DoD's $17.6M Deloitte contract for CFE Remediation Services awarded via full and open competition

Contract Overview

Contract Amount: $17,616,108 ($17.6M)

Contractor: Deloitte & Touche LLP

Awarding Agency: Department of Defense

Start Date: 2008-03-03

End Date: 2010-03-09

Contract Duration: 736 days

Daily Burn Rate: $23.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY)

Sector: Other

Official Description: CFE REMEDIATION SERVICES

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $17.6 million to DELOITTE & TOUCHE LLP for work described as: CFE REMEDIATION SERVICES Key points: 1. Contract awarded to a large, established firm, indicating a focus on experience and capability. 2. The contract duration of 736 days suggests a significant scope of work or a long-term need. 3. Awarded under 'Other Accounting Services' (NAICS 541219), this likely involves financial auditing or compliance. 4. The contract was a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. No small business set-aside was utilized, suggesting the competition was open to all qualified offerors. 6. The contract was awarded by the Defense Information Systems Agency (DISA), a key IT and communications provider for the DoD.

Value Assessment

Rating: fair

Benchmarking the value of this specific $17.6 million contract is challenging without knowing the exact services rendered under CFE Remediation. However, the award to Deloitte & Touche LLP, a major professional services firm, suggests a competitive bidding process where pricing was likely scrutinized. The contract's duration of over two years indicates a substantial undertaking. Without comparable contract data for similar remediation services within the DoD or other federal agencies, a precise value-for-money assessment is difficult, but the scale suggests a significant investment in addressing identified issues.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' meaning all responsible sources were permitted to submit a bid. The specific number of bidders is not provided, but this method generally fosters a competitive environment, driving down prices and encouraging innovation. The fact that it was a delivery order suggests it was placed against an existing IDIQ contract, which itself would have undergone a competitive process.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to more favorable pricing and a wider selection of qualified contractors, ensuring the government receives the best value for its investment.

Public Impact

The primary beneficiaries are likely the Department of Defense components requiring remediation services, ensuring compliance and operational efficiency. Services delivered likely involve financial auditing, accounting system improvements, or corrective actions related to financial reporting (CFE). The geographic impact is primarily within the Department of Defense's operational areas, potentially global. Workforce implications could include the engagement of specialized accounting and auditing professionals from Deloitte & Touche LLP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or outcomes makes it difficult to assess the effectiveness of the remediation.
The 'Other Accounting Services' category is broad; the specific nature of 'CFE Remediation' requires further clarification to understand the risks involved.
Without knowing the number of bidders, it's hard to definitively state the level of competition achieved.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
Contract awarded to a reputable firm (Deloitte & Touche LLP) with a track record in government contracting.
The contract duration implies a commitment to resolving identified issues thoroughly.

Sector Analysis

The contract falls under the professional services sector, specifically accounting and auditing services. The federal government is a significant consumer of these services, particularly within defense and intelligence agencies, to ensure financial accountability and compliance with complex regulations. The market for these services is dominated by large, established firms like Deloitte, which possess the expertise and security clearances necessary for government work. Spending benchmarks for similar accounting and auditing contracts within the DoD can vary widely based on scope, but multi-million dollar awards are common for complex financial remediation efforts.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This suggests that the primary awardee, Deloitte & Touche LLP, is expected to perform the majority of the work. While large prime contractors often engage small businesses as subcontractors, the absence of explicit set-aside language indicates that small business participation was not a primary driver for this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA) or the Defense Contract Audit Agency (DCAA), depending on the nature of the services. Transparency is generally maintained through contract award databases like FPDS. Accountability measures would be tied to the contract's performance work statement and delivery schedules. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

DoD Financial Improvement and Audit Readiness (FIAR) initiatives
Federal Financial Management Services
Government Auditing Services
Contract Auditing
Financial Reporting Compliance

Risk Flags

Potential for scope creep in complex remediation efforts.
Dependence on contractor expertise for critical financial processes.
Challenges in measuring the long-term impact of remediation services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.6 million to DELOITTE & TOUCHE LLP. CFE REMEDIATION SERVICES

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 $17.6 million.

What is the period of performance?

Start: 2008-03-03. End: 2010-03-09.

What specific 'CFE Remediation Services' were provided under this contract?

The provided data indicates the contract was for 'CFE REMEDIATION SERVICES' and falls under NAICS code 541219 (Other Accounting Services). CFE typically refers to 'Cost for Equipment' or 'Cost of Financial Elements,' often related to financial reporting and asset management within government agencies. Remediation services in this context likely involved identifying and correcting deficiencies in financial accounting, asset tracking, or reporting processes. This could include auditing financial statements, reconciling accounts, implementing new accounting procedures, or ensuring compliance with financial regulations and audit readiness standards. The specific nature of the remediation would depend on the identified issues within the Department of Defense's financial systems or reporting.

How does the $17.6 million award compare to similar CFE remediation contracts within the DoD?

Direct comparison of this $17.6 million award for 'CFE Remediation Services' to similar contracts is challenging without access to a comprehensive database of specific remediation efforts and their associated costs. However, the scale of the award suggests a significant undertaking. The Department of Defense has faced ongoing challenges with financial improvement and audit readiness, leading to numerous contracts for accounting, auditing, and financial system remediation. Awards in the multi-million dollar range are not uncommon for such complex, long-term projects within large federal agencies. The value is influenced by factors such as the scope of systems involved, the depth of the remediation required, the duration of the contract, and the specific expertise needed.

What is Deloitte & Touche LLP's track record with similar DoD contracts?

Deloitte & Touche LLP is a major global professional services firm with extensive experience in government contracting, including significant work with the Department of Defense. They frequently secure contracts related to financial auditing, accounting systems implementation, cybersecurity, and management consulting. Their track record with the DoD includes supporting financial improvement and audit readiness initiatives, risk management, and compliance efforts. While this specific contract focused on 'CFE Remediation,' Deloitte's broader portfolio demonstrates a capacity to handle complex financial and operational challenges for large federal agencies. Their history suggests they are a capable provider for such services.

What were the key performance indicators (KPIs) or success metrics for this contract?

The provided data does not include specific Key Performance Indicators (KPIs) or success metrics for this contract. Typically, for remediation services, KPIs would be tied to the successful correction of identified financial discrepancies, improvements in audit findings, timely completion of remediation tasks, adherence to reporting requirements, and overall enhancement of financial system integrity. The contracting officer and the Defense Information Systems Agency (DISA) would have established these metrics in the contract's Performance Work Statement (PWS). Without access to the PWS, a detailed assessment of performance success cannot be made, though the contract's completion suggests some level of fulfillment.

What is the historical spending trend for 'Other Accounting Services' by the Defense Information Systems Agency (DISA)?

Historical spending trends for 'Other Accounting Services' (NAICS 541219) by the Defense Information Systems Agency (DISA) are not directly available from the provided data. However, DISA, as a major IT and communications provider for the DoD, requires extensive financial management and accounting support. Spending in this category would likely fluctuate based on specific audit requirements, system upgrades, and financial improvement initiatives. Given the DoD's ongoing focus on audit readiness, it is reasonable to assume consistent, and potentially increasing, investment in accounting and auditing services over the years. This $17.6 million contract represents a significant, but potentially isolated, expenditure within that broader trend.

Were there any significant risks identified or mitigation strategies employed for this contract?

The provided data does not explicitly detail risks or mitigation strategies associated with this contract. However, for a contract of this nature and value, potential risks could include scope creep, delays in remediation, contractor performance issues, or challenges in integrating new processes with existing DoD systems. Mitigation strategies would typically involve robust contract oversight, clear performance standards in the PWS, regular progress reviews, and contingency planning. Given the award to a large, experienced firm like Deloitte, the agency likely assessed their capability to manage these risks effectively prior to awarding the contract.

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) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Pricing Type: COMBINATION (APPLIES TO AWARDS WHERE TWO OR MORE OF THE ABOVE APPLY) (2)

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

Financial Breakdown

Contract Ceiling: $33,286,030

Exercised Options: $30,641,166

Current Obligation: $17,616,108

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F8132H

IDV Type: FSS

Timeline