DOE's $41.6M Audit Support Services Contract with KPMG LLP Raises Concerns Over Competition and Value
Contract Overview
Contract Amount: $41,591,303 ($41.6M)
Contractor: Kpmg LLP
Awarding Agency: Department of Energy
Start Date: 2008-01-01
End Date: 2014-12-31
Contract Duration: 2,556 days
Daily Burn Rate: $16.3K/day
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: AUDIT SUPPORT SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585, UNITED STATES OF AMERICA
Plain-Language Summary
Department of Energy obligated $41.6 million to KPMG LLP for work described as: AUDIT SUPPORT SERVICES Key points: 1. Significant spending of $41.6M on audit support services. 2. Sole-source award to KPMG LLP limits competitive pricing. 3. Long contract duration (2008-2014) may not reflect current market rates. 4. NAICS code 541211 indicates a standard accounting service sector.
Value Assessment
Rating: questionable
The contract value of $41.6M for audit support services is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts for accounting services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was awarded sole-source to KPMG LLP. This lack of competition likely prevented the government from obtaining the best possible pricing and service through a more competitive process.
Taxpayer Impact: The sole-source nature of this award may have resulted in higher costs for taxpayers than if the contract had been competitively bid.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The long duration of the contract could mean outdated service delivery methods. Lack of transparency in the sole-source award process hinders public trust.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Long contract duration
- Lack of competition
Positive Signals
- Audit support services are essential for financial accountability.
Sector Analysis
The Department of Energy's spending on audit support services falls under professional services, specifically accounting. Benchmarks for similar contracts are difficult to establish without competitive data, but $41.6M over six years is a significant investment.
Small Business Impact
This contract was awarded to a large firm, KPMG LLP, and does not appear to include provisions for small business participation. There is no indication of subcontracting to small businesses.
Oversight & Accountability
The sole-source nature of this award warrants further review to ensure proper justification and adherence to procurement regulations. Oversight should focus on the necessity and cost-effectiveness of the services provided.
Related Government Programs
- Offices of Certified Public Accountants
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Potential for overpayment due to lack of competition.
- Long contract duration may not reflect current market value.
- Limited transparency in the procurement process.
- No apparent small business participation.
Tags
offices-of-certified-public-accountants, department-of-energy, dc, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $41.6 million to KPMG LLP. AUDIT SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is KPMG LLP.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $41.6 million.
What is the period of performance?
Start: 2008-01-01. End: 2014-12-31.
What was the justification for awarding this audit support contract as sole-source to KPMG LLP?
The justification for a sole-source award typically involves a determination that only one responsible source can provide the required services. This could be due to specialized expertise, proprietary technology, or urgent and compelling needs. Without the specific justification documentation, it's impossible to confirm the rationale behind this award to KPMG LLP.
How did the Department of Energy ensure the quality and necessity of audit support services provided by KPMG LLP under this sole-source contract?
Ensuring quality and necessity in sole-source contracts relies heavily on robust contract management and performance monitoring by the agency. The Department of Energy would have been responsible for establishing clear performance standards, conducting regular reviews, and verifying that the services rendered by KPMG LLP met the government's requirements and were essential for its operations.
Could the Department of Energy have achieved better value or different outcomes through a competitive bidding process for these audit support services?
It is highly probable that a competitive bidding process could have yielded better value for the Department of Energy. Competition typically drives down prices, encourages innovation, and allows the agency to select from a wider range of qualified vendors, potentially leading to more efficient or effective audit support services than what was secured through a sole-source award.
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
Contractor Details
Parent Company: Kpmg L.L.P. (UEI: 001667906)
Address: 2001 M ST NW, WASHINGTON, DC, 20036
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $91,001,238
Exercised Options: $87,399,559
Current Obligation: $41,591,303
Parent Contract
Parent Award PIID: GS23F8127H
IDV Type: FSS
Timeline
Start Date: 2008-01-01
Current End Date: 2014-12-31
Potential End Date: 2014-12-31 00:00:00
Last Modified: 2015-06-04
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