DoD's $102M Digital Transformation Contract with KPMG LLP Faces Scrutiny for Value and Competition
Contract Overview
Contract Amount: $102,195,119 ($102.2M)
Contractor: Kpmg LLP
Awarding Agency: Department of Defense
Start Date: 2020-09-10
End Date: 2024-03-09
Contract Duration: 1,276 days
Daily Burn Rate: $80.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: PKS-TERRY-WARD-AF A1 DIGITAL TRANSFORMATION STS
Place of Performance
Location: JBSA FT SAM HOUSTON, BEXAR County, TEXAS, 78234
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $102.2 million to KPMG LLP for work described as: PKS-TERRY-WARD-AF A1 DIGITAL TRANSFORMATION STS Key points: 1. Significant investment in digital transformation for the Air Force. 2. KPMG LLP, a major consulting firm, is the awardee. 3. Concerns exist regarding the value proposition and potential for better price discovery. 4. The contract falls within the Administrative Management and General Management Consulting Services sector.
Value Assessment
Rating: questionable
The $102 million contract for digital transformation services is substantial. Without detailed performance metrics and comparison to similar engagements, assessing its value for money is difficult. The fixed-price nature suggests some cost control, but the overall effectiveness needs further evaluation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is positive for price discovery. However, the specific impact of this competition on achieving optimal pricing for complex digital transformation services requires deeper analysis.
Taxpayer Impact: Taxpayer funds are being utilized for a large-scale digital transformation initiative. Ensuring efficient use of these funds through competitive awards and demonstrated value is crucial for public trust.
Public Impact
Modernization of Air Force digital capabilities could improve operational efficiency. Investment in technology may lead to enhanced national security readiness. Public funds are directed towards a critical area of government modernization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Value for money assessment needed
- Performance metrics unclear
- Potential for cost overruns in complex projects
Positive Signals
- Awarded under full and open competition
- Focus on critical digital transformation
Sector Analysis
This contract falls under Administrative Management and General Management Consulting Services, a broad category often involving strategic advice and implementation. Benchmarks for digital transformation consulting can vary widely based on scope and complexity.
Small Business Impact
The awardee, KPMG LLP, is a large business. There is no indication that small businesses were specifically included or subcontracted in this particular award, which could be an area for future consideration.
Oversight & Accountability
Oversight will be critical to ensure the Air Force receives the intended benefits from this digital transformation initiative. Regular performance reviews and audits are necessary to maintain accountability and manage risks.
Related Government Programs
- Administrative Management and General Management Consulting Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of clear performance metrics
- Potential for scope creep in digital transformation
- High contract value requires robust oversight
- Assessing true value for money is challenging
Tags
administrative-management-and-general-ma, department-of-defense, tx, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $102.2 million to KPMG LLP. PKS-TERRY-WARD-AF A1 DIGITAL TRANSFORMATION STS
Who is the contractor on this award?
The obligated recipient is KPMG LLP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $102.2 million.
What is the period of performance?
Start: 2020-09-10. End: 2024-03-09.
What specific digital transformation capabilities are being acquired, and how do they align with the Air Force's strategic objectives?
The contract aims to enhance the Air Force's digital infrastructure and capabilities. This likely includes modernizing IT systems, implementing new software, and improving data management to support operational efficiency and readiness. Alignment with strategic objectives would involve assessing how these upgrades contribute to mission success and future warfighting concepts.
What are the key performance indicators (KPIs) for this contract, and how will success be measured?
Key performance indicators are essential for evaluating the success of a large digital transformation project. These might include metrics related to system uptime, data security, user adoption rates, cost savings achieved through modernization, and the successful implementation of new digital tools and processes within the Air Force.
How does the pricing structure ensure cost-effectiveness for taxpayers over the contract's duration?
The contract utilizes a Firm Fixed Price (FFP) structure, which generally shifts cost risk to the contractor. However, the initial pricing and any subsequent modifications need careful review to ensure they reflect fair market value and that the contractor is incentivized to deliver efficiently without compromising quality.
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) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA701420STS04
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Kpmg L.L.P.
Address: 8350 BROAD ST STE 900, MCLEAN, VA, 22102
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $109,899,522
Exercised Options: $109,899,522
Current Obligation: $102,195,119
Actual Outlays: $80,107,764
Subaward Activity
Number of Subawards: 61
Total Subaward Amount: $22,744,031
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA701420D0009
IDV Type: IDC
Timeline
Start Date: 2020-09-10
Current End Date: 2024-03-09
Potential End Date: 2024-03-09 00:00:00
Last Modified: 2023-11-18
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