DOJ's Bureau of Prisons awards $4.18M contract to Ernst & Young for financial statement support
Contract Overview
Contract Amount: $4,178,572 ($4.2M)
Contractor: Ernst & Young LLP
Awarding Agency: Department of Justice
Start Date: 2025-04-15
End Date: 2027-04-14
Contract Duration: 729 days
Daily Burn Rate: $5.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: FINANCIAL STATEMENT SUPPORT FOR THE FEDERAL BUREAU OF PRISONS - FINANCE BRANCH
Place of Performance
Location: NEW YORK, NEW YORK County, NEW YORK, 10001
State: New York Government Spending
Plain-Language Summary
Department of Justice obligated $4.2 million to ERNST & YOUNG LLP for work described as: FINANCIAL STATEMENT SUPPORT FOR THE FEDERAL BUREAU OF PRISONS - FINANCE BRANCH Key points: 1. Contract awarded to a Big Four accounting firm, indicating a need for specialized expertise. 2. The $4.18M value is moderate for federal financial audit services. 3. Potential risk of over-reliance on a single large contractor. 4. Spending falls within the professional services sector, specifically accounting and auditing.
Value Assessment
Rating: good
The contract value of $4.18M for a two-year period appears reasonable for comprehensive financial statement support. Benchmarking against similar contracts for federal agencies of comparable size and complexity 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. The use of a BPA Call indicates a pre-negotiated framework, likely leading to efficient pricing.
Taxpayer Impact: Taxpayer funds are being used efficiently through a competitive bidding process for essential financial oversight services.
Public Impact
Ensures financial integrity and accountability within the Bureau of Prisons. Supports accurate reporting of taxpayer funds allocated to correctional facilities. Enhances transparency in federal financial management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in financial statement support.
- Reliance on a single large accounting firm.
Positive Signals
- Full and open competition ensures best value.
- Experienced contractor with established expertise.
Sector Analysis
This contract falls under professional services, specifically accounting and auditing, for the federal government. Spending benchmarks for similar financial statement support contracts vary widely based on agency size and complexity.
Small Business Impact
The contract does not appear to have specific set-asides for small businesses, which is common for highly specialized professional services like large-scale financial audits.
Oversight & Accountability
The Department of Justice's oversight of this contract will be crucial to ensure the quality and timeliness of Ernst & Young's financial statement support, safeguarding taxpayer funds.
Related Government Programs
- Offices of Certified Public Accountants
- Department of Justice Contracting
- Offices, Boards and Divisions Programs
Risk Flags
- Potential for cost overruns with Time and Materials.
- Dependence on a single large contractor.
- Scope creep could increase costs and duration.
- Ensuring data security and confidentiality of sensitive financial information.
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 $4.2 million to ERNST & YOUNG LLP. FINANCIAL STATEMENT SUPPORT FOR THE FEDERAL BUREAU OF PRISONS - FINANCE BRANCH
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 $4.2 million.
What is the period of performance?
Start: 2025-04-15. End: 2027-04-14.
What specific financial statement support services are included in this contract?
The contract likely encompasses a range of services such as audit preparation, financial statement compilation, internal control assessments, and compliance reviews. Detailed scope of work documents would clarify the exact deliverables and reporting requirements.
What is the risk of cost overruns given the Time and Materials pricing structure?
Time and Materials contracts carry inherent risks of cost overruns if not closely managed. Robust oversight, clear task definitions, and regular performance reviews by the DOJ are essential to control costs and ensure the contractor remains within the estimated value.
How will the effectiveness of Ernst & Young's services be measured?
Effectiveness will likely be measured through adherence to Generally Accepted Auditing Standards (GAAS), timely delivery of accurate financial reports, successful completion of audit requirements, and positive feedback from the Bureau of Prisons' finance branch regarding support quality.
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: 4
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: $12,749,340
Exercised Options: $8,407,145
Current Obligation: $4,178,572
Actual Outlays: $1,184,951
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: 15JPSS21A00000068
IDV Type: BPA
Timeline
Start Date: 2025-04-15
Current End Date: 2027-04-14
Potential End Date: 2028-04-14 00:00:00
Last Modified: 2026-04-08
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