DoD awards $50.7M contract for program management support to Deloitte Consulting LLP

Contract Overview

Contract Amount: $50,730,315 ($50.7M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2023-10-01

End Date: 2024-09-30

Contract Duration: 365 days

Daily Burn Rate: $139.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROGRAM MANAGEMENT SUPPORT SERVICES

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78226

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $50.7 million to DELOITTE CONSULTING LLP for work described as: PROGRAM MANAGEMENT SUPPORT SERVICES Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract was not competed, raising questions about potential cost savings. 3. Deloitte Consulting LLP, a large established firm, is the sole awardee. 4. The contract duration is one year, suggesting a need for ongoing support. 5. The North American Industry Classification System (NAICS) code 541611 points to management consulting services. 6. The contract is managed by the Defense Health Agency, indicating a focus on healthcare program support.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging without a competitive process. The fixed-price nature provides some cost certainty, but the lack of competition means there's no direct comparison to market rates or alternative providers. The award amount of $50.7 million for one year of program management support needs further scrutiny to ensure it aligns with industry standards for similar services, especially given the absence of a bidding process to drive down costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor can provide the required services, or in urgent situations. The lack of competition limits the government's ability to explore a range of pricing options and potentially secure a lower cost through a bidding process.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of a competitive bidding process. A sole-source award bypasses the opportunity for multiple vendors to offer proposals, which often leads to more favorable pricing for the government.

Public Impact

The primary beneficiaries are likely Department of Defense healthcare programs requiring expert management and administrative support. Services delivered include general management and administrative consulting, crucial for program efficiency. The contract is managed within Texas, suggesting a potential geographic focus for some operational aspects. The contract supports the operational needs of the Defense Health Agency, contributing to military healthcare readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can reduce transparency and accountability in spending.
Absence of performance benchmarks from a competitive process makes value assessment difficult.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to a well-established contractor like Deloitte suggests a focus on reliability and expertise.
Contract supports critical defense healthcare programs.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. The federal government is a significant consumer of these services to support complex program management and administrative functions across various agencies. Benchmarking this $50.7 million award requires comparison to other large-scale management consulting contracts within the defense or broader federal space, considering the specialized nature of supporting healthcare programs.

Small Business Impact

This contract was not competed and there is no indication of small business set-asides or subcontracting requirements. Therefore, it is unlikely to have a direct positive impact on the small business ecosystem. The award to a large prime contractor like Deloitte Consulting LLP suggests that the focus was on leveraging established capabilities rather than fostering small business participation through this specific procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA) and the contracting officer at the Defense Health Agency. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver specific services within the agreed budget. Transparency is limited due to the sole-source nature of the award, but contract details should be publicly available through federal procurement databases.

Related Government Programs

Defense Health Agency Program Management
Management and Administrative Support Services
Federal Consulting Services Contracts
Department of Defense IT and Management Support

Risk Flags

Sole-source award bypasses competitive bidding.
Lack of transparency in pricing due to no competition.
Potential for higher costs without market price discovery.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.7 million to DELOITTE CONSULTING LLP. PROGRAM MANAGEMENT SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $50.7 million.

What is the period of performance?

Start: 2023-10-01. End: 2024-09-30.

What is the historical spending pattern for program management support services by the Defense Health Agency?

Analyzing historical spending for program management support by the Defense Health Agency requires access to detailed procurement data over several fiscal years. Generally, agencies like the DHA procure such services to manage complex healthcare initiatives, research, and operational logistics. Spending can fluctuate based on specific program needs, new initiatives, and budget allocations. Without specific historical data for this contract's category, it's difficult to provide precise figures, but it's reasonable to assume consistent, significant investment in program management to ensure the effective delivery of military healthcare services. The current $50.7 million award suggests a substantial ongoing requirement.

How does the cost of this contract compare to similar program management support contracts awarded through competition?

Direct cost comparison is difficult because this contract was awarded sole-source. Competitive contracts typically allow for price discovery, where multiple bids are evaluated to determine fair market value. Sole-source awards bypass this process, potentially leading to higher costs if the awarded price is not rigorously benchmarked against independent market data or historical competitive awards for similar scope and complexity. To assess value, one would need to find comparable contracts for program management support within the DoD or other federal agencies that were competed and analyze their pricing structures, contractor overhead, and profit margins relative to the services provided.

What are the key performance indicators (KPIs) or deliverables expected under this contract?

The contract details, including specific deliverables and Key Performance Indicators (KPIs), are not fully elaborated in the provided data. However, as a 'PROGRAM MANAGEMENT SUPPORT SERVICES' contract under NAICS code 541611 (Administrative Management and General Management Consulting Services), expected deliverables likely include strategic planning, operational analysis, process improvement recommendations, project management support, budget tracking, and reporting. KPIs would typically measure the contractor's effectiveness in achieving program objectives, adherence to timelines, quality of deliverables, and contribution to overall program efficiency and cost savings. These would be defined in the Statement of Work (SOW).

What is Deloitte Consulting LLP's track record with the Department of Defense for similar services?

Deloitte Consulting LLP is a major federal contractor with a significant history of providing a wide range of professional services, including management consulting, to the Department of Defense and other federal agencies. They have experience supporting complex programs across various domains, including defense, health, and technology. Their track record generally indicates a capacity to handle large-scale contracts and deliver sophisticated solutions. However, a detailed assessment would involve reviewing past performance evaluations, any past disputes or contract terminations, and the specific success metrics achieved on previous DoD contracts of similar scope and value.

What are the potential risks associated with a sole-source award for program management support?

The primary risk associated with a sole-source award is the potential for inflated costs due to the lack of competition. Without competing bids, the government may not achieve the most favorable pricing. Another risk is reduced innovation, as there's less incentive for the contractor to go above and beyond standard service levels when there's no competitive pressure. Furthermore, a sole-source award can sometimes indicate a lack of market research or an over-reliance on a single vendor, which could pose a risk if that vendor's performance falters or if their capabilities become outdated. Transparency and accountability can also be diminished compared to a competed contract.

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: HT001123R0089

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Financial Advisory Services LLP

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

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

Financial Breakdown

Contract Ceiling: $50,730,315

Exercised Options: $50,730,315

Current Obligation: $50,730,315

Actual Outlays: $15,837,821

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $32,097,131

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline