DHS OIG Spends $61.3M on Audit Reporting Support Services via Time and Materials Contract
Contract Overview
Contract Amount: $61,315,224 ($61.3M)
Contractor: Kpmg LLP
Awarding Agency: Department of Homeland Security
Start Date: 2019-12-23
End Date: 2025-02-28
Contract Duration: 1,894 days
Daily Burn Rate: $32.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: AUDIT REPORTING SUPPORT SERVICES.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024
Plain-Language Summary
Department of Homeland Security obligated $61.3 million to KPMG LLP for work described as: AUDIT REPORTING SUPPORT SERVICES. Key points: 1. Significant expenditure of $61.3M for audit reporting support. 2. KPMG LLP is the sole contractor, raising potential competition concerns. 3. The contract is a Time and Materials type, which can pose cost control risks. 4. Spending is concentrated in the professional services sector (NAICS 541211).
Value Assessment
Rating: questionable
The Time and Materials pricing structure, without a fixed ceiling or clear deliverables, makes it difficult to assess value for money. The total award amount of $61.3M over its duration suggests a high cost, especially without a defined scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Although the contract was awarded under full and open competition, the use of a Time and Materials contract can limit price discovery and potentially lead to cost overruns if not closely managed. The specific details of the competition that led to this contract type are not provided.
Taxpayer Impact: The significant expenditure on audit support services impacts taxpayer funds. The effectiveness and efficiency of these services in achieving the OIG's audit objectives are crucial for justifying the cost.
Public Impact
Taxpayers are funding extensive audit reporting services for the DHS OIG. The reliance on a single contractor, KPMG LLP, for a substantial amount raises questions about market competitiveness and potential for inflated costs. The Time and Materials contract type necessitates robust oversight to ensure efficient use of funds and prevent cost creep.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type
- High total award amount
- Lack of detailed scope of work for cost assessment
Positive Signals
- Awarded under full and open competition
- Supports critical OIG functions
Sector Analysis
The professional services sector, specifically accounting and auditing, is essential for government oversight. Benchmarks for similar audit support services can vary widely based on scope and duration, but $61.3M represents a substantial investment.
Small Business Impact
The data indicates no specific set-aside for small businesses, and the contractor is KPMG LLP, a large firm. This suggests that small businesses were likely not primary participants in this specific contract award.
Oversight & Accountability
The Office of the Inspector General is responsible for overseeing DHS programs and operations. The contract's purpose is to support these audit functions, implying an internal oversight role. However, the Time and Materials nature requires diligent monitoring by the agency to ensure accountability.
Related Government Programs
- Offices of Certified Public Accountants
- Department of Homeland Security Contracting
- Office of the Inspector General Programs
Risk Flags
- Potential for cost overruns due to Time and Materials contract type.
- Lack of detailed scope of work makes value assessment difficult.
- Reliance on a single large contractor may limit competitive pressure.
- Significant total award amount requires close monitoring.
Tags
offices-of-certified-public-accountants, department-of-homeland-security, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Homeland Security awarded $61.3 million to KPMG LLP. AUDIT REPORTING SUPPORT SERVICES.
Who is the contractor on this award?
The obligated recipient is KPMG LLP.
Which agency awarded this contract?
Awarding agency: Department of Homeland Security (Office of the Inspector General).
What is the total obligated amount?
The obligated amount is $61.3 million.
What is the period of performance?
Start: 2019-12-23. End: 2025-02-28.
What specific audit reporting tasks are being performed under this contract, and how do they align with the OIG's core mission objectives?
The contract supports the Department of Homeland Security's Office of Inspector General (OIG) in its audit reporting functions. This likely includes tasks such as data analysis, report generation, documentation review, and potentially forensic accounting support. The alignment with the OIG's mission is to ensure transparency and accountability in DHS operations through independent audits and investigations.
What measures are in place to mitigate the cost risks associated with a Time and Materials contract for such a significant amount?
Mitigation strategies for Time and Materials contracts typically involve robust oversight, including detailed tracking of labor hours and rates, regular progress reviews, and clear performance metrics. The agency should establish not-to-exceed limits for specific tasks or phases and ensure that the contractor's efficiency is continuously monitored to prevent cost overruns and ensure value for taxpayer money.
How does the performance of KPMG LLP on this contract contribute to the overall effectiveness of the DHS OIG's oversight responsibilities?
The effectiveness of KPMG LLP's performance directly impacts the DHS OIG's ability to produce timely and accurate audit reports. High-quality support services can enhance the OIG's capacity to identify waste, fraud, and abuse, thereby improving the efficiency and accountability of DHS programs. Conversely, any performance deficiencies could hinder the OIG's oversight effectiveness.
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: 70VT1519Q00022
Offers Received: 2
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: $61,349,631
Exercised Options: $61,349,631
Current Obligation: $61,315,224
Actual Outlays: $28,483,997
Subaward Activity
Number of Subawards: 12
Total Subaward Amount: $2,438,256
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS00F275CA
IDV Type: FSS
Timeline
Start Date: 2019-12-23
Current End Date: 2025-02-28
Potential End Date: 2025-02-28 00:00:00
Last Modified: 2025-09-09
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