DoD's $56M contract with PwC for program management services awarded in 2006 shows mixed value and competition
Contract Overview
Contract Amount: $56,287,556 ($56.3M)
Contractor: Pricewaterhousecoopers LLP
Awarding Agency: Department of Defense
Start Date: 2006-09-29
End Date: 2012-03-28
Contract Duration: 2,007 days
Daily Burn Rate: $28.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: 200612!000200!9700!HQ0423!DEF FINANCE & ACTG SVC, COLUMBUS!HQ042306F0167 !A!N! !N! ! !20060929!20110927!132054466!132054466!132054466!N!PRICEWATERHOUSECOOPERS LLP !1800 TYSONS BOULEVARD !MCLEAN !VA!22102!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !+000003826442!N!N!000046413357!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541618!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!Y!1!005!B! !C!N!Z! ! !N!D!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $56.3 million to PRICEWATERHOUSECOOPERS LLP for work described as: 200612!000200!9700!HQ0423!DEF FINANCE & ACTG SVC, COLUMBUS!HQ042306F0167 !A!N! !N! ! !20060929!20110927!132054466!132054466!132054466!N!PRICEWATERHOUSECOOPERS LLP !1800 TYSONS BOULEVARD !MCLEAN !VA!22102!48376!059!51!MCLEAN !FAIR… Key points: 1. Contract value of $56.3M over its life, with a significant portion ($48.4M) awarded in the initial period. 2. The contract was awarded through full and open competition, indicating a broad search for qualified bidders. 3. Pricing appears to be at fair market value, though specific performance metrics are not detailed. 4. The contractor, PwC, is a large, established firm with extensive experience in government contracting. 5. The contract falls under 'Other Management Consulting Services,' a broad category with significant federal spending. 6. The contract's duration of over 5 years suggests a need for sustained support in program management.
Value Assessment
Rating: fair
The total award amount of $56.3 million for program management support services over approximately five years appears reasonable given the contractor's size and the nature of the services. However, without detailed performance metrics or specific deliverables, a precise value-for-money assessment is challenging. Benchmarking against similar contracts for management consulting services at the Department of Defense would provide further context, but the initial award of $48.4 million suggests a substantial commitment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded using full and open competition, suggesting that multiple bidders were likely considered. The fact that it was competed broadly is a positive indicator for price discovery and potentially achieving competitive pricing. The number of bids received is not specified, but the method of award implies a robust process to identify the best value.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality compared to sole-source or limited competition awards.
Public Impact
The Department of Defense benefits from enhanced program management and support services. Services delivered likely include strategic planning, operational support, and financial management assistance. The geographic impact is primarily within the Department of Defense's operational sphere, with potential reach across various commands. Workforce implications include the potential for direct hires by the contractor and the utilization of specialized consulting expertise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the services provided.
- The broad nature of 'program management/support services' can sometimes lead to scope creep if not tightly managed.
- Reliance on a single large contractor for critical support functions could pose a risk if the contractor's performance degrades.
Positive Signals
- Awarded through full and open competition, indicating a competitive bidding process.
- The contractor, PwC, is a well-established firm with a strong track record in government contracting.
- The contract duration suggests a stable, long-term need for these services, implying consistent support.
Sector Analysis
This contract falls within the professional services sector, specifically management consulting. The federal government is a significant consumer of these services, particularly within large departments like Defense, for program management, strategic planning, and operational efficiency. Spending in this category often fluctuates with budget priorities and the need for specialized expertise that may not be available in-house. Comparable spending benchmarks would involve looking at other large management consulting contracts awarded across federal agencies.
Small Business Impact
There is no explicit indication of small business set-asides or subcontracting plans within the provided data. As this was a full and open competition awarded to a large firm (PwC), the primary focus was likely on overall best value rather than specific small business participation. Further investigation into subcontracting reports would be needed to determine any impact on the small business ecosystem.
Oversight & Accountability
Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) and the Defense Contract Management Agency (DCMA). Accountability measures are usually tied to contract clauses, performance standards, and payment schedules. Transparency is facilitated through contract databases like FPDS, though detailed performance reports are often not publicly available.
Related Government Programs
- Defense Finance and Accounting Service (DFAS) Contracts
- Program Management Support Services
- Management and Consulting Services
- Department of Defense IT and Professional Services
Risk Flags
- Potential for scope creep in broad 'program management' contracts.
- Lack of detailed performance metrics in summary data.
- Contract duration exceeds typical shorter-term project needs.
Tags
department-of-defense, program-management, management-consulting, price-waterhouse-coopers, full-and-open-competition, time-and-materials, virginia, defense-finance-and-accounting-service, professional-services, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $56.3 million to PRICEWATERHOUSECOOPERS LLP. 200612!000200!9700!HQ0423!DEF FINANCE & ACTG SVC, COLUMBUS!HQ042306F0167 !A!N! !N! ! !20060929!20110927!132054466!132054466!132054466!N!PRICEWATERHOUSECOOPERS LLP !1800 TYSONS BOULEVARD !MCLEAN !VA!22102!48376!059!51!MCLEAN !FAIRFAX !VIRGINIA !+000003826442!N!N!000046413357!R408!PROGRAM MANAGEMENT/SUPPORT SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541618!E! !3! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is PRICEWATERHOUSECOOPERS LLP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Finance and Accounting Service).
What is the total obligated amount?
The obligated amount is $56.3 million.
What is the period of performance?
Start: 2006-09-29. End: 2012-03-28.
What was the specific nature of the program management and support services provided under this contract?
The contract data indicates the service was categorized under 'PROGRAM MANAGEMENT/SUPPORT SERVICES' and the North American Industry Classification System (NAICS) code 541618, 'Other Management Consulting Services.' This broad classification suggests services could have encompassed a wide range of activities, including strategic planning, organizational analysis, process improvement, financial management support, and general program oversight. Without access to the detailed Statement of Work (SOW) or task orders issued against this contract, the precise nature and scope of the services remain unspecified. However, given the contractor (PwC) and the awarding agency (DFAS), it is likely these services supported complex financial and administrative programs within the Department of Defense.
How does the awarded amount of $56.3 million compare to typical spending for similar program management contracts within the DoD?
The total awarded amount of $56.3 million over approximately five years places this contract in the mid-to-large tier for professional services within the Department of Defense. While the DoD procures a vast array of services, contracts of this magnitude are common for significant program support, especially those involving financial management, logistics, or strategic initiatives. Benchmarking requires comparing it to contracts with similar NAICS codes (e.g., 541611, 541618) and durations awarded to large consulting firms. Given the scale of DoD operations, $56.3 million is a substantial but not extraordinary figure for comprehensive program management support over several years. The initial award of $48.4 million suggests a significant portion of the work was anticipated from the outset.
What is PwC's track record with the Department of Defense for similar services?
PricewaterhouseCoopers LLP (PwC) is a major global professional services firm with a long-standing presence and extensive track record in contracting with the U.S. federal government, including the Department of Defense. They routinely secure large contracts for a variety of services, including management consulting, financial advisory, IT support, and program management. Their history with the DoD likely includes numerous contracts supporting various branches and agencies, often involving complex financial, strategic, and operational challenges. While specific performance details for every contract are not publicly available, PwC's continued success in winning competitive bids suggests a generally positive performance history and capability to meet government requirements.
Were there any specific performance issues or risks identified during the contract period?
The provided data does not contain specific details regarding performance issues or risks encountered during the life of this contract (2006-2012). Contracts of this nature are typically managed through regular performance reviews, quality assurance surveillance plans (QASPs), and communication between the contracting officer's representative (COR) and the contractor. Any significant performance issues would likely be documented internally by the agency and could potentially impact future contract awards or contractor ratings. However, without access to internal agency reports or contract close-out documentation, it is impossible to definitively state whether issues arose or how they were resolved.
How has federal spending on 'Other Management Consulting Services' (NAICS 541618) evolved since this contract was awarded?
Federal spending on 'Other Management Consulting Services' (NAICS 541618) has generally seen fluctuations but has remained a significant category of government expenditure since this contract was awarded in 2006. Post-2008 financial crisis, there was often an increased demand for consulting services related to efficiency, financial oversight, and strategic realignment. More recently, spending in this category may be influenced by shifts towards digital transformation, cybersecurity consulting, and specialized technical advisory services. While specific year-over-year data for NAICS 541618 requires detailed analysis of FPDS or USASpending.gov, the overall trend indicates continued reliance on external expertise for complex governmental challenges across various agencies.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1800 TYSON BLVD 9TH FL, MC LEAN, VA, 90
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $56,287,556
Exercised Options: $56,287,556
Current Obligation: $56,287,556
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2006-09-29
Current End Date: 2012-03-28
Potential End Date: 2012-03-28 00:00:00
Last Modified: 2012-09-28
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