HUD's $36M Deloitte contract for compliance reviews shows long-term engagement with a single vendor

Contract Overview

Contract Amount: $36,025,593 ($36.0M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Housing and Urban Development

Start Date: 2007-07-30

End Date: 2015-12-21

Contract Duration: 3,066 days

Daily Burn Rate: $11.8K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COMPLIANCE (ISSUER, CUSTODIAN AND SPECIALIZED) REVIEWS

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $36.0 million to DELOITTE CONSULTING LLP for work described as: COMPLIANCE (ISSUER, CUSTODIAN AND SPECIALIZED) REVIEWS Key points: 1. The contract duration of over 8 years suggests a sustained need for these specialized compliance services. 2. A single award for this amount over such a long period may indicate limited market exploration for alternative solutions. 3. The fixed-price contract type provides cost certainty but may limit flexibility if requirements evolve significantly. 4. The absence of small business set-aside flags raises questions about opportunities for smaller firms in this service area. 5. Performance context is limited without specific metrics on the effectiveness or impact of the compliance reviews. 6. The contract's focus on 'Miscellaneous Financial Investment Activities' places it within a niche but critical sector for government oversight.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable service contracts. The total award of over $36 million spread across more than 8 years averages approximately $4.5 million annually. This figure needs to be assessed against the scope and complexity of the compliance reviews performed. Given the long duration and the nature of specialized financial compliance, the pricing might be reasonable if the services delivered were comprehensive and effective. However, without more granular data on deliverables and outcomes, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract type is listed as 'COMPETITIVE DELIVERY ORDER,' which implies it was awarded under a pre-existing competitive contract. However, the details of the original competition are not provided. It's unclear if this specific delivery order was competed among multiple vendors or if it was a sole-source task order against a larger IDIQ. The 'no' field indicating '1' might refer to the number of bids received for this specific order, suggesting it was not a full and open competition for this task.

Taxpayer Impact: The level of competition directly impacts taxpayer value. If this delivery order was not competitively bid among multiple qualified vendors, taxpayers may not have received the most cost-effective solution. Limited competition can lead to higher prices and reduced innovation.

Public Impact

The Department of Housing and Urban Development (HUD) is the primary beneficiary, receiving specialized compliance review services. The services delivered are critical for ensuring financial integrity and regulatory adherence within HUD's programs. The geographic impact is primarily national, supporting HUD's oversight functions across its various initiatives. The contract supports a specialized workforce within Deloitte, contributing to employment in the financial consulting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration without clear performance metrics makes it difficult to assess ongoing value.
Lack of transparency regarding the original competition for the base contract raises concerns about potential price inefficiencies.
The specialized nature of the services could create vendor lock-in if not managed carefully.

Positive Signals

The contract was awarded to a well-established firm, Deloitte Consulting LLP, suggesting a level of trust and expertise.
The fixed-price contract type offers budget predictability for the agency.
The contract has been active for a significant period, indicating a consistent need and potentially stable service delivery.

Sector Analysis

This contract falls within the professional services sector, specifically focusing on financial consulting and compliance reviews. The market for such services is competitive, with numerous large and small firms offering expertise in regulatory compliance, auditing, and financial management. HUD's spending in this area is likely part of a broader government-wide effort to ensure accountability and efficient use of public funds. Comparable spending benchmarks would involve analyzing other federal agencies' expenditures on similar compliance and auditing services, which can range from millions to tens of millions annually depending on agency size and complexity.

Small Business Impact

The data indicates that this contract was not set aside for small businesses ('sb': false). There is no information provided regarding subcontracting plans or performance. This suggests that opportunities for small businesses to participate in delivering these specific compliance review services under this contract were likely limited, potentially concentrating the work within the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Housing and Urban Development's contracting officers and program managers. Accountability measures would be defined within the contract's statement of work and performance standards. Transparency is moderate; while the award is publicly visible, detailed performance reports or audit findings related to the compliance reviews are not readily available in this dataset. Inspector General jurisdiction would likely apply if fraud, waste, or abuse were suspected in the execution of the contract.

Related Government Programs

Federal Financial Management
Government Auditing Services
Regulatory Compliance Consulting
Financial Oversight Contracts
HUD Program Management Support

Risk Flags

Long-term single-vendor engagement
Lack of detailed performance metrics
Unclear competition details for delivery order

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $36.0 million to DELOITTE CONSULTING LLP. COMPLIANCE (ISSUER, CUSTODIAN AND SPECIALIZED) REVIEWS

Who is the contractor on this award?

The obligated recipient is DELOITTE CONSULTING LLP.

Which agency awarded this contract?

Awarding agency: Department of Housing and Urban Development (Department of Housing and Urban Development).

What is the total obligated amount?

The obligated amount is $36.0 million.

What is the period of performance?

Start: 2007-07-30. End: 2015-12-21.

What specific types of compliance reviews were conducted under this contract, and what were the key findings or outcomes?

The provided data identifies the contract's purpose as 'COMPLIANCE (ISSUER, CUSTODIAN AND SPECIALIZED) REVIEWS' within 'Miscellaneous Financial Investment Activities.' However, it does not detail the specific types of reviews (e.g., financial statement audits, program compliance checks, internal control assessments) or their outcomes. To assess the contract's effectiveness, a review of HUD's internal documentation, performance reports, or any public audit findings related to these reviews would be necessary. Understanding the scope and impact of these reviews is crucial for determining the true value delivered to the agency and taxpayers.

How does the annual average spending of approximately $4.5 million compare to similar compliance review contracts at HUD or other federal agencies?

Comparing the annual average spending of roughly $4.5 million requires access to benchmark data for similar federal contracts. Without specific details on the scope, duration, and complexity of the services rendered, this figure is difficult to contextualize. Generally, federal agencies procure a wide range of compliance and auditing services, with costs varying significantly based on the agency's size, the criticality of the programs being reviewed, and the level of expertise required. A comprehensive comparison would involve analyzing contracts for financial statement audits, grant compliance, or internal control reviews across agencies like GSA, Treasury, or HHS, looking at both fixed-price and cost-reimbursement structures to understand market rates for specialized financial oversight.

What is Deloitte Consulting LLP's track record with HUD and other federal agencies for similar large-value contracts?

Deloitte Consulting LLP is a major federal contractor with a significant history of serving various government agencies, including HUD. Their track record typically includes providing a wide array of professional services, such as IT modernization, financial management, cybersecurity, and management consulting. For large-value contracts like this $36 million compliance review award, agencies often consider a contractor's past performance, including their ability to meet deadlines, manage costs, and deliver quality services. While this specific contract spans over 8 years, indicating a sustained relationship, a deeper dive into Deloitte's performance ratings on other HUD contracts and their overall federal performance scorecards would provide a more complete picture of their reliability and expertise in delivering complex government projects.

Given the contract's duration (2007-2015), what does historical spending data reveal about HUD's reliance on external compliance review services?

The contract's extended period from 2007 to 2015 suggests a consistent and long-term need within HUD for specialized compliance review services. This historical data point indicates that HUD has relied on external support for these functions over a significant timeframe. Analyzing spending patterns before, during, and after this contract period would reveal trends in HUD's outsourcing strategy for compliance and financial oversight. It could show whether this was an isolated long-term engagement or part of a broader pattern of utilizing contractors for these critical functions, potentially highlighting shifts in internal capacity versus external support needs over the years.

Were there any performance issues or contract disputes reported during the life cycle of this $36 million contract?

The provided dataset does not contain information regarding performance issues, disputes, or contract modifications beyond the initial award details. Assessing such aspects would require accessing contract performance reports, modification histories, or official complaint records maintained by HUD or the Federal Procurement Data System (FPDS). The absence of readily available negative information does not guarantee flawless execution, but it means that without further investigation into contract administration records, it's impossible to definitively state whether performance issues occurred.

Industry Classification

NAICS: Finance and Insurance › Other Financial Investment Activities › Miscellaneous Financial Investment Activities

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Financial Advisory Services LLP

Address: 4301 N FAIRFAX DR STE 210, ARLINGTON, VA, 22203

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

Financial Breakdown

Contract Ceiling: $36,025,593

Exercised Options: $36,025,593

Current Obligation: $36,025,593

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F0016J

IDV Type: FSS

Timeline