HUD Spends $70.4M on Financial Consulting for Reform and Strategic Plans
Contract Overview
Contract Amount: $70,416,490 ($70.4M)
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: $37.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: LABOR HOURS
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.
Place of Performance
Location: NEW YORK, NEW YORK County, NEW YORK, 10001
State: New York Government Spending
Plain-Language Summary
Department of Housing and Urban Development obligated $70.4 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. Key points: 1. Significant investment in financial consulting services for HUD's strategic initiatives. 2. Ernst & Young LLP is the sole awardee for these services. 3. Contract duration extends to February 2026, indicating long-term support needs. 4. Spending aligns with accounting and auditing services (NAICS 541211).
Value Assessment
Rating: fair
The total award value of $70.4 million over approximately 1887 days suggests a substantial commitment. Benchmarking against similar large-scale consulting contracts is difficult without more granular data on specific deliverables and labor hours.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the specific pricing mechanisms and the impact of the delivery order structure on price discovery require further examination.
Taxpayer Impact: Taxpayer funds are being utilized for essential financial consulting to support HUD's reform and strategic planning efforts, aiming for improved efficiency and effectiveness.
Public Impact
Enhances HUD's capacity to manage complex financial reforms and strategic planning. Supports the CFO Mission for Excellence, potentially leading to better financial stewardship. The long-term nature of the contract suggests ongoing critical support requirements. Focus on ITS Forward Initiative indicates modernization efforts within HUD.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics.
- Potential for scope creep in long-term consulting engagements.
- Limited transparency on specific cost breakdowns.
Positive Signals
- Awarded through full and open competition.
- Supports critical agency reform and strategic planning.
- Long-term engagement indicates sustained need and potential for deep expertise.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically accounting and auditing. Spending benchmarks for similar large-scale financial consulting engagements can vary widely based on agency size and complexity of the initiative.
Small Business Impact
The data indicates this contract was not set aside for small businesses and does not provide information on small business subcontracting. Therefore, the direct impact on small businesses is unclear.
Oversight & Accountability
Oversight is primarily managed by the Department of Housing and Urban Development. The effectiveness of this oversight in ensuring value for money and adherence to contract terms would require further investigation into performance reviews and audit reports.
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 for these specific services.
- Lack of detailed performance metrics in the provided data.
- Potential for vendor lock-in.
Tags
offices-of-certified-public-accountants, department-of-housing-and-urban-developm, ny, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $70.4 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.
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 $70.4 million.
What is the period of performance?
Start: 2020-12-16. End: 2026-02-15.
What specific deliverables are expected under this $70.4 million contract, and how do they align with HUD's reform and strategic goals?
The contract supports HUD's reform plan, strategic plan, ITS Forward Initiative, and CFO Mission for Excellence. Specific deliverables likely include financial analysis, strategic planning support, process improvement recommendations, and implementation guidance. The alignment is intended to enhance financial management, operational efficiency, and the achievement of HUD's long-term objectives through expert financial consulting.
What are the key risks associated with a $70.4 million, multi-year financial consulting contract, and how are they being mitigated?
Key risks include cost overruns, scope creep, vendor lock-in, and potential misalignment with evolving agency needs. Mitigation strategies may involve robust contract management, clear performance metrics, regular progress reviews, and defined change control processes. The long duration necessitates proactive monitoring to ensure continued relevance and value.
How effectively is Ernst & Young LLP contributing to HUD's mission for excellence and strategic objectives through this engagement?
Effectiveness is assessed by HUD through contract performance monitoring. Contributions are expected in providing expert financial insights, driving strategic planning, and supporting reform initiatives. The long-term nature suggests perceived value, but a definitive assessment requires reviewing HUD's internal evaluations and the tangible outcomes achieved in financial management and operational improvements.
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: LABOR HOURS (Z)
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: $71,685,336
Exercised Options: $71,518,454
Current Obligation: $70,416,490
Actual Outlays: $70,874,732
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $1,130,863
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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