KPMG LLP awarded $4.17M contract for financial statement audit services by Export-Import Bank

Contract Overview

Contract Amount: $4,167,026 ($4.2M)

Contractor: Kpmg LLP

Awarding Agency: Export-Import Bank of the United States

Start Date: 2022-03-01

End Date: 2026-02-28

Contract Duration: 1,460 days

Daily Burn Rate: $2.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FINANCIAL STATEMENT AUDIT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

Export-Import Bank of the United States obligated $4.2 million to KPMG LLP for work described as: FINANCIAL STATEMENT AUDIT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1460 days (4 years) indicates a long-term need for audit services. 3. Fixed-price contract type may offer cost certainty for the agency. 4. The awarding agency is the Export-Import Bank of the United States, focusing on facilitating U.S. exports. 5. The service falls under the 'Offices of Certified Public Accountants' NAICS code. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery contract.

Value Assessment

Rating: good

The contract value of $4.17 million over four years for financial statement audits is within a reasonable range for services of this nature. Benchmarking against similar large-scale federal audits suggests that the pricing is competitive, especially considering the complexity and regulatory requirements involved in auditing a federal agency's financial statements. The fixed-price nature of the contract provides cost predictability for the Export-Import Bank.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified vendors were invited to submit proposals. The specific number of bidders is not provided, but the method of competition suggests a robust process aimed at securing the best value. This approach typically leads to more competitive pricing and a wider selection of qualified contractors.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure high-quality audit services at a fair price, minimizing the risk of overpayment.

Public Impact

The Export-Import Bank of the United States benefits from independent financial statement audits, enhancing transparency and accountability. Independent auditors provide assurance on the accuracy and fairness of the agency's financial reporting. The services delivered are crucial for regulatory compliance and maintaining public trust in the agency's operations. The contract's impact is primarily administrative and financial, supporting the agency's core mission rather than direct public services or workforce implications.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor lock-in if this is a sole-source follow-on.
Scope creep could increase costs if not managed tightly.
Reliance on a single contractor for critical audit functions poses a risk.
Quality of audit could be impacted by auditor fatigue over a long contract duration.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Fixed-price contract provides cost certainty.
Long-term contract allows for continuity and deep understanding of agency finances.
Contractor (KPMG LLP) is a well-established firm with extensive audit experience.

Sector Analysis

The financial statement audit sector for federal agencies is a specialized area dominated by large accounting firms. These contracts are essential for ensuring accountability and compliance with federal financial management regulations. The Export-Import Bank's spending aligns with the broader federal trend of outsourcing these critical functions to experienced private sector entities. Comparable spending benchmarks for similar-sized federal agency audits typically range from several hundred thousand to millions of dollars annually, depending on agency size and complexity.

Small Business Impact

This contract was awarded to KPMG LLP, a large public accounting firm, and there is no indication of a small business set-aside. Therefore, direct benefits to small businesses through this specific award are unlikely. However, large prime contractors are often required to meet subcontracting goals with small businesses on larger federal contracts, though this is not explicitly stated here. The absence of a small business set-aside means the competition was open to all qualified large businesses.

Oversight & Accountability

Oversight for this contract would primarily fall under the Export-Import Bank's internal financial management and audit oversight committees. The contract's fixed-price nature and the established reputation of KPMG LLP suggest a degree of accountability. Transparency is generally maintained through the public availability of audit reports, which are typically submitted to Congress and relevant oversight bodies. The Inspector General of the Export-Import Bank would also have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Financial Statement Audits
Government Contract Auditing Services
Independent Auditor Services
Financial Management and Accountability Act

Risk Flags

Long contract duration may increase risk of performance degradation or outdated practices.
Lack of specific competition details (number of bidders) limits assessment of market competitiveness.
Potential for contractor lock-in if follow-on contracts are awarded without full competition.

Frequently Asked Questions

What is this federal contract paying for?

Export-Import Bank of the United States awarded $4.2 million to KPMG LLP. FINANCIAL STATEMENT AUDIT

Who is the contractor on this award?

The obligated recipient is KPMG LLP.

Which agency awarded this contract?

Awarding agency: Export-Import Bank of the United States (Export-Import Bank of the United States).

What is the total obligated amount?

The obligated amount is $4.2 million.

What is the period of performance?

Start: 2022-03-01. End: 2026-02-28.

What is KPMG LLP's track record with federal contracts, particularly for audit services?

KPMG LLP is a major global accounting firm with a significant presence in the federal contracting space. They have a long history of performing financial statement audits for various federal agencies, including large and complex organizations. Their track record generally indicates experience in meeting federal regulatory requirements and audit standards. Data from federal procurement databases would show numerous awards to KPMG for audit and financial advisory services across different agencies. While specific performance metrics for past contracts are not detailed here, their continued success in winning competitive bids suggests a satisfactory performance history. However, a deeper dive into past performance reviews and any reported issues would provide a more comprehensive understanding of their specific track record for this type of service.

How does the $4.17 million contract value compare to similar financial statement audits for federal agencies of comparable size?

The $4.17 million contract value for a four-year financial statement audit for the Export-Import Bank of the United States appears to be within a reasonable range when benchmarked against similar federal contracts. The Export-Import Bank, while having a specific mission, manages substantial financial assets and operations, necessitating a comprehensive audit. Contracts for financial statement audits of federal agencies can vary significantly based on the agency's size, complexity, volume of transactions, and the specific audit scope. For agencies of similar financial scale and operational complexity, annual audit costs often fall between $500,000 and $1.5 million. Therefore, a total contract value of approximately $1 million per year for this service is competitive, especially considering it was awarded through full and open competition, which typically drives pricing down.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks include potential scope creep, where the audit's requirements expand beyond the initial agreement, leading to cost overruns or delays. Another risk is the quality of the audit itself; if the auditors lack sufficient expertise or become complacent over the contract's four-year duration, critical issues might be missed. Contractor performance failure is also a risk, though mitigated by KPMG's established reputation. Mitigation strategies likely include robust contract management by the Export-Import Bank, clear definition of audit scope and deliverables, regular progress reviews, and performance monitoring. The fixed-price nature of the contract also incentivizes the contractor to manage costs effectively. Furthermore, the agency's internal controls and the potential involvement of the Inspector General provide additional layers of oversight.

How effective is the 'full and open competition' approach in ensuring value for money for this specific contract?

The 'full and open competition' approach is generally considered highly effective in ensuring value for money for federal contracts, including financial audit services. By allowing all responsible sources to submit bids, it fosters a competitive environment where multiple firms vie for the contract. This competition typically drives down prices as bidders seek to offer the most attractive terms. It also encourages innovation and the presentation of diverse approaches to fulfilling the contract requirements. For a service like financial auditing, where quality and expertise are paramount, open competition allows the agency to select not only the most cost-effective bid but also the one that best meets the technical and qualitative requirements, thereby maximizing overall value. The Export-Import Bank's choice of this method suggests a commitment to achieving the best possible outcome for taxpayers.

What are the historical spending patterns for financial statement audits at the Export-Import Bank of the United States?

Historical spending patterns for financial statement audits at the Export-Import Bank of the United States would reveal the agency's consistent need for these services. Typically, federal agencies are required by law (e.g., the Chief Financial Officers Act of 1990 and the Federal Financial Management Improvement Act of 1996) to obtain annual independent audits of their financial statements. Therefore, it is expected that the Export-Import Bank has engaged in similar audit contracts with various accounting firms over the years. Analyzing past contract awards, durations, and values would indicate whether spending has been consistent, increasing, or decreasing, and whether the same contractors have been repeatedly selected or if there has been rotation. This contract's value and duration suggest a stable, long-term requirement for audit services.

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: 83310122Q0006

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8350 BROAD ST STE 900, MCLEAN, 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: $4,167,026

Exercised Options: $4,167,026

Current Obligation: $4,167,026

Actual Outlays: $2,683,273

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QRAD19DU208

IDV Type: IDC

Timeline