DHS Spends $40M on CBP Professional Services via BPA Call with Grant Thornton LLP

Contract Overview

Contract Amount: $40,155,547 ($40.2M)

Contractor: Grant Thornton LLP

Awarding Agency: Department of Homeland Security

Start Date: 2014-07-22

End Date: 2018-09-14

Contract Duration: 1,515 days

Daily Burn Rate: $26.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::CL,CT::IGF PROFESSIONAL SERVICES FOR THE CUSTOMS AND BORDER PROTECTION INVESTMENT ANALYSIS OFFICE (IAO).

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $40.2 million to GRANT THORNTON LLP for work described as: IGF::CL,CT::IGF PROFESSIONAL SERVICES FOR THE CUSTOMS AND BORDER PROTECTION INVESTMENT ANALYSIS OFFICE (IAO). Key points: 1. Contract awarded to Grant Thornton LLP for accounting services. 2. Spending reached $40.16 million over its 4-year duration. 3. Awarded under a Blanket Purchase Agreement (BPA) Call. 4. No small business participation noted.

Value Assessment

Rating: fair

The contract's total value of $40.16 million over four years suggests a significant investment. Without specific deliverables or performance metrics, it's difficult to definitively assess value for money compared to similar accounting service contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a competitive bidding process. However, the use of a BPA Call suggests it was likely a task order under a pre-existing agreement, which may have influenced price discovery.

Taxpayer Impact: Taxpayer funds were utilized for professional accounting services. The value received for the $40.16 million spent is a key consideration for taxpayer impact.

Public Impact

Significant federal spending on professional services for a key agency. Contract duration of over four years indicates ongoing need. Lack of small business involvement may limit broader economic participation. Transparency regarding specific services rendered and outcomes is crucial.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation
Time and Materials contract type can lead to cost overruns if not managed closely

Positive Signals

Full and open competition utilized
Awarded under a BPA Call, potentially streamlining procurement

Sector Analysis

Professional services, particularly accounting, are crucial for government operations. The $40.16 million spent falls within a typical range for large-scale federal contracts of this nature, depending on the scope and complexity of services provided.

Small Business Impact

The contract data indicates no small business participation (ss: false, sb: false). This suggests that the prime contractor, Grant Thornton LLP, did not subcontract with small businesses for this award, potentially missing opportunities to leverage smaller, specialized firms.

Oversight & Accountability

The contract was awarded under a BPA Call, which is a method of procurement that can streamline the process. Oversight would be critical to ensure the Time and Materials contract type did not lead to excessive costs and that services delivered met the needs of CBP's Investment Analysis Office.

Related Government Programs

Other Accounting Services
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Time and Materials contract type
No small business participation
Lack of specific service details
Potential for cost overruns with T&M

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $40.2 million to GRANT THORNTON LLP. IGF::CL,CT::IGF PROFESSIONAL SERVICES FOR THE CUSTOMS AND BORDER PROTECTION INVESTMENT ANALYSIS OFFICE (IAO).

Who is the contractor on this award?

The obligated recipient is GRANT THORNTON LLP.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $40.2 million.

What is the period of performance?

Start: 2014-07-22. End: 2018-09-14.

What specific accounting and investment analysis services were provided under this contract, and how did they contribute to CBP's mission?

The contract details do not specify the exact services rendered beyond 'Other Accounting Services.' To assess value, a breakdown of deliverables, such as financial reporting, audit support, investment feasibility studies, or risk assessments, would be necessary. Understanding how these services directly supported CBP's investment decisions and operational efficiency is key to evaluating their contribution.

What were the key factors that led to the $40.16 million expenditure over four years, and were there any cost-saving measures implemented?

The Time and Materials (T&M) contract type, combined with a duration of 1515 days (approx. 4 years), contributed to the total expenditure. Without detailed task orders or performance reports, it's difficult to pinpoint specific cost drivers. However, T&M contracts inherently carry a risk of cost escalation if not rigorously managed and monitored for efficiency and necessity of hours billed.

How effective was the full and open competition in ensuring competitive pricing for these professional services?

While the contract was awarded under full and open competition, the use of a BPA Call suggests it was a task order against a pre-existing contract. The effectiveness of price discovery depends on the terms of the underlying BPA and the specific solicitation for this call. A competitive bidding process for the BPA itself and for individual task orders is crucial for ensuring fair market prices.

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: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 333 JOHN CARLYLE ST STE 500, ALEXANDRIA, VA, 22314

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

Financial Breakdown

Contract Ceiling: $47,460,486

Exercised Options: $40,155,547

Current Obligation: $40,155,547

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: HSHQDC13A00004

IDV Type: BPA

Timeline