HHS Spends $20.7M on Internal Control Audits with Grant Thornton LLP
Contract Overview
Contract Amount: $20,745,606 ($20.7M)
Contractor: Grant Thornton LLP
Awarding Agency: Department of Health and Human Services
Start Date: 2008-02-25
End Date: 2013-06-02
Contract Duration: 1,924 days
Daily Burn Rate: $10.8K/day
Competition Type: COMPETITIVE DELIVERY ORDER
Number of Offers Received: 4
Pricing Type: FIXED PRICE LEVEL OF EFFORT
Sector: Other
Official Description: A-123 INTERNAL CONTROL AUDITS
Place of Performance
Location: BALTIMORE, BALTIMORE (CITY) County, MARYLAND, 21202, UNITED STATES OF AMERICA
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $20.7 million to GRANT THORNTON LLP for work described as: A-123 INTERNAL CONTROL AUDITS Key points: 1. Grant Thornton LLP secured a significant contract for internal control audits. 2. The contract was awarded under a competitive delivery order, suggesting some price discovery. 3. The fixed-price level-of-effort contract type may pose risks if scope creep occurs. 4. The 'Other Accounting Services' NAICS code indicates a broad category of services.
Value Assessment
Rating: fair
The contract value of $20.7 million over five years is substantial. Benchmarking against similar large-scale internal control audit contracts is necessary to fully assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
Awarded via a competitive delivery order, this method likely allowed for some price negotiation. However, the specific competition details and number of bidders are not provided, impacting the assessment of optimal price discovery.
Taxpayer Impact: Taxpayer funds are being utilized for essential internal control audits, which are crucial for government accountability. The efficiency of the spending directly impacts the value derived from these services.
Public Impact
Ensures financial integrity and compliance within the Centers for Medicare and Medicaid Services. Supports accountability by verifying internal controls over federal programs. The duration of the contract (over 5 years) suggests a long-term need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may lead to cost inefficiencies if not managed closely.
- Fixed Price Level of Effort can incentivize contractor to extend effort.
- Lack of specific competition details limits full value assessment.
Positive Signals
- Competitive award process.
- Audits are critical for government oversight.
Sector Analysis
This contract falls under professional services, specifically accounting and auditing. Spending benchmarks for similar government-wide internal control audit contracts would provide further context on the $20.7 million expenditure.
Small Business Impact
The data does not indicate any specific set-asides for small businesses. The prime contractor, Grant Thornton LLP, is a large firm, suggesting this contract was not primarily aimed at supporting small business participation.
Oversight & Accountability
The contract's nature as an internal control audit implies a focus on oversight. However, further details on specific oversight mechanisms and performance monitoring would be needed to fully assess accountability.
Related Government Programs
- Other Accounting Services
- Department of Health and Human Services Contracting
- Centers for Medicare and Medicaid Services Programs
Risk Flags
- Long contract duration.
- Fixed Price Level of Effort contract type.
- Lack of detailed competition information.
- Potential for scope creep.
Tags
other-accounting-services, department-of-health-and-human-services, md, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $20.7 million to GRANT THORNTON LLP. A-123 INTERNAL CONTROL AUDITS
Who is the contractor on this award?
The obligated recipient is GRANT THORNTON LLP.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).
What is the total obligated amount?
The obligated amount is $20.7 million.
What is the period of performance?
Start: 2008-02-25. End: 2013-06-02.
What was the specific scope of work for these internal control audits, and how did it align with the $20.7 million cost?
The provided data lacks specific details on the scope of work for the internal control audits. A comprehensive understanding of the audit objectives, methodologies, and deliverables is necessary to determine if the $20.7 million expenditure represented good value. Without this, it's difficult to assess if the cost was commensurate with the services rendered.
What were the key risks identified during the competitive delivery order process, and how were they mitigated?
The data does not detail the specific risks identified during the competitive delivery order process. While the contract type is fixed-price level-of-effort, potential risks could include scope creep or inefficient resource utilization. Effective mitigation strategies would typically involve clear performance metrics, regular progress reviews, and robust contract management by the agency.
How effectively did these audits contribute to improving the Centers for Medicare and Medicaid Services' internal controls and overall program effectiveness?
The provided data does not offer insights into the effectiveness of the audits in improving CMS's internal controls. Post-audit reports, corrective action plans, and subsequent improvements in control environments would be necessary to measure the true impact and effectiveness of Grant Thornton's work. This contract focuses on the service delivery, not the outcome measurement.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Accounting, Tax Preparation, Bookkeeping, and Payroll Services › Other Accounting Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: COMPETITIVE DELIVERY ORDER
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)
Evaluated Preference: NONE
Contractor Details
Parent Company: Grant Thornton International Ltd (UEI: 347201258)
Address: 333 JOHN CARLYLE ST STE 500, ALEXANDRIA, VA, 22314
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $20,745,606
Exercised Options: $20,745,606
Current Obligation: $20,745,606
Parent Contract
Parent Award PIID: GS23F8196H
IDV Type: FSS
Timeline
Start Date: 2008-02-25
Current End Date: 2013-06-02
Potential End Date: 2013-06-02 00:00:00
Last Modified: 2015-04-01
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