DOJ's $2.07M Audit Support Contract with EY Faces Scrutiny Amidst Full and Open Competition

Contract Overview

Contract Amount: $2,074,098 ($2.1M)

Contractor: Ernst & Young LLP

Awarding Agency: Department of Justice

Start Date: 2021-08-09

End Date: 2026-08-09

Contract Duration: 1,826 days

Daily Burn Rate: $1.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: LABOR HOURS

Sector: Other

Official Description: AUDIT AND FINANCIAL MANAGEMENT SUPPORT - USMS-AFD

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: AUDIT AND FINANCIAL MANAGEMENT SUPPORT - USMS-AFD Key points: 1. The contract awarded to Ernst & Young LLP for audit and financial management support is valued at $2.07 million. 2. Awarded under full and open competition, the contract aims to provide essential financial services to the Department of Justice. 3. Potential risks include ensuring continued value for money and effective oversight of the services provided. 4. The sector is professional services, specifically accounting and auditing, a common area for federal contracting.

Value Assessment

Rating: fair

The contract's value of $2.07 million over five years suggests a moderate annual spend. Benchmarking against similar audit and financial management support contracts would be necessary to definitively assess pricing fairness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a competitive bidding process. This method generally promotes price discovery and aims to secure the best value for the government.

Taxpayer Impact: The competitive award process suggests that taxpayer funds are being utilized efficiently, though ongoing monitoring is needed to ensure sustained value.

Public Impact

Ensures critical financial management and audit functions within the Department of Justice are supported. Provides specialized expertise that may not be readily available in-house. The contract's duration allows for continuity of essential services over a significant period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data.
Potential for scope creep over the contract's five-year term.
Ensuring the 'labor hours' pricing model remains cost-effective.

Positive Signals

Awarded via full and open competition.
Contract supports essential government functions.
Experienced contractor (Ernst & Young LLP).

Sector Analysis

This contract falls within the professional services sector, specifically accounting and auditing. Federal spending in this area is substantial, supporting various agency functions from financial oversight to compliance.

Small Business Impact

The contract data indicates that small businesses were not involved in this specific award, as it was awarded to a large, established firm. There is no indication of small business set-asides or subcontracting requirements.

Oversight & Accountability

Oversight will be crucial to ensure Ernst & Young LLP meets performance expectations and delivers value throughout the contract's term. The Department of Justice's Offices, Boards and Divisions are responsible for managing this agreement.

Related Government Programs

Offices of Certified Public Accountants
Department of Justice Contracting
Offices, Boards and Divisions Programs

Risk Flags

Potential for cost overruns with labor-hour contracts.
Need for clear performance metrics and deliverables.
Ensuring continued value for money over the contract's five-year term.
Limited visibility into specific services rendered without further detail.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $2.1 million to ERNST & YOUNG LLP. AUDIT AND FINANCIAL MANAGEMENT SUPPORT - USMS-AFD

Who is the contractor on this award?

The obligated recipient is ERNST & YOUNG LLP.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $2.1 million.

What is the period of performance?

Start: 2021-08-09. End: 2026-08-09.

What specific audit and financial management services are being provided under this contract, and how do they align with the USMS-AFD's core mission objectives?

The contract, identified by NAICS code 541211 (Offices of Certified Public Accountants), likely encompasses a range of services including financial statement audits, internal control assessments, accounting advisory, and potentially forensic accounting. These services are critical for ensuring fiscal responsibility, compliance with regulations, and supporting the operational integrity of the USMS-AFD.

How will the Department of Justice ensure that the 'labor hours' pricing model remains cost-effective and prevents potential overruns over the 1826-day contract duration?

Effective oversight is key. The DOJ should implement robust monitoring of labor hours, track the types and levels of personnel utilized, and compare actual hours against budgeted estimates. Regular performance reviews and clear deliverables tied to payment milestones can help control costs and ensure the labor hours translate into tangible value.

Given the full and open competition, what were the key differentiators that led to Ernst & Young LLP being selected over other potential bidders for this audit support contract?

While the data confirms full and open competition, the specific differentiators are not detailed. Typically, selection would be based on a combination of factors such as technical approach, past performance, management plan, key personnel qualifications, and price. Ernst & Young likely presented a compelling proposal that best met the government's requirements and offered the most advantageous value proposition.

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

Offers Received: 8

Pricing Type: LABOR HOURS (Z)

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: $2,074,098

Exercised Options: $2,074,098

Current Obligation: $2,074,098

Actual Outlays: $1,644,237

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 15JPSS21A00000068

IDV Type: BPA

Timeline