DOJ's FBI awards $2.1M accounting services contract to Ernst & Young LLP for one year

Contract Overview

Contract Amount: $2,086,478 ($2.1M)

Contractor: Ernst & Young LLP

Awarding Agency: Department of Justice

Start Date: 2025-08-03

End Date: 2026-08-02

Contract Duration: 364 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ADMINISTRATIVE & PROFESSIONAL SUPPORT

Place of Performance

Location: NEW YORK, NEW YORK County, NEW YORK, 10001

State: New York Government Spending

Plain-Language Summary

Department of Justice obligated $2.1 million to ERNST & YOUNG LLP for work described as: ADMINISTRATIVE & PROFESSIONAL SUPPORT Key points: 1. Contract value appears reasonable for specialized accounting services. 2. Full and open competition suggests potential for competitive pricing. 3. Contract duration is standard for this type of service. 4. Fixed-price contract shifts performance risk to the contractor. 5. Services align with standard accounting support needs for federal agencies.

Value Assessment

Rating: good

The contract value of approximately $2.1 million for a one-year period for accounting services appears to be within a reasonable range for a firm of Ernst & Young's caliber. Benchmarking against similar contracts for accounting and auditing services for federal agencies of this size and scope would provide a more precise value assessment. However, given the contractor's reputation and the nature of the services, the pricing is likely competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. This process generally leads to a more competitive environment, potentially resulting in better pricing and service offerings for the government. The number of bidders and the specific evaluation criteria would further illuminate the strength of the competition.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it maximizes the potential for cost savings through a robust bidding process.

Public Impact

The Federal Bureau of Investigation (FBI) will benefit from enhanced accounting and financial management support. Services include accounting, auditing, and potentially financial advisory functions. The contract's impact is primarily administrative, supporting the FBI's operational efficiency. The workforce implications are minimal, as this contract procures external professional services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded to a reputable firm with extensive experience in government contracting.
Contract type is Firm Fixed Price, which provides cost certainty.
Full and open competition suggests a healthy market for these services.

Sector Analysis

This contract falls within the Administrative & Professional Support sector, specifically the Offices of Certified Public Accountants subsector. The market for federal accounting and auditing services is substantial, with numerous large and small firms competing for government contracts. This award to Ernst & Young LLP is consistent with the trend of major professional services firms securing significant federal contracts.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the nature and value of the services, it is unlikely that significant subcontracting opportunities for small businesses will be mandated, though the prime contractor may engage them voluntarily.

Oversight & Accountability

Oversight will likely be managed by the contracting officer and the FBI's program officials responsible for financial management. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Bureau of Investigation Financial Services
Department of Justice Administrative Support Contracts
Accounting and Auditing Services for Federal Agencies

Risk Flags

Contract duration is relatively short (1 year), potentially requiring follow-on contracts.
No specific performance metrics or KPIs were detailed in the provided data.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $2.1 million to ERNST & YOUNG LLP. ADMINISTRATIVE & PROFESSIONAL SUPPORT

Who is the contractor on this award?

The obligated recipient is ERNST & YOUNG LLP.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $2.1 million.

What is the period of performance?

Start: 2025-08-03. End: 2026-08-02.

What is Ernst & Young LLP's track record with federal contracts, particularly within the Department of Justice?

Ernst & Young LLP (EY) has a significant track record of performing federal contracts across various agencies, including the Department of Justice (DOJ). Their experience often spans complex financial services, auditing, cybersecurity, and management consulting. For the DOJ, EY has previously been awarded contracts for services such as financial statement audits, forensic accounting, and program management support. Their extensive experience in the public sector suggests a strong understanding of federal regulations, procurement processes, and reporting requirements. This specific contract for accounting services builds upon that established relationship and demonstrated capability within the DOJ.

How does the $2.1 million contract value compare to similar accounting service contracts awarded by the FBI or other large federal agencies?

The $2.1 million contract value for a one-year term of accounting services is generally considered moderate for a large federal agency like the FBI, especially when awarded to a 'Big Four' firm like Ernst & Young. Comparable contracts for similar professional accounting and auditing services can range from hundreds of thousands to tens of millions of dollars annually, depending on the scope, duration, and complexity. For instance, contracts for comprehensive financial statement audits or extensive forensic investigations might command higher values. This particular award suggests a focused scope of accounting support rather than a broad, multi-year audit or advisory engagement. Benchmarking against contracts for similar support functions within agencies like the IRS, Treasury, or Defense agencies would provide further context.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential cost overruns if the scope expands beyond the initial estimate (though mitigated by the Firm Fixed Price structure), performance deficiencies by the contractor, or delays in service delivery impacting the FBI's financial operations. Mitigations are in place through the Firm Fixed Price (FFP) contract type, which places the cost risk on EY. Performance standards are expected to be defined in the contract's Statement of Work (SOW), allowing the FBI to monitor progress and hold EY accountable. Regular progress reviews and clear communication channels are standard practices to address potential issues proactively. The FBI's contracting officer and program managers will provide oversight.

What is the expected effectiveness of these accounting services in supporting the FBI's mission?

The expected effectiveness of these accounting services is to ensure the accurate, timely, and compliant financial management of FBI operations. This includes maintaining financial records, processing transactions, potentially assisting with budgeting and financial reporting, and ensuring adherence to federal accounting standards and regulations. By outsourcing these specialized functions to a firm like Ernst & Young, the FBI can leverage expert knowledge and resources, freeing up internal personnel to focus on core law enforcement and investigative activities. Effective accounting support is crucial for financial accountability, resource allocation, and the overall operational integrity of the Bureau.

What have been the historical spending patterns for accounting services by the FBI or the Department of Justice over the past five years?

Historical spending patterns for accounting services by the FBI and the broader Department of Justice (DOJ) typically show consistent investment in financial management and support functions. While specific figures fluctuate annually based on agency needs and budget allocations, the DOJ and its components, including the FBI, regularly contract for services such as auditing, forensic accounting, financial systems support, and general accounting assistance. Spending often increases during periods of heightened investigative activity, new regulatory requirements, or major system implementations. The FBI, in particular, manages a complex budget and requires robust financial controls, necessitating ongoing expenditure on professional accounting services to supplement internal capabilities and ensure compliance.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1 MANHATTAN WEST, NEW YORK, NY, 10001

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

Financial Breakdown

Contract Ceiling: $2,086,478

Exercised Options: $2,086,478

Current Obligation: $2,086,478

Actual Outlays: $1,117,606

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Parent Contract

Parent Award PIID: 15F06721A0003386

IDV Type: BPA

Timeline