DoD's $36.5M Accounting Services Contract with Deloitte & Touche LLP Awarded via Full and Open Competition

Contract Overview

Contract Amount: $36,483,422 ($36.5M)

Contractor: Deloitte & Touche LLP

Awarding Agency: Department of Defense

Start Date: 2015-09-25

End Date: 2020-11-25

Contract Duration: 1,888 days

Daily Burn Rate: $19.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: Other

Official Description: IGF::CT::IGF DEPUTY CHIEF FINANCIAL OFFICER MISSION SUPPORT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $36.5 million to DELOITTE & TOUCHE LLP for work described as: IGF::CT::IGF DEPUTY CHIEF FINANCIAL OFFICER MISSION SUPPORT Key points: 1. Significant contract value of $36.5 million for accounting services. 2. Awarded to a major consulting firm, Deloitte & Touche LLP. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. Contract duration spans nearly 4 years, indicating a substantial need. 5. Services fall under 'Other Accounting Services' (NAICS 541219).

Value Assessment

Rating: fair

The contract value of $36.5 million for accounting services over nearly 4 years appears reasonable given the provider and the nature of the services. Benchmarking against similar large-scale accounting support contracts for federal agencies would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition indicates that multiple vendors were likely solicited, fostering price discovery and potentially leading to a more competitive price. The award was a delivery order under a larger contract vehicle.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers likely received a fair price for the accounting services rendered, avoiding potential overpayment associated with less competitive methods.

Public Impact

Ensures critical financial operations within the Department of Defense are supported. Provides specialized accounting expertise to the Defense Finance and Accounting Service. Supports the financial integrity and accountability of defense spending. The contract's duration suggests ongoing, essential financial management needs. Impacts the efficiency of defense budget execution and reporting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or outcomes in provided data.
Potential for cost overruns if labor hours are not managed effectively.
Reliance on a single large contractor for critical financial services.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Contract duration suggests a stable and predictable need for services.
Services provided by a reputable firm with extensive experience.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically accounting. Federal spending in this area is substantial, supporting agency operations, compliance, and financial management. Benchmarks for similar accounting services contracts vary widely based on scope and duration.

Small Business Impact

The data does not indicate any specific set-asides for small businesses. The award was made to Deloitte & Touche LLP, a large, well-established firm, suggesting that small businesses were likely not primary awardees for this specific contract.

Oversight & Accountability

The contract was awarded via a delivery order, implying it was part of a larger, pre-existing contract vehicle that likely underwent its own oversight. Further review of the parent contract and DFAS oversight mechanisms would be needed for a full assessment.

Related Government Programs

Other Accounting Services
Department of Defense Contracting
Defense Finance and Accounting Service Programs

Risk Flags

Contract awarded as a delivery order, potentially masking risks within a larger contract.
Significant contract value suggests a high level of reliance on the contractor.
No clear indication of performance metrics or KPIs in the provided data.
Potential for cost escalation if labor hours are not tightly managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $36.5 million to DELOITTE & TOUCHE LLP. IGF::CT::IGF DEPUTY CHIEF FINANCIAL OFFICER MISSION SUPPORT

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 Finance and Accounting Service).

What is the total obligated amount?

The obligated amount is $36.5 million.

What is the period of performance?

Start: 2015-09-25. End: 2020-11-25.

What specific accounting services were provided under this contract, and how did they contribute to the DFAS mission?

The contract, NAICS 541219, covers 'Other Accounting Services.' While specific deliverables are not detailed, these services typically include financial statement preparation, auditing support, accounting system analysis, financial policy development, and compliance reviews. For DFAS, these services are crucial for managing the vast financial operations of the Department of Defense, ensuring accuracy in reporting, and maintaining accountability for taxpayer funds.

Given the $36.5 million value and nearly 4-year duration, what are the primary risks associated with this contract?

Key risks include potential cost overruns if labor hours exceed estimates or if project scope creeps without adequate change control. There's also a risk of vendor lock-in, making it difficult to switch providers if performance declines. Furthermore, reliance on a single large contractor for critical financial functions could pose a risk if the contractor faces internal issues or if their expertise becomes outdated.

How effective was the full and open competition in ensuring value for money for this accounting services contract?

Full and open competition is generally effective in driving value by allowing multiple vendors to bid, fostering price competition and innovation. However, the ultimate value depends on the specific requirements, the clarity of the solicitation, and the evaluation criteria used. Without detailed information on the bidding process and the number of proposals received, it's difficult to definitively assess the effectiveness beyond the procedural aspect.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Touche Tohmatsu Limited

Address: 1919 N LYNN ST, ARLINGTON, VA, 22209

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $36,483,422

Exercised Options: $36,483,422

Current Obligation: $36,483,422

Actual Outlays: $3,286,179

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS23F8132H

IDV Type: FSS

Timeline