HUD awards $11M for financial management support to Ernst & Young LLP
Contract Overview
Contract Amount: $10,981,871 ($11.0M)
Contractor: Ernst & Young LLP
Awarding Agency: Department of Housing and Urban Development
Start Date: 2023-02-27
End Date: 2027-02-26
Contract Duration: 1,460 days
Daily Burn Rate: $7.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: EO14042-CONTRACTOR TO PROVIDE SUPPORT SERVICES TO OCFO IN SYSTEMS STRATEGY, ANALYSIS, REMEDIATION, AND SHARED SERVICE SUPPORT REQUIRED TO STRENGTHEN ITS FINANCIAL MANAGEMENT EFFECTIVENESS AND EFFICIENCY.
Place of Performance
Location: NEW YORK, NEW YORK County, NEW YORK, 10036
State: New York Government Spending
Plain-Language Summary
Department of Housing and Urban Development obligated $11.0 million to ERNST & YOUNG LLP for work described as: EO14042-CONTRACTOR TO PROVIDE SUPPORT SERVICES TO OCFO IN SYSTEMS STRATEGY, ANALYSIS, REMEDIATION, AND SHARED SERVICE SUPPORT REQUIRED TO STRENGTHEN ITS FINANCIAL MANAGEMENT EFFECTIVENESS AND EFFICIENCY. Key points: 1. Contract focuses on critical financial management systems strategy and remediation. 2. Ernst & Young LLP, a large firm, holds the contract. 3. Potential risk in reliance on a single large contractor for core functions. 4. IT and professional services sector, with a focus on government financial operations.
Value Assessment
Rating: fair
The contract value of $10.98 million over four years appears reasonable for comprehensive financial management support services. Benchmarking against similar large-scale IT and financial consulting contracts is necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition via a BPA Call, suggesting a competitive process. However, the specific pricing strategies and negotiation outcomes are not detailed, impacting the assessment of price discovery.
Taxpayer Impact: Taxpayer funds are being used to enhance the efficiency and effectiveness of HUD's financial management, aiming for better stewardship of public resources.
Public Impact
Improved financial reporting and accountability at HUD. Enhanced efficiency in government financial operations. Potential for better resource allocation due to stronger financial insights. Modernization of critical financial systems.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Limited visibility into specific performance metrics.
- Potential for scope creep in complex system strategy projects.
Positive Signals
- Clear objective to improve financial management.
- Awarded through full and open competition.
- Experienced contractor with relevant expertise.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically IT consulting and financial management. Government spending in this area is substantial, driven by the need for modern, efficient, and secure financial systems.
Small Business Impact
The contract was awarded to Ernst & Young LLP, a large business. There is no indication of small business participation or subcontracting in the provided data.
Oversight & Accountability
Oversight will be crucial to ensure the contractor meets performance objectives and delivers value for money. HUD's OCFO should establish clear performance metrics and regular review processes.
Related Government Programs
- Offices of Certified Public Accountants
- Department of Housing and Urban Development Contracting
- Department of Housing and Urban Development Programs
Risk Flags
- Contract duration is substantial (4 years).
- Potential for vendor lock-in.
- Lack of explicit small business participation.
- Reliance on a single large firm for critical functions.
- Need for clear performance metrics and oversight.
Tags
offices-of-certified-public-accountants, department-of-housing-and-urban-developm, ny, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Housing and Urban Development awarded $11.0 million to ERNST & YOUNG LLP. EO14042-CONTRACTOR TO PROVIDE SUPPORT SERVICES TO OCFO IN SYSTEMS STRATEGY, ANALYSIS, REMEDIATION, AND SHARED SERVICE SUPPORT REQUIRED TO STRENGTHEN ITS FINANCIAL MANAGEMENT EFFECTIVENESS AND EFFICIENCY.
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 $11.0 million.
What is the period of performance?
Start: 2023-02-27. End: 2027-02-26.
What specific metrics will be used to measure the success of the systems strategy, analysis, and remediation efforts?
The success of the systems strategy, analysis, and remediation efforts should be measured by quantifiable improvements in financial reporting accuracy, reduction in system processing times, successful implementation of new financial controls, and user satisfaction surveys. Key Performance Indicators (KPIs) should be established and regularly reviewed by HUD's OCFO to ensure alignment with project goals and taxpayer value.
What are the potential risks associated with relying on a single contractor for such critical financial system support?
Relying on a single contractor for critical financial system support poses risks such as vendor lock-in, potential for reduced innovation over time, and significant disruption if the contractor fails to perform or terminates the contract. Mitigating these risks requires robust contract management, clear performance expectations, and contingency planning for knowledge transfer and potential transition to alternative providers.
How will the effectiveness of the shared service support be evaluated to ensure it enhances overall financial management efficiency?
The effectiveness of shared service support will be evaluated by tracking key performance indicators related to service delivery times, accuracy of processed information, cost savings achieved compared to previous methods, and feedback from internal stakeholders utilizing the services. Regular audits and performance reviews should be conducted to ensure the shared services are meeting their objectives and contributing to HUD's financial management 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) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: 86615122Q00016
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: $10,981,871
Exercised Options: $10,981,871
Current Obligation: $10,981,871
Actual Outlays: $7,736,590
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 86615121A00005
IDV Type: BPA
Timeline
Start Date: 2023-02-27
Current End Date: 2027-02-26
Potential End Date: 2027-02-26 00:00:00
Last Modified: 2026-03-16
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