FCC Awards $49.3M Contract to Ernst & Young for Accounting Services
Contract Overview
Contract Amount: $49,277,981 ($49.3M)
Contractor: Ernst & Young LLP
Awarding Agency: Federal Communications Commission
Start Date: 2017-01-11
End Date: 2026-09-30
Contract Duration: 3,549 days
Daily Burn Rate: $13.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: LABOR HOURS
Sector: Other
Official Description: IGF::OT::IGF - NAICS: 541611S - PSC: R710 - GSA MOBIS SIN 874-1
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20554
Plain-Language Summary
Federal Communications Commission obligated $49.3 million to ERNST & YOUNG LLP for work described as: IGF::OT::IGF - NAICS: 541611S - PSC: R710 - GSA MOBIS SIN 874-1 Key points: 1. Contract awarded to a single, well-known firm, Ernst & Young LLP. 2. Services are in the accounting sector, supporting the FCC's financial operations. 3. The contract duration is substantial, spanning nearly 10 years. 4. Potential for cost savings or efficiencies through specialized accounting expertise.
Value Assessment
Rating: good
The contract value of $49.3 million over nearly 10 years suggests a reasonable annual spend. Benchmarking against similar accounting service contracts for federal agencies of the FCC's size would provide a clearer picture of its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. This method is generally expected to yield fair market prices.
Taxpayer Impact: Taxpayer funds are being used for essential accounting services to ensure financial integrity and compliance within the FCC.
Public Impact
Ensures accurate financial reporting and compliance for the Federal Communications Commission. Supports the FCC's mission by providing critical accounting and auditing functions. Potential impact on regulatory enforcement and financial oversight due to reliable accounting data.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to price increases over time.
- Reliance on a single vendor for critical accounting functions.
Positive Signals
- Awarded through full and open competition.
- Experienced and reputable contractor.
- Supports essential government functions.
Sector Analysis
This contract falls within the professional services sector, specifically accounting. Federal spending on accounting and auditing services is common across agencies to ensure financial accountability and compliance with regulations.
Small Business Impact
The contract was awarded to Ernst & Young LLP, a large business. There is no indication of small business participation in this specific award.
Oversight & Accountability
The Federal Communications Commission is responsible for overseeing this contract. Standard government oversight procedures for contract performance and financial management would apply.
Related Government Programs
- Offices of Certified Public Accountants
- Federal Communications Commission Contracting
- Federal Communications Commission Programs
Risk Flags
- Long contract duration may not reflect current market rates.
- Potential for scope creep or unmanaged cost increases.
- Lack of explicit small business subcontracting goals.
- Dependence on a single large contractor for critical functions.
Tags
offices-of-certified-public-accountants, federal-communications-commission, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Federal Communications Commission awarded $49.3 million to ERNST & YOUNG LLP. IGF::OT::IGF - NAICS: 541611S - PSC: R710 - GSA MOBIS SIN 874-1
Who is the contractor on this award?
The obligated recipient is ERNST & YOUNG LLP.
Which agency awarded this contract?
Awarding agency: Federal Communications Commission (Federal Communications Commission).
What is the total obligated amount?
The obligated amount is $49.3 million.
What is the period of performance?
Start: 2017-01-11. End: 2026-09-30.
What specific accounting services are included in this contract, and how do they align with the FCC's core mission?
The contract likely encompasses a range of accounting services such as financial statement preparation, auditing, internal control assessments, and potentially advisory services related to financial regulations. These services are crucial for the FCC to maintain financial transparency, ensure compliance with federal accounting standards, and support its regulatory and operational functions effectively.
Are there any performance metrics or key performance indicators (KPIs) defined in the contract to ensure service quality and value?
While not explicitly detailed in the provided data, federal contracts of this nature typically include performance standards and KPIs. These would likely focus on timeliness of deliverables, accuracy of financial reporting, adherence to accounting principles, and overall client satisfaction from the FCC. Regular performance reviews would assess the contractor's adherence to these metrics.
How does the pricing structure, particularly the 'LABOR HOURS' type, compare to industry benchmarks for similar federal accounting contracts?
Contracts based on 'LABOR HOURS' can be variable. A thorough benchmark would compare the average hourly rates for different labor categories against similar contracts awarded by agencies of comparable size and complexity. Without specific rate details, it's difficult to definitively assess if the pricing is competitive, though full and open competition suggests an attempt at fair pricing.
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: FCC16Q0009
Offers Received: 3
Pricing Type: LABOR HOURS (Z)
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: $55,293,758
Exercised Options: $51,139,992
Current Obligation: $49,277,981
Actual Outlays: $35,384,019
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: GS00F290CA
IDV Type: FSS
Timeline
Start Date: 2017-01-11
Current End Date: 2026-09-30
Potential End Date: 2028-09-30 00:00:00
Last Modified: 2025-08-29
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