HHS Awards $29.2M Audit Contract to KPMG LLP for External Audit Program
Contract Overview
Contract Amount: $29,247,056 ($29.2M)
Contractor: Kpmg LLP
Awarding Agency: Department of Health and Human Services
Start Date: 2020-09-16
End Date: 2025-09-15
Contract Duration: 1,825 days
Daily Burn Rate: $16.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: PPFMG EXTERNAL AUDIT PROGRAM
Place of Performance
Location: MCLEAN, FAIRFAX County, VIRGINIA, 22102
State: Virginia Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $29.2 million to KPMG LLP for work described as: PPFMG EXTERNAL AUDIT PROGRAM Key points: 1. Contract value of $29.2 million over 5 years. 2. KPMG LLP is a major accounting firm, indicating significant competition for such contracts. 3. Potential risk associated with reliance on a single large firm for critical audit functions. 4. Spending falls under professional services, specifically accounting and auditing.
Value Assessment
Rating: good
The contract value of $29.2 million over five years suggests a competitive rate for comprehensive external audit services. Benchmarking against similar large-scale audit programs would provide further clarity on pricing efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing and ensures access to a broad range of qualified vendors. This method likely resulted in a fair market price for the services rendered.
Taxpayer Impact: Taxpayer funds are being used for essential oversight and auditing functions, ensuring accountability within the Centers for Medicare and Medicaid Services.
Public Impact
Ensures financial integrity and accountability within CMS operations. Supports regulatory compliance and identifies potential financial risks. Provides an independent assessment of financial reporting and internal controls.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in with a large, established firm.
- Reliance on external auditors may not fully capture internal operational efficiencies.
Positive Signals
- Full and open competition likely secured competitive pricing.
- KPMG LLP is a reputable firm with extensive audit experience.
- Contract duration allows for consistent oversight.
Sector Analysis
This contract falls within the professional services sector, specifically accounting and auditing. Government spending on external audit programs is crucial for maintaining financial transparency and compliance, with benchmarks varying based on agency size and complexity.
Small Business Impact
The data indicates this contract was awarded to a large, established firm (KPMG LLP) and does not suggest any specific set-asides or participation opportunities for small businesses.
Oversight & Accountability
The contract is subject to standard government oversight mechanisms for professional services. The Centers for Medicare and Medicaid Services is responsible for monitoring performance and ensuring adherence to contract terms.
Related Government Programs
- Offices of Certified Public Accountants
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Potential for vendor lock-in.
- Reliance on a single large firm.
- Audit scope may not fully capture all operational risks.
- Limited visibility into internal operational efficiencies.
Tags
offices-of-certified-public-accountants, department-of-health-and-human-services, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $29.2 million to KPMG LLP. PPFMG EXTERNAL AUDIT PROGRAM
Who is the contractor on this award?
The obligated recipient is KPMG LLP.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).
What is the total obligated amount?
The obligated amount is $29.2 million.
What is the period of performance?
Start: 2020-09-16. End: 2025-09-15.
What is the specific scope of work for this external audit program, and how does it align with CMS's overall mission?
The scope of work for the PPFMG External Audit Program likely encompasses a comprehensive review of financial statements, internal controls, and compliance with relevant regulations for the Centers for Medicare and Medicaid Services. This aligns with CMS's mission by ensuring financial integrity, accountability, and the efficient use of taxpayer funds in administering healthcare programs.
Are there any identified risks associated with the concentration of audit services with a single large firm like KPMG LLP?
While KPMG LLP is a reputable firm, concentrating audit services with one large entity can pose risks such as potential conflicts of interest, reduced flexibility in addressing unique audit challenges, and a lack of diverse perspectives. However, the full and open competition process should mitigate some of these concerns by ensuring the firm was selected based on merit and price.
How effectively does this external audit program contribute to identifying cost savings or operational efficiencies within CMS?
The primary goal of an external audit program is financial assurance and compliance, not direct cost savings identification. However, by highlighting inefficiencies, control weaknesses, or non-compliance, the audit findings can indirectly lead to operational improvements and cost reductions. The effectiveness in this regard would depend on the depth of the audit and CMS's subsequent actions on audit recommendations.
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) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: LRFQ200590
Offers Received: 3
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: $30,349,634
Exercised Options: $29,247,056
Current Obligation: $29,247,056
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00F275CA
IDV Type: FSS
Timeline
Start Date: 2020-09-16
Current End Date: 2025-09-15
Potential End Date: 2025-09-15 00:00:00
Last Modified: 2024-08-26
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