DoD's $85M Navy ERP Deployment Contract Awarded to Deloitte Consulting LLP
Contract Overview
Contract Amount: $85,355,016 ($85.4M)
Contractor: Deloitte Consulting LLP
Awarding Agency: Department of Defense
Start Date: 2010-04-01
End Date: 2013-03-31
Contract Duration: 1,095 days
Daily Burn Rate: $78.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: IT
Official Description: DEPLOYMENT AND SUSTAINMENT OF NAVY ERP
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22209
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $85.4 million to DELOITTE CONSULTING LLP for work described as: DEPLOYMENT AND SUSTAINMENT OF NAVY ERP Key points: 1. Contract value of $85.36 million for ERP deployment and sustainment. 2. Awarded via full and open competition, indicating market availability. 3. Potential risk associated with cost-plus award fee structure. 4. Services fall under Engineering Services (NAICS 541330).
Value Assessment
Rating: fair
The contract uses a Cost Plus Award Fee (CPAF) structure, which can incentivize performance but may lead to higher costs if not managed effectively. Benchmarking against similar ERP deployments is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. This method generally promotes price discovery and potentially better value for the government.
Taxpayer Impact: The use of full and open competition is a positive for taxpayers, as it aims to secure the best possible price through market forces.
Public Impact
Impacts Navy's core operational systems, affecting efficiency and data management. Potential for improved resource allocation and decision-making through ERP. Sustainment phase implies long-term reliance on contractor support.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure
- Long-term sustainment costs unclear
Positive Signals
- Full and open competition
- Potential for improved Navy operations
Sector Analysis
This contract falls within the IT services sector, specifically for enterprise resource planning (ERP) systems. Spending on large-scale IT deployments for defense agencies can be substantial, with benchmarks varying widely based on system complexity and scope.
Small Business Impact
The data indicates the prime contractor is Deloitte Consulting LLP, a large business. There is no explicit information provided regarding small business participation in this specific contract award.
Oversight & Accountability
Oversight is provided by the Defense Contract Management Agency (DCMA). The CPAF structure requires robust performance monitoring to ensure value for money and control costs.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to CPAF structure
- Lack of transparency on performance metrics for award fees
- Unclear long-term sustainment costs
- Limited insight into small business subcontracting
Tags
engineering-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $85.4 million to DELOITTE CONSULTING LLP. DEPLOYMENT AND SUSTAINMENT OF NAVY ERP
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 Contract Management Agency).
What is the total obligated amount?
The obligated amount is $85.4 million.
What is the period of performance?
Start: 2010-04-01. End: 2013-03-31.
What was the basis for the award fee structure and how was performance measured to determine award fees?
The basis for the award fee structure and performance metrics are critical for understanding how contractor performance was evaluated and incentivized. Without this information, it's difficult to assess if the award fees truly reflect exceptional performance or if they were awarded based on less stringent criteria, potentially impacting overall value for the taxpayer.
How does the total cost of this ERP deployment and sustainment compare to industry benchmarks for similar systems?
Comparing the total contract value ($85.36M) to industry benchmarks for ERP deployments in large organizations, especially within the defense sector, is essential for assessing value. Factors like system complexity, customization, and the duration of sustainment significantly influence costs. A detailed benchmark analysis would reveal if this contract represents a competitive or inflated price point.
What are the key performance indicators (KPIs) used to measure the effectiveness of the ERP system post-deployment?
Measuring the effectiveness of the ERP system through defined KPIs is crucial for determining the return on investment for the $85.36 million expenditure. KPIs could include improvements in operational efficiency, data accuracy, reporting timeliness, and user adoption rates. Without clear KPIs and their achievement, the true effectiveness and value of this deployment remain uncertain.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N0002408R3441
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Deloitte LLP (UEI: 014127109)
Address: 1725 DUKE ST, ALEXANDRIA, VA, 22314
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $155,159,459
Exercised Options: $92,027,107
Current Obligation: $85,355,016
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0017804D4020
IDV Type: IDC
Timeline
Start Date: 2010-04-01
Current End Date: 2013-03-31
Potential End Date: 2013-03-31 00:00:00
Last Modified: 2018-08-02
More Contracts from Deloitte Consulting LLP
- R12 Upgrade - System Integration and Hosting Support — $465.6M (Department of Health and Human Services)
- Award and IF — $448.6M (General Services Administration)
- Cade 2 Ltis3 Covid-19 — $383.8M (Department of the Treasury)
- This Requirement Shall Provide Support Which Shall Include: Capability Delivery Lifecycle Management, Enhancement/Development Delivery, Configuration, Additional Enhancement/Development Delivery, Ptems Enhancements and Development — $336.1M (Department of Veterans Affairs)
- Award of Information Technology Global Enterprise Management Services IT Gems Requirement — $332.8M (General Services Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)