HHS OIG Audit Support Services Contract Awarded to Ernst & Young for $30.3M
Contract Overview
Contract Amount: $30,328,590 ($30.3M)
Contractor: Ernst & Young LLP
Awarding Agency: General Services Administration
Start Date: 2024-01-08
End Date: 2027-01-07
Contract Duration: 1,095 days
Daily Burn Rate: $27.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: HHS OIG FINANCIAL STATEMENT AUDIT SUPPORT SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20407
Plain-Language Summary
General Services Administration obligated $30.3 million to ERNST & YOUNG LLP for work described as: HHS OIG FINANCIAL STATEMENT AUDIT SUPPORT SERVICES Key points: 1. Contract awarded to a single large business, Ernst & Young LLP. 2. The contract is for financial statement audit support services. 3. The contract duration is three years, with a total value of $30.3M. 4. This falls under the Offices of Certified Public Accountants NAICS code. 5. The contract was awarded using full and open competition.
Value Assessment
Rating: good
The contract value of $30.3M for three years of audit support services appears reasonable given the scope. Benchmarking against similar large-scale audit support contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust price discovery process. This method generally leads to competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for essential audit support services, ensuring financial accountability within HHS.
Public Impact
Ensures financial integrity and accountability within the Department of Health and Human Services. Supports the HHS Office of Inspector General in its oversight mission. Provides critical services for the accurate reporting of HHS financial statements.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Positive Signals
- Full and open competition utilized.
- Firm Fixed Price contract type.
- Awarded to a reputable audit firm.
Sector Analysis
This contract falls within the professional services sector, specifically accounting and auditing. Spending in this area is crucial for government accountability and compliance.
Small Business Impact
The contract was awarded to a large business and did not include specific set-asides for small businesses. This limits opportunities for small businesses in this particular contract.
Oversight & Accountability
The contract is subject to standard federal procurement oversight. The HHS OIG's role in auditing HHS finances provides an inherent layer of accountability.
Related Government Programs
- Offices of Certified Public Accountants
- General Services Administration Contracting
- Federal Acquisition Service Programs
Risk Flags
- No small business participation noted.
- Potential for vendor lock-in with a single large provider.
- Dependence on external firm for critical financial oversight functions.
Tags
offices-of-certified-public-accountants, general-services-administration, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $30.3 million to ERNST & YOUNG LLP. HHS OIG FINANCIAL STATEMENT AUDIT SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is ERNST & YOUNG LLP.
Which agency awarded this contract?
Awarding agency: General Services Administration (Federal Acquisition Service).
What is the total obligated amount?
The obligated amount is $30.3 million.
What is the period of performance?
Start: 2024-01-08. End: 2027-01-07.
What is the benchmark cost for similar audit support services for an agency of HHS's size?
Benchmarking similar audit support services for an agency of HHS's size is complex due to varying scopes of work, agency complexity, and specific audit requirements. However, contracts of this magnitude typically range from tens to hundreds of millions of dollars over several years, depending on the level of detail and breadth of services required. The $30.3M for three years suggests a significant but potentially competitive rate for comprehensive support.
What are the potential risks associated with relying on a single large firm for critical audit support?
Relying on a single large firm for critical audit support can introduce risks such as over-reliance, potential for price increases in future contracts, and limited flexibility if the firm's priorities shift. However, using a well-established firm like Ernst & Young also brings extensive expertise and resources, potentially mitigating risks related to service quality and timely delivery.
How effectively does this contract support the HHS OIG's mission of ensuring program integrity?
This contract directly supports the HHS OIG's mission by providing essential expertise for financial statement audits. Accurate and thorough audits are fundamental to identifying inefficiencies, fraud, waste, and abuse within HHS programs, thereby enhancing program integrity and ensuring taxpayer funds are used appropriately and effectively.
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: 47QFDA23Q0043
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $80,314,318
Exercised Options: $30,601,348
Current Obligation: $30,328,590
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $159,614
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS00F290CA
IDV Type: FSS
Timeline
Start Date: 2024-01-08
Current End Date: 2027-01-07
Potential End Date: 2029-01-07 00:00:00
Last Modified: 2025-12-30
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