DoD's $65M Management Consulting Contract Awarded to Grant Thornton LLP Shows Long Duration and Full Competition

Contract Overview

Contract Amount: $65,102,449 ($65.1M)

Contractor: Grant Thornton LLP

Awarding Agency: Department of Defense

Start Date: 2008-02-21

End Date: 2020-03-29

Contract Duration: 4,420 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: PROCUREMENT ASSISTANCE PROGRAM

Plain-Language Summary

Department of Defense obligated $65.1 million to GRANT THORNTON LLP for work described as: PROCUREMENT ASSISTANCE PROGRAM Key points: 1. Contract awarded via full and open competition, suggesting a robust market for these services. 2. The contract's long duration (over 12 years) may indicate a sustained need for administrative management services. 3. Time and Materials pricing structure can pose cost control challenges if not closely managed. 4. The specific North American Industry Classification System (NAICS) code 541611 points to general management consulting. 5. The contract was a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. No small business set-aside was utilized, indicating the competition was open to all eligible firms.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without knowing the specific services rendered and their impact. The Time and Materials (T&M) pricing model, while common for consulting, can lead to cost overruns if not meticulously monitored. Comparing it to similar administrative management consulting contracts awarded by the Department of the Army would provide better context on whether the $65 million over its lifespan represents a reasonable investment for the services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit bids. This suggests a competitive environment where multiple firms likely vied for the award. The number of bidders is not specified, but the open nature of the competition generally promotes price discovery and potentially better value for the government.

Taxpayer Impact: A full and open competition typically benefits taxpayers by fostering a competitive environment that can drive down prices and improve the quality of services received.

Public Impact

The Department of the Army benefits from administrative management and general management consulting services. These services likely support internal operations, process improvements, and strategic planning within the Army. The geographic impact is likely focused on the Army's operational areas, though specific locations are not detailed. Workforce implications could include support for government personnel or the engagement of specialized consulting expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost escalation due to Time and Materials pricing structure over a long contract duration.
Lack of specific performance metrics makes it difficult to assess the true value and impact of the consulting services.
The extended period of performance (over 12 years) might indicate a lack of urgency or a need for more agile, shorter-term engagements.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent procurement process.
The contract addresses administrative management and general management consulting, critical functions for large organizations like the Army.
The substantial value indicates a significant and ongoing need for these specialized services.

Sector Analysis

The administrative management and general management consulting services sector is a significant part of the professional services market. This contract falls within the broader professional, scientific, and technical services industry. Spending in this sector often supports government efficiency, strategic planning, and operational improvements. Comparable spending benchmarks would typically look at the average contract values and durations for similar consulting services procured by large federal agencies.

Small Business Impact

This contract did not include a small business set-aside, as indicated by 'sb': false. This means the competition was open to all eligible businesses, regardless of size. While this ensures the widest possible pool of potential contractors, it also means that opportunities for small businesses to directly participate in this specific contract were limited unless they were part of a larger subcontracting effort, the details of which are not provided.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. As a delivery order under a potential IDIQ, oversight would also be influenced by the terms of the base contract. Transparency is generally facilitated by contract databases like FPDS, which provide basic award information. Specific accountability measures and Inspector General (IG) jurisdiction would depend on the nature of the services and any performance issues that may arise.

Related Government Programs

Procurement Assistance Program
Department of Defense Administrative Support Contracts
Management and Consulting Services for Federal Agencies

Risk Flags

Potential for cost overruns due to T&M pricing.
Long contract duration may indicate a need for more agile or outcome-based contracting.
Lack of specific performance metrics in summary data hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.1 million to GRANT THORNTON LLP. PROCUREMENT ASSISTANCE PROGRAM

Who is the contractor on this award?

The obligated recipient is GRANT THORNTON 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 $65.1 million.

What is the period of performance?

Start: 2008-02-21. End: 2020-03-29.

What specific types of administrative management and general management consulting services were provided under this contract?

The provided data indicates the contract falls under NAICS code 541611, which covers Administrative Management and General Management Consulting Services. This broad category can encompass a wide range of activities, including organizational structure consulting, strategic planning, process improvement, operational efficiency analysis, change management, and general business advice. Without access to the contract's statement of work (SOW) or task orders, the precise nature of the services rendered remains unspecified. However, given the client is the Department of the Army, these services likely supported internal administrative functions, program management, or efforts to enhance operational effectiveness within the military branch.

How does the $65 million total award value compare to similar contracts for management consulting services within the Department of Defense?

Comparing the $65 million total award value requires context regarding the contract's duration and scope. This contract spanned over 12 years (February 2008 to March 2020), averaging approximately $5.4 million per year. This annual average is within a reasonable range for large-scale management consulting engagements supporting major federal agencies. However, a more precise comparison would necessitate analyzing the specific services delivered, the complexity of the tasks, and the number of personnel involved. Benchmarking against other DoD contracts for similar NAICS codes (541611) awarded during the same period, particularly those with similar durations and full and open competition, would provide a clearer picture of whether this represents a competitive price point for the services rendered.

What are the potential risks associated with the Time and Materials (T&M) contract type used for this award?

The Time and Materials (T&M) contract type, used in this award, presents inherent risks for the government, primarily related to cost control. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee or profit. This structure can lead to cost overruns if the scope of work is not well-defined or if contractor effort is not efficiently managed. For the government, effective oversight is crucial to ensure that hours billed are reasonable and necessary, and that material costs are fair. Without robust monitoring and management, T&M contracts can become more expensive than anticipated, potentially exceeding initial budget estimates.

Given the contract's long duration, what does this suggest about the Army's ongoing needs for management consulting?

The contract's extensive period of performance, spanning from February 21, 2008, to March 29, 2020 (over 12 years), strongly suggests a sustained and ongoing requirement for administrative management and general management consulting services within the Department of the Army. Such long-term engagements typically indicate that the services provided are integral to the organization's operations, strategic objectives, or continuous improvement initiatives. It implies that the Army has consistently relied on external expertise to address complex management challenges, optimize processes, or implement significant organizational changes over an extended period, rather than engaging in discrete, short-term projects.

What is the significance of this contract being a 'Delivery Order' rather than a standalone contract?

The designation of this award as a 'Delivery Order' (aw: DELIVERY ORDER) is significant because it implies that this contract was issued under a larger, pre-existing Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract or a similar type of multiple-award contract vehicle. IDIQ contracts establish terms and conditions for services, but the actual quantities and delivery schedules are defined through individual delivery or task orders. This approach allows agencies to procure services more efficiently as needs arise, leveraging pre-competed contracts. Therefore, the $65 million represents the total value awarded through this specific delivery order, which is part of a potentially larger contract ceiling and scope established by the parent IDIQ.

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: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Grant Thornton International Ltd (UEI: 347201258)

Address: 333 JOHN CARLYLE ST STE 500, ALEXANDRIA, VA, 22314

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $76,710,808

Exercised Options: $76,710,808

Current Obligation: $65,102,449

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS23F9763H

IDV Type: FSS

Timeline