PBGC Integrated Audit Contract Awarded to KPMG LLP for $4.1M, Covering 2 Years

Contract Overview

Contract Amount: $4,099,383 ($4.1M)

Contractor: Kpmg LLP

Awarding Agency: Department of the Interior

Start Date: 2025-02-01

End Date: 2027-01-31

Contract Duration: 729 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE PBGC HAS A REQUIREMENT FOR CONDUCTING THE INTEGRATED AUDIT IN ACCORDANCE WITH AUDITING STANDARDS GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA (GAAS), GOVERNMENT AUDITING STANDARDS, ISSUED BY THE COMPTROLLER GENERAL OF THE UNITED STATES (GAG

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $4.1 million to KPMG LLP for work described as: THE PBGC HAS A REQUIREMENT FOR CONDUCTING THE INTEGRATED AUDIT IN ACCORDANCE WITH AUDITING STANDARDS GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA (GAAS), GOVERNMENT AUDITING STANDARDS, ISSUED BY THE COMPTROLLER GENERAL OF THE UNITED STATES (GAG Key points: 1. KPMG LLP, a major accounting firm, secured this contract. 2. The contract is for integrated audit services, adhering to GAAS and GAGAS. 3. The Department of the Interior is the contracting agency. 4. This is a firm-fixed-price contract, indicating predictable costs.

Value Assessment

Rating: good

The $4.1M contract value for a 2-year integrated audit appears reasonable given the scope and the reputation of the awarded firm. Benchmarking against similar government audit contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple qualified firms can bid.

Taxpayer Impact: Taxpayer funds are being used efficiently through a competitive bidding process for essential audit services.

Public Impact

Ensures financial integrity and accountability of the PBGC. Provides assurance to stakeholders regarding PBGC's financial reporting. Supports effective management and oversight of PBGC operations.

Waste & Efficiency Indicators

Waste Risk Score: 100 / 10

Warning Flags

Potential for scope creep if audit requirements expand.
Reliance on a single firm for critical audit functions.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract provides cost certainty.
Experienced contractor (KPMG LLP).

Sector Analysis

The 'Offices of Certified Public Accountants' (NAICS 541211) sector encompasses firms providing accounting, tax preparation, bookkeeping, and payroll services. Government audit contracts are common within this sector to ensure compliance and financial oversight.

Small Business Impact

The contract was awarded under full and open competition and does not indicate any specific set-aside for small businesses. The awarded firm, KPMG LLP, is a large, established entity.

Oversight & Accountability

The Department of the Interior's oversight ensures the audit is conducted according to established standards. The firm-fixed-price contract provides a clear framework for deliverables and payments.

Related Government Programs

Offices of Certified Public Accountants
Department of the Interior Contracting
Departmental Offices Programs

Risk Flags

Contract duration of 2 years may limit long-term relationship benefits.
No explicit mention of small business participation.
Potential for audit findings that require significant corrective action.
Reliance on external auditors for critical oversight function.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $4.1 million to KPMG LLP. THE PBGC HAS A REQUIREMENT FOR CONDUCTING THE INTEGRATED AUDIT IN ACCORDANCE WITH AUDITING STANDARDS GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA (GAAS), GOVERNMENT AUDITING STANDARDS, ISSUED BY THE COMPTROLLER GENERAL OF THE UNITED STATES (GAG

Who is the contractor on this award?

The obligated recipient is KPMG LLP.

Which agency awarded this contract?

Awarding agency: Department of the Interior (Departmental Offices).

What is the total obligated amount?

The obligated amount is $4.1 million.

What is the period of performance?

Start: 2025-02-01. End: 2027-01-31.

What is the specific scope of the 'integrated audit' and how does it align with PBGC's operational risks?

The integrated audit likely encompasses both financial statement audits and internal control audits, as per GAAS and GAGAS. This dual focus aims to provide reasonable assurance regarding the accuracy of financial reporting and the effectiveness of internal controls over financial reporting. The specific alignment with PBGC's operational risks would depend on the detailed audit plan, which should identify key risk areas within the PBGC's operations, such as pension plan asset management, liability valuation, and administrative expenses.

How does the firm-fixed-price contract structure mitigate potential cost overruns for this audit?

A firm-fixed-price (FFP) contract establishes a ceiling price that the contractor must not exceed. This structure shifts the risk of cost overruns to the contractor, incentivizing them to manage resources efficiently and control expenses. For an audit, where the scope is generally well-defined by auditing standards, an FFP contract provides predictability for the government and encourages the contractor to perform the work within the agreed-upon budget.

What mechanisms are in place to ensure the quality and independence of the audit performed by KPMG LLP?

Quality and independence are typically ensured through several mechanisms. Government auditing standards (GAGAS) mandate strict independence requirements. The contracting agency (Department of the Interior) will monitor performance and adherence to the contract terms. Furthermore, KPMG LLP, as a reputable firm, is subject to its own internal quality control systems and external peer reviews mandated by professional bodies, which help maintain audit quality and ethical conduct.

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

Solicitation ID: 140D0424Q0282

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8350 BROAD ST STE 900, MC LEAN, VA, 22102

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $10,367,117

Exercised Options: $4,099,383

Current Obligation: $4,099,383

Actual Outlays: $2,164,894

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $115,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F275CA

IDV Type: FSS

Timeline