DoD's $18.7M contract for consulting services awarded to Deloitte & Touche LLP

Contract Overview

Contract Amount: $20,258,026 ($20.3M)

Contractor: Deloitte & Touche LLP

Awarding Agency: Department of Defense

Start Date: 2004-03-18

End Date: 2007-03-30

Contract Duration: 1,107 days

Daily Burn Rate: $18.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: TAS::97 0100::TAS 200410!001310!2100!W74V8H!DEF. CONTRACT. CMD. - WASHINGTON!GS23F9801H !C!N! !N!W74V8H04F0260! !20040318!20040930!187107958!187107958!001664820!N!DELOITTE&TOUCHE L L P !1750 TYSONS BLVD !MC LEAN !VA!22102!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000004927380!N!N!000000000000!9999!MISCELLANEOUS ITEMS !S1 !SERVICES !000 !* !541611!A!A!6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !Y!C!N!N! ! ! ! ! ! !00 ! ! ! ! ! ! ! !2100!W914NS!0001! !

Place of Performance

Location: MC LEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.3 million to DELOITTE & TOUCHE LLP for work described as: TAS::97 0100::TAS 200410!001310!2100!W74V8H!DEF. CONTRACT. CMD. - WASHINGTON!GS23F9801H !C!N! !N!W74V8H04F0260! !20040318!20040930!187107958!187107958!001664820!N!DELOITTE&TOUCHE L L P !1750 TYSONS BLVD !MC LEAN !VA!22102!50000!001!11!WASHINGTO… Key points: 1. Contract awarded for administrative management and general management consulting services. 2. Significant value suggests a complex or long-term engagement. 3. Awarded via full and open competition, indicating broad market access. 4. Contract duration of over 3 years implies ongoing support needs. 5. Virginia-based contractor suggests potential regional economic impact. 6. Services delivered under labor hours pricing model.

Value Assessment

Rating: good

The contract value of $18.7 million over approximately three years for consulting services appears reasonable given the scope of administrative and general management consulting. Benchmarking against similar large-scale consulting contracts within the Department of Defense, this value falls within expected ranges for complex advisory services. The use of labor hours pricing allows for flexibility but requires diligent oversight to ensure efficiency and prevent cost overruns. Without specific deliverables or performance metrics, a precise value-for-money assessment is challenging, but the competitive award suggests a fair market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. This approach typically fosters a competitive environment, encouraging multiple bidders to present their best pricing and technical solutions. The specific number of bidders is not provided, but the open competition suggests that the Department of Defense sought to maximize its options and secure the most advantageous offer. This process is designed to ensure fair market price discovery.

Taxpayer Impact: Taxpayers benefit from full and open competition as it generally leads to lower prices and better quality services by leveraging the widest possible range of contractors.

Public Impact

The Department of Defense benefits from expert consulting services to improve administrative and management functions. Services are likely to enhance operational efficiency and strategic planning within the agency. The contractor, Deloitte & Touche LLP, a major professional services firm, will provide specialized expertise. The geographic impact is primarily within the Department of Defense's operational areas, with the contractor based in Virginia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in labor-hour contracts if not managed tightly.
Ensuring the delivered consulting services directly translate to measurable improvements in administrative efficiency.
The large contract value necessitates robust oversight to confirm adherence to the Statement of Work.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Contractor is a well-established firm with a track record in government contracting.
The contract duration suggests a strategic partnership for ongoing support.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically under management and general management consulting. This sector is a significant component of federal spending, supporting a wide array of government functions from policy development to operational improvements. The market for these services is highly competitive, with numerous large and small firms vying for contracts. The value of this contract is substantial, reflecting the complexity and importance of the consulting services required by the Department of Defense.

Small Business Impact

As this contract was awarded under full and open competition and does not indicate a small business set-aside, it is unlikely that small businesses were specifically targeted for the prime contract. However, large prime contractors like Deloitte & Touche LLP often engage small businesses as subcontractors to fulfill specific requirements or to meet small business subcontracting goals. The extent of small business participation would depend on the subcontracting plan, if any, associated with this award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of Defense. Performance monitoring, invoice review, and adherence to the contract terms are key oversight functions. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction may apply if fraud, waste, or abuse is suspected.

Related Government Programs

Management and Consulting Services
Professional Services Contracts
Department of Defense IT and Support Services
Administrative Support Contracts

Risk Flags

Potential for cost overruns due to labor-hours pricing model.
Need for strong contract oversight to manage scope and ensure value.
Complexity of managing consulting services for a large organization like DoD.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.3 million to DELOITTE & TOUCHE LLP. TAS::97 0100::TAS 200410!001310!2100!W74V8H!DEF. CONTRACT. CMD. - WASHINGTON!GS23F9801H !C!N! !N!W74V8H04F0260! !20040318!20040930!187107958!187107958!001664820!N!DELOITTE&TOUCHE L L P !1750 TYSONS BLVD !MC LEAN !VA!22102!50000!001!11!WASHINGTON !DISTRICT OF COLUMBIA !D.C. !+000004927380!N!N!000000000000!9999!MISCELLANEOUS ITEMS !S1 !SERVICES !000 !* !541611!A!A

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 Army).

What is the total obligated amount?

The obligated amount is $20.3 million.

What is the period of performance?

Start: 2004-03-18. End: 2007-03-30.

What specific administrative and general management challenges is the Department of Defense seeking to address with this contract?

The provided data indicates the contract is for 'Administrative Management and General Management Consulting Services' (NAICS 541611). While the specific challenges are not detailed, such contracts typically aim to improve organizational efficiency, streamline processes, enhance strategic planning, implement new management techniques, or address complex organizational issues within large entities like the Department of Defense. These could range from optimizing resource allocation and improving internal communication to developing new performance metrics or advising on organizational restructuring. The substantial value suggests a broad or critical set of issues being addressed.

How does the $18.7 million value compare to typical consulting contracts for the Department of Defense?

The $18.7 million contract value is significant but not unusual for large-scale consulting engagements within the Department of Defense. The DoD frequently awards multi-million dollar contracts for a wide array of services, including management consulting, IT support, and strategic planning. Contracts of this magnitude often span multiple years and involve complex problem-solving or extensive support. Benchmarking against similar contracts for administrative and general management consulting would place this award in the mid-to-high range, reflecting the scale and potential duration of the services required. The duration of over three years (1107 days) also contributes to the overall value.

What are the potential risks associated with a labor-hours contract of this size and duration?

Labor-hours contracts, especially at this value ($18.7M) and duration (over 3 years), carry inherent risks. The primary risk is cost escalation if labor hours are not efficiently utilized or if the scope of work expands without proper controls (scope creep). There's also a risk that the projected hours may not align with actual needs, leading to either overspending or underutilization of contractor expertise. Ensuring the quality and effectiveness of the consulting advice delivered under a labor-hours model requires robust oversight, clear performance metrics, and regular progress reviews to ensure the contractor remains focused on delivering value and achieving the stated objectives.

What is Deloitte & Touche LLP's track record with federal government contracts, particularly with the Department of Defense?

Deloitte & Touche LLP, now operating as Deloitte, is a major professional services firm with a long and extensive history of contracting with the U.S. federal government, including the Department of Defense. They have been awarded numerous contracts across various agencies for a wide range of services, including management consulting, IT, cybersecurity, and financial advisory. Their track record generally indicates significant capacity and experience in handling large, complex government projects. While specific performance details for every contract are not publicly available, their continued success in winning competitive bids suggests a generally positive performance history and strong capabilities recognized by federal agencies.

How does the 'Administrative Management and General Management Consulting Services' classification (NAICS 541611) typically translate into services delivered?

NAICS code 541611 covers establishments primarily engaged in providing advice and assistance to businesses and other organizations on administrative and general management issues. This includes areas such as strategic and organizational planning, financial planning and control, marketing, human resource policies, and production management. For a contract like this with the DoD, it could involve services like improving internal processes, developing performance management systems, advising on organizational structure, enhancing operational efficiency, or implementing best practices in management and administration across various departments or units within the agency.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Deloitte LLP (UEI: 014127109)

Address: 1750 TYSONS BLVD, MC LEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F9801H

IDV Type: FSS

Timeline