CMS CFO Audit Agreement Requisition: $23.7M Contract Awarded to Ernst & Young LLP
Contract Overview
Contract Amount: $23,675,673 ($23.7M)
Contractor: Ernst & Young LLP
Awarding Agency: Department of Health and Human Services
Start Date: 2009-03-20
End Date: 2011-12-31
Contract Duration: 1,016 days
Daily Burn Rate: $23.3K/day
Sector: Other
Official Description: CMS CFO AUDIT AGREEMENT REQUISITION IGD0007267 CONTRACT NO HHSP23320084551EB
Place of Performance
Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20857
State: Maryland Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $23.7 million to ERNST & YOUNG LLP for work described as: CMS CFO AUDIT AGREEMENT REQUISITION IGD0007267 CONTRACT NO HHSP23320084551EB Key points: 1. The contract, valued at $23.7 million, is for accounting services. 2. Ernst & Young LLP is a major player in the accounting and auditing sector. 3. The contract duration is over 3 years, indicating a significant need for these services. 4. The award was made by the Department of Health and Human Services, a large federal agency.
Value Assessment
Rating: good
The contract value of $23.7 million for audit services appears reasonable given the duration and the provider's expertise. Benchmarking against similar large-scale federal audit contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: unknown
The competition method is not specified, which makes it difficult to assess price discovery. If this was a sole-source or limited competition award, it could indicate higher costs than a full and open competition.
Taxpayer Impact: The taxpayer impact is tied to the efficiency and effectiveness of the audit services provided. Ensuring competitive pricing and thorough oversight will maximize taxpayer value.
Public Impact
Ensures financial accountability and integrity within the Centers for Medicare & Medicaid Services (CMS). Supports the Department of Health and Human Services' mission by providing essential financial oversight. The audit findings can lead to improved operational efficiency and cost savings for federal healthcare programs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of clarity on competition method
- Potential for cost overruns if not managed effectively
Positive Signals
- Award to a reputable and experienced firm
- Long-term contract suggests sustained need and potential for relationship efficiencies
Sector Analysis
This contract falls within the professional services sector, specifically accounting and auditing. Federal spending in this area is substantial, driven by regulatory requirements and the need for financial transparency across agencies.
Small Business Impact
The awardee, Ernst & Young LLP, is a large, established firm. There is no indication of small business participation in this specific award, which is common for large, specialized professional service contracts.
Oversight & Accountability
Oversight is provided by the Department of Health and Human Services. The effectiveness of this oversight will be crucial in ensuring the quality of services and managing costs throughout the contract period.
Related Government Programs
- Offices of Certified Public Accountants
- Department of Health and Human Services Contracting
- Office of the Assistant Secretary for Administration Programs
Risk Flags
- Lack of transparency in procurement method
- Potential for cost escalation over the contract duration
- Dependence on a single large contractor for critical audit functions
- Need for robust oversight to ensure service quality and value
Tags
offices-of-certified-public-accountants, department-of-health-and-human-services, md, bpa-call, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $23.7 million to ERNST & YOUNG LLP. CMS CFO AUDIT AGREEMENT REQUISITION IGD0007267 CONTRACT NO HHSP23320084551EB
Who is the contractor on this award?
The obligated recipient is ERNST & YOUNG LLP.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).
What is the total obligated amount?
The obligated amount is $23.7 million.
What is the period of performance?
Start: 2009-03-20. End: 2011-12-31.
What was the specific justification for the chosen procurement method, and how did it impact the final contract price?
The provided data does not specify the procurement method used. Understanding this is crucial for assessing price reasonableness. If it was a sole-source or limited competition, the price might be higher than if it were a full and open competition. Further investigation into the contract file would be needed to determine the justification and its impact on cost.
What are the key performance indicators (KPIs) for this audit agreement, and how will their achievement be measured to ensure value for money?
The data does not detail the specific KPIs for this audit agreement. Effective oversight would involve clearly defined metrics for audit quality, timeliness, and adherence to professional standards. Regular performance reviews against these KPIs are essential to ensure the contractor is delivering value and meeting the agency's needs efficiently.
How will the findings from Ernst & Young's audits be integrated into CMS's operational improvements and financial management practices?
The data does not specify the mechanism for integrating audit findings. A robust process should be in place for CMS to review audit reports, develop corrective action plans, and implement necessary changes. This ensures that the audit serves its purpose of improving financial management and operational effectiveness, rather than being a mere compliance exercise.
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
Contractor Details
Address: 1101 NEW YORK AVENUE, NW, WASHINGTON, DC, 20005
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $23,675,673
Exercised Options: $23,675,673
Current Obligation: $23,675,673
Parent Contract
Parent Award PIID: HHSP23320084551EB
IDV Type: BPA
Timeline
Start Date: 2009-03-20
Current End Date: 2011-12-31
Potential End Date: 2011-12-31 00:00:00
Last Modified: 2021-12-06
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