Army Corps of Engineers Audit Costs $21M, Awarded via Full and Open Competition to KPMG LLP

Contract Overview

Contract Amount: $20,973,619 ($21.0M)

Contractor: Kpmg LLP

Awarding Agency: Department of Defense

Start Date: 2014-01-08

End Date: 2017-12-31

Contract Duration: 1,453 days

Daily Burn Rate: $14.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF US ARMY CORPS OF ENGINEERS CIVIL WORKS FINANCIAL STATEMENT AUDIT FY2014

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20036

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $21.0 million to KPMG LLP for work described as: IGF::CT::IGF US ARMY CORPS OF ENGINEERS CIVIL WORKS FINANCIAL STATEMENT AUDIT FY2014 Key points: 1. The contract for the Army Corps of Engineers Civil Works Financial Statement Audit FY2014 was awarded for $20,973,618.55. 2. Competition was full and open, indicating a competitive bidding process. 3. The contract was awarded to KPMG LLP, a well-known accounting firm. 4. The contract duration was 1453 days, ending in December 2017. 5. The primary service code (PSC) is not specified, making direct sector benchmarking difficult.

Value Assessment

Rating: fair

The contract value of approximately $21 million for a multi-year audit is substantial. Without specific benchmarks for similar large-scale government financial statement audits, it's difficult to definitively assess if the pricing is excellent or concerning. However, the use of a firm-fixed-price contract suggests an attempt to control costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. The use of a firm-fixed-price contract further supports price discovery by establishing a set cost for the services rendered.

Taxpayer Impact: Taxpayer funds were used for this audit. The competitive nature of the award aims to ensure value for money, but the total cost is significant.

Public Impact

Ensures financial accountability and transparency for a major federal agency. Provides an independent assessment of the Army Corps of Engineers' financial statements. Supports public trust by verifying the proper use of taxpayer funds.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific PSC makes sector comparison challenging.
Long contract duration could introduce cost escalation risks if not managed well.

Positive Signals

Awarded through full and open competition.
Firm-fixed-price contract provides cost certainty.
Audit performed by a reputable firm (KPMG LLP).

Sector Analysis

This contract falls within the professional services sector, specifically accounting and auditing. Government audits of large financial statements are complex and typically command significant fees, reflecting the scope and expertise required. Benchmarking is difficult without more specific service details.

Small Business Impact

The data indicates the award went to KPMG LLP, a large, established firm. There is no indication that small businesses were involved as prime contractors or significant subcontractors in this particular award.

Oversight & Accountability

The contract was awarded by the Department of Defense's Defense Finance and Accounting Service (DFAS) to the Army Corps of Engineers. Oversight would involve DFAS ensuring the audit meets federal standards and the Corps of Engineers providing necessary access and documentation.

Related Government Programs

Offices of Certified Public Accountants
Department of Defense Contracting
Defense Finance and Accounting Service Programs

Risk Flags

High contract value.
Long contract duration.
Lack of detailed scope of work.
Audit findings not provided.
Potential for unstated risks in large financial statement audits.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.0 million to KPMG LLP. IGF::CT::IGF US ARMY CORPS OF ENGINEERS CIVIL WORKS FINANCIAL STATEMENT AUDIT FY2014

Who is the contractor on this award?

The obligated recipient is KPMG 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 $21.0 million.

What is the period of performance?

Start: 2014-01-08. End: 2017-12-31.

What was the specific scope of work for this audit, and how does it compare to similar audits in terms of complexity?

The provided data does not detail the specific scope of work beyond 'Civil Works Financial Statement Audit FY2014'. Understanding the complexity requires examining the audit objectives, the volume of transactions, the number of accounts audited, and any specific compliance requirements. Without this granular detail, direct comparison to similar audits is speculative, impacting a precise value assessment.

What were the key findings of the audit, and did they lead to any corrective actions or cost savings?

The provided data focuses on contract award details and does not include the audit's findings or subsequent actions. To assess effectiveness and taxpayer impact beyond the contract cost, reviewing the audit report itself is necessary. Findings could range from clean opinions to material weaknesses, each having different implications for financial management and potential cost implications.

How did the final cost compare to the initial bid or estimated cost for this audit engagement?

The data presents the awarded amount ($20,973,618.55) as a total figure. It does not specify if this was the final cost after potential modifications or if it was the initial bid price. A firm-fixed-price contract generally aims to lock in costs, but variations can occur. Comparing the awarded amount to initial bids or estimates would provide insight into cost control and negotiation effectiveness.

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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Kpmg L.L.P. (UEI: 001667906)

Address: 1801 K ST NW STE 12000, WASHINGTON, DC, 20006

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,204,451

Exercised Options: $20,973,619

Current Obligation: $20,973,619

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $2,448,170

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS23F8127H

IDV Type: FSS

Timeline