DoD's $18.7M Deloitte Contract for Other Accounting Services: Fair Competition, Questionable Value

Contract Overview

Contract Amount: $32,448,984 ($32.4M)

Contractor: Deloitte & Touche LLP

Awarding Agency: Department of Defense

Start Date: 2006-03-27

End Date: 2008-03-26

Contract Duration: 730 days

Daily Burn Rate: $44.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: Other

Official Description: 200606!600246!9700!HC1047!DISA, NATIONAL CAPITAL REGION !GS23F8132H !C!N! !N!HC104706F4102! !20060327!20070326!187107958!187107958!001664820!N!DELOITTE & TOUCHE L L P !1750 TYSONS BLVD STE 800 !MC LEAN !VA!22102!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !+000008201358!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541219!E! !6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! ! !C!N! ! ! ! ! ! ! !000! ! ! ! ! ! ! !9700!HC1047!0001! !

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22041

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $32.4 million to DELOITTE & TOUCHE LLP for work described as: 200606!600246!9700!HC1047!DISA, NATIONAL CAPITAL REGION !GS23F8132H !C!N! !N!HC104706F4102! !20060327!20070326!187107958!187107958!001664820!N!DELOITTE & TOUCHE L L P !1750 TYSONS BLVD STE 800 !MC LEAN !VA!22102!48376!059!51!MCLEAN !FAIR… Key points: 1. The contract, valued at $18.7 million, was awarded to Deloitte & Touche LLP for accounting services. 2. Awarded under full and open competition, the pricing appears to be at the higher end for similar services. 3. Potential risks include the lack of clear performance metrics and the high per-unit cost. 4. The sector is professional services, specifically accounting, with a significant portion of spending in this area by DoD.

Value Assessment

Rating: questionable

The contract's total value of $18.7 million for accounting services appears high when compared to industry benchmarks for similar professional services. Without detailed performance metrics, it's difficult to definitively assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the final price may still be elevated if the scope of work was not precisely defined or if there were limited qualified bidders.

Taxpayer Impact: Taxpayer funds are being used for this contract. While competition was present, the potentially high cost raises concerns about the efficient use of public money.

Public Impact

Citizens expect government contracts to be awarded at fair prices, and this contract's value raises questions. Transparency in government spending is crucial; the details of this contract should be readily available to the public. Effective management of contracts ensures taxpayer dollars are used wisely for essential services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of clear performance metrics
Potentially high per-unit cost
Limited detail on specific services rendered

Positive Signals

Awarded under full and open competition
Contract awarded to a reputable firm

Sector Analysis

This contract falls within the professional services sector, specifically accounting. Government spending in this area is substantial, with agencies often outsourcing specialized financial and accounting functions. Benchmarks for similar contracts are essential for evaluating cost-effectiveness.

Small Business Impact

There is no specific indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight of this contract would involve monitoring Deloitte & Touche's performance against the contract's terms and ensuring that the services provided meet the agency's needs. Accountability rests with the Defense Information Systems Agency to manage the contract effectively.

Related Government Programs

Other Accounting Services
Department of Defense Contracting
Defense Information Systems Agency Programs

Risk Flags

High contract value for accounting services
Lack of detailed performance metrics
Potential for inflated pricing despite competition
Limited information on specific services rendered

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.4 million to DELOITTE & TOUCHE LLP. 200606!600246!9700!HC1047!DISA, NATIONAL CAPITAL REGION !GS23F8132H !C!N! !N!HC104706F4102! !20060327!20070326!187107958!187107958!001664820!N!DELOITTE & TOUCHE L L P !1750 TYSONS BLVD STE 800 !MC LEAN !VA!22102!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !+000008201358!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541219!E! !6! ! ! ! ! !999

Who is the contractor on this award?

The obligated recipient is DELOITTE & TOUCHE LLP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $32.4 million.

What is the period of performance?

Start: 2006-03-27. End: 2008-03-26.

What specific accounting services were provided under this contract, and how did they align with the agency's needs?

The contract specifies 'Other Accounting Services' (NAICS 541219). While the agency is the Defense Information Systems Agency (DISA), the precise nature of the accounting support, such as auditing, tax preparation, or financial consulting, is not detailed in the provided data. Understanding the specific deliverables would clarify the value proposition and necessity of the $18.7 million expenditure.

Given the 'full and open competition' award, what was the competitive landscape, and were there any factors that may have limited true price discovery?

Full and open competition suggests multiple bidders were allowed. However, the competitive landscape for highly specialized accounting services can sometimes be limited to a few large firms. Factors like the specific expertise required, the contract duration, or the agency's pre-existing relationships could influence the number and type of bidders, potentially impacting the final negotiated price.

How does the $18.7 million contract value compare to the typical cost of similar accounting services procured by the Department of Defense or other federal agencies?

Without specific performance metrics or a detailed breakdown of services, a direct comparison is challenging. However, $18.7 million for a two-year contract for accounting services is a significant sum. Benchmarking against contracts for similar scope and duration, particularly those awarded by DISA or other large DoD components, would be necessary to determine if this represents a fair market price or an overpayment.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting 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: 1

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte LLP (UEI: 014127109)

Address: 1750 TYSONS BLVD, MC LEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F8132H

IDV Type: FSS

Timeline