DoD Awards Ernst & Young $54.8M Engineering Services Contract for 4 Years
Contract Overview
Contract Amount: $54,767,339 ($54.8M)
Contractor: Ernst & Young LLP
Awarding Agency: Department of Defense
Start Date: 2022-07-15
End Date: 2026-07-14
Contract Duration: 1,460 days
Daily Burn Rate: $37.5K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: CONTRACT AWARD
Place of Performance
Location: FORT WASHINGTON, PRINCE GEORGES County, MARYLAND, 20744
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $54.8 million to ERNST & YOUNG LLP for work described as: CONTRACT AWARD Key points: 1. Contract awarded to Ernst & Young LLP for engineering services. 2. The contract has a value of $54.8 million and a duration of 4 years. 3. Competition was conducted under Simplified Acquisition Procedures (SAP). 4. The contract is a Firm Fixed Price type. 5. The award is for services in Maryland.
Value Assessment
Rating: fair
The contract value of $54.8 million for 4 years of engineering services appears reasonable given the scope. Benchmarking against similar large-scale engineering support contracts for the Department of Defense is necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under Simplified Acquisition Procedures (SAP), suggesting a limited competition environment. This method may not always yield the most competitive pricing compared to full and open competition.
Taxpayer Impact: The $54.8 million expenditure represents taxpayer funds allocated for essential engineering services. The effectiveness of the competition method will influence the overall value for money.
Public Impact
Supports critical Department of Defense engineering needs. Potential impact on military readiness and technological advancement. Economic activity generated in Maryland through this contract.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition under SAP
- Potential for cost overruns if scope expands
- Reliance on a single contractor for critical services
Positive Signals
- Clear contract duration and pricing structure
- Awarded to a well-established firm
- Supports essential government functions
Sector Analysis
Engineering services are crucial for the Department of Defense's infrastructure and technological development. Spending in this sector can vary widely based on project complexity and national security priorities.
Small Business Impact
This contract was awarded to Ernst & Young LLP, a large business. There is no indication of small business participation in this specific award, which could be an area for future consideration.
Oversight & Accountability
Oversight will be crucial to ensure Ernst & Young LLP meets all performance requirements and stays within budget. The Department of the Air Force will be responsible for monitoring contract execution and contractor performance.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for scope creep leading to cost increases.
- Limited competition may result in suboptimal pricing.
- Dependence on contractor performance for critical engineering functions.
- Lack of explicit small business subcontracting goals.
Tags
engineering-services, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $54.8 million to ERNST & YOUNG LLP. CONTRACT AWARD
Who is the contractor on this award?
The obligated recipient is ERNST & YOUNG 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 $54.8 million.
What is the period of performance?
Start: 2022-07-15. End: 2026-07-14.
What specific engineering services are included in this $54.8 million contract, and how do they align with current Air Force priorities?
The contract is for general engineering services (NAICS 541330). While the data doesn't specify the exact services, they likely encompass areas such as systems engineering, technical support, design, analysis, and project management critical for Air Force operations and modernization efforts. Alignment with priorities would require a deeper dive into the Statement of Work.
Given the limited competition under SAP, what measures are in place to mitigate the risk of paying an inflated price for these engineering services?
While SAP limits full and open competition, the government typically employs techniques like market research, price analysis of historical data, and negotiation to ensure fair and reasonable pricing. The firm-fixed-price structure also shifts some cost risk to the contractor, incentivizing efficiency.
How will the effectiveness of Ernst & Young's performance be measured throughout the 4-year contract duration to ensure optimal value for taxpayer dollars?
Effectiveness will be measured through performance metrics outlined in the contract's Statement of Work and Quality Assurance Surveillance Plan (QASP). Key Performance Indicators (KPIs) related to timeliness, quality of deliverables, technical accuracy, and responsiveness will likely be tracked by the Contracting Officer's Representative (COR).
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $75,016,604
Exercised Options: $63,711,338
Current Obligation: $54,767,339
Actual Outlays: $7,518,699
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2022-07-15
Current End Date: 2026-07-14
Potential End Date: 2027-07-14 00:00:00
Last Modified: 2025-09-17
More Contracts from Ernst & Young LLP
- Base Award - FY18-20 Army General Fund Audit Support — $812.6M (Department of Defense)
- THE Department of the Navy and the United States Marine Corps Financial Statement Audits for Fiscal Years 2021-2025 — $338.6M (Department of Defense)
- United States AIR Force Audit Fiscal Years 2022-2026 — $192.6M (Department of Defense)
- Financial Mangement Internal Controls — $150.3M (General Services Administration)
- Audit of the Department of the AIR Force General Fund and Working Capital Fund Financial Statements and an Examination of the Statement on Standards for Attestation Engagements, NO. 18 (ssae18) of the Defense Enterprise Accounting and Management System (deams) — $122.2M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)