DOJ Awards $3.3M Contract to Ernst & Young for Accounting Services
Contract Overview
Contract Amount: $3,301,303 ($3.3M)
Contractor: Ernst & Young LLP
Awarding Agency: Department of Justice
Start Date: 2024-10-01
End Date: 2026-09-30
Contract Duration: 729 days
Daily Burn Rate: $4.5K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: FY25 USMS A-123 ORDER
Place of Performance
Location: NEW YORK, NEW YORK County, NEW YORK, 10001
State: New York Government Spending
Plain-Language Summary
Department of Justice obligated $3.3 million to ERNST & YOUNG LLP for work described as: FY25 USMS A-123 ORDER Key points: 1. Contract awarded to a large, established firm (Ernst & Young). 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is for accounting services, a common professional service need. 4. The duration is two years, with a potential for extension. 5. No specific small business participation was noted.
Value Assessment
Rating: good
The contract value of $3.3M over two years appears reasonable for specialized accounting services. Benchmarking against similar contracts for CPA services within the federal government 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, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: The use of full and open competition is expected to yield a fair price, benefiting taxpayers by avoiding inflated costs.
Public Impact
Ensures continued access to essential accounting and auditing expertise for the Department of Justice. Supports the operational efficiency of various DOJ offices and divisions. The contract's success relies on the quality of services provided by Ernst & Young.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of explicit small business participation goals.
- Potential for cost overruns if time and materials basis is not closely managed.
Positive Signals
- Awarded through full and open competition.
- Contracted with a reputable firm with demonstrated expertise.
- Clear start and end dates for service delivery.
Sector Analysis
This contract falls within the professional services sector, specifically accounting and auditing. Federal spending in this area is consistent, supporting agency operations and compliance requirements. Benchmarks for similar contracts vary based on scope and duration.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). While not always required, agencies often have goals to include small businesses in contracting opportunities.
Oversight & Accountability
The contract is subject to standard federal procurement oversight. The Department of Justice's procurement office is responsible for ensuring compliance with regulations and contract terms.
Related Government Programs
- Offices of Certified Public Accountants
- Department of Justice Contracting
- Offices, Boards and Divisions Programs
Risk Flags
- Time and Materials pricing structure.
- No explicit small business participation.
- Potential for scope creep without clear deliverables.
- Reliance on a single vendor for critical services.
Tags
offices-of-certified-public-accountants, department-of-justice, ny, bpa-call, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $3.3 million to ERNST & YOUNG LLP. FY25 USMS A-123 ORDER
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 $3.3 million.
What is the period of performance?
Start: 2024-10-01. End: 2026-09-30.
What specific accounting functions will Ernst & Young perform under this contract?
The contract specifies accounting services under NAICS code 541211 (Offices of Certified Public Accountants). This typically includes a range of services such as auditing, tax preparation, bookkeeping, and financial consulting. The exact scope would be detailed in the contract's statement of work, outlining specific tasks and deliverables required by the Department of Justice.
What is the risk associated with the Time and Materials (T&M) pricing structure?
Time and Materials contracts carry a risk of cost escalation if not managed diligently. The government pays for the actual time spent by personnel and the cost of materials used. Without clear ceilings and robust oversight, this structure can lead to higher-than-anticipated costs compared to fixed-price contracts. Effective monitoring of labor hours and material expenses is crucial.
How does this contract contribute to the overall effectiveness of the Department of Justice's financial operations?
By securing specialized accounting services from a reputable firm like Ernst & Young, the DOJ ensures it has the necessary expertise for accurate financial reporting, compliance, and auditing. This supports the agency's mission by maintaining financial integrity and accountability, allowing internal staff to focus on core governmental functions.
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
Pricing Type: TIME AND MATERIALS (Y)
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: $3,301,303
Exercised Options: $3,301,303
Current Obligation: $3,301,303
Actual Outlays: $447,929
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 15JPSS20A00000060
IDV Type: BPA
Timeline
Start Date: 2024-10-01
Current End Date: 2026-09-30
Potential End Date: 2026-09-30 00:00:00
Last Modified: 2026-03-19
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