRAFT RECOMMENDATIONS IN SUPPORT OF TACTICAL MEASURES EMPLOYED TO REACH STRATEGIC G

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 $12.9 million.

What is the period of performance?

Start: 2005-10-27. End: 2009-02-10.

What specific, measurable outcomes are expected from this $12.9M consulting engagement to justify the investment?

The contract aims to develop and define strategic business initiatives, reengineer organizational performance, and draft recommendations for tactical measures. Expected outcomes should include a unified implementation plan, a comprehensive business plan for NCPHI, and clearly defined metrics for improved organizational performance and goal achievement. Without these specifics, assessing the return on investment is challenging.

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

Key risks include potential cost overruns due to the Time and Materials contract type, scope creep, and the possibility that the contractor's recommendations may not be effectively implemented or aligned with agency needs. Mitigation strategies should involve robust project management, clear deliverable definitions, regular performance reviews, and strong government oversight to ensure adherence to scope and budget.

How will the effectiveness of the consulting services be measured to ensure taxpayer value?

Effectiveness should be measured against the successful development and adoption of the strategic business initiatives and implementation plan. Key performance indicators (KPIs) related to improved efficiency, cost savings, enhanced service delivery, and achievement of strategic goals should be established and tracked post-engagement. Regular progress reports and post-implementation reviews are essential for evaluating the long-term impact.

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

Contractor Details

Parent Company: Deloitte LLP (UEI: 014127109)

Address: 4301 N FAIRFAX DR STE 210, ARLINGTON, VA, 08

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership

Financial Breakdown

Contract Ceiling: $12,940,211

Exercised Options: $12,913,039

Current Obligation: $12,909,384

Parent Contract

Parent Award PIID: GS23F9796H

IDV Type: FSS

Timeline