DoD's $23M Accounting Services Contract with KPMG LLP Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $22,994,213 ($23.0M)
Contractor: Kpmg LLP
Awarding Agency: Department of Defense
Start Date: 2016-04-01
End Date: 2017-03-31
Contract Duration: 364 days
Daily Burn Rate: $63.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: Defense
Official Description: ACCOUNTING AND FINANCIAL SERVICES IGF::OT::IGF
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20350
Plain-Language Summary
Department of Defense obligated $23.0 million to KPMG LLP for work described as: ACCOUNTING AND FINANCIAL SERVICES IGF::OT::IGF Key points: 1. The contract value is $22.99 million for accounting and financial services. 2. KPMG LLP was awarded the contract, indicating a competitive procurement process. 3. The contract falls under 'Other Accounting Services' (NAICS 541219). 4. The spending is categorized under the Defense sector, specifically the Department of the Navy.
Value Assessment
Rating: good
The contract was awarded on a cost-no-fee basis. Benchmarking against similar contracts for accounting services is difficult without more specific service details, but the value appears reasonable for a large-scale federal engagement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors are allowed to bid.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by securing the best value.
Public Impact
Ensures financial integrity and accountability within the Department of Defense. Supports critical accounting functions for the Department of the Navy. Provides specialized financial expertise to a major federal agency.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-no-fee structure requires careful monitoring of actual costs incurred.
- Contract duration of one year may necessitate follow-on procurements.
Positive Signals
- Awarded under full and open competition.
- Experienced contractor (KPMG LLP) likely brings significant expertise.
Sector Analysis
This contract falls within the professional services sector, specifically accounting and financial services. Federal spending in this area supports essential government operations and oversight. Benchmarks for similar contracts vary widely based on scope and agency.
Small Business Impact
The contract was awarded to KPMG LLP, a large business. There is no indication that small businesses were involved as subcontractors in this specific award, which is common for large, specialized federal contracts.
Oversight & Accountability
Awarded through full and open competition suggests a degree of oversight in the procurement process. The Department of Defense's Inspector General would typically oversee financial services contracts to ensure compliance and prevent fraud.
Related Government Programs
- Other Accounting Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost-no-fee structure requires diligent cost monitoring.
- Contract duration is relatively short (1 year).
- Lack of specific service details limits deeper analysis.
- No explicit mention of small business participation.
Tags
other-accounting-services, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.0 million to KPMG LLP. ACCOUNTING AND FINANCIAL SERVICES IGF::OT::IGF
Who is the contractor on this award?
The obligated recipient is KPMG LLP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $23.0 million.
What is the period of performance?
Start: 2016-04-01. End: 2017-03-31.
What specific accounting services were provided under this contract, and how did they contribute to the Department of the Navy's mission?
The contract was for 'Other Accounting Services' (NAICS 541219). While specific details are not provided, these services typically include areas like financial statement preparation, auditing support, accounting system analysis, and financial policy development. These functions are crucial for the Department of the Navy's operational efficiency, resource management, and compliance with federal financial regulations.
Given the cost-no-fee structure, what mechanisms were in place to control costs and ensure value for taxpayers?
A cost-no-fee contract means the contractor is reimbursed for allowable costs but does not receive any additional fee. Oversight would focus on ensuring that all claimed costs are reasonable, allocable, and necessary for performing the contract. The Department of Defense likely had contract officers and financial auditors monitoring expenditures closely to prevent overruns and ensure the services delivered were essential.
How does the $23 million contract value compare to typical spending for similar accounting services within the Department of Defense?
The $22.99 million value for a one-year contract for accounting services is substantial, reflecting the complexity and scale of the Department of the Navy's financial operations. Without detailed service breakdowns, direct comparison is challenging. However, large federal agencies often engage major accounting firms for significant financial support, making this value plausible within the context of defense spending.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting Services
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: N0018909RZ056
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: Kpmg L.L.P. (UEI: 001667906)
Address: 1676 INTERNATIONAL DR STE 7000, MCLEAN, 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: $24,304,986
Exercised Options: $24,304,986
Current Obligation: $22,994,213
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $81,260
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0018910DZ028
IDV Type: IDC
Timeline
Start Date: 2016-04-01
Current End Date: 2017-03-31
Potential End Date: 2017-03-31 00:00:00
Last Modified: 2021-04-02
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