DLA Audit Contract Awarded to Ernst & Young LLP for $29M, Covering FY26-30
Contract Overview
Contract Amount: $29,074,627 ($29.1M)
Contractor: Ernst & Young LLP
Awarding Agency: Department of Defense
Start Date: 2025-11-01
End Date: 2026-12-31
Contract Duration: 425 days
Daily Burn Rate: $68.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: LABOR HOURS
Sector: Other
Official Description: DEFENSE LOGISTICS AGENCY AUDIT FISCAL YEARS 26-30
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005
Plain-Language Summary
Department of Defense obligated $29.1 million to ERNST & YOUNG LLP for work described as: DEFENSE LOGISTICS AGENCY AUDIT FISCAL YEARS 26-30 Key points: 1. Contract value of $29.07M for audit services. 2. Ernst & Young LLP selected through full and open competition. 3. Potential risks include audit scope limitations and data integrity. 4. Spending falls within the professional services sector.
Value Assessment
Rating: good
The contract value of $29.07M for a 425-day period appears reasonable for comprehensive audit services. Benchmarking against similar large-scale government audits would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple qualified firms can bid.
Taxpayer Impact: The competitive award process is expected to yield fair pricing, ensuring taxpayer funds are used efficiently for essential audit functions.
Public Impact
Ensures financial accountability and transparency for the Defense Logistics Agency. Supports the integrity of defense spending through independent audit. Provides assurance to stakeholders on the accuracy of financial statements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Audit scope may not cover all emerging risks.
- Reliance on DLA data could introduce bias.
- Potential for cost overruns if scope expands.
Positive Signals
- Independent audit enhances financial credibility.
- Competitive award ensures value for money.
- Experienced auditor selected.
Sector Analysis
This contract falls under professional services, specifically accounting and auditing. Government spending in this sector is crucial for regulatory compliance and financial oversight, with benchmarks varying based on contract complexity and duration.
Small Business Impact
The contract was awarded through full and open competition, which typically favors larger, established firms. There is no explicit indication of small business participation in this specific award.
Oversight & Accountability
The Defense Finance and Accounting Service (DFAS) is overseeing this contract. Regular reporting and performance reviews are standard oversight mechanisms to ensure contract compliance and quality.
Related Government Programs
- Offices of Certified Public Accountants
- Department of Defense Contracting
- Defense Finance and Accounting Service Programs
Risk Flags
- Audit scope limitations
- Data integrity reliance
- Potential for scope creep
- Contractor performance variability
Tags
offices-of-certified-public-accountants, department-of-defense, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.1 million to ERNST & YOUNG LLP. DEFENSE LOGISTICS AGENCY AUDIT FISCAL YEARS 26-30
Who is the contractor on this award?
The obligated recipient is ERNST & YOUNG 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 $29.1 million.
What is the period of performance?
Start: 2025-11-01. End: 2026-12-31.
What is the specific scope of the audit and are there any exclusions?
The provided data does not detail the specific scope of the audit beyond its designation as 'DEFENSE LOGISTICS AGENCY AUDIT'. A comprehensive understanding of exclusions, specific financial areas to be covered, and the depth of examination is crucial for assessing the audit's true value and potential limitations.
How will the independence and objectivity of Ernst & Young LLP be ensured throughout the audit process?
Independence and objectivity are typically ensured through contractual clauses, professional ethical standards (e.g., AICPA, GAO), and oversight by the contracting agency. Regular communication, review of work papers, and adherence to auditing standards are key mechanisms to maintain impartiality and ensure the audit's integrity.
What are the key performance indicators (KPIs) for this audit contract?
Key performance indicators for such an audit contract would likely include timeliness of deliverables, adherence to audit standards, accuracy of findings, and overall quality of the audit report. The contracting agency would monitor these KPIs to ensure the contractor meets expectations and provides valuable, reliable audit services.
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: HQ042325QE030
Offers Received: 1
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: $153,538,162
Exercised Options: $29,161,323
Current Obligation: $29,074,627
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00F290CA
IDV Type: FSS
Timeline
Start Date: 2025-11-01
Current End Date: 2026-12-31
Potential End Date: 2030-12-31 00:00:00
Last Modified: 2025-12-18
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