HUD awards $35M+ contract to Ernst & Young for financial and program management support

Contract Overview

Contract Amount: $35,022,410 ($35.0M)

Contractor: Ernst & Young LLP

Awarding Agency: Department of Housing and Urban Development

Start Date: 2024-09-30

End Date: 2026-09-29

Contract Duration: 729 days

Daily Burn Rate: $48.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: THE PURPOSE FOR THIS ACQUISITION IS TO IMPROVE THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) OPERATIONAL ABILITY TO SUPPORT AND IMPLEMENT LEGISLATION INITIATES BY PROVIDING FINANCIAL, PROGRAM AND PROJECT MANAGEMENT AND TRAINING SUPPORT SERVIC

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20010

State: District of Columbia Government Spending

Plain-Language Summary

Department of Housing and Urban Development obligated $35.0 million to ERNST & YOUNG LLP for work described as: THE PURPOSE FOR THIS ACQUISITION IS TO IMPROVE THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) OPERATIONAL ABILITY TO SUPPORT AND IMPLEMENT LEGISLATION INITIATES BY PROVIDING FINANCIAL, PROGRAM AND PROJECT MANAGEMENT AND TRAINING SUPPORT SERVIC Key points: 1. Contract aims to bolster HUD's capacity to implement legislative initiatives through expert support. 2. The award signifies a significant investment in enhancing operational efficiency and program delivery. 3. Ernst & Young's selection suggests a focus on specialized expertise in financial and project management. 4. The duration of the contract indicates a long-term commitment to sustained operational improvement. 5. This acquisition is positioned within the accounting and auditing services sector, supporting core government functions.

Value Assessment

Rating: good

The contract value of approximately $35 million over two years for financial, program, and project management support appears reasonable given the scope. Benchmarking against similar large-scale professional services contracts for federal agencies suggests this pricing is within expected ranges. The use of labor hours allows for flexibility in resource allocation, which can be cost-effective if managed efficiently. However, a detailed breakdown of labor categories and rates would be necessary for a more precise value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This competitive process is designed to foster price discovery and ensure the government receives the best value. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive environment, which generally leads to more favorable pricing and service offerings for the agency.

Taxpayer Impact: A full and open competition process maximizes the chances of taxpayers receiving a fair price for the services rendered. It encourages a wider pool of contractors to compete, driving down costs and improving the quality of services through innovation.

Public Impact

The Department of Housing and Urban Development (HUD) will benefit directly through improved operational capabilities. Services delivered include financial management, program management, project management, and training support. The geographic impact is primarily national, supporting HUD's nationwide legislative and programmatic efforts. The contract is expected to leverage specialized expertise, potentially enhancing the skills of existing HUD staff through training.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for over-reliance on external contractors for core functions.
Ensuring knowledge transfer and capacity building within HUD staff.
Monitoring contractor performance to ensure alignment with legislative goals.

Positive Signals

Leveraging specialized expertise from a reputable firm like Ernst & Young.
The contract's focus on improving operational ability suggests a proactive approach to agency effectiveness.
Full and open competition indicates a commitment to achieving best value for taxpayer dollars.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically in the accounting, tax preparation, bookkeeping, and payroll services subsector (NAICS 541211). This sector is crucial for government operations, providing essential support for financial management, auditing, and compliance. The market for these services is highly competitive, with numerous large and small firms offering specialized expertise. HUD's spending in this area is consistent with the need for robust financial and program oversight to manage its extensive housing and community development initiatives.

Small Business Impact

The contract was awarded via full and open competition and does not indicate a small business set-aside. While Ernst & Young is a large firm, there may be opportunities for small businesses to participate as subcontractors, depending on the specific requirements and subcontracting plans outlined in the contract. The absence of a direct set-aside means the primary award went to a large business, but the overall impact on the small business ecosystem will depend on downstream subcontracting activities.

Oversight & Accountability

Oversight will likely be managed by contracting officers and program managers within HUD, responsible for monitoring performance, deliverables, and adherence to contract terms. The contract's duration and scope suggest regular reporting requirements and performance reviews. Transparency is facilitated by the public nature of contract awards, though detailed performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply to any potential fraud, waste, or abuse related to the contract.

Related Government Programs

HUD Financial Management Support Services
Government Program Management Consulting
Federal Financial Audit and Advisory Services
Legislative Implementation Support Contracts

Risk Flags

Potential for scope creep
Ensuring effective knowledge transfer
Contractor performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Housing and Urban Development awarded $35.0 million to ERNST & YOUNG LLP. THE PURPOSE FOR THIS ACQUISITION IS TO IMPROVE THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) OPERATIONAL ABILITY TO SUPPORT AND IMPLEMENT LEGISLATION INITIATES BY PROVIDING FINANCIAL, PROGRAM AND PROJECT MANAGEMENT AND TRAINING SUPPORT SERVIC

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 $35.0 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-09-29.

What is the historical spending pattern of HUD on similar financial and program management support services?

Analyzing HUD's historical spending on similar services requires access to detailed federal procurement data. However, agencies like HUD, which manage complex legislative mandates and large financial flows, typically engage in ongoing procurements for financial management, program oversight, and project support. These contracts can range from short-term consulting engagements to multi-year support agreements. Factors influencing historical spending include changes in legislation, agency priorities, budget allocations, and the availability of internal expertise. A review of past contracts, particularly those with similar scopes of work and durations, would reveal trends in vendor selection, contract values, and the overall investment in external support for operational enhancement.

How does the awarded value compare to the estimated value or ceiling of the contract?

The provided data indicates an awarded amount of $35,022,410.48. Without information on the contract's estimated value or ceiling, it's challenging to definitively assess how the awarded amount compares. Typically, contracts are awarded with an estimated value or a ceiling that the contractor cannot exceed. If this $35 million represents the total obligated amount or the ceiling, it suggests a significant commitment. If it's an initial award with potential for future task orders or modifications, the total potential value could be higher. A comparison would require knowing if this award is at or near the maximum authorized funding for the contract period.

What specific performance metrics will be used to evaluate Ernst & Young's success under this contract?

Specific performance metrics for this contract are not detailed in the provided data. However, for a contract focused on financial, program, and project management support, typical performance metrics would likely include timeliness of deliverables, accuracy of financial reporting, effectiveness of project management in meeting milestones, quality of training provided, and overall contribution to HUD's ability to implement legislation. Key Performance Indicators (KPIs) would be established in the contract's Performance Work Statement (PWS). HUD contracting officers and program managers would monitor these KPIs through regular progress reports, reviews, and potentially user feedback to ensure Ernst & Young meets or exceeds expectations.

What is Ernst & Young's track record with HUD or similar federal agencies for providing these types of services?

Ernst & Young (EY) is a major global professional services firm with extensive experience supporting government agencies, including the Department of Housing and Urban Development (HUD) and other federal entities. Their track record typically includes providing a wide range of services such as financial advisory, audit, management consulting, IT solutions, and program management. For HUD specifically, EY has likely engaged in contracts related to financial management, risk assessment, compliance, and operational improvements. Their broader federal government experience suggests a strong understanding of federal procurement regulations, financial management systems, and the complexities of public sector operations, positioning them as a capable provider for this type of support.

Are there any identified risks associated with this contract, such as scope creep or contractor performance issues?

Potential risks associated with this contract include scope creep, where the project's requirements expand beyond the initially defined objectives, potentially increasing costs and timelines. Another risk is contractor performance, where Ernst & Young might not meet the expected quality or timeliness of deliverables. Given the nature of management consulting and support services, ensuring effective knowledge transfer to HUD staff to avoid long-term dependency is also a consideration. HUD's oversight mechanisms, including regular performance reviews and clear communication channels, are crucial for mitigating these risks. The use of a 'labor hours' contract type can also introduce risk if not managed carefully, as it ties costs directly to time spent.

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: 86615124Q00016

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: $35,022,410

Exercised Options: $35,022,410

Current Obligation: $35,022,410

Actual Outlays: $18,678,237

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 86615124A00001

IDV Type: BPA

Timeline