Treasury OIG Spends $30.8M on FISMA Audit Services via Full and Open Competition
Contract Overview
Contract Amount: $30,837,383 ($30.8M)
Contractor: Kpmg LLP
Awarding Agency: Department of the Treasury
Start Date: 2018-04-10
End Date: 2025-08-11
Contract Duration: 2,680 days
Daily Burn Rate: $11.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF FISMA AUDIT
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001
Plain-Language Summary
Department of the Treasury obligated $30.8 million to KPMG LLP for work described as: IGF::OT::IGF FISMA AUDIT Key points: 1. Significant contract value of $30.8M for FISMA audit services. 2. Awarded through full and open competition, indicating a competitive market. 3. Potential risk associated with long contract duration (2018-2025). 4. Services fall under accounting and auditing sector.
Value Assessment
Rating: good
The contract value of $30.8M for a 7-year period appears reasonable given the scope of FISMA audits. Benchmarking against similar large-scale IT audit contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust price discovery process. Multiple bidders likely competed, driving a more competitive price for the government.
Taxpayer Impact: The competitive bidding process is expected to yield a fair price, maximizing taxpayer value for these essential audit services.
Public Impact
Ensures compliance with the Federal Information Security Management Act (FISMA). Supports the Treasury OIG's mission to provide independent audits and oversight. Enhances the security posture of Treasury's information systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to price escalation or reduced flexibility.
- Reliance on a single awardee for a significant period.
Positive Signals
- Full and open competition ensures market access and competitive pricing.
- Clear definition of services through a delivery order.
Sector Analysis
This contract falls within the professional services sector, specifically accounting and auditing. Government spending on IT security audits is substantial and driven by regulatory requirements like FISMA.
Small Business Impact
The contract does not indicate any specific set-asides for small businesses, suggesting it was awarded to a large firm based on qualifications and price.
Oversight & Accountability
The Treasury Office of Inspector General is responsible for overseeing this contract, ensuring compliance and performance. The use of a delivery order under a larger contract framework implies ongoing oversight.
Related Government Programs
- Offices of Certified Public Accountants
- Department of the Treasury Contracting
- Office of Inspector General Programs
Risk Flags
- Long contract duration (7 years).
- Potential for vendor lock-in.
- Scope creep risk if not managed tightly.
- Dependence on contractor expertise.
Tags
offices-of-certified-public-accountants, department-of-the-treasury, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $30.8 million to KPMG LLP. IGF::OT::IGF FISMA AUDIT
Who is the contractor on this award?
The obligated recipient is KPMG LLP.
Which agency awarded this contract?
Awarding agency: Department of the Treasury (Office of Inspector General).
What is the total obligated amount?
The obligated amount is $30.8 million.
What is the period of performance?
Start: 2018-04-10. End: 2025-08-11.
What is the specific scope of work covered by this $30.8M FISMA audit contract?
The contract likely covers comprehensive FISMA compliance audits, including assessments of information security policies, procedures, and controls across various Treasury systems. This would involve evaluating risk management, incident response, and contingency planning to ensure adherence to federal security standards and identify areas for improvement.
What are the key performance indicators (KPIs) used to measure the success of this audit contract?
Key performance indicators would likely include the timely completion of audit reports, the accuracy and thoroughness of findings, the identification of significant security vulnerabilities, and the contractor's responsiveness to OIG inquiries. Adherence to audit standards and the ability to provide actionable recommendations for enhancing security posture are also critical.
How does the pricing structure compare to industry benchmarks for similar FISMA audit services?
Without specific pricing details or comparable contract data, a direct benchmark is difficult. However, the firm-fixed-price structure suggests a defined cost. The competitive nature of the award implies the price is likely within a reasonable range, but a detailed cost analysis against market rates would be needed for a definitive assessment.
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
Solicitation ID: 2031MB18Q00003
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 8350 BROAD ST STE 900, MC LEAN, 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: $34,026,963
Exercised Options: $30,837,383
Current Obligation: $30,837,383
Actual Outlays: $23,671,081
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $863,434
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS00F275CA
IDV Type: FSS
Timeline
Start Date: 2018-04-10
Current End Date: 2025-08-11
Potential End Date: 2025-08-11 00:00:00
Last Modified: 2026-03-10
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