DoD Awards $24.2M for E2E Process Design Labor, Navy Contracts Deloitte & Touche LLP

Contract Overview

Contract Amount: $24,224,335 ($24.2M)

Contractor: Deloitte & Touche LLP

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2025-08-29

Contract Duration: 333 days

Daily Burn Rate: $72.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: E2E PROCESS DESIGN LABOR CLIN

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $24.2 million to DELOITTE & TOUCHE LLP for work described as: E2E PROCESS DESIGN LABOR CLIN Key points: 1. Significant contract value of $24.2 million for specialized accounting services. 2. Competition was full and open, suggesting a competitive bidding process. 3. Risk appears moderate given the fixed-price contract type and established vendor. 4. Sector is professional services, specifically accounting and business process design.

Value Assessment

Rating: good

The contract value of $24.2 million for E2E Process Design Labor appears reasonable for a large-scale federal project. Benchmarking against similar large consulting engagements would provide a more precise assessment, but the fixed-price nature suggests cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This method generally promotes competitive pricing and allows the government to select the best value.

Taxpayer Impact: The competitive bidding process for this $24.2 million contract aims to ensure taxpayer funds are used efficiently and effectively for essential process design services.

Public Impact

Enhances operational efficiency within the Department of the Navy. Supports critical process improvements in accounting and related functions. Potential for improved service delivery and cost savings through optimized processes. Impacts personnel involved in the targeted processes and leadership overseeing them.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if process design requirements are not clearly defined.
Dependence on a single vendor for critical process design expertise.

Positive Signals

Full and open competition fosters a competitive market.
Fixed-price contract provides cost certainty.
Experienced vendor likely to deliver quality services.

Sector Analysis

This contract falls within the professional services sector, specifically accounting and management consulting. Federal spending in this area often focuses on improving efficiency, modernizing systems, and ensuring compliance. Benchmarks for similar large-scale process design contracts can vary widely based on scope and complexity.

Small Business Impact

While the contract was awarded under full and open competition, there is no specific indication of small business participation in this award. Future solicitations could explore opportunities for small business subcontracting to promote broader economic impact.

Oversight & Accountability

The Department of the Navy's procurement process, including the use of full and open competition and a fixed-price contract, suggests a structured approach to oversight. Monitoring contract performance and deliverables will be crucial for accountability.

Related Government Programs

Other Accounting Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for vendor lock-in if knowledge transfer is insufficient.
Risk of the redesigned processes not aligning with future technological advancements.
Challenges in measuring the full impact of process changes post-implementation.
Dependence on key personnel from the contracting firm.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.2 million to DELOITTE & TOUCHE LLP. E2E PROCESS DESIGN LABOR CLIN

Who is the contractor on this award?

The obligated recipient is DELOITTE & TOUCHE 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 $24.2 million.

What is the period of performance?

Start: 2024-09-30. End: 2025-08-29.

What specific E2E processes are being redesigned, and what are the expected quantifiable improvements in efficiency or cost savings?

The specific E2E processes targeted for redesign are not detailed in the provided data. However, the objective is typically to streamline workflows, reduce redundancies, and enhance accuracy within accounting and financial operations. Quantifiable improvements would likely be measured by metrics such as reduced processing times, lower error rates, decreased operational costs, and improved data integrity, which should be outlined in the contract's statement of work and performance metrics.

What is the government's strategy for ensuring the vendor, Deloitte & Touche LLP, delivers high-quality process design and avoids potential cost overruns despite the fixed-price structure?

The government's strategy likely involves a robust contract management plan, including clear performance standards, regular progress reviews, and defined milestones. The fixed-price contract itself incentivizes the vendor to manage costs effectively. The Department of the Navy will likely assign a dedicated contract officer and technical representatives to monitor deliverables, ensure adherence to the scope of work, and manage any potential issues proactively to maintain quality and control costs.

How will the success of this process redesign effort be measured, and what mechanisms are in place to ensure the implemented changes lead to long-term effectiveness and value for the Department of the

Success will be measured against predefined Key Performance Indicators (KPIs) outlined in the contract, focusing on efficiency gains, cost reductions, and improved accuracy. Mechanisms for long-term effectiveness include post-implementation reviews, user feedback loops, and potentially follow-on contracts for sustainment or further optimization. The government will likely track the sustained performance of the redesigned processes against baseline metrics to ensure lasting value and return on investment.

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: N0018921RZ050

Offers Received: 3

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: $24,528,399

Exercised Options: $24,528,399

Current Obligation: $24,224,335

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $3,493,400

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0018922DZ017

IDV Type: IDC

Timeline