Grant Thornton LLP awarded $23.5M GSA task order for SSA financial statement audit services

Contract Overview

Contract Amount: $23,452,864 ($23.5M)

Contractor: Grant Thornton LLP

Awarding Agency: Social Security Administration

Start Date: 2017-12-01

End Date: 2023-02-28

Contract Duration: 1,915 days

Daily Burn Rate: $12.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF GSA TASK ORDER FOR SSA FINANCIAL STATEMENT AUDIT

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22314

State: Virginia Government Spending

Plain-Language Summary

Social Security Administration obligated $23.5 million to GRANT THORNTON LLP for work described as: IGF::CT::IGF GSA TASK ORDER FOR SSA FINANCIAL STATEMENT AUDIT Key points: 1. The contract value represents a significant investment in ensuring the integrity of the Social Security Administration's financial reporting. 2. Competition dynamics for this task order are crucial for assessing value for money in audit services. 3. Performance context is key, as audit quality directly impacts public trust and regulatory compliance. 4. Sector positioning within administrative management and consulting services highlights the specialized nature of financial auditing. 5. Risk indicators may include the complexity of SSA's financial statements and the potential for audit findings.

Value Assessment

Rating: good

The awarded amount of $23.5 million for a period of approximately 5 years for financial statement audit services appears reasonable when benchmarked against similar large-scale federal audit contracts. While specific per-unit cost comparisons are difficult without granular data on audit hours and complexity, the overall contract value suggests a competitive pricing structure was likely achieved through the full and open competition process. The fixed-price nature of the contract also provides cost certainty for the agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This task order was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of competition is a positive sign for price discovery and ensures that the Social Security Administration receives services at a potentially optimal market rate. The specific number of bidders is not provided, but the process itself suggests a robust evaluation of capabilities and pricing.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure high-quality audit services at the best possible price, reducing the risk of overpayment for essential financial oversight.

Public Impact

The primary beneficiaries are the Social Security Administration and its beneficiaries, who rely on accurate financial reporting. Services delivered include comprehensive financial statement audits, ensuring compliance with federal accounting standards. The geographic impact is national, as the SSA serves citizens across the United States. Workforce implications include the employment of auditors and support staff by Grant Thornton LLP.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for audit findings to uncover significant financial irregularities.
Reliance on a single contractor for a critical function like financial auditing.
Complexity of SSA's financial systems may pose challenges for audit efficiency.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Firm Fixed Price contract type provides cost certainty.
Contractor has experience in government contracting and audit services.

Sector Analysis

This contract falls within the Administrative Management and General Management Consulting Services sector (NAICS 541611), specifically focusing on financial auditing. This sector is characterized by a wide range of professional services aimed at improving organizational efficiency and effectiveness. The market for federal audit services is substantial, with numerous firms competing for government contracts. Benchmarking this contract against others in the same category would involve comparing the scope of work, duration, and total value.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the contractor, Grant Thornton LLP, is a large firm. Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. However, large prime contractors often engage small businesses as subcontractors on various projects, though this specific contract's details do not confirm such arrangements.

Oversight & Accountability

Oversight for this task order is primarily provided by the Social Security Administration, which is responsible for monitoring contract performance and ensuring compliance with the Statement of Work. As a GSA Federal Supply Service (FSS) task order, it also falls under GSA's purview. Transparency is facilitated through contract award databases and public reporting. Inspector General jurisdiction would typically lie with the SSA's Office of the Inspector General for any audit-related investigations or findings.

Related Government Programs

GSA Federal Supply Service Contracts
Federal Financial Statement Audits
Social Security Administration IT and Professional Services

Risk Flags

Potential for audit findings impacting public trust
Contractor performance and expertise continuity
Complexity of SSA financial systems

Frequently Asked Questions

What is this federal contract paying for?

Social Security Administration awarded $23.5 million to GRANT THORNTON LLP. IGF::CT::IGF GSA TASK ORDER FOR SSA FINANCIAL STATEMENT AUDIT

Who is the contractor on this award?

The obligated recipient is GRANT THORNTON LLP.

Which agency awarded this contract?

Awarding agency: Social Security Administration (Social Security Administration).

What is the total obligated amount?

The obligated amount is $23.5 million.

What is the period of performance?

Start: 2017-12-01. End: 2023-02-28.

What is Grant Thornton LLP's track record with federal audit contracts?

Grant Thornton LLP has a significant track record of performing audit and financial services for various federal agencies. They are a large, established accounting and consulting firm with extensive experience in government contracting. Their past performance on similar contracts, including financial statement audits for other large federal entities, would have been a key factor in their selection for this task order. Reviewing their contract history with agencies like the Department of Defense, Treasury, or other independent agencies would provide further insight into their capabilities, past performance ratings, and any significant issues encountered on previous federal engagements. This historical data is crucial for assessing their reliability and expertise in handling the complex financial landscape of the Social Security Administration.

How does the value of this contract compare to similar federal audit contracts?

The $23.5 million award for approximately 5 years of financial statement audit services for the Social Security Administration (SSA) can be considered a substantial contract. To benchmark its value, one would compare it to other large-scale federal audit contracts awarded to major accounting firms. For instance, audits for agencies like the Department of Defense, IRS, or other cabinet-level departments often run into tens or even hundreds of millions of dollars over similar periods, reflecting the sheer scale and complexity of their financial operations. The per-year cost for this SSA contract is roughly $4.7 million. This figure needs to be assessed against the size and complexity of the SSA's financial statements, the number of audit hours required, and the specific audit standards mandated. Without detailed scope of work and hour breakdowns, a precise per-unit cost comparison is challenging, but the overall value appears aligned with the magnitude of auditing a federal agency of the SSA's size.

What are the primary risks associated with this contract?

The primary risks associated with this contract revolve around the quality and timeliness of the audit services. A significant risk is the potential for audit findings to reveal material weaknesses or significant deficiencies in the SSA's financial reporting, which could impact public trust and require substantial remediation efforts. Another risk is the contractor's ability to maintain audit staff with the necessary expertise throughout the contract period, especially given the specialized nature of federal accounting and the SSA's unique programs. Furthermore, there's a risk of scope creep or unforeseen complexities in the SSA's financial systems that could lead to cost overruns if not managed effectively, although the firm-fixed-price nature mitigates this for the government. Ensuring the independence and objectivity of the auditors is also paramount to avoid conflicts of interest.

How effective is the full and open competition process in ensuring value for money for this type of service?

The full and open competition process is generally considered the most effective method for ensuring value for money in federal contracting, especially for professional services like financial audits. By allowing all responsible sources to submit bids, it fosters a competitive environment where contractors are incentivized to offer their best pricing and technical solutions. For the SSA's financial audit task order, this process likely led to a more competitive bid from Grant Thornton LLP than would have been achieved through limited or sole-source procurement. The agency can be more confident that the selected contractor offers a fair price for the required services and possesses the necessary qualifications. However, the effectiveness is contingent on the clarity of the solicitation, the evaluation criteria, and the agency's ability to properly assess the proposals received.

What are the historical spending patterns for SSA financial audit services?

Analyzing historical spending patterns for SSA financial audit services would involve examining past contracts awarded for similar functions. This includes looking at the duration, value, and contractors involved in previous audit engagements. Understanding whether the SSA has consistently used GSA task orders or other contracting vehicles, and how spending has trended over time (e.g., increasing, decreasing, or stable), provides context for the current award. For example, if previous audits were significantly less expensive, it might warrant further investigation into the reasons for the increase, such as expanded scope, inflation, or changes in audit requirements. Conversely, if spending has been consistent, it suggests a stable demand and potentially predictable market pricing for these services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting 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: SSA-RFQ-18-1001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Grant Thornton International Ltd

Address: 1000 WILSON BLVD STE 1400, ARLINGTON, VA, 22209

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,452,864

Exercised Options: $23,452,864

Current Obligation: $23,452,864

Actual Outlays: $17,250,448

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS00F143CA

IDV Type: FSS

Timeline