DoD's Navy awards $111.5M contract for accounting services to Deloitte Consulting LLP
Contract Overview
Contract Amount: $111,503,481 ($111.5M)
Contractor: Deloitte Consulting LLP
Awarding Agency: Department of Defense
Start Date: 2021-06-01
End Date: 2024-05-07
Contract Duration: 1,071 days
Daily Burn Rate: $104.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: LABOR - FMO
Place of Performance
Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374
Plain-Language Summary
Department of Defense obligated $111.5 million to DELOITTE CONSULTING LLP for work described as: LABOR - FMO Key points: 1. Significant contract value of $111.5 million over 3 years. 2. Awarded under full and open competition, indicating a competitive market. 3. Potential risk associated with cost-plus fixed fee contract type. 4. Services fall under 'Other Accounting Services' within the professional services sector.
Value Assessment
Rating: good
The contract value of $111.5 million for accounting services appears reasonable given the 3-year duration and the provider. Benchmarking against similar large-scale government accounting contracts would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing compared to sole-source or limited competition awards.
Taxpayer Impact: The competitive nature of the award is beneficial for taxpayers, as it likely resulted in a more favorable price for the accounting services rendered.
Public Impact
Ensures critical accounting functions for the Department of the Navy are maintained. Supports military operations through essential financial management. Potential for knowledge transfer and capacity building within the Navy's finance department.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus fixed fee contract type can incentivize higher costs.
- Long contract duration may limit flexibility for future needs.
- Reliance on a single contractor for critical services.
Positive Signals
- Awarded through full and open competition.
- Experienced contractor with a strong track record.
- Clear delivery order structure for task management.
Sector Analysis
This contract falls within the professional services sector, specifically accounting services. Government spending in this area is crucial for financial oversight and operational support, with benchmarks varying based on agency size and complexity.
Small Business Impact
The data indicates this contract was awarded to Deloitte Consulting LLP, a large business. There is no explicit indication of small business participation in this specific award, which is common for large prime contracts.
Oversight & Accountability
The award was made via a delivery order, suggesting it is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or similar vehicle. Oversight would focus on task order performance and adherence to contract terms.
Related Government Programs
- Other Accounting Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost-plus fixed fee contract type.
- Long contract duration.
- Potential for cost overruns.
- Lack of explicit small business subcontracting noted.
Tags
other-accounting-services, department-of-defense, dc, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $111.5 million to DELOITTE CONSULTING LLP. LABOR - FMO
Who is the contractor on this award?
The obligated recipient is DELOITTE CONSULTING LLP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $111.5 million.
What is the period of performance?
Start: 2021-06-01. End: 2024-05-07.
What is the typical cost structure for similar accounting services contracts within the DoD?
Typical cost structures for similar accounting services contracts within the DoD can vary significantly based on the scope of work, duration, and specific services required. While cost-plus fixed fee (CPFF) is used here, other common types include firm-fixed-price (FFP) for well-defined tasks and cost-reimbursement (CR) for research and development. Benchmarking CPFF contracts requires careful analysis of overhead rates, labor categories, and profit margins negotiated under competitive conditions.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for accounting services?
The primary risk with a CPFF contract for accounting services is that the contractor may have less incentive to control costs compared to a fixed-price contract, as costs are reimbursed. While the fixed fee provides a profit incentive, the government bears the risk of cost overruns. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate this risk and ensure value for taxpayer money.
How does the 'Other Accounting Services' NAICS code compare to specialized accounting services in terms of contract value and competition?
The 'Other Accounting Services' NAICS code (541219) is broad and can encompass a wide range of activities beyond core bookkeeping or tax preparation. Contracts under this code may see varied competition depending on the specific services. Highly specialized services might attract fewer bidders but potentially higher values due to unique expertise, while more general accounting support could see broader competition and potentially lower unit costs.
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
Solicitation ID: N0018915RZ006
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
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: $113,214,102
Exercised Options: $113,214,102
Current Obligation: $111,503,481
Subaward Activity
Number of Subawards: 27
Total Subaward Amount: $50,298,376
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0018918DZ013
IDV Type: IDC
Timeline
Start Date: 2021-06-01
Current End Date: 2024-05-07
Potential End Date: 2024-05-07 00:00:00
Last Modified: 2026-01-08
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