DOT Awards $2.9M for Enterprise Investment Portfolio Management to Ernst & Young LLP
Contract Overview
Contract Amount: $2,930,266 ($2.9M)
Contractor: Ernst & Young LLP
Awarding Agency: Department of Transportation
Start Date: 2024-04-29
End Date: 2026-04-30
Contract Duration: 731 days
Daily Burn Rate: $4.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: ENTERPRISE INVESTMENT PORTFOLIO MANAGEMENT
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Transportation obligated $2.9 million to ERNST & YOUNG LLP for work described as: ENTERPRISE INVESTMENT PORTFOLIO MANAGEMENT Key points: 1. Contract awarded for administrative management and general management consulting services. 2. Ernst & Young LLP is the contractor, with a contract value of $2.9M. 3. The contract falls under the Federal Aviation Administration's purview. 4. This award is for delivery order under a larger contract.
Value Assessment
Rating: good
The contract value of $2.9M for consulting services appears reasonable given the duration and scope. Benchmarking against similar large-scale management consulting contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for essential management consulting services to improve investment portfolio management within the FAA.
Public Impact
Enhances strategic decision-making for federal investments. Aims to optimize resource allocation and project success rates. Supports the Federal Aviation Administration's operational efficiency. Provides expert guidance on managing complex investment portfolios.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in consulting engagements.
- Reliance on external expertise may limit internal knowledge transfer.
Positive Signals
- Leverages established expertise from a reputable firm.
- Full and open competition suggests competitive pricing.
- Clear delivery order structure provides defined deliverables.
Sector Analysis
This contract falls within the professional services sector, specifically management consulting. Spending in this area is common for government agencies seeking specialized expertise to improve operations and strategic planning.
Small Business Impact
The data indicates this contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
The contract is a delivery order under a larger award, suggesting it has undergone initial oversight. Ongoing monitoring of performance and deliverables will be crucial for accountability.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Transportation Contracting
- Federal Aviation Administration Programs
Risk Flags
- Contract duration is significant (731 days).
- Time and Materials pricing structure can lead to cost overruns if not managed tightly.
- No indication of small business subcontracting.
- Reliance on external consultants for core management functions.
Tags
administrative-management-and-general-ma, department-of-transportation, va, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Transportation awarded $2.9 million to ERNST & YOUNG LLP. ENTERPRISE INVESTMENT PORTFOLIO MANAGEMENT
Who is the contractor on this award?
The obligated recipient is ERNST & YOUNG LLP.
Which agency awarded this contract?
Awarding agency: Department of Transportation (Federal Aviation Administration).
What is the total obligated amount?
The obligated amount is $2.9 million.
What is the period of performance?
Start: 2024-04-29. End: 2026-04-30.
What specific improvements in enterprise investment portfolio management are expected from this contract?
This contract is expected to yield improvements in strategic alignment of investments, enhanced risk assessment and mitigation, optimized resource allocation, and better performance tracking. The goal is to ensure federal investments are more effectively managed to achieve desired outcomes and maximize return on investment for taxpayer dollars.
What are the primary risks associated with this type of consulting contract?
Key risks include the potential for the contractor's recommendations to be misaligned with the agency's unique operational context, leading to ineffective implementation. There's also a risk of over-reliance on external consultants, hindering internal capacity building. Ensuring clear deliverables and performance metrics is crucial to mitigate these risks.
How will the effectiveness of Ernst & Young's services be measured?
Effectiveness will likely be measured through the achievement of specific, measurable, attainable, relevant, and time-bound (SMART) objectives outlined in the contract's statement of work. Key performance indicators (KPIs) related to improved investment decision-making, cost savings, or project success rates will be tracked. Regular progress reviews and final evaluations will assess the contractor's impact.
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: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Address: 1101 NEW YORK AVENUE, NW, WASHINGTON, DC, 20005
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $4,392,448
Exercised Options: $2,930,266
Current Obligation: $2,930,266
Actual Outlays: $2,048,364
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: 693KA919D00004
IDV Type: IDC
Timeline
Start Date: 2024-04-29
Current End Date: 2026-04-30
Potential End Date: 2026-04-30 00:00:00
Last Modified: 2026-01-15
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