DOE's $20.9M Audit Services Contract with KPMG LLP Awarded via Full and Open Competition
Contract Overview
Contract Amount: $20,939,927 ($20.9M)
Contractor: Kpmg LLP
Awarding Agency: Department of Energy
Start Date: 2010-05-12
End Date: 2016-03-31
Contract Duration: 2,150 days
Daily Burn Rate: $9.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: TAS::89 0328:: TAS RECOVERY: PERFORM AUDIT SERVICES IN SUPPORT OF BOTH FINANCIAL ASSISTANCE AND CONTRACTUAL INSTRUMENT AWARDS DEPARTMENT-WIDE.ALTHOUGH THE FOCUS OF THIS CONTRACT IS FOR AUDITING ARRA WORK, OTHER NON-ARRA AUDITING SERVICES MAY ALSO BE ORDERED.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $20.9 million to KPMG LLP for work described as: TAS::89 0328:: TAS RECOVERY: PERFORM AUDIT SERVICES IN SUPPORT OF BOTH FINANCIAL ASSISTANCE AND CONTRACTUAL INSTRUMENT AWARDS DEPARTMENT-WIDE.ALTHOUGH THE FOCUS OF THIS CONTRACT IS FOR AUDITING ARRA WORK, OTHER NON-ARRA AUDITING SERVICES MAY ALSO BE ORDERED. Key points: 1. The contract, valued at $20.9 million, was awarded to KPMG LLP for audit services supporting financial assistance and contractual instrument awards. 2. Services include auditing ARRA work and potentially other non-ARRA auditing tasks. 3. Awarded via full and open competition, indicating a competitive bidding process. 4. The contract utilized a Time and Materials pricing structure.
Value Assessment
Rating: fair
The Time and Materials pricing structure can lead to cost overruns if not closely managed. Benchmarking against similar audit service contracts is difficult without more detailed service descriptions.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the Time and Materials pricing model may limit the effectiveness of initial price competition.
Taxpayer Impact: Taxpayer funds are used for essential audit services, with the cost influenced by the competitive award and the chosen pricing structure.
Public Impact
Ensures accountability for federal spending through independent audits. Supports the integrity of financial assistance and contractual awards. Provides critical oversight for ARRA-funded projects and other departmental initiatives.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing can inflate costs without strict oversight.
- Potential for scope creep in 'other non-ARRA auditing services'.
Positive Signals
- Awarded through full and open competition.
- Supports critical financial oversight functions.
Sector Analysis
This contract falls within the professional services sector, specifically accounting and auditing. Spending benchmarks for such services vary widely based on complexity and duration, but $20.9M over approximately 6 years is a significant investment.
Small Business Impact
The contract was awarded to KPMG LLP, a large public accounting firm. There is no indication that small businesses were involved as prime contractors or significant subcontractors in this award.
Oversight & Accountability
The contract's duration and the nature of audit services necessitate ongoing oversight to ensure compliance and cost control. The Department of Energy is responsible for monitoring performance and expenditures.
Related Government Programs
- Offices of Certified Public Accountants
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Time and Materials pricing
- Potential for undefined scope in 'other non-ARRA auditing services'
- Long contract duration (approx. 6 years)
Tags
offices-of-certified-public-accountants, department-of-energy, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $20.9 million to KPMG LLP. TAS::89 0328:: TAS RECOVERY: PERFORM AUDIT SERVICES IN SUPPORT OF BOTH FINANCIAL ASSISTANCE AND CONTRACTUAL INSTRUMENT AWARDS DEPARTMENT-WIDE.ALTHOUGH THE FOCUS OF THIS CONTRACT IS FOR AUDITING ARRA WORK, OTHER NON-ARRA AUDITING SERVICES MAY ALSO BE ORDERED.
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 $20.9 million.
What is the period of performance?
Start: 2010-05-12. End: 2016-03-31.
What was the total cost of the contract and how does it compare to similar audit service contracts?
The contract totaled $20,939,927.18. Comparing this to similar contracts is challenging without specific details on the scope, duration, and complexity of the audit services provided. However, for a six-year period, this represents a substantial investment in audit functions.
What are the primary risks associated with the Time and Materials pricing structure in this contract?
The main risk with Time and Materials (T&M) is the potential for cost escalation if labor hours and material costs are not tightly controlled and monitored. This structure can incentivize longer project durations and potentially higher overall costs compared to fixed-price contracts.
How effectively does this contract support the Department of Energy's mission regarding financial accountability?
This contract is designed to enhance financial accountability by providing essential audit services for financial assistance and contractual awards, including ARRA-funded work. The engagement of a reputable firm like KPMG LLP suggests a commitment to robust oversight, contributing to the department's mission.
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: DE-SOL-0000873
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Kpmg L.L.P.
Address: 1801 K ST NW STE 12000, WASHINGTON, DC, 20006
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $50,305,013
Exercised Options: $50,305,013
Current Obligation: $20,939,927
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS23F8127H
IDV Type: FSS
Timeline
Start Date: 2010-05-12
Current End Date: 2016-03-31
Potential End Date: 2019-07-11 00:00:00
Last Modified: 2025-04-02
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