VA Awards $32M Financial Management Support to KPMG LLP Under Full and Open Competition

Contract Overview

Contract Amount: $32,070,631 ($32.1M)

Contractor: Kpmg LLP

Awarding Agency: Department of Veterans Affairs

Start Date: 2019-08-07

End Date: 2024-04-30

Contract Duration: 1,728 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: REQUIREMENT IS FOR EXPERT FINANCIAL MANAGEMENT SUPPORT SERVICES FOR FINANCIAL POLICIES, FINANCIAL REPORTING, AND FINANCIAL IMPROVEMENT EFFORTS, INCLUDING DEVELOPMENT AND/OR REVIEW OF FINANCIAL ESTIMATES, ANALYSES, REMEDIATION, AND DATA CLEANUP.

Place of Performance

Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102

State: Virginia Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $32.1 million to KPMG LLP for work described as: REQUIREMENT IS FOR EXPERT FINANCIAL MANAGEMENT SUPPORT SERVICES FOR FINANCIAL POLICIES, FINANCIAL REPORTING, AND FINANCIAL IMPROVEMENT EFFORTS, INCLUDING DEVELOPMENT AND/OR REVIEW OF FINANCIAL ESTIMATES, ANALYSES, REMEDIATION, AND DATA CLEANUP. Key points: 1. Significant contract value of $32.07 million for expert financial management support. 2. KPMG LLP, a major accounting firm, is the awardee. 3. The contract was awarded under full and open competition, indicating a competitive process. 4. Services include financial policies, reporting, improvement, estimation, analysis, and data cleanup.

Value Assessment

Rating: good

The contract value of $32.07 million appears reasonable for comprehensive financial management support services over its duration. Benchmarking against similar large-scale financial consulting contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust process for soliciting and evaluating proposals. This method generally promotes competitive pricing and ensures the government receives best value.

Taxpayer Impact: The competitive award process is expected to yield fair pricing, maximizing the value of taxpayer funds spent on essential financial management services.

Public Impact

Improved financial reporting and policy adherence within the VA. Enhanced financial data accuracy and cleanup efforts. Support for critical financial improvement initiatives. Potential for more efficient use of taxpayer funds through better financial management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration extends over multiple years, requiring ongoing monitoring.
Reliance on a single contractor for critical financial functions.

Positive Signals

Awarded through full and open competition.
Services address core financial management needs.
Experienced contractor selected.

Sector Analysis

This contract falls within the professional services sector, specifically accounting and financial consulting. Spending in this area is crucial for government agencies to maintain fiscal integrity and comply with regulations.

Small Business Impact

The contract was awarded to KPMG LLP, a large business. There is no indication of small business participation in this specific award, which is common for large, complex professional services contracts.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. The use of a delivery order under a larger contract structure implies established oversight mechanisms are in place.

Related Government Programs

Offices of Certified Public Accountants
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Contract duration
Reliance on a single vendor
Potential for cost overruns if not managed closely
Need for robust performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $32.1 million to KPMG LLP. REQUIREMENT IS FOR EXPERT FINANCIAL MANAGEMENT SUPPORT SERVICES FOR FINANCIAL POLICIES, FINANCIAL REPORTING, AND FINANCIAL IMPROVEMENT EFFORTS, INCLUDING DEVELOPMENT AND/OR REVIEW OF FINANCIAL ESTIMATES, ANALYSES, REMEDIATION, AND DATA CLEANUP.

Who is the contractor on this award?

The obligated recipient is KPMG LLP.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $32.1 million.

What is the period of performance?

Start: 2019-08-07. End: 2024-04-30.

What specific metrics will be used to measure the success of KPMG's financial improvement efforts?

Success metrics should focus on quantifiable improvements in financial reporting accuracy, reduction in audit findings, timeliness of financial statements, and efficiency gains in financial processes. Key Performance Indicators (KPIs) related to data integrity and remediation progress are also essential for tracking effectiveness and ensuring the contractor meets the VA's objectives.

What are the potential risks associated with relying on a single contractor for such critical financial functions?

Risks include vendor lock-in, potential for complacency, and disruption if the contractor faces issues. Mitigation strategies involve clear performance standards, regular reviews, and contingency planning for service continuity. The competitive award process helps mitigate initial risk by selecting a qualified vendor.

How does this contract contribute to the VA's overall financial health and accountability?

This contract directly supports the VA's financial health by providing expert assistance in managing complex financial policies, reporting, and improvement initiatives. By ensuring accurate financial data and processes, it enhances accountability and supports informed decision-making, ultimately contributing to better stewardship of public funds.

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: 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: $47,810,058

Exercised Options: $32,943,147

Current Obligation: $32,070,631

Actual Outlays: $12,232,711

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $2,194,489

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F275CA

IDV Type: FSS

Timeline