DoD Awards Deloitte $32M for Financial Audit Support Services Under Full and Open Competition
Contract Overview
Contract Amount: $32,068,911 ($32.1M)
Contractor: Deloitte & Touche LLP
Awarding Agency: Department of Defense
Start Date: 2014-10-29
End Date: 2019-10-31
Contract Duration: 1,828 days
Daily Burn Rate: $17.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF CONTRACT AWARD FOR FINANCIAL AUDIT AND ASSERTION SUPPORT SERVICES
Place of Performance
Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20398
Plain-Language Summary
Department of Defense obligated $32.1 million to DELOITTE & TOUCHE LLP for work described as: IGF::OT::IGF CONTRACT AWARD FOR FINANCIAL AUDIT AND ASSERTION SUPPORT SERVICES Key points: 1. Significant contract awarded to a major consulting firm for essential financial audit services. 2. Full and open competition suggests a potentially competitive bidding process. 3. The contract duration of nearly 5 years indicates a long-term need for these services. 4. The 'Other Management Consulting Services' NAICS code covers a broad range of support.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. Benchmarking CPFF contracts for similar services is difficult without more specific data on labor categories and hours.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders were likely considered. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for essential financial oversight, which is crucial for accountability. The competitive nature of the award aims to ensure reasonable pricing.
Public Impact
Ensures financial integrity and accountability within the Department of the Navy. Supports the government's ability to manage and audit its complex financial operations. Provides critical services that contribute to the overall efficiency of defense spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPFF contract type risk
- Lack of specific performance metrics
- Potential for scope creep
Positive Signals
- Full and open competition
- Awarded to a reputable firm
- Essential service for government operations
Sector Analysis
This contract falls under professional services, specifically management consulting, within the broader federal IT and professional services sector. Benchmarks for similar audit and assertion support services vary widely based on scope and duration.
Small Business Impact
The awardee, Deloitte & Touche LLP, is a large business. There is no indication of small business participation in this specific award, which is common for large, complex professional service contracts.
Oversight & Accountability
The contract's duration and cost necessitate ongoing oversight to ensure adherence to the contract terms and effective delivery of services. The Inspector General's office likely plays a role in monitoring such contracts.
Related Government Programs
- Other Management Consulting Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type
- Lack of detailed service scope
- Potential for cost overruns
- No explicit small business participation noted
Tags
other-management-consulting-services, department-of-defense, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.1 million to DELOITTE & TOUCHE LLP. IGF::OT::IGF CONTRACT AWARD FOR FINANCIAL AUDIT AND ASSERTION SUPPORT SERVICES
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 $32.1 million.
What is the period of performance?
Start: 2014-10-29. End: 2019-10-31.
What specific financial audit and assertion support services are included in this contract, and how do they align with the Department of the Navy's current needs?
The contract details are limited, but 'Financial Audit and Assertion Support Services' typically encompass examining financial statements, assessing internal controls, and providing assurance on financial data. These services are crucial for regulatory compliance and accurate financial reporting within large organizations like the Department of the Navy, ensuring transparency and accountability in its operations.
Given the CPFF contract type, what measures are in place to control costs and prevent potential overruns for this $32 million award?
Cost Plus Fixed Fee contracts inherently carry a risk of cost overruns. Effective cost control relies on robust government oversight, detailed tracking of direct and indirect costs, clear definition of allowable expenses, and regular reviews of contractor performance and financial reports. The contracting officer must actively manage the 'cost' portion to ensure it remains reasonable and allocable to the contract's objectives.
How will the effectiveness of Deloitte's services be measured to ensure optimal value for taxpayer dollars over the contract's duration?
Effectiveness is typically measured through performance metrics outlined in the contract, such as timeliness of deliverables, quality of audit reports, adherence to professional standards, and responsiveness to government inquiries. Regular performance evaluations by the contracting officer and potentially end-users of the audit services provide feedback. Achieving the contract's objectives efficiently and accurately demonstrates value.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0003314R8001
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Address: 1725 DUKE ST, ALEXANDRIA, VA, 22314
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $32,592,099
Exercised Options: $32,068,911
Current Obligation: $32,068,911
Subaward Activity
Number of Subawards: 4
Total Subaward Amount: $1,476,959
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2014-10-29
Current End Date: 2019-10-31
Potential End Date: 2019-10-31 00:00:00
Last Modified: 2020-03-02
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