HUD awards $2.9M for accounting support to Ernst & Young LLP under full and open competition
Contract Overview
Contract Amount: $2,915,720 ($2.9M)
Contractor: Ernst & Young LLP
Awarding Agency: Department of Housing and Urban Development
Start Date: 2023-02-24
End Date: 2027-03-13
Contract Duration: 1,478 days
Daily Burn Rate: $2.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: LABOR HOURS
Sector: Other
Official Description: EO14042 ACCOUNTING AND STATISTICAL ANALYSIS SUPPORT SERVICES
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 $2.9 million to ERNST & YOUNG LLP for work described as: EO14042 ACCOUNTING AND STATISTICAL ANALYSIS SUPPORT SERVICES Key points: 1. Contract awarded to a large, established firm (Ernst & Young LLP). 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract duration is substantial (1478 days), indicating a long-term need. 4. The North American Industry Classification System (NAICS) code 541211 points to accounting services.
Value Assessment
Rating: good
The contract value of $2.9M over approximately 4 years suggests a reasonable annual spend for specialized accounting and statistical analysis support. Benchmarking against similar government contracts for accounting services would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically fosters competitive pricing and allows for a broad range of qualified vendors to bid. The use of BPA Call indicates a streamlined procurement process within an existing framework.
Taxpayer Impact: Full and open competition generally leads to better value for taxpayers by ensuring the government receives competitive pricing for services.
Public Impact
Ensures continued financial oversight and compliance for the Department of Housing and Urban Development. Supports critical accounting and statistical analysis functions necessary for agency operations. Provides specialized expertise that may not be readily available in-house.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if not managed effectively over the long duration.
- Reliance on a single large contractor for critical functions.
Positive Signals
- Competitive award process.
- Award to a reputable firm with demonstrated capabilities.
- Clear definition of services through NAICS code.
Sector Analysis
The sector involves professional, scientific, and technical services, specifically accounting. Government spending in this area is crucial for financial management, auditing, and compliance across various agencies. Benchmarks for similar accounting support contracts can vary widely based on scope and duration.
Small Business Impact
The contract was awarded to Ernst & Young LLP, a large business. There is no indication of specific small business participation or subcontracting goals within the provided data.
Oversight & Accountability
The Department of Housing and Urban Development is responsible for overseeing this contract. Standard government oversight mechanisms for contract performance, invoicing, and deliverables would apply.
Related Government Programs
- Offices of Certified Public Accountants
- Department of Housing and Urban Development Contracting
- Department of Housing and Urban Development Programs
Risk Flags
- Long contract duration may lead to scope creep or evolving requirements.
- Potential for cost overruns if labor hours are not managed efficiently.
- Dependence on a single large contractor for critical financial functions.
- Lack of explicit small business participation noted.
Tags
offices-of-certified-public-accountants, department-of-housing-and-urban-developm, ny, bpa-call, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $2.9 million to ERNST & YOUNG LLP. EO14042 ACCOUNTING AND STATISTICAL ANALYSIS SUPPORT SERVICES
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 $2.9 million.
What is the period of performance?
Start: 2023-02-24. End: 2027-03-13.
What specific accounting and statistical analysis tasks are included in this contract, and how do they align with HUD's core mission?
The contract likely encompasses a range of services such as financial statement preparation, audit support, data analysis for program evaluation, budget forecasting, and compliance reporting. These tasks directly support HUD's mission by ensuring fiscal responsibility, effective program management, and accountability in the use of federal funds for housing and community development initiatives.
What are the key performance indicators (KPIs) for this contract, and how will Ernst & Young's performance be measured?
Key performance indicators would likely include timeliness of deliverables, accuracy of financial reporting, adherence to accounting standards (GAAP, FASAB), responsiveness to agency requests, and overall quality of analysis. Performance will be measured through regular progress reports, client feedback from HUD officials, and potential audits of the services provided.
How does the pricing structure (labor hours) compare to industry standards for similar accounting support services, considering the firm's expertise?
While specific rates are not provided, a labor hour contract allows for flexibility. The pricing will be benchmarked against established government rates and commercial market rates for comparable accounting expertise. Given Ernst & Young's status, their rates may be at the higher end, but the full and open competition should have ensured they were competitive within that tier.
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: 86615123Q00001
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: $2,915,720
Exercised Options: $2,915,720
Current Obligation: $2,915,720
Actual Outlays: $1,607,922
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 86615121A00005
IDV Type: BPA
Timeline
Start Date: 2023-02-24
Current End Date: 2027-03-13
Potential End Date: 2027-03-13 00:00:00
Last Modified: 2026-02-09
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