DOE's $45M Audit Contract with KPMG LLP: A Deep Dive into Management Consulting Services
Contract Overview
Contract Amount: $45,001,911 ($45.0M)
Contractor: Kpmg LLP
Awarding Agency: Department of Energy
Start Date: 2014-03-31
End Date: 2019-11-30
Contract Duration: 2,070 days
Daily Burn Rate: $21.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: IGF::CT::IGF PROVIDE FINANCIAL STATEMENT AUDITS TO THE DEPARTMENT OF ENERGY.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $45.0 million to KPMG LLP for work described as: IGF::CT::IGF PROVIDE FINANCIAL STATEMENT AUDITS TO THE DEPARTMENT OF ENERGY. Key points: 1. The Department of Energy awarded a significant contract for financial statement audits, highlighting the need for robust financial oversight. 2. KPMG LLP, a major player in the audit and consulting space, secured this contract, indicating a competitive landscape for such services. 3. The contract's duration and value suggest a substantial commitment to ensuring financial integrity within the agency. 4. The use of Administrative Management and General Management Consulting Services (NAICS 541611) points to the complexity of the agency's financial operations.
Value Assessment
Rating: good
The contract value of $45M over approximately 5 years suggests a reasonable rate for comprehensive financial audit services from a reputable firm like KPMG. Benchmarking against similar large-scale government audit contracts would provide a more precise 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 bidders had the opportunity to compete. This process generally leads to better price discovery and value for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for essential services like financial audits.
Public Impact
Ensures accountability and transparency in the Department of Energy's financial reporting. Supports the integrity of federal financial statements, crucial for public trust. Provides independent assurance on the accuracy and fairness of the agency's financial position. Contributes to the overall stability and reliability of government financial management.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in audit services.
- Reliance on a single large firm for critical financial oversight.
Positive Signals
- Awarded through full and open competition.
- Performed by a well-established audit firm.
- Addresses a critical government function (financial audits).
Sector Analysis
The Department of Energy's spending in management consulting, particularly for financial audits, is crucial for maintaining regulatory compliance and public trust. Benchmarks for similar audit contracts within large federal agencies can vary significantly based on agency size and complexity.
Small Business Impact
This contract was awarded to a large, established firm (KPMG LLP) and does not appear to have specific provisions for small business participation. The nature of large-scale financial audits often favors firms with extensive resources and established track records.
Oversight & Accountability
The Inspector General's office within the Department of Energy likely provides oversight for these audit services, ensuring adherence to contract terms and quality standards. Regular reporting and performance reviews are standard accountability mechanisms.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Contract duration is substantial (over 5 years).
- Awarded to a single large, well-known firm.
- No explicit small business subcontracting noted.
- Potential for vendor lock-in.
- Reliance on external auditors for critical financial assurance.
Tags
administrative-management-and-general-ma, department-of-energy, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $45.0 million to KPMG LLP. IGF::CT::IGF PROVIDE FINANCIAL STATEMENT AUDITS TO THE DEPARTMENT OF ENERGY.
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 $45.0 million.
What is the period of performance?
Start: 2014-03-31. End: 2019-11-30.
What is the primary objective of these financial statement audits for the Department of Energy?
The primary objective is to provide an independent and objective examination of the Department of Energy's financial statements. This ensures that the statements present a true and fair view of the agency's financial position, results of operations, and cash flows, in accordance with applicable accounting principles. It enhances accountability, transparency, and public trust in the government's financial management.
What are the potential risks associated with relying on a single large firm for extensive audit services?
Relying on a single large firm can pose risks such as a lack of diverse perspectives, potential for complacency, and increased vulnerability if the firm faces issues. There's also a risk of over-reliance, where the agency might become less adept at internal financial oversight. Furthermore, the concentration of such a critical function with one entity could raise concerns about market concentration and long-term competition.
How does this contract contribute to the overall effectiveness of the Department of Energy's operations?
By ensuring the accuracy and reliability of financial reporting, this contract indirectly enhances the effectiveness of the Department of Energy's operations. Reliable financial data supports better decision-making, resource allocation, and strategic planning. It also bolsters confidence among stakeholders, including Congress and the public, in the agency's stewardship of taxpayer funds, which is fundamental to its operational legitimacy.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
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
Offers Received: 1
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Kpmg L.L.P. (UEI: 001667906)
Address: 345 PARK AVE, NEW YORK, NY, 10154
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $60,631,845
Exercised Options: $60,631,845
Current Obligation: $45,001,911
Subaward Activity
Number of Subawards: 9
Total Subaward Amount: $1,916,514
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS10F0351L
IDV Type: FSS
Timeline
Start Date: 2014-03-31
Current End Date: 2019-11-30
Potential End Date: 2019-11-30 00:00:00
Last Modified: 2019-04-03
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