Deloitte Consulting LLP awarded $62.7M for Army RDT&E IT services, highlighting a competitive procurement

Contract Overview

Contract Amount: $62,736,236 ($62.7M)

Contractor: Deloitte Consulting LLP

Awarding Agency: Department of Defense

Start Date: 2018-09-26

End Date: 2023-02-28

Contract Duration: 1,616 days

Daily Burn Rate: $38.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: IGF::OT::IGF 0001 LABOR (RDT&E)

Place of Performance

Location: FORT KNOX, HARDIN County, KENTUCKY, 40122

State: Kentucky Government Spending

Plain-Language Summary

Department of Defense obligated $62.7 million to DELOITTE CONSULTING LLP for work described as: IGF::OT::IGF 0001 LABOR (RDT&E) Key points: 1. The contract value of $62.7 million for RDT&E IT services represents a significant investment in advanced capabilities. 2. Competition dynamics for this contract appear robust, with four bidders vying for the award. 3. The fixed-price contract type suggests a focus on cost control and predictable spending. 4. Performance is situated in Kentucky, indicating a specific geographic focus for service delivery. 5. The duration of 1616 days points to a long-term engagement for complex IT services.

Value Assessment

Rating: good

The contract's value of $62.7 million for Computer Systems Design Services (NAICS 541512) over approximately 4.4 years appears reasonable given the scope of RDT&E IT support. Benchmarking against similar large-scale IT service contracts for defense agencies suggests that pricing is likely competitive, especially considering the full and open competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With four bidders participating, the level of competition suggests that the Army received a range of proposals and pricing, which should have driven a fair market price.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are being used efficiently by fostering a competitive environment that typically leads to better pricing and service quality.

Public Impact

The primary beneficiaries are the Department of the Army, receiving advanced IT and RDT&E support. Services delivered include computer systems design and related IT support crucial for research, development, testing, and evaluation. The geographic impact is concentrated in Kentucky, where the contractor's services are performed. Workforce implications include the potential for skilled IT professionals to be engaged in critical defense research initiatives.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in RDT&E projects, which can increase costs if not managed tightly.
Reliance on a single contractor for a significant duration may pose risks if performance degrades.
Ensuring continued innovation and adaptation to evolving technological needs within the contract's framework.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Firm Fixed Price contract type helps manage cost certainty for the government.
The contractor, Deloitte Consulting LLP, is a large, established firm with significant experience in government contracting.

Sector Analysis

This contract falls within the Information Technology (IT) and Research & Development (R&D) sectors, specifically focusing on computer systems design services. The IT services market for the federal government is substantial, with significant portions dedicated to defense and RDT&E. Comparable spending benchmarks for large-scale IT support contracts within the Department of Defense often run into tens or hundreds of millions of dollars, making this award size typical for such requirements.

Small Business Impact

This contract was not set aside for small businesses and there is no indication of specific subcontracting requirements for small businesses in the provided data. As a large contract awarded to a major prime contractor, the primary impact on the small business ecosystem would be through potential subcontracting opportunities, which are not detailed here. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Department of the Army. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense IT Modernization Programs
Army Research, Development, and Engineering Command Contracts
Federal Civilian IT Services Contracts
Defense Advanced Research Projects Agency (DARPA) Support Contracts

Risk Flags

Potential for cost overruns if RDT&E scope is not well-defined.
Risk of contractor performance degradation over a long contract duration.
Ensuring technological relevance and innovation throughout the contract period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $62.7 million to DELOITTE CONSULTING LLP. IGF::OT::IGF 0001 LABOR (RDT&E)

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 Army).

What is the total obligated amount?

The obligated amount is $62.7 million.

What is the period of performance?

Start: 2018-09-26. End: 2023-02-28.

What is Deloitte Consulting LLP's track record with the Department of Defense for similar IT services?

Deloitte Consulting LLP has a substantial track record with the Department of Defense, having been awarded numerous contracts for a wide array of services, including IT, cybersecurity, management consulting, and RDT&E support. Their history with the DoD indicates extensive experience navigating complex government requirements and delivering services across various branches and agencies. Specific to IT and RDT&E, Deloitte has consistently secured large-value contracts, demonstrating their capability to handle significant programs. Analysis of their past performance on similar contracts would reveal their success rates, any past performance issues, and their ability to meet stringent government standards for technical execution and program management.

How does the $62.7 million award compare to other RDT&E IT service contracts awarded by the Army in the last five years?

The $62.7 million award for RDT&E IT services to Deloitte Consulting LLP is a significant but not extraordinary figure when compared to other large-scale IT contracts within the Department of the Army. The Army, like other branches of the DoD, invests heavily in IT infrastructure and RDT&E capabilities, often awarding multi-year, multi-million dollar contracts. Contracts for similar services, such as systems integration, software development, and cybersecurity for research purposes, frequently range from tens to hundreds of millions of dollars. The competitive nature of this award (four bidders) suggests that the pricing achieved is likely aligned with market rates for such specialized services, placing it within a typical range for substantial RDT&E IT procurements.

What are the primary risks associated with a firm fixed-price contract for RDT&E IT services?

The primary risks associated with a firm fixed-price (FFP) contract for RDT&E IT services revolve around the inherent uncertainty in research and development. For the contractor, the risk lies in underestimating the effort required to achieve RDT&E objectives, potentially leading to reduced profit margins or even losses if costs exceed the fixed price. For the government, the risk is that the contractor might cut corners on quality or scope to protect profitability, or that the fixed price may not adequately reflect the evolving technical requirements of RDT&E, which can be unpredictable. Effective management and clear definition of milestones and deliverables are crucial to mitigate these risks.

What does the duration of 1616 days (approximately 4.4 years) imply about the nature of the services being procured?

A contract duration of 1616 days (approximately 4.4 years) for IT services, particularly in the RDT&E context, implies a need for sustained, long-term support and development. This duration suggests that the services are not for a short-term project but rather for ongoing system design, integration, maintenance, or development of complex IT solutions that are integral to the Army's research and development efforts. Such long-term engagements allow for deeper integration of the contractor's expertise with the government's mission, fostering continuity and potentially leading to more effective outcomes, while also requiring robust oversight to ensure continued value and adaptation.

How does the geographic location in Kentucky (ST: KY) impact the contract's execution and oversight?

The geographic location in Kentucky (ST: KY) primarily impacts the contract's execution by defining the physical site where the contractor's personnel will perform the services. This could mean leveraging local IT talent pools within Kentucky or establishing a dedicated operational center there. For oversight, it means that government representatives responsible for monitoring performance and ensuring compliance may need to be present in or travel to Kentucky. While modern communication tools facilitate remote oversight, a physical presence can enhance the understanding of operational nuances and facilitate direct communication with the contractor's team, potentially improving the effectiveness of oversight.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte Touche Tohmatsu Limited

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: $62,736,236

Exercised Options: $62,736,236

Current Obligation: $62,736,236

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $6,930,212

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q09BGD0018

IDV Type: GWAC

Timeline