HUD Spends $18.1M on Financial Consulting for Reform and IPERIA Support
Contract Overview
Contract Amount: $18,107,872 ($18.1M)
Contractor: Ernst & Young LLP
Awarding Agency: Department of Housing and Urban Development
Start Date: 2020-12-16
End Date: 2026-02-15
Contract Duration: 1,887 days
Daily Burn Rate: $9.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FINANCIAL CONSULTING SERVICES IN SUPPORT OF THE HUD REFORM PLAN AND STRATEGIC PLAN (2018-2022), ITS FORWARD INITIATIVE, AND THE CFO MISSION FOR EXCELLENCE FOR IMPROPER PAYMENT ELIMINATION AND RECOVERY IMPROVEMENT ACT (IPERIA) SUPPORT.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20410
Plain-Language Summary
Department of Housing and Urban Development obligated $18.1 million to ERNST & YOUNG LLP for work described as: FINANCIAL CONSULTING SERVICES IN SUPPORT OF THE HUD REFORM PLAN AND STRATEGIC PLAN (2018-2022), ITS FORWARD INITIATIVE, AND THE CFO MISSION FOR EXCELLENCE FOR IMPROPER PAYMENT ELIMINATION AND RECOVERY IMPROVEMENT ACT (IPERIA) SUPPORT. Key points: 1. Significant investment in financial consulting services for HUD's reform and strategic initiatives. 2. Ernst & Young LLP is the sole awardee for this contract. 3. The contract duration extends to February 2026, indicating long-term support needs. 4. Focus on improper payment elimination and recovery highlights a key agency priority.
Value Assessment
Rating: fair
The contract value of $18.1 million over approximately 6 years suggests a substantial investment. Benchmarking against similar large-scale financial consulting contracts for federal agencies would be necessary to fully assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the specific pricing structure and negotiation details are not provided, making a definitive price discovery assessment difficult.
Taxpayer Impact: Taxpayer funds are being utilized for essential financial consulting services aimed at improving agency efficiency and reducing improper payments.
Public Impact
Enhances HUD's ability to manage financial reforms and strategic planning. Supports efforts to combat improper payments, potentially saving taxpayer money. Provides specialized expertise for the CFO mission and IPERIA compliance. The long-term nature of the contract suggests ongoing reliance on external consulting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed cost breakdown for services.
- Potential for scope creep given the broad objectives.
- Dependence on a single contractor for critical financial functions.
Positive Signals
- Clear focus on improving financial management and reducing waste.
- Awarded through full and open competition.
- Long-term engagement allows for sustained support and knowledge transfer.
Sector Analysis
This contract falls within the professional services sector, specifically accounting and financial consulting. Spending benchmarks for similar large federal consulting contracts vary widely based on scope and duration, but $18.1 million over six years represents a significant engagement.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as Ernst & Young LLP is a large, established firm. There is no indication of subcontracting opportunities for small businesses within this award.
Oversight & Accountability
Oversight would involve monitoring the contractor's performance against defined deliverables and ensuring adherence to the contract terms. The agency's CFO office is likely responsible for overseeing this engagement, particularly given its focus on financial operations.
Related Government Programs
- Offices of Certified Public Accountants
- Department of Housing and Urban Development Contracting
- Department of Housing and Urban Development Programs
Risk Flags
- High contract value.
- Long contract duration.
- Sole awardee (Ernst & Young LLP).
- Focus on critical financial operations.
- Lack of specific performance metrics in provided data.
Tags
offices-of-certified-public-accountants, department-of-housing-and-urban-developm, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $18.1 million to ERNST & YOUNG LLP. FINANCIAL CONSULTING SERVICES IN SUPPORT OF THE HUD REFORM PLAN AND STRATEGIC PLAN (2018-2022), ITS FORWARD INITIATIVE, AND THE CFO MISSION FOR EXCELLENCE FOR IMPROPER PAYMENT ELIMINATION AND RECOVERY IMPROVEMENT ACT (IPERIA) SUPPORT.
Who is the contractor on this award?
The obligated recipient is ERNST & YOUNG LLP.
Which agency awarded this contract?
Awarding agency: Department of Housing and Urban Development (Department of Housing and Urban Development).
What is the total obligated amount?
The obligated amount is $18.1 million.
What is the period of performance?
Start: 2020-12-16. End: 2026-02-15.
What specific deliverables are expected from Ernst & Young LLP under this contract, and how will their performance be measured to ensure value for money?
The contract likely outlines specific deliverables related to financial reform, strategic planning, and IPERIA support. Performance measurement would typically involve key performance indicators (KPIs) tied to project milestones, quality of reports, adherence to timelines, and achievement of stated objectives in reducing improper payments. A detailed review of the Statement of Work (SOW) would clarify these expectations and measurement criteria.
Given the $18.1 million value, what are the primary risks associated with this contract, and what mitigation strategies are in place?
Key risks include potential cost overruns if the scope expands beyond initial projections, contractor performance issues leading to delays or subpar quality, and over-reliance on a single entity. Mitigation strategies might involve robust contract management, regular performance reviews, clear change control processes, and contingency planning for critical functions.
How effectively is this contract contributing to HUD's stated goals of improper payment elimination and recovery improvement?
Effectiveness is measured by the tangible reduction in improper payments and the success of recovery efforts. This requires tracking specific metrics related to the identification, prevention, and recovery of misallocated funds. The contract's success hinges on the actionable insights and implementation support provided by the consultants to achieve these financial goals.
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: 86615120Q00004
Offers Received: 4
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: $19,047,637
Exercised Options: $18,880,754
Current Obligation: $18,107,872
Actual Outlays: $17,834,238
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS00F290CA
IDV Type: FSS
Timeline
Start Date: 2020-12-16
Current End Date: 2026-02-15
Potential End Date: 2026-02-15 00:00:00
Last Modified: 2025-12-10
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