DoD's $38.7M Financial Services Contract with KPMG LLP Awarded via Full and Open Competition
Contract Overview
Contract Amount: $38,713,610 ($38.7M)
Contractor: Kpmg LLP
Awarding Agency: Department of Defense
Start Date: 2015-11-18
End Date: 2017-02-28
Contract Duration: 468 days
Daily Burn Rate: $82.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: IGF::OT::IGF!8502676529!FINANCIAL SVCS I
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $38.7 million to KPMG LLP for work described as: IGF::OT::IGF!8502676529!FINANCIAL SVCS I Key points: 1. The contract value of $38.7 million represents a significant investment in financial services. 2. KPMG LLP, a major player, secured this contract, indicating strong competition in the accounting sector. 3. The risk appears moderate, given the established firm and fixed-price contract type. 4. This spending falls within the professional services sector, specifically accounting and auditing.
Value Assessment
Rating: good
The contract value of $38.7M for financial services appears reasonable given the duration and the provider's expertise. Benchmarking against similar large-scale government contracts for accounting and auditing services would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple qualified vendors can bid.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it aims to secure the best value and price for government services.
Public Impact
Taxpayers benefit from competitive bidding processes that aim to reduce costs. The Department of Defense relies on expert financial services to manage its complex budget. This contract supports critical functions within the Defense Logistics Agency.
Waste & Efficiency Indicators
Waste Risk Score: 82 / 10
Warning Flags
- Contract duration of 468 days may lead to potential scope creep or price adjustments if not managed tightly.
- The specific nature of financial services can be complex, requiring diligent oversight to ensure quality and compliance.
Positive Signals
- Awarded via full and open competition, indicating a competitive bidding process.
- Firm Fixed Price contract type helps control costs and provides budget certainty.
- KPMG LLP is a well-established and reputable firm in the financial services industry.
Sector Analysis
This contract falls under professional, scientific, and technical services, specifically accounting and auditing. Government spending in this sector is crucial for financial management and oversight across various agencies.
Small Business Impact
The contract was awarded to KPMG LLP, a large business. There is no indication of small business participation in this specific award, which is common for large, specialized contracts.
Oversight & Accountability
The contract was awarded by the Defense Logistics Agency, part of the Department of Defense, suggesting established oversight mechanisms. The firm fixed price nature of the contract also aids in accountability.
Related Government Programs
- Offices of Certified Public Accountants
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Contract duration may be subject to change orders.
- Potential for cost overruns if scope is not clearly defined.
- Reliance on a single large firm for critical financial services.
- Lack of explicit small business participation.
Tags
offices-of-certified-public-accountants, department-of-defense, va, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.7 million to KPMG LLP. IGF::OT::IGF!8502676529!FINANCIAL SVCS I
Who is the contractor on this award?
The obligated recipient is KPMG LLP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $38.7 million.
What is the period of performance?
Start: 2015-11-18. End: 2017-02-28.
What specific financial services were provided under this contract?
The data indicates the contract was for financial services, with the NAICS code 541211 pointing to Offices of Certified Public Accountants. This typically includes services like auditing, tax preparation, bookkeeping, and financial consulting, essential for managing the Department of Defense's vast financial operations and ensuring compliance.
What is the potential risk associated with the contract's duration and fixed-price nature?
A fixed-price contract for a duration of 468 days (approximately 1.3 years) carries a risk of the contractor absorbing unexpected cost increases, potentially impacting service quality or leading to change requests. Conversely, the government risks overpaying if the initial price was set too high and the scope remains constant.
How effectively does this contract support the Defense Logistics Agency's mission?
This contract likely supports the DLA's mission by providing essential financial expertise for accurate budgeting, auditing, and financial reporting. Reliable financial services are critical for operational efficiency, accountability, and informed decision-making within a large logistical organization like the DLA.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Offices of Certified Public Accountants
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: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Kpmg L.L.P. (UEI: 001667906)
Address: 2001 M ST NW, WASHINGTON, DC, 20036
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $38,713,610
Exercised Options: $38,713,610
Current Obligation: $38,713,610
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SP470311A0017
IDV Type: BPA
Timeline
Start Date: 2015-11-18
Current End Date: 2017-02-28
Potential End Date: 2017-02-28 00:00:00
Last Modified: 2017-05-31
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