USMC SBR contract awarded to Grant Thornton LLP for $24.4M in accounting services

Contract Overview

Contract Amount: $24,426,066 ($24.4M)

Contractor: Grant Thornton LLP

Awarding Agency: Department of Defense

Start Date: 2009-09-09

End Date: 2014-03-15

Contract Duration: 1,648 days

Daily Burn Rate: $14.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: USMC SBR - FY2010

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA (CITY) County, VIRGINIA, 22314, UNITED STATES OF AMERICA

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $24.4 million to GRANT THORNTON LLP for work described as: USMC SBR - FY2010 Key points: 1. Contract awarded for accounting services, indicating a need for financial management support. 2. The contract duration of 1648 days suggests a significant, long-term requirement. 3. Awarded under full and open competition, implying a robust bidding process. 4. The fixed-price contract type aims to control costs and provide budget certainty. 5. The North American Industry Classification System (NAICS) code 541219 points to specialized accounting services. 6. The contract was awarded by the Defense Finance and Accounting Service, a key financial hub for the DoD.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details and comparable contract data. However, the award amount of approximately $24.4 million over roughly 4.5 years suggests a substantial investment in accounting services. The fixed-price nature of the contract is a positive indicator for cost control, but the overall value for money depends heavily on the quality and effectiveness of the services delivered by Grant Thornton LLP.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 3 bidders suggests a moderate level of competition for this accounting services requirement. While not a highly contested bid, the open competition provides a baseline for price discovery and ensures that the government received proposals from multiple qualified firms.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and better service offerings.

Public Impact

The US Marine Corps benefits from enhanced financial management and accounting support. Specialized accounting services are delivered to support the operational and administrative functions of the Marine Corps. The contract's impact is primarily within the Department of Defense's financial infrastructure. The workforce implications are related to the personnel at Grant Thornton LLP providing these accounting services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the defined accounting services are not clearly delineated.
Reliance on a single contractor for critical accounting functions could pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent procurement process.
Fixed-price contract type helps to manage and control costs for the government.
Contractor has a track record, implying experience in delivering similar services.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically accounting services. The market for government accounting services is substantial, driven by the complex financial reporting and auditing requirements of federal agencies. Comparable spending benchmarks would typically involve analyzing other large-scale accounting support contracts awarded to major firms within the defense and federal sectors.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Therefore, its direct impact on small business participation is likely minimal, unless Grant Thornton LLP engages small businesses as subcontractors. The primary beneficiaries of this contract are likely larger firms capable of competing for and executing such a significant service requirement.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Finance and Accounting Service (DFAS). The fixed-price contract type provides a degree of accountability by linking payment to deliverables. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight activities are often internal to the agency.

Related Government Programs

Department of Defense Financial Management
Marine Corps Financial Operations
Federal Accounting Services
Contracting and Procurement

Risk Flags

Contract duration is substantial, requiring careful performance monitoring.
Scope of 'Other Accounting Services' needs clear definition to prevent disputes.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.4 million to GRANT THORNTON LLP. USMC SBR - FY2010

Who is the contractor on this award?

The obligated recipient is GRANT THORNTON LLP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Finance and Accounting Service).

What is the total obligated amount?

The obligated amount is $24.4 million.

What is the period of performance?

Start: 2009-09-09. End: 2014-03-15.

What is the specific nature of the accounting services provided under this contract?

The provided data indicates the NAICS code is 541219, which covers 'Other Accounting Services'. This suggests the contract is for services beyond basic bookkeeping or tax preparation, potentially including financial analysis, auditing support, accounting system implementation or maintenance, financial reporting, or advisory services related to accounting practices. Without more detailed contract documentation, the precise scope of 'Other Accounting Services' remains broad but implies a need for specialized financial expertise to support the US Marine Corps' operations.

How does the contract value of $24.4 million compare to similar accounting service contracts within the DoD?

Comparing the $24.4 million contract value requires access to a database of similar contracts awarded by the Department of Defense for accounting services. However, for a duration of approximately 4.5 years (1648 days), this amount suggests a significant, ongoing need for accounting support. Larger federal agencies often award multi-million dollar contracts for accounting services due to the complexity of their financial operations. This value is likely within the expected range for a contract of this duration supporting a major branch like the US Marine Corps, especially considering the fixed-price nature which often reflects a comprehensive service package.

What are the key performance indicators (KPIs) or deliverables expected from Grant Thornton LLP under this contract?

The provided data does not specify the key performance indicators (KPIs) or deliverables for this contract. Typically, for accounting services, KPIs might include timeliness of financial reporting, accuracy of financial statements, adherence to accounting standards (e.g., Generally Accepted Accounting Principles - GAAP), successful completion of audits, or efficiency in processing financial transactions. Deliverables would likely involve regular reports, audit findings, recommendations for process improvements, and potentially the maintenance or enhancement of accounting systems. The effectiveness of Grant Thornton LLP would be measured against these unstated but presumed contractual obligations.

What is the track record of Grant Thornton LLP in performing similar government contracts?

Grant Thornton LLP is a well-established accounting and advisory firm with a significant presence in both the private and public sectors. While specific details of their past performance on government contracts are not provided in the abbreviated data, the firm generally has experience working with federal agencies. Their track record would typically be assessed by the awarding agency based on past performance evaluations, client references, and their ability to meet contractual requirements on previous engagements. A contract of this size and duration suggests the agency had confidence in Grant Thornton's capabilities based on their prior experience or competitive proposal.

What is the potential risk associated with the fixed-price contract type for these accounting services?

The primary risk associated with a fixed-price contract type, such as 'FIRM FIXED PRICE' (FFP) indicated here, is that the contractor bears the risk of cost overruns. If Grant Thornton LLP underestimates the effort or encounters unforeseen complexities in providing the accounting services, their profit margin will decrease, or they could incur a loss. For the government, the benefit is cost certainty. However, a poorly defined scope of work could lead to disputes or the contractor potentially cutting corners to maintain profitability, which could impact service quality. Effective contract management and a clearly defined SOW are crucial to mitigate these risks.

How does the competition level (3 bidders) impact the pricing and value received by the government?

Having 3 bidders for this contract suggests a moderate level of competition. While more bidders generally lead to more competitive pricing, three offers can still provide sufficient price discovery and encourage competitive proposals. The government likely received proposals that were evaluated not only on price but also on technical merit and past performance. A moderate competition level indicates that the government likely achieved a fair market price, but it might not be as aggressively priced as a contract with numerous bidders. The value received depends on the balance struck between price, quality of service, and the contractor's ability to meet the specific needs of the USMC.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

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: $24,426,066

Exercised Options: $24,426,066

Current Obligation: $24,426,066

Parent Contract

Parent Award PIID: GS23F8196H

IDV Type: FSS

Timeline